Herbal Medicinal Products Market – Insights
The herbal medicines product are first choice among people to avoid adverse health effects. For instance, according to the Council for Scientific and industrial Research (CSIR), 2017, traditional medicines are mostly preferred for treating health problems compared to allopathic medicines. Moreover, allopathy cannot be effectively remedied at around 70% due to which traditional medicines have an important role to play in meeting with equitable healthcare delivery goals. According to the World Health Organization (WHO), 2017, Ayurvedic medicine is the sum of the knowledge, skills, and practices, which are mainly based on the theories, beliefs, and experience of different cultures to maintain health by prevention, diagnosis, and treatment of physical, and mental illness. Increasing adoption of herbal medicinal product over conventional allopathy with low side effects is expected to boost growth of the herbal medicinal products market over the forecast period.
The global herbal medicinal products market size was valued at US$ 75,807.0 million in 2018, and is expected to exhibit a CAGR of 5.5% over the forecast period (2019 – 2027).
Figure 1. Global Herbal Medicinal Products Market Value (US$ Mn), by Region, 2018
Source: Coherent Market Insights Analysis (2019)
Favorable government regulations for homeopathic medicines are expected to boost growth of the herbal medicinal products market
The global herbal medicinal products market is expected to gain significant traction, owing to rising e-commerce for easy access of ayurvedic therapies and supplements, changes in government regulations to promote herbal medicines, and increasing expansion of herbal medicinal products globally. For instance, in September 2017, Dabur India collaborated with Amazon India to launch an Ayurveda e-marketplace. Through this e-commerce, Amazon will offer various ayurvedic medicines such as Nutriherbs, Shilajeet, Himalaya wellness pure herbs ashwagandha, and Herbal Hills for the treatment of various illness such as gut and digestive problems, diabetes, and others. Moreover, through this e-commerce consumers are expected to gain easy access to all ayurvedic brand solutions such as Dabur, Patanjali, and Himalaya. Furthermore, in November 2017, the Union Ministry of Health and Family Welfare, India, strengthened regulation about homeopathic medicines under the drugs and cosmetic rules, 1945. According to the drugs and cosmetic rules, 1945 regulation, homeopathy doctors are banned from selling homeopathic medicines over the counter at clinics. Moreover, pharmacists no longer require special training in homeopathy outlets for consultation purpose. This law allows pharmacists to sell homeopathic medicines along with the allopathic medicines
Moreover, in November 2017, Australia-based beauty brand CANVAS expanded its presence in Singapore with Maiko Pte Ltd, a distributer, which helped CANVAS with sales, marketing, and brand-building activities of CANVAS and its aromatherapy products. With this expansion CANVAS will strengthened its product portfolio in aromatherapy and enhanced its market presence in the global herbal medicinal products market.
Figure 2. Global Herbal Medicinal Products Market Share (%), by Product Type, 2019 and 2027
Source: Coherent Market Insights Analysis (2019)
Increasing adoption of mergers and acquisitions and product launches by market players in Europe are expected to drive the market growth
Europe is expected to hold dominant position in the market, owing to large pharmaceutical and medical industry in the region. Thus, major players in the market are penetrating potential European countries through strategic acquisitions. For instance, in July 2013, Bayer Pharmaceuticals acquired Steigerwald Arzneimittelwerk, a Germany-based herbal medicines manufacturer. The acquisition expanded Bayer’s product offerings for gastrointestinal disorders and strengthened its presence in the Germany market.
Moreover, North America is expected to be the second largest dominating region in the herbal medicinal products market, owing to rising acquisition and collaboration strategies adopted by the market players in the region. For instance, in July 2019, MediBeacon Inc. and Huadong Medicine, a producer of Chinese herbal medicines, entered into a collaboration to gain regulatory approval in Mainland China for MediBeacon's entire product portfolio. Under the collaboration, Huadong Medicine funded clinical trials along with commercial and regulatory activities of MediBeacon Inc.
Major players operating in the global herbal medicinal products market include Sanofi S.A, Himalaya Global Holdings Ltd., Arkopharma Laboratories, Integria Healthcare, Young Living Essential Oils, Boiron, Blackmores Ltd., and Soho Flordis International (SFI)