The Global Herbal Medicine Market size was USD 185.86 billion in 2020 and is projected to grow from USD 230.03 billion in 2021 to USD 430.05 billion in 2030 at a CAGR of 11.32% during the 2021-2030 period. Herbal medications are medicines that are derived from plants and are used to treat health and skin problems. Ayurveda and traditional Chinese remedies are widely employed in Asia as herbal treatments in a variety of industries. Since the last decade, the usage of antibiotic alternatives such as herbal products has increased. Herbal products are becoming increasingly popular among patients and health care providers. According to the World Health Organization, about 10 to 50 percent of people in affluent countries use herbal products regularly in some manner. The main rationale for adopting herbal medications is that they have a higher level of immunity than synthetic drugs. Herbal medicines are only sometimes inexpensive and available in developing countries like China, Japan, India, Vietnam, South Africa, and Bangladesh. Cough and cold, mental and gastrointestinal illnesses, and painful ailments such as joint discomfort, rheumatic diseases, and stiffness are the most common reasons for people to use these medications. The current trend of taking herbal supplements is likely to provide exciting chances for entrepreneurs.
 

Herbal products are becoming increasingly popular among patients and health care providers. According to the World Health Organization, about 10 to 50 percent of people in affluent countries use herbal products regularly in some manner. The main rationale for adopting herbal medications is that they have a higher level of immunity than synthetic drugs. Herbal medicines are only sometimes inexpensive and available in developing countries like China, Japan, India, Vietnam, South Africa, and Bangladesh. Cough and cold, mental and gastrointestinal illnesses, and painful ailments such as joint discomfort, rheumatic diseases, and stiffness are the most common reasons for people to use these medications. This continued trend of using herbal supplements is likely to provide significant market growth possibilities.
 

Exporters of natural ingredients from underdeveloped countries can extend their operations in developed regions by entering the cosmetics market. Natural components are in high demand in the cosmetics industry. The increased consumer awareness of natural cosmetics, as well as cosmetics businesses' increasing focus on providing natural herbal alternatives to synthetic components, are fueling this need. This trend is likely to continue during the projection period, as demand for natural components used in cosmetics and toiletry products grows. Natural components are being used to replace synthetic chemicals in cosmetics. This is mostly in response to customer demand, as well as a shift toward more sustainable raw materials.
 

Application Outlook

The pharmaceutical & nutraceutical segment is expected to dominate the market share in 2020 of the global herbal medicine market owing to dietary supplement makers and the alternative medicine business having a strong demand for herbal raw ingredients. After learning about the long-term benefits of herbal products, consumers are moving their focus away from synthetic treatments and toward herbal medicines. In the nutraceutical sector, dietary supplements such as herbal protein powders and anti-aging treatments are popular. The growing demand for herbal products from these industries is projected to continue in the long run, ensuring the pharmaceutical and nutraceutical segment's dominance in the worldwide market during the projection period.
 

Personal care & beauty products are anticipated to emerge as the fastest-growing region over the forecast period. The long-term benefits of herbal raw materials for hair, face, and skin are one of the main reasons for their rising demand in the cosmetic sector. The sales volume of herbal cosmetic goods is increasing as people become more aware of the long-term benefits of the product. The food and beverage sector is a relatively new industry that is still learning how to adapt to new products. To provide customers with alternatives to traditional drinks, major food manufacturers are entering the market with herbal-flavored drinks, juices, and milk products. This sector is predicted to increase at the fastest CAGR over the projection period, thanks to new product introductions in the coming years.
 

Form Outlook

The tablets & capsules segment is expected to dominate the market share in 2020 of global herbal medicine market owing to several such drugs being available on the market in the form of capsules and pills. In addition, the use of herbal capsules and pills is becoming increasingly common in prescriptions. This sector is likely to stay prominent on the global market during the forecast period, owing to an increase in the number of herbal products in the pharmaceutical industry.
 

The liquid & gel is anticipated to emerge as the fastest-growing region over the forecast period. The pharmaceutical, nutraceutical, and food and beverage industries all use liquid and gel products. In the liquid category, several market companies are releasing herbal drinks, such as turmeric drinks. Furthermore, herbal ingredients are utilized to make a variety of syrups that can be used to treat coughs and common colds. This area is predicted to develop at a significant CAGR due to the availability of various items in this category. Protein powders are the most common powder form products in the nutraceutical business. This category is predicted to increase at the fastest CAGR over the forecast period, thanks to the rising demand for herbal protein powders from the millennial demographic to the aging population.
 

Regional Outlook

Europe dominated the global health medicine market owing to the natural ingredient demand in personal care and beauty products increasing at the same time, and this trend is projected to continue. In response to increasing demand from European countries, Europe is likely to make a significant contribution to market growth in the future. Turmeric is becoming increasingly popular in European health goods. It is used as a supplement and in medicinal products to strengthen the immune and digestive systems as well as overall health because of its antioxidant and anti-inflammatory effects. The majority of turmeric imported into the European Union originates from India, but it also comes from Thailand, Madagascar, Peru, and Sri Lanka. The rising lifetime of the European population is a primary driver of turmeric demand.
 

North America is anticipated to emerge as the fastest-growing region over the forecast period. Owing to the growing health awareness among consumers, particularly in the United States, and a shift in people's attitudes toward natural care goods as a result of a tremendous green wave. This is due to the perception that alternative treatments have harmful consequences on people's health. This factor has aided the product's success in the US market.
 

Key Companies & Recent Developments

Partnerships, strategic mergers, and acquisitions are expected to be the most successful strategies for industry participants to get speedy access to growing markets while also improving technological capabilities. In addition, product differentiation and developments, as well as service expansion, are projected to help organizations thrive in the market. For instance, in November 2020, Antiviral immunity booster capsules under the brand name 'Viromune' have been launched across India by Kunnath Pharmaceuticals, an Indian herbal medicine manufacturer. The company hopes to generate a revenue of USD 266 million in the next three years as a result of this launch. In March 2021, Lotus Botanicals is a brand developed by Lotus, one of India's most well-known beauty firms. Consumers will be able to order Lotus Botanicals' selection of skin and hair care products exclusively through Lotus Botanicals and various third-party eCom channels through this e-commerce brand.
 

Market Segmentation of Global Herbal Medicine Market

By Application

• Pharmaceutical & Nutraceutical
• Food & Beverages
• Personal Care & Beauty Products

By Form

• Powder
• Liquid & Gel
• Tablets & Capsules

Key Players

• KPC Products Inc.
• NEXIRA
• HISHIMO PHARMACEUTICALS
• Schaper & Brümmer GmbH & Co. KG
• Sydler Group of Companies
• 21ST Century HealthCare, Inc.
• Zoic Pharmaceuticals
• Herbally Yours, Inc.
• Pharma Nord B.V.
• NATURLAND