The global herbal medicine market generated revenues worth USD 233.08 billion in 2024 and is projected to grow from USD 251.25 billion in 2025 to nearly USD 437 billion by 2032, reflecting a CAGR of 8.23% during the forecast period. Europe dominated the market in 2024, accounting for 44.55% of global revenue, while the U.S. herbal medicine market is projected to reach USD 37.90 billion by 2032, driven by increasing consumer preference for natural remedies and eco-conscious living.
Herbal medicines are therapeutic and preventive formulations derived from plant materials such as roots, stems, leaves, flowers, and seeds. Commonly used botanicals include ginkgo, ginseng, turmeric, chamomile, and ginger. For centuries, these natural remedies have been integral to traditional medical systems worldwide, addressing a wide variety of human and animal health concerns.
The rising incidence of lifestyle-related disorders such as obesity, cardiovascular diseases, and stress-related conditions—largely due to poor nutrition and sedentary lifestyles—has accelerated demand for herbal and plant-based treatments. According to the World Health Organization (WHO), around 80% of the global population depends on traditional healers and herbal medicines, given their perceived safety and lower risk of side effects compared to synthetic drugs.
Information Source: https://www.fortunebusinessinsights.com/herbal-medicine-market-106320
Impact of COVID-19
The COVID-19 pandemic, declared by WHO in March 2020, caused significant disruptions across global healthcare and pharmaceutical supply chains. Shortages of essential medicines and logistical constraints severely affected hospitals and pharmacies. Research published in the DARU Journal of Pharmaceutical Sciences indicated that between January and mid-2020, hospital demand for key drugs such as sedatives, analgesics, and respiratory medicines surged by 100–700%. This supply shortage encouraged both consumers and healthcare providers to explore natural and reliable alternatives, boosting the demand for herbal medicines during the crisis.
Market Segmentation
The herbal medicine industry is strongly supported by the pharmaceutical and nutraceutical sectors, which increasingly incorporate botanical ingredients into dietary supplements and alternative therapies.
By product form, tablets and capsules hold the largest share due to their convenience, precise dosage, and widespread retail availability.
Geographically, the market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
Report Highlights
The report offers:
Market Drivers & Challenges
The cosmetics and personal care sectors are increasingly incorporating botanical extracts in their formulations. As consumers shift away from chemical-based products, demand for natural skincare and haircare solutions continues to expand. This transition presents significant opportunities for global herbal ingredient suppliers and manufacturers.