Mandas Banjare, Ph.D. (Ag.) Agri-Business Management
Tanuja Ekka, Ph.D. (Ag.) Agri-Business Management
Department of Agri-Business and Rural Management
Indira Gandhi Krishi Vishwavidyalya, Raipur

Introduction
India has a long tradition of herbal medicine rooted in Ayurveda, Siddha, and Unani systems. In recent years, the herbal market in India has witnessed rapid growth due to increasing awareness of natural products, rising health consciousness, and a global shift toward plant-based healthcare solutions. The herbal sector forms a key component of the broader AYUSH industry and plays a vital role in both domestic consumption and exports.

Market Size and Current Status
The herbal market in India has expanded significantly in the last decade. The Indian herbal medicine market was valued at around USD 6.3 billion in 2024 and is projected to grow to nearly USD 30 billion by 2035, registering a CAGR of about 15.2%. Another estimate suggests the market will reach approximately USD 7.5 billion by 2026, driven by increasing demand for natural remedies. The broader Ayurveda market in India stood at around USD 11–12 billion in 2024–2025 and is expected to exceed USD 35 billion by 2030. Additionally, the entire AYUSH sector (including herbal products) is projected to grow from USD 43 billion in 2024 to USD 200 billion by 2030, indicating massive expansion potential.

Key Growth Drivers

1. Consumers are increasingly shifting from synthetic drugs to herbal and natural remedies due to fewer side effects and long-term benefits.

2. The COVID-19 pandemic significantly boosted demand for herbal immunity boosters such as Giloy, Ashwagandha and Turmeric-based products.

3. Government initiatives such as the Ministry of AYUSH, promotion of medicinal plant cultivation, and export incentives have strengthened the sector.

4. Online platforms and retail chains have made herbal products easily accessible across urban and rural markets.

5. India is a global leader in Ayurveda, exporting herbal medicines to over 200 countries, which further drives domestic production

Emerging Trends

1. Recent developments show a shift toward evidence-based herbal medicine, where traditional formulations are validated through scientific research and clinical trials

2. Indian herbal brands are entering premium global markets, especially in skincare and wellness segments

3. Manufacturers are adopting modern techniques such as chromatography and spectroscopy to ensure product quality and global acceptance

4. Plant-based supplements and functional foods are emerging as one of the fastest-growing segments in India

Challenges in the Herbal Market

1. Lack of standardization and quality control among small-scale producers

2. Adulteration and counterfeit products affecting consumer trust

3. Limited scientific validation for some traditional remedies

4. Supply chain issues for medicinal plants

5. Regulatory hurdles and certification requirements

Opportunities and Future Prospects
  • The market is expected to grow at double-digit CAGR (15–20%) over the next decade
  • Increasing global demand for organic and plant-based products
  • Expansion of herbal exports and wellness tourism
  • Integration of AI and biotechnology in herbal research
  • Rising investment in research and development

Conclusion
The herbal market in India is undergoing a transformation from traditional usage to a modern, scientifically validated, and globally competitive industry. With strong government support, increasing consumer awareness, and expanding international demand, the sector is poised for remarkable growth. However, addressing challenges related to quality, standardization, and research will be crucial for sustaining long-term development.

References

1. Market Research Future. (2026). India herbal medicine market research report: Growth, trends, and forecast (2025–2035).

2. Grand View Research. (2024). Ayurveda market size & share report – India.

3. The Times of India. (2025). Ayurveda meets evidence-based science: The transformation led by Patanjali Research Foundation,

4. Hikmat Mohammed. (2024). Inside the Indian beauty boom.