MEDICINAL HERBS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

Global Medicinal Herbs Market Size and Forecast – 2025 to 2032

The Global Medicinal Herbs Market is estimated to be valued at USD 227.65 billion in 2025 and is expected to reach USD 478.93 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.21% from 2025 to 2032. The market's substantial market growth can be attributed to the increasing consumer awareness about the health benefits associated with medicinal herbs, the rising preference for natural and organic products, and the growing demand for alternative and complementary medicine.

Key Takeaways of the Global Medicinal Herbs Market:

• By herb type, the Ginseng segment is expected to hold the largest market share at 16.6% in 2025.
• By application, the pharmaceuticals segment is projected to lead with a 42.1% share in 2025.
• By form, the raw herbs/whole herbs segment is anticipated to dominate with a 25.5% share in 2025.
• Asia Pacific is both the dominant and fastest-growing region in the global medicinal herbs market, projected to hold a 40.3% market share in 2025.

Market Overview:

The medicinal herbs market is experiencing a significant trend towards the adoption of herbal remedies and supplements for various health conditions such as digestive disorders, respiratory issues, and immune system support. Additionally, the integration of medicinal herbs into functional foods and beverages is gaining traction, as consumers seek convenient ways to incorporate these beneficial ingredients into their daily diets. Furthermore, advancements in research and development activities are expected to drive product innovation and expand the application scope of medicinal herbs across various industries including pharmaceuticals, cosmetics, and personal care products.

Currents Events and their Impact

Uncover macros and micros vetted on 75+ parameters: Get instant access to report

Segmental Analysis

To learn more about this report, Request sample copy

Medicinal Herbs Market Insights, By Herb Type - Ginseng's Dominance in the Global Medicinal Herbs Market: A Confluence of Traditional Knowledge and Modern Research

In terms of herb type, the Ginseng segment is expected to contribute the highest share of 16.6% in 2025 owing to its long-standing reputation as a potent adaptogen and its widespread use in traditional medicine systems across Asia Pacific. The herb's popularity has been further bolstered by extensive scientific research that has validated its efficacy in improving cognitive function, reducing fatigue, and enhancing the body's resilience to stress.

Ginseng's active compounds, primarily ginsenosides, have been shown to exert a wide range of beneficial effects on the human body. These include modulating the immune system, improving cardiovascular health, and regulating blood sugar levels. The herb's ability to combat oxidative stress and inflammation has also been well-documented, making it a valuable ally in the prevention and management of chronic diseases.

Medicinal Herbs Market Insights, By Form – Raw Herbs/Whole Herbs Dominate Due to Traditional Use and Consumer Preference for Natural Remedies

In terms of form, the raw herbs/whole herbs segment is expected to contribute the highest share of the market with 25.5% in 2025, reflecting the enduring appeal of traditional medicine and the growing consumer preference for minimally processed, natural products. The use of whole herbs allows for the synergistic action of all the plant's components, which is believed to enhance their therapeutic effects.

The popularity of raw herbs and whole herbs can be attributed to several factors. Firstly, there is a growing consumer interest in holistic health approaches that emphasize the use of natural remedies over synthetic pharmaceuticals. Many consumers perceive whole herbs as safer and gentler alternatives to conventional drugs, with fewer side effects.

Medicinal Herbs Market Insights, By Application – Pharmaceuticals Dominate Owing to Their Central Role in Drug Discovery and Innovation

In terms of application, the pharmaceuticals segment is expected to contribute the highest share of the market with 42.1% in 2025, highlighting the critical role that medicinal herbs play in modern drug discovery and development. Many of today's most widely used pharmaceuticals, such as aspirin and morphine, have their origins in medicinal plants.

The pharmaceutical industry's interest in medicinal herbs stems from the vast untapped potential they hold for the development of new drugs. Medicinal plants contain a wide array of bioactive compounds that can serve as lead compounds for the development of novel pharmaceuticals. These compounds have evolved over millions of years to interact with biological systems, making them a valuable source of drug candidates.

Regional Insights:

To learn more about this report, Request sample copy

Asia Pacific Medicinal Herbs Market Analysis and Trends

Asia Pacific stands out as both the dominant and fastest-growing region in the global medicinal herbs market with 40.3% in 2025. It is fueled by strong consumer demand for natural and plant-based healthcare products. The region's deep-rooted reliance on traditional medicine systems such as Ayurveda and Traditional Chinese Medicine (TCM) fosters widespread acceptance of herbal remedies. This is further supported by high health awareness, a preference for preventive care, and the presence of established herbal supplement brands.

Rising disposable incomes, an expanding middle class, and increasing prevalence of chronic diseases are driving the demand for natural and holistic treatments. Countries like India and China are at the forefront, backed by government initiatives that promote herbal research, product standardization, and quality control. Combined with a robust retail and e-commerce infrastructure, the region offers a strong foundation for continued expansion in the medicinal herbs market.

Global Medicinal Herbs Market Outlook for Key Countries

China Medicinal Herbs Market Analysis and Trends

The China medicinal herbs market is one of the largest in the world, driven by the country's ancient tradition of Traditional Chinese Medicine. The government's support for Traditional Chinese Medicine, including the establishment of dedicated hospitals and research institutions, has further propelled the market's growth. Key players such as Kangmei Pharmaceutical and Tong Ren Tang have a strong presence in the Chinese market, offering a wide range of herbal products and services.

For instance, In September 2022, BASF has launched Phytocine, a new line of skincare actives inspired by Traditional Chinese Medicine (TCM) and developed using modern skin biology. Sourced from TCM plants in China’s Pan-Himalaya region, the Phytocine range includes AQUA for hydration, NOVO for anti-aging, and CALM for soothing sensitive skin—all 100% natural and preservative-free.

India Medicinal Herbs Market Analysis and Trends

India medicinal herbs market is deeply rooted in the country's Ayurvedic tradition. The government's initiatives to promote Ayurveda, such as the establishment of the Ministry of AYUSH, have provided a conducive environment for the growth of the herbal medicine industry. Leading companies like Dabur India and Himalaya Drug Company have played a significant role in popularizing Ayurvedic products both domestically and internationally.

For instance, In September 2024, Patanjali Ayurved, a major Indian fast-moving consumer goods, and Ayurvedic health company founded by yoga guru Swami Ramdev, partnered with several Indian agricultural cooperatives to expand the sustainable cultivation of rare medicinal herbs, including Ashwagandha and Shankhpushpi. This initiative not only strengthens the global supply chain but also empowers local farmers through inclusive, herb-focused agribusiness.

Germany Medicinal Herbs Market Analysis and Trends

Germany continues to lead the Europe market for medicinal herbs, with a well-established regulatory framework and a strong consumer preference for natural remedies. German companies such as Bionorica SE and Dr. Willmar Schwabe GmbH & Co. KG have been at the forefront of herbal medicine research and product development.

For instance, In June 2024, Association for Vertical Farming e.V. AVF, a pioneer in vertical farming and controlled environment agriculture, has launched ginseng sprout trials at its AVF Lab following the success of its saffron trials. The initiative aims to explore the cultivation of Korean Ginseng (Panax ginseng), a widely recognized medicinal herb known for its health benefits and long-standing use in traditional Korean medicine.

U.S. Medicinal Herbs Market Analysis and Trends

The U.S. market for medicinal herbs has witnessed steady growth, driven by the increasing consumer interest in natural and holistic health approaches. While the regulatory landscape for herbal products is complex, companies like Gaia Herbs and Nature's Way have been successful in navigating the market and offering high-quality herbal supplements.

For instance, In September 2024, Gaia Herbs, a U.S.-based herbal supplement manufacturer known for its commitment to organic farming and traceability, announced a significant move into personalized herbal wellness. During the Natural Products Expo East, the company introduced an AI-driven supplement customization platform that utilizes individual health data to recommend tailored combinations of medicinal herbs.

End User Feedback and Unmet Needs – Global Medicinal Herbs Market

• End users across the pharmaceutical, wellness, and nutraceutical sectors have generally responded positively to the integration of medicinal herbs, citing their natural origin, perceived safety, and effectiveness in managing chronic conditions. For example, wellness clinics and Ayurvedic practitioners report high patient satisfaction with herbal formulations like ashwagandha and ginseng, especially for stress relief and immunity enhancement. These users emphasize the value of product consistency and standardized extracts. However, a recurring concern among pharmaceutical developers and large-scale formulators is the variability in raw herb quality, which affects reproducibility in clinical trials and final product efficacy.
• Despite increasing demand, several unmet needs persist. Many end users highlight the lack of advanced processing technologies that could improve bioavailability and shelf life of herbal products. Others point to limited product customization for specific demographics or medical conditions, as well as pricing constraints in lower-income markets. Additionally, regulatory ambiguity in cross-border trade creates barriers for product adoption in international markets. Addressing these gaps—through investments in R&D, transparent sourcing, and enhanced regulatory frameworks—presents a key opportunity for manufacturers and policymakers to build consumer trust, expand global reach, and foster innovation across herbal healthcare systems.

Market Players, Key Developments, and Competitive Intelligence:

To learn more about this report, Request sample copy

Key Developments:

• In January 2025, Himalaya Wellness Company, a globally recognized leader in herbal healthcare, launched a new line of standardized botanical extracts aimed at supporting cardiovascular and metabolic health. Developed using advanced phyto-extraction technologies, the products are designed to improve bioavailability and efficacy, addressing the growing demand for clinically-proven herbal supplements.
• In August 2024, Natural Remedies, an India-based leader in botanical and phytopharmaceutical solutions, launched its new Herb Secure program—an initiative ensuring vertically integrated sustainability and quality across its herbal ingredient supply chain. The program combines ancient cultivation practices with modern science, especially in the production of ingredients like BacoMind (Bacopa monnieri).
• In September 2023, the Nehru Institute of Mountaineering (NIM) and Patanjali Ayurved, an India-based consumer goods company, jointly launched a week-long expedition to Horn of Harsil Peak (5,200m) to explore rare Himalayan medicinal herbs. The 35-member team is led by Colonel Mr. Anshuman Bhadauriya, Principal of NIM, and Mr. Acharya Balkrishna, Chairman of Patanjali Ayurved.
• In September 2021, NatureCode, known for its commitment to natural and Ayurvedic living, launched a new line of Ayurvedic wellness products and dry herbs. The brand focuses on vegetarian, Ministry of AYUSH-certified, cruelty-free, and clean-label products made using standardized herbal extracts. The new range includes supplements like Immunosoul (immunity booster), Diabasoul (blood sugar support), Livsoul (liver health), Slimsoul (weight management), Jointrep (joint care), and Vitasoul (vitality booster).

Top Strategies Followed by Global Medicinal Herbs Market Players

• Established players in the global medicinal herbs market prioritize extensive research and development to innovate high-performance products. These companies invest heavily in R&D to develop new formulations, enhance existing products, and explore novel applications for medicinal herbs. By focusing on innovation, they aim to stay ahead of the competition and capture a larger market share.
  • For instance, in January 2022, Gaia Herbs, a top U.S. herbal brand, earned ISO-17025 certification for 24 lab testing methods at its North Carolina facility, boosting trust in product quality and accuracy. This includes ISO-certified curcuminoid testing for products like Turmeric Supreme, ensuring precise ingredient verification.

• Mid-level players in the global medicinal herbs market concentrate on delivering cost-effective solutions to target price-sensitive consumers. By optimizing their production processes and sourcing strategies, these companies can offer quality products at competitive prices. This approach allows them to capture a significant share of the market, particularly in regions with lower purchasing power. Moreover, collaborations play a vital role in the growth of mid-level players.
  • For instance, in February 2025, Lifeasible, a biotech company specializing in agricultural science, has introduced its new sub-brand Lifeasible Herbal Medicine to offer tailored solutions for herbal medicine research. With a focus on natural, plant-derived treatments known for their anti-inflammatory, antioxidant, and immune-boosting properties, the brand supports advancements in complementary and alternative medicine for chronic and preventive healthcare.

• Small-scale players play a vital role in shaping the global medicinal herbs market by contributing innovation, cultural diversity, and niche product offerings. Unlike large corporations, these businesses often focus on traditional knowledge systems, rare herbal formulations, or region-specific medicinal plants that cater to targeted consumer needs. Their strength lies in flexibility—allowing them to quickly adapt to emerging trends, customize product lines, and adopt sustainable or organic cultivation methods.
  • For instance, in February 2025, CSIR-Indian Institute of Integrative Medicine (IIIM), Jammu, a premier R&D institute under the Ministry of Science & Technology, and the National Institute of Sowa-Rigpa (NISR), Leh, under the Ministry of AYUSH, have reaffirmed their partnership to advance traditional medicine through scientific research.

Market Report Scope

Medicinal Herbs Market Dynamics

Medicinal Herbs Market Driver - Growing consumer preference for natural products

The global medicinal herbs market is experiencing a significant driver in the form of growing consumer preference for natural products. As health-conscious consumers become increasingly aware of the potential side effects associated with synthetic medications, they are turning to natural alternatives, such as medicinal herbs, for their healthcare needs. This shift in consumer behavior is fueled by the belief that natural products are safer, gentler, and more holistic in their approach to wellness. Medicinal herbs, with their long history of traditional use and perceived efficacy, are well-positioned to capitalize on this trend. Consumers are actively seeking out herbal remedies, supplements, and functional foods that incorporate medicinal herbs, as they view these products as a means to maintain their health, prevent diseases, and address specific ailments.

For instance, in September 2022, Auretics introduced Ayurvedic products—Madhurodhi, High Blood Pressure Care, and Low Blood Pressure Care—designed for individuals with diabetes and blood pressure issues. These are topical sprays applied to the palms and feet twice daily. Madhurodhi helps regulate blood sugar levels and is suitable even for insulin-dependent patients, while HBP Care and LBP Care support high and low blood pressure management, respectively. Each formulation uses rare herbs processed under specific conditions, with claimed results after six months of consistent use.

Medicinal Herbs Market Opportunity - Rising Demand in Developing Countries

The global medicinal herbs market is witnessing a significant opportunity in the form of rising demand from developing countries. As awareness about the potential health benefits of medicinal herbs grows, coupled with the increasing popularity of natural and alternative medicine, consumers in developing nations are increasingly turning to medicinal herbs for their healthcare needs. The vast populations in countries such as China, India, and Southeast Asian nations, along with their rich traditional knowledge of herbal medicine, present a substantial untapped market for medicinal herb products.

Moreover, the growing middle class in these countries, with rising disposable incomes and a willingness to spend on health and wellness, further fuels the demand for medicinal herbs. The increasing preference for natural and organic products, as well as the desire to adopt preventive healthcare measures, also contributes to the expanding market opportunities in developing countries. For example, according to the India Brand Equity Foundation release, India has ~18,000 plant species, with 6,000–7,000 used medicinally in Ayurveda and other traditional systems. Of ~960 traded medicinal plants, 178 exceed 100 MT in annual use. Around 80% are wild-sourced, with 69% harvested destructively.

Analyst Opinion (Expert Opinion) 

• The global medicinal herbs market is witnessing robust growth driven by increasing consumer preference for natural and plant-based healthcare solutions, growing integration of herbal products in preventive medicine, and rising demand for supplements addressing chronic conditions like diabetes, inflammation, and cardiovascular ailments. Regulatory support for traditional medicine—particularly in countries like India (AYUSH Ministry) and China (TCM regulations)—alongside advancements in phyto-extraction and standardization technologies, is further accelerating market adoption. However, challenges persist in terms of quality control, adulteration risks, and the need for global regulatory harmonization, especially for export-oriented companies. Emerging opportunities lie in personalized herbal formulations, AI-assisted R&D for herb-drug interactions, and rising global wellness trends across nutraceuticals and cosmeceuticals.
• Recent global platforms such as the World Health Organization’s Traditional Medicine Global Summit (2023, India) and the International Congress on Natural Products Research (2022, USA) have significantly contributed to knowledge exchange, standard setting, and public-private partnerships in herbal medicine. For example, American BioCarbon’s OMRI-listed biochar product and Himalaya Wellness’s launch of standardized extracts for metabolic health illustrate innovation-led strategies aligning with sustainability and efficacy demands. Additionally, government initiatives like the WHO Global Centre for Traditional Medicine and India’s Medicinal Plant Board expansion are expected to strengthen R&D, sustainable sourcing, and global market reach of medicinal herbs.

Market Segmentation

• Herb Type Insights (Revenue, USD Bn, 2020 - 2032)
  • Ginseng
  • Echinacea
  • Goldenseal
  • Ashwagandha
  • Licorice Root
  • Chamomile
  • Turmeric
  • Ginger
  • Garlic
  • Milk Thistle
  • Ginkgo Biloba
  • Saw Palmetto
  • St John's Wort
  • Valerian
  • Peppermint
  • Aloe Vera
  • Other Herbs
• Form Insights (Revenue, USD Bn, 2020 - 2032)
  • Raw Herbs/Whole Herbs
  • Extracts
  • Powdered Extracts
  • Liquid Extracts
  • Capsules/Tablets
  • Teas
  • Oils
  • Creams/Ointments
• Application Insights (Revenue, USD Bn, 2020 - 2032)
  • Pharmaceuticals
  • Nutraceuticals
  • Dietary Supplements
  • Traditional Medicine
• Source Insights (Revenue, USD Bn, 2020 - 2032)
  • Conventional
  • Organic
• Distribution Channel Insights (Revenue, USD Bn, 2020 - 2032)
  • Pharmacies/Drug Stores
  • Online Retail
  • Specialty Stores
  • Direct Selling
  • Supermarkets/Hypermarkets
• Regional Insights (Revenue, USD Bn, 2020 - 2032)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Bio Botanica
  • Nature's Answer
  • Nutraceutical Corporation (Now part of Chinese company Bright Food)
  • Horphag Research (Pycnogenol)
  • Indena S.p.A
  • Euromed S.A
  • Martin Bauer Group
  • Organic Herb Trading
  • Starwest Botanicals
  • Traditional Medicinals
  • Gaia Herbs
  • Herb Pharm
  • MediHerb (Integria Healthcare)
  • Blackmores
  • Schwabe Group

Sources

Primary Research Interviews:

• Industry Stakeholders: Interviews with herbal product manufacturers, cultivation experts, traditional medicine practitioners, quality control specialists, and supply chain managers.
• End users: Insights from nutraceutical companies, Ayurveda and traditional medicine clinics, wellness brands, and pharmaceutical firms integrating herbal ingredients.

Databases:

• Ministry of AYUSH (India)
• U.S. National Institutes of Health (NIH) – National Center for Complementary and Integrative Health (NCCIH)
• European Medicines Agency (EMA) – Herbal Medicinal Products Committee (HMPC)
• World Health Organization (WHO) – Traditional Medicine Strategy
• United Nations Food and Agriculture Organization (FAO)
• OECD (Organisation for Economic Co-operation and Development)

Magazines:

• HerbalGram (American Botanical Council)
• Nutraceuticals World
• Natural Products Insider
• Organic & Wellness News
• Pharma Times (India and UK editions)

Journals:

• Journal of Ethnopharmacology
• Phytotherapy Research
• Journal of Herbal Medicine
• Frontiers in Pharmacology – Ethnopharmacology Section
• Evidence-Based Complementary and Alternative Medicine (eCAM)
• Planta Medica

Newspapers:

• The Hindu – Business Line (India)
• The New York Times
• The Guardian
• Financial Times
• The Wall Street Journal

Associations:

• World Health Organization – Global Centre for Traditional Medicine
• Indian Pharmacopoeia Commission (IPC
• American Herbal Products Association (AHPA)
• Medicinal Plants Board of India
• European Herbal & Traditional Medicine Practitioners Association (EHTPA)
• Botanical Society of America

Public Domain Sources:

• World Economic Forum (WEF)
• U.S. Department of Commerce
• CSIR – Indian Institute of Integrative Medicine (IIIM)
• National Institute of Sowa-Rigpa (NISR)
• Trade fairs and conferences (e.g., Biofach India, HerbFest, World Ayurveda Congress)

Proprietary Elements:

• CMI Data Analytics Tool: Proprietary analytics tool to analyze real-time market trends, consumer behavior, and technology adoption in market
• Proprietary CMI Existing Repository of Information for Last 8 Years