Indonesia Herbal Medicine Market Size Likely to Expand at a CAGR of 7.1% By 2033

As per the current market research conducted by the CMI Team, the Indonesia Herbal Medicine 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 13,732.1 Million. By 2033, the valuation is anticipated to reach USD 25,459.1 Million.

Indonesia Herbal Medicine Market: Growth Factors and Dynamics

• Increasing Health Awareness: There is a growing awareness among Indonesians about the benefits of natural and herbal products. Many consumers prefer herbal medicines as they are perceived to have fewer side effects compared to synthetic drugs.

• Cultural and Traditional Practices: Herbal medicine has deep roots in Indonesian culture. Traditional practices like Jamu, a traditional herbal medicine in Indonesia, continue to be widely used and trusted by the population.

• Government Support and Regulations: The Indonesian government supports the herbal medicine industry through various initiatives and regulations aimed at promoting traditional medicine. Policies encouraging the use of local herbs and ensuring the safety and efficacy of herbal products contribute to market growth.

• Growing Middle Class and Disposable Income: The expanding middle class and rising disposable incomes in Indonesia lead to increased spending on health and wellness products, including herbal medicines.

• Research and Development: Increased investment in research and development by both the government and private sector helps in the discovery of new herbal formulations and improvements in the quality and efficacy of existing products.

• Export Potential: Indonesia’s rich biodiversity provides a vast array of medicinal plants, which positions the country as a significant player in the global herbal medicine market. The export of Indonesian herbal products to other countries, particularly in Asia and Europe, is on the rise, further driving market growth.

• Increasing Urbanization: As urbanization in Indonesia accelerates, there is a growing trend toward modern and convenient healthcare solutions, including over-the-counter herbal products. Urban consumers often seek out herbal medicines for preventive healthcare and wellness, contributing to the market’s expansion.

• Integration with Modern Healthcare: There is a growing trend of integrating herbal medicine with conventional healthcare practices. Many healthcare providers in Indonesia now recommend herbal remedies alongside standard medical treatments, enhancing the credibility and acceptance of herbal medicine among the general population. This integrative approach is supported by increased collaboration between traditional healers and modern medical practitioners.

• Digital and E-commerce Platforms: The rise of digital technology and e-commerce platforms has significantly impacted the herbal medicine market in Indonesia. Online retailing of herbal products has made them more accessible to a broader audience, including younger, tech-savvy consumers.

Indonesia Herbal Medicine Market: Partnership and Acquisitions

• In 2024, Affinity Equity Partners successfully concluded its partnership with PT Industri Jamu dan Farmasi Sido Muncul Tbk by selling its remaining stake. This transaction marks the end of their investment in one of Indonesia’s leading herbal medicine and pharmaceutical companies.

• In 2022, PT Madu Pramuka partnered with bee farmers due to its lack of land for plant cultivation, relying on them to produce honey. Its cost structure includes investment in construction, procurement, and maintenance of production tools essential for honey production.

Report Scope

Indonesia Herbal Medicine Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the Indonesia Herbal Medicine Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Increased Demand: The COVID-19 pandemic led to a surge in demand for herbal medicines as people sought natural remedies to boost their immune systems. Products like Jamu, known for its immune-boosting properties, saw a significant rise in popularity.

• Supply Chain Disruptions: The pandemic caused disruptions in the supply chain, affecting the availability of raw materials and the distribution of herbal products. Lockdowns and restrictions on movement led to delays and shortages, impacting the market negatively.

• Strengthening Local Supply Chains: Efforts have been made to strengthen local supply chains to reduce dependency on imports and ensure a steady supply of raw materials. This includes promoting the cultivation of medicinal plants domestically.

• Digital Transformation: The shift to online platforms has accelerated, with many herbal medicine companies enhancing their digital presence and e-commerce capabilities. This has improved accessibility and convenience for consumers, driving sales growth.

• Government Support and Incentives: The Indonesian government has provided support and incentives to the herbal medicine industry, including funding for research and development, grants for small and medium-sized enterprises (SMEs), and promotional activities to boost domestic consumption and exports.

• Public Awareness Campaigns: Increased public awareness campaigns highlighting the benefits of herbal medicine for health and wellness have contributed to a sustained interest in these products. These campaigns often emphasize the role of herbal remedies in preventive healthcare.

• Innovation and New Product Development: Companies in the herbal medicine market have focused on innovation and the development of new products to meet the evolving needs of consumers. This includes creating new formulations, enhancing the quality and efficacy of existing products, and introducing convenient packaging options.

• Collaboration with Modern Healthcare: There has been increased collaboration between traditional herbal medicine practitioners and modern healthcare providers. This integrative approach has helped in gaining broader acceptance and credibility for herbal products, further boosting market recovery.

• Export Market Expansion: Efforts to expand the export market for Indonesian herbal products have been intensified. By exploring new international markets and strengthening trade relationships, the industry aims to increase global sales and diversify revenue streams.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Indonesia herbal medicine market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the Indonesia Herbal Medicine Market:

• Sido Muncul
• Deltomed Laboratories
• Muncul Group
• PT Industri Jamu dan Farmasi Sido Muncul Tbk
• PT Kalbe Farma Tbk
• PT Deltomed Laboratories
• Mustika Ratu
• Nyonya Meneer
• Air Mancur
• Borobudur Herbal
• Herbana
• Jamu Iboe
• Madu Pramuka
• Soman Indonesia
• PT Sari Herbal
• Others

The Indonesia Herbal Medicine 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