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.
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
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