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Global Herbal Medicines Market to Reach US$178.4 Billion by the Year 2026

Herbal medicinal products contain ingredients derived from plants or natural resources. Offered in tablets, powder, capsules, and tea forms, these products have few or no side effects and present a safe alternative to standard options to improve health and organ function. Growth in the global market is being spurred by increasing attention on self-care, rising awareness and influx of significant investments for R&D activity. Market growth is augmented by increasing awareness regarding negative effects of using allopathic medicines as well as compelling health benefits of herbal medicines. Factors such as rising attention on natural products, increasing aging population and rising cases of chronic disorders are providing a significant impetus to the global market. Global demand for herbal supplements and medicines are gaining from rising incident of lifestyle-related medical conditions like obesity and diabetes that are prompting people to consider herbal supplements to mitigate health risks. The outbreak of Covid-19 has also provided an opportunity for herbal medicine manufacturers to increasingly roll out herbal products that boost immunity. Growth is supported by increasing focus on products that offer digestive support, stress relief and better immunity health. The market growth is also favored by increasing attention on personalized medicines and easy availability of herbal supplements. On the flip side, lack of a proper regulatory framework and low level of awareness about these products remain major barriers to the market growth.

Amid the COVID-19 crisis, the global market for Herbal Medicines estimated at US$135 Billion in the year 2022, is projected to reach a revised size of US$178.4 Billion by 2026, growing at a CAGR of 8.1% over the analysis period. Herbal Pharmaceuticals, one of the segments analyzed in the report, is projected to grow at a 8.6% CAGR to reach US$84.1 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Herbal Functional Foods segment is readjusted to a revised 7.9% CAGR for the next 7-year period. This segment currently accounts for a 25.4% share of the global Herbal Medicines market. Known for medicinal properties, leaves from herbal plants are extracted to produce numerous herbal supplements. Herbal pharmaceuticals, and supplements contain whole plants or individual parts of plants used to prevent or treat illness or disease. Besides offering reliable treatment medications for a range of health disorders, medicinal herbs are also ideal for use in food and beverage products as health consciousness is poised to remain as one of the important aspects of modern population.

The U.S. Market is Estimated at $24.5 Billion in 2022, While China is Forecast to Reach $32.9 Billion by 2026

The Herbal Medicines market in the U.S. is estimated at US$24.5 Billion in the year 2022. The country currently accounts for a 18.4% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$32.9 Billion in the year 2026 trailing a CAGR of 10.8% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 7.4% and 7.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 6.5% CAGR while Rest of European market (as defined in the study) will reach US$35.8 Billion by the end of the analysis period. The demand for herbal supplements has been predominantly concentrated in the West, due to relatively high levels of health consciousness, and widespread and easy access to products. An ageing population, changing health perception and the threat posed by antimicrobial resistance are driving the demand for herbal supplements and remedies. Major factors driving growth in emerging countries include expanding population base, growing tendency of living healthy among consumers, increasing consumer awareness about wellness and dietary requirements, and growing demand for natural remedies. Growth in the region is supported by cultural affinity to herbalism and strong consumer confidence in the efficacy and safety of herbal ingredients.

Herbal Beauty Products Segment to Reach $20.2 Billion by 2026

Medicinal herbs offer highly functional ingredients for manufacturing beauty products and cosmetics. Herbal ingredients provide reliable ingredients to enrich the cosmetic products and deliver much better functionality than regular chemicals-based cosmetics. The increasing uptake of these herbal products is credited to rising consumer awareness regarding negative implications of inorganic cosmetics ingredients. In the global Herbal Beauty Products segment, USA, Canada, Japan, China and Europe will drive the 4.8% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$11.4 Billion will reach a projected size of US$15.8 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$2.7 Billion by the year 2026, while Latin America will expand at a 5.8% CAGR through the analysis period.