Herbal Medicinal Products Market

Herbal Medicinal Products Market: Homeopathic Medicines Product Type Segment to Register the Highest CAGR of 10.4% During the Forecast Period: Global Industry Analysis (2012-2016) and Opportunity Assessment (2017-2027)

Global Herbal Medicinal Products Market: Overview

With robust CAGR of 7.6% during the projected period, the global market for herbal medicinal products is expected to be valued at a little more than US$ 130 Bn in 2017. In 2018, this market is likely to represent absolute $ opportunity more than US$ 8800 Mn and incremental opportunity of more than US$ 140 Bn between 2017 and 2027. Absolute $ opportunity is usually overlooked when analysts forecasts the market but, it is critical in assessing the level of opportunity that an enterprise can look to achieve, as well as to identify potential resources from both a sales and delivery perspective.

Shifting trend to traditional Chinese medicines and Ayurveda is driving the global herbal medicinal products market

In regions such as North America, the herbal medicines products are considered/sold as dietary supplements or nutraceuticals with health claims, which is pre-approved by Food and Drug Administration (FDA) under Dietary Supplements Health and Education Act. The FDA regulations for these products are less stringent as compared to the conventional medicines. Thus, the favourable regulation for herbals medicines particularly in North America boosts the development of the global herbal medicines market. Increasing geriatric population is another factor which is boosting the growth of the global herbal medicinal products market.  The aging population in the countries such as Brazil and Mexico is equal to the European and North America countries. This population use dietary supplements which fuels the sale of herbal medicinal products.

Western European countries have witnessed a significant increase in the prescription of homeopathic medications due to the higher awareness and positive adoption of this treatment option. Higher effectiveness, less side effects, and safety during pregnancy are few factors that are contributed to the higher adoption of homeopathy medication in Western European countries. Apart from Homeopathy, Western Europe is also a hub for herbal products, which is also contributing in the growth of the global herbal medicinal products market. In Eastern European countries, the herbal medicines has witnessed tremendous increase in the recent years. In Russia, majority of the population prefer traditional medicines as a primary option for the treatment. Many of the men and women suffering from infertility are adopting traditional treatment option despite the progressive development in contemporary medicines.

Increasing consumer demand for green label products is resulting in manufacturers shifting from niche distribution channels to mainstream mass retailers. Moreover, supermarket chains are also expanding product ranges on their shelves, which has resulted in a sharp increase in sales of herbal supplement products in the recent past. High adoption and export of KAMPO medicines in Japan is one of the reason for boosting the global herbal medicinal products market. KAMPO medicine is very popular and is widely used in Japan, which is based on traditional Chinese medicine however, modified to Japanese culture. It is also adopted in Taiwan with slight modification and exported to the Western regions. According to the market survey by WHO more than 30% of the total OTC drugs sold in Japan was prepared using botanical products.

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Ayurvedic medicine type to dominate the global market for herbal medicinal products throughout the period of forecast

Ayurvedic medicines is expected to be the most lucrative among all product type segment of herbal medicinal products market, with attractiveness index of 2.3. With more than 55% revenue share, the Ayurvedic medicines segment is likely to be valued at more than US$ 75 Bn in 2017, expanding at a Compound Annual Growth Rate of 6.6%. 

The global herbal medicinal products market is anticipated to grow consistently. This market is expected to show significant growth in the Asia Pacific region during the forecast period i.e., between 2017 and 2027. For the further development of the market, manufacturers need to invest more in research and development of the products and increase their product portfolio. Partnership and mergers are equally important for manufacturers to sustain in the global herbal medicinal products market. These two elements are not only expected to increase the product portfolio but will also be able to help companies attain a strong market presence across the globe. Our new publication titled Herbal Medicinal Products Market: Global Industry Analysis (2012-2016) and Opportunity Assessment (2017-2027)” highlights the innovations, opportunities and the reasons for saturation in this highly penetrated market. The market is categorized into four segments namely, by product type, distribution channel, region and form. While inspecting the global herbal medicinal products market in detail, our analysts have carried out a value chain analysis to describe how raw material supply is sent to the distribution channels for processing once it comes to manufacturers. The processed raw materials are then sent to hospitals, clinics and pharmacies.

Market Sizing Factors and Assumptions

We have considered market consolidation activities such as merger and acquisition, collaborations, partnerships, license agreements, patent transfer, which may influence the market growth over a forecast period. Capital expenditure on healthcare infrastructure in the developing economies is also a factor which is expected to drives the market. It also rules out impact of extreme events in specific countries. Regulatory impositions such as the rules and regulations by the various regulatory authorities such as U.S. Food and Drug Administration and European Commission could affect the market. Currency fluctuations and changing taxation policies would have a significant impact on forecasting of herbal medicinal products market over the forecast period.

Report Structure

We have profiled some of the key players in the global herbal medicinal products market across the globe to get a clear picture of the current scenario of partnerships and acquisitions in the global herbal medicinal products market. While studying these top vendors in the market we put these companies under the scanners of recent development, various financial strategies, SWOT analysis, key ratios and performance overview in the last few years. Regulatory scenario, standards and levels of barrier protection and the classifications by level have been considered while inspecting the global herbal medicinal products market. Year-on-Year growth and absolute $ opportunity has been evaluated for every segment along with market attractiveness analysis. In another section, we have covered the dynamics of the global herbal medicinal products market for a period of 10-years. These dynamics include supply and demand side drivers, macro-economic drivers, restraints, opportunities and trends. Apart from all these factors, introduction, definitions and market taxonomy have been covered in this report in detail.

Market Segmentation

Product Type

Form

Distribution Channel

Region

  • Ayurvedic Medicines

  • Homeopathic Medicines

  • Chinese Medicines

  • Aromatherapy Products

  • Capsules/Tablets

  • Powder

  • Syrups

  • Oils and Ointment

  • Others

  • Hospital Pharmacies

  • Retail Pharmacies

  • Mail Order Pharmacies

  • E-commerce

  • North America

  • Latin America

  • Western Europe

  • Eastern Europe

  • Asia Pacific Ex. Japan

  • Japan

  • Middle East and Africa (MEA)


Research Methodology

Future Market Insights is committed to offering a comprehensive report to our clients that incorporates in-depth secondary research to ascertain overall market size, top industry players and products. Our report on the global herbal medicinal products market delivers key industry insights and information in an easy-to-understand format. Our expert team of analysts has conducted extensive interviews with industry players, experts, retailers and distributors to obtain deeper insights into the global market for herbal medicinal product. We have considered indicators such as R&D expenditure and research funding from government and non-profit organizations to arrive at the indicated market numbers. Further, the historical consumption trend has been analyzed to track market data. The bottom-up approach has been used to assess market numbers for each product category, while top-down approach has been used to counter-validate the reached market numbers.