Medicinal Herbs Market

Medicinal Herbs Market Outlook (2023 to 2033)

Worldwide sales of medicinal herbs are estimated at US$ 328 billion in 2023 and are forecasted to climb to US$ 555 billion by the end of 2033. Over the next ten years (2023 to 2033), the global medicinal herbs market is forecasted to expand steadily at 5.4% CAGR.

Herbal medicine was the earliest form of healthcare that human civilization had and this was lost with the advent of modern medicine. But the world has come full circle and herbal medicine is gaining popularity once again, which is a boon for medicinal herb suppliers.

Increasing awareness regarding the side effects associated with conventional pharmaceuticals is estimated to be the major driver for medicinal herb demand in the future. High prevalence of chronic diseases and growing demand for alternatives to conventional treatment approaches are also estimated to favour market development going forward.

Supportive government initiatives to promote the use of traditional medicine and rising awareness regarding the benefits of medicinal herbs are slated to attract more investments in the market over time.

• In September 2021, health authorities of Zanzibar, Tanzania, announced the launch of a new research project to explore and enhance the use of herbal medicines for non-communicable diseases. The initiative was to be undertaken by researchers at Zanzibar Health Research Institute and the National Institute for Medical Research.

Growing consumption of herbal supplements by health-conscious people, increasing investments in herbal medicine R&D, the widening scope of application of herbal medicines, and the rising popularity of herbal tea are other prospects that could augment market growth in the future. Turmeric tea, ginger tea, and green tea are high in demand at present.

Use of medicinal herbs for pain relief is another application scope that is gaining rapid popularity and opening up new frontiers of opportunities for medicinal herb producers and suppliers. Standardization and regulatory hurdles around herbal medicines and natural remedies have been prevalent for quite a while now but are now showing signs of ease in the future as the world recognizes the potential of herbal medicine. The easing of regulatory norms will certainly provide a new ray of hope for medicinal herb providers through 2033.

Report Attributes	Details
Medicinal Herbs Market Size (2023)	US$ 328 Billion
Projected Market Value (2033F)	US$ 555 Billion
Global Market Growth Rate (2023 to 2033)	5.4% CAGR
Calendula Market Share (2023)	~50%
Medicinal Herb Demand Growth for Cosmeceutical Use (2023 to 2033)	7% CAGR
Key Companies Profiled	Zielpol; Herbs Zaporozhye; Falcon Trading Company; Wellgreen Technology Co. Ltd.; Penn Herb Company Ltd.; Mountain Rose Herbs; Jahrom Green Kian.; Elmar D.O.O.; Himalayan Bio Trade Pvt. Ltd.; Starwest Botanicals; Sunrise Nutrachem Group Co. Ltd.; Piante Officinali San Marco; Yogi Globals; Shanxi Hongda Phytochemistry Co. Ltd.

How Can Start-ups Succeed in the Medicinal Herbs Business Landscape?

“Cultivating Medicinal Herbs to Meet High Demand Will Allow New Companies to Enter the Industry”

New medicinal herb producers are focusing on optimization of the demand and supply chain for rare medicinal herbs by raising new capital to improve their production capabilities. Collaborations and partnerships are also an important part of the start-up ecosystem as new companies try to take their business to the next level.

• In April 2023, Botalys, a start-up specializing in the cultivation of medicinal plants, revealed that it had collaborated with Seppic, a renowned specialty chemical provider to ramp up the development and distribution of new ingredients. Seppic also got distribution contracts for Botalys’ Ginseng products in different regions and countries.
• In February 2023, Kyrie Irving, a popular American basketball player donated US$ 22,000 for a GoFundMe page for a medical herb farm start-up. Valencia Andrews who owned the GoFundMe campaign revealed that she was very grateful for this donation and intended to show by action rather than words as to how this could help her farm start-up.
• In December 2020, Enveda Biosciences, a biotechnology company founded in 2019, announced that it had raised US$ 4.9 million in a seed funding round to create the supposed world’s leading database with biological, anthropological, and chemical data from different medicinal plants.

Start-ups can benefit by learning more about aspects such as local supply, pricing trends, product standards, safety regulations, and new developments that have been discussed extensively in this medicinal herbs industry study by skilled analysts at Fact.MR, a market research and competitive intelligence provider.

Country-wise Insights

Despite being a highly profitable business on a global level, there are some countries such as the United Kingdom, China, India, Japan, and the United States that medicinal herb suppliers should specifically focus on if they want to ramp up their revenue generation potential.

What Makes the United States an Investment-worthy Space?

“Rising Consumption of Herbal Tea and Nutraceuticals”

Focus on health and fitness is increasing in the United States as the problem of obesity becomes a huge one for the people and the government alike. Medicinal herbs for weight loss are projected to be high in demand in the country throughout the forecast period. Meanwhile, the surging popularity and consumption of herbal teas are extrapolated to drive up the sales of herbs such as chamomile, lavender, ginger, lemon, turmeric, and echinacea in the United States through 2033.

Growing awareness regarding mental health is projected to promote the use of medicinal herbs for depression treatment and medicinal herbs for anxiety treatment in the long run. Consumption of nutraceutical and dietary supplements with functional ingredients is also increasing in the country and creating an upward demand trend for medicinal herb suppliers from 2023 to 2033.

Why is India the Centre of Attention When It Comes to Medicinal Herbs?

“Supportive Government Initiatives to Promote Traditional Medicine”

India has been known for its herbal medicine use for centuries and is one of the top exporters of medicinal herbs in the world at present. Both of the aforementioned factors make India a highly bankable space for medicinal herb producers and distributors alike. Supportive government initiatives to promote the popularity of Ayurveda and the presence of key medicinal herb suppliers in the country are also promoting market growth.

• In April 2022, World Health Organization (WHO), announced the launch of its GCTM (Global Centre for Traditional Medicine) in India. The move aimed to blend ancient practices with conventional approaches and harness the full potential of traditional medicine.

Growing awareness regarding the benefits of herbal medicine, evolving consumer preferences, increasing demand for clean-label ingredients, and a highly rewarding export potential make India an opportune space for new medicinal herb companies as well as established ones through 2033.

• In March 2023, at Sher-e-Kashmir University of Agricultural Sciences and Technology of Kashmir, a seminar on ‘Start-up Opportunities in Medicinal Plants’ was held for three days. The program was held to help new companies realize the potential of Jammu & Kashmir for medicinal and aromatic plant cultivation business.

Will European Countries Be Bankable Markets for Medicinal Herb Providers?

“Growing Preference for Natural Ingredients and Rising Popularity of Plant-based Products”

The number of people opting for plant-based lifestyle and eating choices has been increasing rapidly in European countries such as the United Kingdom and this is slated to primarily augment medicinal herb sales in the European region going forward. A high focus on sustainability coupled with rising awareness regarding the benefits of using products made from clean-label, natural, and organic ingredients are also creating new opportunities for medicinal herb companies in Europe over the coming years.

Growing demand for plant-based ingredients in cosmetics and personal care products, rising investments in herbal and traditional medicine research, and surging consumption of functional food products are other prospects that could bolster sales of medicinal herbs from 2023 to 2033. France, Germany, the United Kingdom, and Italy are anticipated to be some key markets in the European region over the next ten years.

Category-wise Insights

Primarily the global medicinal herbs market is segmented into type, nature, form, end use, and region. Based on type, calendula is estimated to drive global revenue generation over the study period, accounting for around 50% of product sales.

Which Medicinal Herb is the Most Sought After?

“Calendula to Lead Global Demand for Medicinal Herbs”

Based on type, the market is segmented into horsetail, dandelion, echinacea, valerian, St. John’s wort, lemon balm, yarrow, calendula, peppermint, spearmint, and marshmallow wintergreen. Calendula accounts for nearly half of global medicinal herb sales in 2023.

Calendula is estimated to be the most popular medicinal herb owing to its wide scope of application in the pharmaceutical, cosmetic, and healthcare sectors. Dried petals of calendula are used to treat burns, bruises, cuts, and infections, which makes it a key ingredient in ointments, washes, and tinctures. Cosmetic companies use calendula in their products to help fight dermatitis. This medicinal herb has also been proven to reduce skin inflammation in breast cancer patients while they are under radiation therapy treatment.

Competitive Landscape

Renowned medicinal herbs vendors are focusing on efforts to improve awareness regarding the benefits of herbs and are also launching new initiatives to help safeguard the endangered ones.

• In July 2023, Mountain Rose Herbs, a renowned American grower and distributor of products used in herbalism, announced the launch of a new initiative to help restore populations of medicinal herbs and plants that are at risk of extinction. Through this Seed Stewardship Program, the company aimed to provide free seeds to anyone willing to save endangered medicinal herbs and plants.

Key Segments of Medicinal Herbs Industry Research

• By Type :

  • Horsetail
  • Dandelion
  • Echinacea
  • Valerian
  • St. John’s Wort
  • Lemon Balm
  • Yarrow
  • Calendula
  • Peppermint
  • Spearmint
  • Marshmallow Wintergreen

• By Nature :

  • Organic
  • Conventional

• By Form :

  • Whole
  • Powder
  • Liquid

• By End Use :

  • Medicinal Tea
  • Health Supplements
  • Nutritive Jam
  • Herbal Medicines
  • Cosmeceuticals
  • Other Uses

• By Region :

  • North America
  • Latin America
  • Europe
  • APAC
  • MEA