The global herbal medicine industry was valued at USD 233.08 billion in 2024 and is anticipated to expand from USD 251.25 billion in 2025 to nearly USD 437 billion by 2032, registering a CAGR of 8.23% during the forecast period. Europe led the global market in 2024, accounting for 44.55% of total revenue, while the U.S. herbal medicine market is expected to achieve USD 37.90 billion by 2032, propelled by growing consumer preference for natural and eco-friendly healthcare solutions.

Herbal medicines are therapeutic or preventive formulations made from various parts of plants—including roots, leaves, flowers, seeds, and stems. Popular botanicals such as ginkgo, ginseng, turmeric, chamomile, and ginger are extensively used for treating a wide range of health conditions in both humans and animals. These plant-based formulations have served as vital components of traditional medicinal practices across multiple cultures for centuries.

The increasing prevalence of lifestyle-related diseases—including obesity, cardiovascular issues, and stress-induced disorders—driven by poor diet and sedentary habits, is accelerating demand for natural, plant-derived treatments. According to the World Health Organization (WHO), approximately 80% of the world’s population relies on herbal or traditional remedies, primarily due to their perceived safety and minimal side effects compared to synthetic pharmaceuticals.

Information Source: https://www.fortunebusinessinsights.com/herbal-medicine-market-106320

Impact of COVID-19

The COVID-19 pandemic, declared by the WHO in March 2020, disrupted pharmaceutical and healthcare supply chains globally. Shortages of key medicines and logistical challenges placed immense strain on hospitals and pharmacies. A study published in the DARU Journal of Pharmaceutical Sciences found that between January and mid-2020, hospital demand for drugs such as sedatives, analgesics, and respiratory treatments increased by 100–700%. This shortage encouraged both consumers and healthcare providers to seek natural and dependable alternatives, driving significant growth in herbal medicine adoption during the crisis.

Market Segmentation

The herbal medicine industry benefits from strong integration with the pharmaceutical and nutraceutical sectors, which are increasingly incorporating botanical ingredients into dietary supplements and alternative therapies.

• By Product Form: Tablets and capsules represent the largest market segment, favored for their convenience, accurate dosing, and wide retail accessibility.
• By Region: The market is categorized into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Report Highlights

• Detailed market segmentation and analysis of investment opportunities
• In-depth regional insights and identification of emerging trends
• Evaluation of mergers, acquisitions, partnerships, and product innovations
• Assessment of COVID-19’s impact on supply chains and consumer behavior

Market Drivers & Challenges

1. Growing Use of Natural Ingredients in Cosmetics

The cosmetics and personal care industries are witnessing an increasing shift toward botanical-based formulations. With consumers moving away from chemical-laden products, the demand for natural skincare and haircare solutions is rising rapidly—creating new opportunities for global suppliers of herbal ingredients.

2. Shift Toward Clean-Label and Eco-Friendly Products