Market Analysis - Natural Products Conference 2020
The market size of the global herbal medicine was USD $131.4 billion in the year 2018, growing at a CAGR of 4.25% between 2018 and 2023, and it is expected to display profitable growth over the forecast period of natural medicine. The increasing results are attributed to the increasing preference of the consumers towards traditional medicine. (Ayurveda,unani and Traditional Chinese Medicine) which do not cause any overdose toxicity and have very few side effects. The global market of the plant-derived products is likely to gain momentum over the projected period as a result of the low cost of herbal medicines when compared to allopathy. Hence these drugs are witnessing substantial consideration at a global level.
The major global markets for medicinal and aromatic plants are China, Germany, France, Italy, Japan, UK, Spain, and the US. Europe is the largest herbal product market.
Herbal plants with numerous medicinal properties are used to treat a wide variety of disease conditions. A single plant may comprise several chemical constituents such as glycosides, phenols, polysaccharides, resins, terpenoids, and alkaloids which reveal therapeutic activities for more than one medical condition. Several polyphenolic compounds such as curcumin, tannins, gallocatechin, and flavonoids are considered to have anti-cancer properties and are anticipated to gain popularity owing to the increasing prevalence of cancer. Moreover, high treatment cost of cancer along with pipeline programs showing anticancer activities of plants is expected to increase the use of these in numerous therapies.
Medicines derived from herbs are formulated into dosage forms like capsules and tablets, extracts, powders, pastes, oils, and gels. Capsules and tablets offer dose accuracy when compared to the other dosage forms. Hence, this segment is anticipated to record the fastest growth over the forecast period. The poor regulatory system around the world and very less number of institutes providing the information of herbal therapeutics because of lack of appropriate research evidence are likely to slow down the growth of the market.
The change in healthcare towards natural products by therapeutic values provides enormous opportunities for the medicinal plant sector. Several medicines are still produced with age-old methods which can affect their stability, quality, and efficacy. Consequently, interest in green products in the industrialized countries has created a growing market for plant-based products which provides a competitive advantage to the developing countries provided the safety and quality specifications are satisfied. India has the exceptional distinction of having significant biodiversity of medicinal plants, information associated with their use and an upright network of infrastructure needed for their promotion and propagation. Indian system of medicine uses several raw materials and the medicinal plants constitute 90% of it.
Segmentation by product:
Tablets and Capsules
The segment containing the extracts generated USD 27.1 billion revenue in 2016 and is anticipated to reach USD 44.6 billion by 2024. A high rate of absorption of extracts, when compared with other dosage forms is expected to drive the market over the forecast period. Properties like bad odor and spillage limit the usage of extracts. The segment containing the capsules and tablets is anticipated to see the fastest growth due to increased intake of tablets over other forms of dosage. In addition, tablets can be carried easily, which gives it an upper hand over the other formulations and new powders that are made traditionally are available in the form of tablets and capsules which supply higher dose accuracy.
Segmentation by Indication:
The segment containing the digestive disorders is anticipated to develop at a CAGR of 6.6% in the forecast period due to increasing usage of herbal medicines for conditions like gastro esophageal reflux, indigestion and dyspepsia. Easy availability of several products for the aid of digestive tract disorders is anticipated to fuel the market over the forecast period.
The segment containing blood disorders is anticipated to generate maximum revenue owing to the increasing ratio of hypertension. The increasing popularity of garlic, ginkgo Biloba and ginger joined with a variety of products available in the market is expected to boost the growth over the forecast period.
Segmentation by region:
Europe - Germany
Asia Pacific - China and India
Central and South America
The Middle East and Africa
In 2016, Europe region dominated the market of global herbal medicine and is expected to sustain it during the forecast period as well. Associations such as European Herbal & Traditional Medicine Practitioners Association (EHTPA) and British Herbal Medicine Association promote the usage of these unconventional medicines in the European region by conducting several seminars and increase awareness regarding the benefits of using herbal medicine remedies. Moreover, high flexibility regarding the launch of these products in the European Union is an important contributing factor to the market growth in this region.
Asia-Pacific is anticipated to show the quickest growth over the projected period owing to the increasing awareness of these products which include dietary supplements, drugs, and skincare products. China and India being the major markets for herbal products in the region have a strong background.
The system of Ayurveda from India has been providing various treatment options for several disorders related to the respiratory and digestive system for ages. Moreover, the current trend of traditional medication usage is anticipated to boost the growth of the market.