Indian Herbal Products Market Size Likely to Surpass at a CAGR of 7.1% By 2033

As per the current market research conducted by the CMI Team, the Indian Herbal Products Market size is expected to record a CAGR of 7.1% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 64,818.8 Million. By 2033, the valuation is anticipated to reach USD 120,172.9 Million.

Indian Herbal Products Market: Growth Factors and Dynamics

• Increasing Consumer Awareness: There has been a growing awareness among Indian consumers about the benefits of herbal products, driven by concerns about the side effects of synthetic chemicals in conventional products. Consumers are increasingly seeking natural and organic alternatives, contributing to the growth of the herbal products market.

• Shift Towards Ayurveda and Traditional Medicine: India has a rich tradition of Ayurveda and other traditional forms of medicine, which emphasize the use of natural ingredients for health and wellness. The resurgence of interest in Ayurveda and traditional medicine has fueled demand for herbal products, as consumers perceive them to be safer and more sustainable than synthetic alternatives.

• Government Support and Initiatives: The Indian government has been actively promoting the use of herbal products through various initiatives such as the Ayushman Bharat program and the National AYUSH Mission. These initiatives aim to mainstream Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homeopathy (AYUSH) healthcare systems and encourage the development and marketing of herbal products.

• Expansion of Distribution Channels: Herbal products are becoming increasingly accessible to consumers through a variety of distribution channels, including pharmacies, supermarkets, e-commerce platforms, and direct selling channels. This expansion of distribution channels has facilitated greater consumer access and contributed to market growth.

• Innovation and Product Development: Manufacturers in the herbal products market are investing in research and development to create innovative products that cater to evolving consumer preferences and address specific health and wellness needs. This focus on innovation and product development has led to the introduction of new herbal formulations and product categories, further driving market growth.

• Growing Disposable Income and Health Consciousness: With rising disposable incomes and increasing health consciousness among Indian consumers, there is a growing willingness to spend on premium herbal products that offer perceived health benefits. This demographic trend, coupled with changing lifestyle preferences, is expected to continue driving growth in the Indian herbal products market.

• Export Opportunities and Global Demand: The Indian herbal products market is not only experiencing growth domestically but also witnessing increasing demand from international markets. Indian herbal products, known for their quality and authenticity, are gaining popularity globally, driven by the growing trend towards natural and organic products worldwide.

Indian Herbal Products Market: Partnership and Acquisitions

• In 2023, Handard, an Indian traditional medicine manufacturer, expanded its product line to include face washes, shampoos, and oral hygiene products. This diversification allows the company to cater to a broader consumer base and tap into new market segments.

• In 2022, Simply Herbal, a prominent player in the Indian healthcare supplement industry, introduced a new range of products under the brand name Divya Himalayan. This brand focuses on producing products derived solely from organic ingredients, reflecting a commitment to natural and sustainable wellness solutions.

Report Scope

Indian Herbal Products Market: COVID-19 Analysis

The COVID-19 pandemic has had a significant impact on the India Herbal Products Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Disruption in Supply Chain: The COVID-19 pandemic led to disruptions in the supply chain, affecting the procurement of raw materials for herbal products manufacturing. Restrictions on movement, lockdowns, and logistical challenges hampered the sourcing of ingredients, impacting the production and distribution of herbal products.

• Shift in Consumer Behavior: During the pandemic, there was a shift in consumer behavior towards health and wellness products, including herbal products. With heightened concerns about immunity and overall well-being, there was increased demand for herbal supplements, immunity boosters, and personal care products, offsetting some of the negative impacts on the market.

• Emphasis on E-commerce: With social distancing measures and lockdowns in place, there was a surge in online shopping for essential goods, including herbal products. Manufacturers and retailers have increasingly focused on strengthening their e-commerce presence, leveraging online platforms to reach consumers directly and mitigate the impact of physical retail closures.

• Product Diversification and Innovation: To adapt to changing consumer preferences and emerging health trends post-COVID-19, manufacturers are diversifying their product portfolios and investing in innovation. This includes the development of new herbal formulations targeting specific health concerns such as immunity, stress relief, and respiratory health, thereby expanding market opportunities.

• Strengthening Distribution Networks: As restrictions ease and economic activities resume, herbal product manufacturers are focusing on strengthening their distribution networks to reach a wider consumer base. This may involve partnerships with distributors, retailers, and e-commerce platforms, as well as expanding into new geographical regions within India and internationally.

• Health and Safety Assurance: In response to heightened consumer awareness about health and safety, manufacturers are placing greater emphasis on quality control and assurance measures. This includes adherence to stringent hygiene standards in manufacturing facilities, ensuring the authenticity and purity of herbal ingredients, and obtaining relevant certifications to build consumer trust.

• Government Support and Policy Measures: The Indian government has implemented various stimulus packages and policy measures to support businesses affected by the pandemic, including those in the herbal products sector. This includes financial assistance, incentives for research and development, and regulatory reforms to facilitate ease of doing business. Continued government support is expected to aid the recovery of the Indian herbal products market in the post-pandemic period.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Indian Herbal Products Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the Indian Herbal Products Market:

• Himalaya Drug Company
• Dabur India Ltd.
• Patanjali Ayurved Limited
• Emami Limited
• Baidyanath Group
• Forest Essentials
• Vicco Laboratories
• Shahnaz Husain Group
• Lotus Herbals Pvt. Ltd.
• Jovees Herbal Care India Ltd.
• Ayur Herbals
• Khadi Natural Healthcare
• VLCC Health Care Ltd.
• Sri Sri Tattva
• Hamdard Laboratories (India)
• Others

The Indian Herbal Products Market is segmented as follows:

By Product Type

• Herbal Supplements
• Herbal Teas
• Herbal Beauty and Personal Care Products
• Herbal Medicines
• Herbal Essential Oils
• Others

By Application

• Dietary Supplements
• Pharmaceuticals
• Personal Care and Cosmetics
• Food and Beverages
• Others

By Distribution Channel

• Retail Pharmacies
• Online Pharmacies
• Supermarkets/Hypermarkets
• Specialty Stores
• E-commerce Platforms
• Others