The global herbal medicine industry generated revenues of USD 233.08 billion in 2024 and is projected to increase from USD 251.25 billion in 2025 to approximately USD 437 billion by 2032, expanding at a CAGR of 8.23% during the forecast period. Europe held the leading position with 44.55% of global revenue in 2024, while the U.S. herbal medicine market is expected to reach USD 37.90 billion by 2032, fueled by the rising preference for natural health alternatives and environmentally sustainable lifestyles.
Herbal medicines are formulations derived from plant sources—such as roots, stems, leaves, flowers, and seeds—used for both therapeutic and preventive healthcare purposes. Popular botanicals include ginkgo, ginseng, turmeric, chamomile, and ginger. Historically, herbal remedies have been central to traditional healthcare systems across various cultures, addressing a broad range of human and animal health needs.
The growing prevalence of lifestyle-related ailments, caused by poor dietary habits and sedentary lifestyles, is driving consumers toward plant-based alternatives. Health issues such as obesity, cardiovascular disease, and stress disorders have heightened the demand for herbal solutions. According to the World Health Organization (WHO), around 80% of the global population relies on traditional healers and herbal medicines, as these products are often considered safer and less likely to cause major side effects.
Information Source:https://www.fortunebusinessinsights.com/herbal-medicine-market-106320
Impact of COVID-19
The COVID-19 pandemic, declared a global health emergency by the WHO in March 2020, significantly disrupted pharmaceutical and healthcare operations worldwide. Shortages of conventional medicines and supply chain disruptions affected hospitals and pharmacies alike. Research published in the DARU Journal of Pharmaceutical Sciences reported that between January and mid-2020, hospital demand for essential medicines such as sedatives, respiratory drugs, and analgesics rose by 100–700%, underscoring the growing importance of reliable and natural therapeutic alternatives like herbal medicines.
Market Segmentation
The pharmaceutical and nutraceutical industries are major contributors to the herbal medicine market, driven by the increasing integration of botanical compounds into dietary supplements and alternative therapies. Among product forms, tablets and capsules dominate due to ease of use, accurate dosing, and broad retail availability.
The market is geographically divided into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
Report Highlights
The report includes:
Market Drivers and Challenges
Growing Demand for Natural Ingredients in Cosmetics:
The cosmetics and personal care sectors are increasingly utilizing herbal and botanical extracts in product formulations. With consumers shifting away from chemical-based ingredients, the demand for natural skincare and haircare solutions is surging. This trend presents lucrative growth opportunities for global herbal ingredient manufacturers and suppliers.
Regional Insights