Growing worldwide interest in traditional Chinese medicine and Ayurveda – particularly in Western Europe and North America – is driving robust growth in the global market for herbal medicinal products, according to a new report by London headquartered consultancy Future Market Insights (FMI).
A “shifting trend from conventional medicines to traditional medicines” together with a simpler regulatory environment and growing worldwide manufacturing capacity will deliver a healthy CAGR of 7.6% over the report’s 10 year forecast period (2017-2027), says FMI.
Herbal Medicinal Products Market: Global Industry Analysis (2012-2016) and Opportunity Assessment (2017-2027) reports that the global market for herbal medicinal product market “represents absolute $ opportunity of US$ 8.85 billion in 2018 over 2017 and incremental opportunity of US$ 142.07 billion between 2017 and 2027”. In terms of total value, says FMI, the market is likely to reach US$ 272.64 billion in 2027.
Forecast by Product Type: Ayurveda stays out front
Product type segments analysed include Ayurvedic medicines, homeopathic medicines, Chinese medicines and aromatherapy products. FMIS says that by product type, the Ayurvedic medicine segment dominated the global market in 2016 – and is expected to continue do so, with favourable government regulations and development of newer products predicted to boost the consumer adoption. FMI says the Ayurvedic medicine segment in 2017 accounts for 57.8% of the total global herbal medicine market.
Forecast by Form: Capsules and tablets lead on delivery
Delivery systems for the herbal sector include capsules and tablets, powders, syrups, oils and topical cream and ointments. Capsules/tables are expected to be the most lucrative among all forms of herbal medicinal products market, with an attractiveness index of 2.0. FMI estimates that the capsule/tablets segment is likely to be worth US$ 123.17 billion in 2027, expanding at a CAGR of 8.7% throughout the forecast period – convenience and ease are the key reasons that capsules and tablets lead on delivery.
Forecast by Distribution Channel: Hospital pharmacies are the hot tip
The report shows that distribution channels are segmented into hospital pharmacies, retail outlets, mail order outlets and E-commerce. With 8.6% CAGR, hospital pharmacies segment is expected to dominate the market, reaching a value of US$ 113.74 billion in 2027. Retail and mail order outlets are expected to be the second and third largest distribution channels for herbal medicinal products market, with market attractiveness indices of 0.9 and 0.8 respectively.
Global Herbal Medicinal Products Market: Forecast by Region
Seven regions are covered in the report, including, North America, Latin America, Eastern Europe, Western Europe, APEJ (Asia Pacific excluding Japan), Japan and MEA. APEJ is expected to register a high CAGR of 9.9% over 2017–2027, primarily due to high adoption rate of Ayurveda and Chinese medicines, and wide availability of raw herb cultivators. The revenue share of APEJ in the global herbal medicinal products market is 24.8%.
Homeopathy on the rise
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. High patient reporting of efficacy, minimal side effects, and safety during pregnancy are some of the factors that lie behind the growing adoption levels of homeopathy in Europe.
From niche to mainstream
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.
Kampo: one to look out for
High adoption and export of Kampo medicines in Japan is identified as another driver of growth in the global herbal medicinal products market. KAMPO medicine – based on traditional Chinese medicine but modified to Japanese culture – is very popular and widely used in Japan. It is also popular in Taiwan, albeit with slight modification, and exported to the Western regions. WHO estimates that more than 30% of the total OTC drugs sold in Japan are prepared using botanical products.