Market Challenges And Opportunities
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 - 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.
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