Herbal Medicine Industry Size, Share, Growth Analysis and Forecast to 2032
The global herbal medicine industry generated revenues of USD 233.08 billion in 2024 and is projected to increase from USD 251.25 billion in 2025 to approximately USD 437 billion by 2032, expanding at a CAGR of 8.23% during the forecast period. Europe held the leading position with 44.55% of global revenue in 2024, while the U.S. herbal medicine market is expected to reach USD 37.90 billion by 2032, fueled by the rising preference for natural health alternatives and environmentally sustainable lifestyles.
Herbal medicines are formulations derived from plant sources—such as roots, stems, leaves, flowers, and seeds—used for both therapeutic and preventive healthcare purposes. Popular botanicals include ginkgo, ginseng, turmeric, chamomile, and ginger. Historically, herbal remedies have been central to traditional healthcare systems across various cultures, addressing a broad range of human and animal health needs.
The growing prevalence of lifestyle-related ailments, caused by poor dietary habits and sedentary lifestyles, is driving consumers toward plant-based alternatives. Health issues such as obesity, cardiovascular disease, and stress disorders have heightened the demand for herbal solutions. According to the World Health Organization (WHO), around 80% of the global population relies on traditional healers and herbal medicines, as these products are often considered safer and less likely to cause major side effects.
Information Source:https://www.fortunebusinessinsights.com/herbal-medicine-market-106320
Impact of COVID-19 The COVID-19 pandemic, declared a global health emergency by the WHO in March 2020, significantly disrupted pharmaceutical and healthcare operations worldwide. Shortages of conventional medicines and supply chain disruptions affected hospitals and pharmacies alike. Research published in the DARU Journal of Pharmaceutical Sciences reported that between January and mid-2020, hospital demand for essential medicines such as sedatives, respiratory drugs, and analgesics rose by 100–700%, underscoring the growing importance of reliable and natural therapeutic alternatives like herbal medicines.
Market Segmentation The pharmaceutical and nutraceutical industries are major contributors to the herbal medicine market, driven by the increasing integration of botanical compounds into dietary supplements and alternative therapies. Among product forms, tablets and capsules dominate due to ease of use, accurate dosing, and broad retail availability.
The market is geographically divided into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
Report Highlights The report includes: In-depth segmentation analysis and investment opportunities Regional performance insights and emerging market trends Strategic initiatives such as mergers, acquisitions, partnerships, and product launches Evaluation of COVID-19’s influence on supply chains and consumer demand
Market Drivers and Challenges Growing Demand for Natural Ingredients in Cosmetics: The cosmetics and personal care sectors are increasingly utilizing herbal and botanical extracts in product formulations. With consumers shifting away from chemical-based ingredients, the demand for natural skincare and haircare solutions is surging. This trend presents lucrative growth opportunities for global herbal ingredient manufacturers and suppliers.
Regional Insights Europe continues to lead the global herbal medicine market, supported by its robust cosmetics industry and the rising incorporation of herbal ingredients in wellness and personal care products. North America, led by the U.S., is experiencing substantial growth driven by heightened consumer awareness of product safety, the preference for organic remedies, and a growing focus on preventive healthcare. Asia Pacific and Latin America are emerging as fast-growing regions due to increasing disposable incomes, rapid expansion of the cosmetics sector, and greater digital literacy that improves consumer understanding of herbal product benefits.
Competitive Landscape The herbal medicine market is moderately fragmented, with leading players focusing on product innovation, portfolio diversification, and strategic alliances to strengthen their market presence. Companies are pursuing new product launches and merger & acquisition activities to expand globally and meet evolving consumer demands.
Key Companies in the Market: Cultivator Natural Products Pvt. Ltd. (India) 21ST Century HealthCare, Inc. (U.S.) Herbalife Nutrition (U.S.) ZeinPharma Germany GmbH (Germany) Blackmores Limited (Australia) Himalaya Global Holdings Ltd. (India) Nutraceutical Corporation (U.S.) Emami Limited (India) Nature’s Answer, LLC (U.S.) Patanjali Ayurved Limited (India)
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Recent Industry Development March 2021: Lotus Herbals, a prominent Indian beauty and personal care company, introduced Lotus Botanicals, a new skincare and haircare range made with natural herbal ingredients. The products are available through the company’s official online store and leading e-commerce platforms.