Market Definition 

Herbal medicine is made from botanicals, plants, that are used to treat diseases and to maintain health. Herbal medicine is sold as tablets, capsules, powders, extracts, syrup, teas, and fresh or dried plants. Herbal medicine is used as a primary source of healthcare in many countries. 

Global herbal medicine market is estimated to reach $XX billion by 2026; growing at a CAGR of 5.9% till 2026. 

Market Dynamics 

Increasing demand for herbal medicine is driving the demand of the market. According to the World Health Organization (WHO), around four billion people rely on herbal medicinal products as a primary source of healthcare, which represents 50% of the world's population. In the United States, around 40% of the adult population use herbal medicine as a source of healthcare. in 2017, the sales of herbal dietary supplements in the United States has increased by 7.7%. The consumption of herbal medicine in Canada, Australia, and Germany and France is growing rapidly. In India and China, herbal medicine accounts for about 50% of the total herbal medicine consumption. In Africa, around 80% of the rural population use herbal-based medicines for their healthcare. In Nigeria, Ghana, Mali, and Zambia, herbal medicine accounts for 60% of treatment for children with high fever resulting from malaria and other diseases. However, side-effects and allergic reaction from herbal medicine might hamper market growth. The moderate and severe allergic reaction include difficulty breathing or swallowing, dizziness, tightness in the chest, and nausea. The most severe adverse effects include liver or kidney damage, carcinoma, colon perforation, coma and death. Moreover, increasing clinical studies on herbal medicine would provide lucrative opportunities for the market in the coming years. 

Market Segmentation 

The global herbal medicine market is mainly classified based on type, application and distribution channel. Type is further segmented into Tablets & Capsules, Powders, Extracts, and Others. By application, the market is divided into Digestive Disorders, Respiratory Disorders, Blood Disorders, and Others. By distribution channel, the market is further divided into Hospitals and Retail Pharmacies, and E-commerce. 

Based on type, powders showed significant growth in 2019, owing to the increasing adoption of herbal medicine, the partnership between companies to expand the presence of herbal medicine at the global scale, and commercialization of Certified Herbal Medicine. For instance, Farlong Pharmaceutical has introduced Steamed Notoginseng Powder. Steamed Notoginseng Powder is a dietary supplement for relieving fatigue, nourish the blood, improve immunity and promotes radiant skin. Farlong's Steamed Notoginseng Powder has received the first 7S Authentic Herbal Medicine Certification in China. 

Regional Analysis 

Based on geography, the global herbal medicine market is divided into North America, Europe, Asia-Pacific, South America, and Middle East & Africa. North America is further divided in the U.S., Canada, and Mexico, whereas Europe consists of the UK, Germany, France, Italy, and Rest of Europe. Asia-Pacific is segmented into India, China, Japan, South Korea, and Rest of Asia-Pacific. The South America region includes Brazil, Argentina, and the Rest of South America, while the Middle East & Africa is categorized into GCC Countries, Egypt, South Africa, and Rest of Middle East & Africa. 

North America has shown significant growth in 2019, due to the increased funding for research on herbal medicine, increasing adoption of herbal medicine in the North American region, commercialization of new herbal medicine, and extensive R&D for herbal medicine. For instance, Tasly Pharmaceuticals, Inc. of USA, has completed a Phase 3 global clinical trial for three-herb composition drug T89 (Dantonic) to improve Treadmill exercise duration (TED) and more reduce the frequency of chronic stable angina with less adverse reactions. Tasly T89 is the first compound Chinese herbal drug to have passed U.S. Food and Drug Administration-regulated multi-center phase 3 clinical trials. 

Competitive landscape 

Key players operating in the herbal medicine industry include Tsumura, Schwabe, Weleda, Blackmores, Arkopharma, SIDO MUNCUL, Arizona Natural, Dabur, Bio-Botanica, Potter’s, Zand, Nature Herbs, Tong Ren Tang, Tianjin Zhongxin Pharmaceutical Group Co., Ltd., and Himalaya. 

Increasing expansion of herbal medicine research and development facilities, the partnership between companies to develop and market herbal medicine at the global scale, increasing clinical studies on herbal medicine and commercialization of new herbal medicine are some of the strategies adopted by the major companies. For instance, on February 4, 2019, Dabur India Limited has introduced two revolutionary products, including Ratnaprash and Hridayasava. Ratnaprash is an Ayurvedic formulation which is used for general health and provides stamina, strength, and vigour. Hridayasava is an Ayurvedic Asava formulation that is beneficial for heart and is also an excellent Rasayana. 

Herbal Medicine Market Key Segments: 

By Type 

• Tablets & Capsules 
• Powders 
• Extracts 
• Others 

By Application 

• Digestive disorders 
• Respiratory disorders 
• Blood disorders 
• Others 

By Distribution Channel 

• Hospitals and Retail Pharmacies 
• E-commerce 

Key Global Herbal Medicine Industry Players 

• Tsumura 
• Schwabe 
• Weleda 
• Blackmores 
• Arkopharma 
• SIDO MUNCUL 
• Arizona Natural 
• Dabur 
• Bio-Botanica 
• Potter’s 
• Zand 
• Nature Herbs 
• Tong Ren Tang 
• Tianjin Zhongxin Pharmaceutical Group Co., Ltd. 
• Himalaya 

What Report Provides 

• Full in-depth analysis of the parent Industry 
• Important changes in market and its dynamics 
• Segmentation details of the market 
• Former, on-going, and projected market analysis in terms of volume and value 
• Assessment of niche industry developments 
• Market share analysis 
• Key strategies of major players 
• Emerging segments and regional growth potential