Concerns Surrounding Coronavirus to Promote High Consumption of Medicinal Herbs
Ayurvedic and herbal products have held significant importance in Europe and East Asian markets. In 2020, amid COVID-19, the surge in demand for herbal products has been witnessed. Demand for herbal products accounts for a significant portion of medicinal use in Europe, the United States, and emerging regions.
In March 2020, markets in Indonesia faced high demand for local medicinal herbs resulting in a price hike of 20%-30% from normal rates. The growth of the medicinal herb market is expected to flourish with high-profit margins for the players, thus making the market more lucrative.
Surge in Demand for Medicinal Herbs Is Anticipated from Cosmetic Industry
The demand for medicinal herbs for cosmeceuticals accounts for nearly 1/4th of the global market demand and is expected to grow at a CAGR of 8.5% during the forecasted period. With the market growing at a notable pace, many cosmetic brands are attracted towards medicinal herb products owing to the significant profit margin. The widespread use of personal care products has also attracted local players like Patanjali to penetrate the market.
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Opportunities in Organic Medicinal Herbs Market Abound amid COVID-19
The market of organic medicinal herbs will grow by nearly 4.7X during the forecasted period owing to high preference for organic products over conventional products. This shift has already been noted in East Asia where the market is forecasted to grow at a CAGR of nearly 10% during the forecasted period.
In March 2020, amid the global pandemic, china announced news claiming to have a traditional Chinese medicine to be an effective treatment for COVID-19 affected patients, which has led to an upsurge in opportunities for local and international brands supplying medicinal herbs. This suggests that under the present situation, the market is expected to grow owing to consumer demand.
The market for organic medicinal herbs is showing prolific growth in emerging economies, owing to a large presence of elderly people. According to an OECD report, nearly 20% of the population in Europe and 16% population in the United States are elderly people over the age of 65 which is almost 2X that of the global average. Moreover, demand for medicinal herbs is expected to grow in the near future owing to problems related to old age.
Emerging Economies to Witness Higher Demand for Medicinal Herbs
In Asian countries, traditional medicines have been considered more reliable as compared to other medicines. In South Asia, medicinal herbs used as medicines accounted for nearly 1/3rd of market demand from the region. For example, during this pandemic, THM hospital in China has been using traditional medicines to cure patients.
Calendula market accounts for nearly 50% of the global medicinal herb demand which is majorly produced in India. This is in high demand from developed nations like United States and Europe. Moreover, countries like Bulgaria, Taiwan, Morocco and South Africa are some of the top medicinal herbs exporting countries.
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Strategic Expansions to Remain Key Imperative
The top players in the market are focusing on expansion through product launch and acquisitions while some of the emerging players are focusing on research and development to maintain market share. During the pandemic, emerging players are also focusing on extending their product portfolio by adding a new range of products.
- In March 2020, the Central Institute of Medicinal and Aromatic Plants launched herbal sanitizer as a strategic product focusing on the rising demand for sanitizers.
- In October 2019, Farlong Pharmaceutical launched a new herbal supplement product NotoGinseng Steamed Powder to improve immunity and promote radiant skin.
- In November 2019, Pukka Herbs launched a line of blended herbal Lattes in three variants Cacao Maca Majesty, Night Time and Turmeric Glow
Impact of Covid-19 in Demand for Medicinal Herbs Market under Multiple Scenarios.
The players in the market are emerging with multiple solutions to counter the rising demand for medicinal herbs. The countries least affected by lockdown have been focusing on high-level production to maintain market demand. The market for medicinal herbs, cosmeceuticals, and nutraceutical products is expected to grow, during the pandemic.
Under an optimistic market scenario, with lockdown for the first three quarters, growth opportunities are anticipated over the first two quarters of 2021. However, if the lockdown is lifted by the second quarter, the market earnings will peak for 2020. Under a pessimistic scenario, the market will covet higher shares till the first three quarters and then will grow at a steady rate, owing to a decline in consumer spending on account of layoffs.
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Medicinal Herbs Market: Segmentation
FactMR’s study has done the segmentation of medicinal herbs market on the basis of base product type, nature, packaging, and sales channel.
- St. John’s Wort
- Lemon Balm
- Marshmallow Wintergreen
- Medicinal Tea
- Health Supplement
- Nutritive Jams
- Herbal Medicines
- Other Uses
- North America
- Latin America
- East Asia
- South Asia
Global Medicinal herbs Market – Scope Of The Report
The medicinal herbs market is anticipated to witness a notable upsurge during the forecast period 2020 to 2030, conferring to a new Fact.MR study. The study promotes crucial trends that are presently determining the growth of the medicinal herbs market.
This newly published and perceptive report sheds light on vital dynamics, which are likely to convert the future of medicinal herbs market, in turn generating worthwhile opportunities for key companies as well as evolving players who are interested in the manufacturing of medicinal herbs.
Medicinal herbs market study is a detailed market intellect on key revenue progression factors, challenges, industry trends, and opportunities, which will eventually influence the growth of medicinal herbs market. The report primarily conveys a summary of the medicinal herbs market, considering present and upcoming medicinal herbs industry scenarios, to reveal striking sides relating to the acceptance of medicinal herbs across prominent regional markets.
A detailed assessment of few medicinal herbs raw material suppliers accessible in the report allows the report readers to obtain detailed findings that have resulted from medicinal herbs supply chain analysis, business execution, and value chain analysis across the regional markets incorporated in the report. A list of prominent companies functioning in the medicinal herbs market provided in the report enhances the reliability of this ample research study.
Medicinal Herbs Market: Report Summary
The study offers a comprehensive overview of diverse features that are inducing demand, revenue generation, and sales in the medicinal herbs market across the globe.
A comprehensive estimate on medicinal herbs market has also been made accessible by the experts, who have considered the market estimates on the basis of a likely scenario, an optimistic scenario, and a conservative scenario regarding sales of medicinal herbs during the forecast period. Analysis and estimation of price point comparison by region and by product with the global average price has been included in this study.
Medicinal Herbs Market: Analysis on Market Size Evaluation
Predictions of medicinal herbs market, encompassing current as well as forthcoming projected values estimate and analysis on region-wise demand trends and price index have been assimilated in the report.
Market estimates at the regional and global scale for medicinal herbs are available in terms of “US$ Mn.” A Y-o-Y growth contrast on prominent medicinal herbs market segments, along with the market attractiveness valuation computes understandings brought in the report. Metrics mentioned above are also followed based on medicinal herbs applications where medicinal herbs witness a steady demand.
Medicinal Herbs Market: Scrutinized Assessment on Regional Segments
Weighted sections have been elaborated in the report on medicinal herbs market, which delivers projection on the regional markets. These chapters brighten the regional macros (political-economic, and business environment outlook), which are expected to have a significant impact on the growth of medicinal herbs market during period of forecast.
Country-specific valuation on demand for medicinal herbs has been offered for each regional market, along with the market scope estimate and forecast, price index, price point assessment, and impact analysis of dynamics of prominent regions and countries. For all regional markets Y-o-Y growth estimates have also been incorporated in the report.
Medicinal Herbs Market: In-depth Analysis on Competitive Landscape
The report ends with a section on the competition scenario of medicinal herbs market, along with the profiles of major companies contributing to the market expansion. Essential and up-to-date data as well as information correlated to the market performers, who principally engage in the production and supply of medicinal herb, has been brought with the help of a detailed dashboard view. Market share analysis and comparison of prominent players provided in the report permits the report readers to plan preemptive steps to advance their businesses.
Impact of Covid-19 on Medicinal Herbs Market
The report includes a scenario-based assessment of the impact of Covid-19 across key regions for all four quarters of 2020. The report discusses the market forecast under the optimistic, probabilistic and pessimistic scenarios. Under the three scenarios, the demand loss and recovery has been illustrated and described through L-shaped and U-shaped recovery curves. Alongside, the Covid-19 impact has been benchmarked with previous crisis including the sub-prime crisis, Eurozone crises and SARS pandemics.
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Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
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