The herbal medicinal product market is estimated to be valued at USD 198.06 Bn in 2025 and is expected to reach USD 326.46 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 7.4% from 2025 to 2032.
Global herbal medicinal product market has been witnessing steady growth over the past few years driven by growing consumer preference for herbal supplements and medicines. Herbal products are gaining popularity, due to perceived effectiveness against diseases without any side-effects. Affordability of herbal medicines compared to modern drugs is boosting their demand across developing regions.
However, inadequate regulation and standardization of herbal medicines pose challenges.
|
Current Events |
Description and its impact |
|
Regulatory Policy Shifts |
|
|
Trade Policy & Tariff Adjustments |
|
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
The growing consumer preference for natural and organic products is significantly influencing the Herbal Medicinal Product Market. This shift is driven by heightened awareness about health and wellness, concerns about the side effects of synthetic drugs, and a desire for sustainable, eco-friendly alternatives. Consumers increasingly seek herbal remedies viewed as safer and more natural options for prevention and treatment.
For instance, according to IFOAM – Organics International, the global area under organic farming reached 96 million hectares in 2022, reflecting broader consumer trust in naturally sourced products. This growing preference supports increased demand for organically cultivated medicinal herbs used in traditional and modern herbal formulations.
In terms of distribution channel, the hospital pharmacies segment is expected to contribute 35.7% share of the market in 2025.
The hospital pharmacies segment is emerging as a key distribution channel in the herbal medicinal product market, driven by growing integration of herbal treatments into formal healthcare settings. As awareness about the therapeutic potential of herbal remedies increases, hospitals are increasingly stocking plant-based medications alongside conventional pharmaceuticals.
The integration of AI is driving innovation, efficiency, and improved consumer outcomes, reshaping how herbal medicinal products are created, marketed, and consumed.
To learn more about this report, Download Free Sample
Europe holds a dominant position in the herbal medicinal product market, accounting for an estimated 33.1% share in 2025, supported by its extensive pharmaceutical and medical industry infrastructure. Major market players are increasingly entering the European landscape through strategic mergers and acquisitions.
Asia Pacific is the fastest-growing market for herbal medicinal products, projected to account for over 20% of the global market in 2025. Countries like China and India, with abundant herbal resources, are major producers of herbal products worldwide.
For instance, in May 2025, the Department of Thai Traditional and Alternative Medicine, along with Southeast Asian member countries of the World Health Organization (WHO), jointly submitted requests during the 78th World Health Assembly advocating for greater support and recognition of evidence-based traditional medicine.
China’s rich heritage in traditional Chinese medicine (TCM) strongly drives its herbal medicinal product market. The government’s support for integrating herbal remedies into modern healthcare and increasing public acceptance of natural therapies have boosted demand. Additionally, abundant cultivation of medicinal plants and a well-established supply chain strengthen China’s position as a global leader in herbal products.
In June 2025, “Healthplex Expo 2025 – Natural & Nutraceutical Products China 2025 (HNC 2025)” took place at the National Exhibition and Convention Center in Shanghai.
India’s long-standing tradition of Ayurveda and other indigenous healing systems fuels the growth of its herbal medicinal product market. Increasing awareness about natural health solutions and rising investments in rural healthcare infrastructure encourage more people to seek herbal alternatives. The government's promotion of herbal exports and standardization of herbal formulations further propel market expansion.
For instance, in May 2025, Indore, India: Ayush Nirmata Sangh urged the state government to develop a cluster for herbal and ayurvedic medicine manufacturers amid growing demand from the sector following expanding footfall in domestic and international markets.
Thailand’s commitment to preserving and promoting traditional medicine as part of its cultural heritage plays a key role in the market’s growth. Government initiatives to incorporate Thai herbal medicine into national healthcare services and partnerships with global health organizations enhance the credibility and accessibility of herbal products. This has led to rising consumer trust and usage within the country.
Germany’s herbal medicinal market benefits from strong consumer interest in natural and complementary therapies alongside conventional medicine. The country’s robust regulatory framework ensures high quality and safety standards for herbal products, fostering public confidence. Moreover, integration of herbal remedies within mainstream healthcare and pharmacist recommendations support steady market demand.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2024 | Market Size in 2025: | USD 198.06 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 7.4% | 2032 Value Projection: | USD 326.46 Bn |
| Geographies covered: |
|
||
| Segments covered: |
|
||
| Companies covered: |
Boiron, Himalaya Global Holdings Ltd., Arkopharma Laboratories, Cultivator Natural Products, Patanjali Ayurvedic India Ltd, Herbalife International of America, Inc., Emami Ltd, NUTRAMARKS, INC., Arogya Formulations (P) Ltd., Navayur Herbals, Nature's Answer Inc., 21ST Century HealthCare, Inc., and Bio-Botanica Inc. |
||
| Growth Drivers: |
|
||
| Restraints & Challenges: |
|
||
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
*Definition: Herbs are plants or plant parts that are utilized for their smell, taste, or medicinal characteristics. Herbal medications or supplements are natural substances derived from the leaves, bark, roots, seeds, or flowers of plants that can be used for therapeutic purposes. Dietary supplements consist of herbal medications. Tablets, capsules, powders, teas, extracts, and fresh or dried plants are available. Herbal remedies are used by people to try to maintain or enhance their health.
Share
Share
About Author
Ghanshyam Shrivastava - With over 20 years of experience in the management consulting and research, Ghanshyam Shrivastava serves as a Principal Consultant, bringing extensive expertise in biologics and biosimilars. His primary expertise lies in areas such as market entry and expansion strategy, competitive intelligence, and strategic transformation across diversified portfolio of various drugs used for different therapeutic category and APIs. He excels at identifying key challenges faced by clients and providing robust solutions to enhance their strategic decision-making capabilities. His comprehensive understanding of the market ensures valuable contributions to research reports and business decisions.
Ghanshyam is a sought-after speaker at industry conferences and contributes to various publications on pharma industry.
Missing comfort of reading report in your local language? Find your preferred language :
Transform your Strategy with Exclusive Trending Reports :
Frequently Asked Questions
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
View All Our Clients
Schedule a meeting with report Author
