GLOBAL TRADITIONAL MEDICINE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Global Traditional Medicine Market is expected to reach US$ 289.66 Bn by 2030, from US$ 174.89 Bn in 2023, exhibiting a compound annual growth rate (CAGR) of 7.5% during the forecast period.

Traditional medicine includes medical practices which have been used for hundreds or thousands of years before the development and spread of modern scientific medicine. It includes ancient systems of healing such as ayurveda, Chinese medicine, acupuncture, and herbal medicines.

Global Traditional Medicine Market- Regional Insights

• North America is expected to be the largest market for traditional medicine during the forecast period, accounting for over 35.7% of the market share in 2023. The ayurvedic medicine sub-segment is witnessing the fastest growth under the product segment in North America. As people increasingly aspire towards healthy and preventive healthcare approach, ayurveda is gaining acceptance. It offers holistic techniques for balancing mind, body and spirit through dietary guidelines, yoga, meditation and herbal formulations. Many American spas and wellness centers now provide ayurvedic treatments and therapies. For instance, according to the article published by National Center for Biotechnology Information, 2022 over 250 Ayurvedic clinics have opened across the U.S. and Canada in the last 5 years alone. Easy access to Ayurvedic consultations and products on e-commerce sites like Amazon is also a key factor fueling the growth of this sub-segment. Consumers are displaying more willingness to experiment with Ayurveda for various conditions like PCOS, arthritis, anxiety and weight management.
• Asia Pacific is expected to be the second-largest market for traditional medicine, accounting for over 25.2% of the market share in 2023. The Asia Pacific region has emerged as the fastest expanding traditional medicine market globally. Several Indian states have also implemented policies to boost domestic production of Ayurvedic medicines and products. For instance, in the past 5 years, the Himachal Pradesh government’s ‘Hamari Dharohar’ program has focused on promoting cultivation of over 250 Ayurvedic herbs indigenous to the region. This has led to a sizable growth in the availability of raw materials for Ayurvedic pharmacological production clusters in the state.
• Europe is expected to be the fastest-growing market for traditional medicine, with a share of 30.4% during the forecast period. Certain herbal medicines have also received regulatory approval and recommendations from organizations like the EMA and European Scientific Cooperative on Phytotherapy (ESCOP). Such endorsements have increased trust in herbal products. Furthermore, developments in extracts, standardization techniques and manufacturing have enhanced quality, safety and efficacy of herbal medicines in the Europe.

Figure 1. Global Traditional Medicine Market Share (%), By Region, 2023

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Analyst View: The global traditional medicine market has strong growth potential over the coming years. Growing acceptance of traditional medicine practices in developed regions will drive the market growth. Increased consumer focus on natural and plant-based remedies is a major driver for the market. Rising healthcare costs is also expected to push more consumers towards lower-cost traditional therapies. However, lack of scientific evidence and clinical trial data remains a challenge for traditional medicine adoption in Western countries. More research is needed to ascertain the efficacy and safety of traditional practices. Strict regulations around traditional medicine production and sale in some parts of the world may inhibit market expansion.

Asia Pacific region is the lucrative region the global traditional medicine market due to deep cultural roots and government support. Countries like China, India, Japan and South Korea have witnessed booming demand for traditional remedies. North America and Europe will present attractive opportunities backed by growing focus on holistic healthcare options. Increasing popularity of traditional Chinese medicine in the U.S. and incorporation of Ayurveda in European medical systems.

Traditional Latino, African and Middle Eastern therapies also exhibit high potential but require more scientific validation and standardization to appeal to global audiences. Overall, with rising preference for natural therapies and supportive regulations coming into place, the traditional medicine industry seems poised for strong sustainable growth in the coming decade if key challenges around research and regulation are addressed.

Global Traditional Medicine Market- Drivers

• Increasing preference for herbal medicines: With more people adopting a holistic and preventive approach to health, the preference for herbal medicines over synthetic drugs is increasing globally. Consumers are now well informed about the side effects of allopathic medications and are looking for natural remedies to treat ailments. This paradigm shift towards traditional and herbal formulations is one of the major factors positively impacting the growth of the global traditional medicine market. Traditional medicine involves the use of plant-based remedies, acupuncture, diet-based therapies and other time-tested treatment modalities to stimulate the body's innate healing abilities. According to World Health Organization (WHO), around 80% of the population in developing countries relies on traditional medicine for their primary healthcare needs. In countries like China, India, Egypt, South Korea and Mexico, traditional medicine is deeply ingrained in the culture and people have great trust in therapies like Ayurveda, traditional Chinese medicine and other local medicinal practices. The fact that herbal medicines are easily available, have negligible side effects and are more cost effective compared to allopathic drugs, is furthering their popularity.
• Rising awareness about traditional medicine: People are increasingly realizing the limitations of allopathic medicines in effectively treating chronic conditions in the long run without disturbing the natural biological balance in the body. The growing prevalence of lifestyle diseases like diabetes, cardiovascular issues, obesity, and others, that require lifelong treatment has encouraged users to explore traditional medicine options that focus on identifying the root cause of illness. Government initiatives across countries are also promoting integration of traditional medical practices in primary healthcare as they develop national policies. For instance, in 2021 the Indian government launched the Ayush Ministry portal to provide quality information on Ayurveda, Unani, Siddha and Homeopathy to people in India and globally.
• Increasing investments in R&D of traditional medicine: Increasing investments in research and development of traditional medicine is significantly contributing to the growth of the global traditional medicine market. Governments across major economies are focusing on promoting research in traditional therapies and integrating them with conventional systems. For example, the Chinese government has increased its funding for traditional medicine research and development (R&D) over the past few years. In 2020, it allocated over US$ 400 million towards establishing national and regional T&M research centers. These centers are conducting clinical trials and modernization programs to strengthen the evidence base for traditional formulations and practices. Similarly, India launched its National Ayush Mission in 2014 which has sponsored numerous projects for scientific validation of traditional therapies. Over 1000 Ayush practitioners and researchers have been provided research grants totaling US$ 50 million by the Ministry of Ayush.

Global Traditional Medicine Market- Opportunities

• Emerging markets in developing countries: Emerging markets in developing countries present a great opportunity for growth in the global traditional medicine market. The developing countries continue their economic growth and development agendas, healthcare infrastructure and priorities are also improving. Many governments recognize the popularity and impact of traditional medicine, and are allocating greater support towards its research, development, and integration into national medical systems. For example, India's National Ayurveda, Yoga, Unani, Siddha and Homeopathy program received increased funding of US$ 333 million, according to government reports. This creates new market potential with favorable regulations and provides traditional medicine mainstream acceptance and access. Multinational corporations have also started exploring active compounds from indigenous medicinal plants and collaborating with local practitioners, indicating promising prospects.
• Synergies with pharmaceutical products: Partnering with pharmaceutical companies allows traditional medicine practitioners to leverage advanced research and development capabilities. As demand grows for holistic healthcare approaches, collaborations that blend traditional practices with evidence-based validation could expand accessibility and trust in traditional therapies. By validating efficacy and safety, partnerships help traditional medicine remain relevant given preferences for natural and preventative options. They also facilitate intellectual property protection and technology transfer of valuable compounds or formulations. Over 40% of Americans and Europeans also regularly use traditional therapies. However, lack of standardized quality control and scientific substantiation limits traditional medicine's reach. Partnering traditional medical knowledge with pharmaceutical research protocols could fill this gap. It efficiently streams validation workflows while respecting diverse medical traditions. Ongoing trials from the National Center for Complementary and Integrative Health in the U.S. found promising treatments for conditions like liver disease, arthritis and mood disorders using individualized botanical combinations and lifestyle modifications aligned with Ayurveda and Chinese medicine.
• Growing geriatric population: The growing geriatric population worldwide presents a major opportunity for the global traditional medicine market. According to World Health Organization (WHO), in 2022, the number of people aged 65 years and above is expected to grow from 727 million in 2020 to 1.5 billion in 2050 globally. Older individuals are more susceptible to chronic ailments like arthritis, diabetes, heart diseases, and others that boosts demand for healthcare solutions. Traditional medicine practices like Ayurveda, Chinese medicine, acupuncture, and others are fundamentally preventive and holistic in nature. They use herbal formulations and lifestyle therapies to strengthen immunity and promote wellness from within. This resonates well with the healthcare requirements of the geriatric segment. Traditional medicine treatments are also generally non-invasive and have lesser side effects compared to many allopathic options. With busy lifestyles and greater health awareness, more seniors are now open to exploring traditional alternatives for managing their age-related conditions in a natural manner.

Global Traditional Medicine Market- Trends

• Increasing adoption of ayurvedic medicine: The adoption of ayurvedic medicine is having a significant influence on the global traditional medicine market. Ayurveda originated in India thousands of years ago and focuses on balancing the three doshas (life forces) - vata, pitta and kapha - through herbs, meditation and yoga. It treats illness by promoting good health and preventing disease, rather than combating pathogens. Countries like India have also taken initiatives to promote ayurveda globally. The Government of India's MINISTRY OF AYUSH released a five-year roadmap in 2021 to expand ayurveda internationally. It is actively collaborating with various countries to set up wellness centers, introduce degree programs and exchange knowledge on traditional healing practices. According to data from Ministry Of Ayush, India's domestic ayurveda market grew 12% even during the pandemic, owing to growing health consciousness. Exports of ayurvedic products increased 18% during the same period.
• Technological advancements in traditional medicine: Technological advancements are significantly influencing the global traditional medicine market. Traditional medicine therapies such as Ayurveda and Chinese medicine are increasingly being integrated with advanced technologies such as artificial intelligence, virtual reality, 3D printing and robotics. This allows traditional medical practitioners to diagnose patients more accurately and provide customized treatment plans. For example, many hospitals and clinics in China are now utilizing AI and imaging technologies like CT scans and MRIs to identify imbalances in a patient's energy levels and deviations from normal body functions. This provides practitioners a more objective understanding of which traditional Chinese medicine therapies may help restore balance. Similarly, researchers at the University of Minnesota developed an AI tool using smartphone data to help practitioners of traditional Mongolian medicine accurately diagnose patients. The tool analyses voice, movement and other behavioural patterns to understand diseases and their root causes based on theories of traditional medicine.

Global Traditional Medicine Market - Restraints

• Lack of scientific evidence and clinical trials: The lack of scientific evidence and clinical trials is significantly restraining the growth of the global traditional medicine market. While traditional medicine practices have been used for centuries across cultures, the absence of rigorous scientific validation of treatment protocols and reported health outcomes continues to be a major roadblock. Health regulators around the world require transparent data from well-designed clinical trials to assess the safety, efficacy and appropriate usage of any medical intervention before granting broader approvals or reimbursements. For traditional medicine practices which have so far relied primarily on anecdotal evidence and been passed down generations via oral tradition, coming up to the levels of evidence expected by modern medical standards is quite challenging. Practitioners have to invest considerable time and resources in developing standardized treatment protocols, conducting multi-armed randomized controlled trials on target patient populations, publishing results in peer-reviewed medical journals, and then seeking necessary regulatory clearances. This transition to evidence-based traditional medicine is ongoing but still incomplete in most regions of the world.
• Herbal products have substitute chemical drugs: Herbal products being used as alternatives to chemical drugs has become a major restraining factor for the global traditional medicine market. With growing awareness about side effects of allopathic drugs and consumers seeking natural therapies, many are opting for herbal remedies to treat common ailments. Various herbal formulations are being used as effective substitutes to treat diseases like diabetes, depression, anxiety and hypertension. For instance, according to World Health Organization, extracts from plants like ginger, cinnamon and turmeric can help to control blood sugar levels and are being widely used by diabetics instead of pharmaceutical medications. Similarly, extracts from plants like St. John's wort, Ashwagandha and Lavender have shown efficacy in mitigating symptoms of depression and relieving anxiety without any major side effects. This has caused many people to rely on herbal preparations obtained from local medical stores rather than visiting traditional medicine practitioners.

Figure 2. Global Traditional Medicine Market Share (%), By Product, 2023

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Global Traditional Medicine Market - Recent Developments

Product and Technology Launch

• In November 2021, BASF SE, a multinational company, launched Phytocine signifying a new generation of scientifically inspired actives based on Traditional Chinese Medicines (TCM), an advancement made possible through combination of modern skin biology science and TCM plants grown in the Pan-Himalaya region of YunNan China. The Phytocine series addresses skin concerns that can be released through the use of TCM.
• In September 2021, Ginkgo Bioworks, a company that is building the leading horizontal platform for cell programming, announced the launch of Ayana Bio to enable a healthier future by harnessing bioactive compounds for use as complementary medicine to support human health and wellness
• In March 2021, India-based Vasu Healthcare Pvt Ltd, one of the leading brand in herbal and ayurveda space with its flagship brand TRICHUP forayed into Herbal Skincare, launched a wide range of herbal skincare products in personal care that includes face washes, shower gels, body lotions, skin cream, face masks, and face scrubs under ‘Vasu Naturals’.

Business Development Activities by the Market Players

• In November 2021, Biohaven Pharmaceutical Holding Company Ltd., a clinical-stage biopharmaceutical company, and Pfizer Inc., an multinational pharmaceutical and biotechnology corporation, announced a strategic commercialization arrangement for rimegepant in markets outside of the U.S. upon approval. Rimegepant is commercialized as Nurtec ODT in the U.S., and is indicated for the acute treatment of migraine attacks with or without aura and the preventive treatment of episodic migraine in adults. An application for the approval of rimegepant is currently under review by the European Medicines Agency and several additional regulatory authorities outside of the U.S.
• In October 2020, Indian brand Dabur, an Indian multinational consumer goods company, announced its alliance with Amazon, an multinational technology company, in order to take its products global. Amazon is available in 120+ countries and is renowned worldwide as one of the leading Ayurvedic and Natural Health Care Company. Dabur’s collaboration with Amazon will help it to expand and increase its penetration into the U.S. market.

Top Companies in Global Traditional Medicine Market

• Guizhou Yifang Pharmaceutical Co., Ltd.
• Guangzhou Baiyunshan Pharmaceutical Holdings Co., Ltd
• Tasly Holding Group Co., Ltd.
• Kotobuki Seiyaku Co., Ltd.
• Herbalife Nutrition
• Imperial Ginseng Products Ltd.
• Hammurapi Pharma GmbH
• Zydus Nutriva
• Hawaii Pharma, LLC
• VitaHealth Australia
• Amrita Ayurvedic Pharmaceutical
• The Himalaya Drug Company
• Dabur
• Kotaro Pharmaceuticals Company
• Charak Pharma
• Fortis Healthcare
• Baidyanath Ayurved

Definition: Traditional medicine consists of medical knowledge systems that have developed over generations within various societies before the era of modern medicine. It includes indigenous practices like Ayurveda, traditional Chinese medicine, African traditional medicine, Arabic unani medicine, and other indigenous practices from around the world. These practices typically use plant-based treatments, animal parts, minerals and spiritual therapies like meditation.