Demand and Supply Analysis

Factors Affecting the Demand

There are lots to considered when it comes to setting new products to the market
considering, the price, buyers income level, consumer tastes, and competition. The price of
the product significantly affects the demand of the fresh herbs oil in the market. Consumers
opinion of product quality and financial sacrifices are based on the price perception. Which,
consumer believes that the higher price would have a better and higher quality. Most fresh
herbs company targeted lower and middle-class earners, which had significantly impacts to
the demand om the fresh herbs oil company because the product offered is pleasing and
convenient to the customer. Therefore estimating the buyer’s capability has a tremendous
advantage in attracting customers the leads to a higher demand in the sector. Moreover,
targeting the right customers for the fresh herbs oil is a strategic advantage that generates the
most significant share in income and expenses. According to Fortune Business Insights
(2023), The global herbal medicine market is projected to grow from $165.66 billion in 2022
to $347.50 billion by 2029, at a CAGR of 11.16% in forecast period. Since the COVID-19
pandemic has been unprecedented and staggering since herbal medicine witnessing higher
anticipated demand across all regions compared to pre-pandemic levels. The fresh herbs oil
has monopolistic competition in which businesses offers similar but not identically products
that affect consumers demand. Moreover, the example is that some customer’s prefer Drug
Store. With these preference provide market power to monopolistically competitive which
they can use to generate positive economic profits. On the other hand, the listed below are
the key players of Herbs and other medicinal company that is popular in the Philippines.

 Fresenius SE & Co. KGaA

 (Fresenius), Medtronic,
 Koninklijke Philips NV
 (Philips), GE Healthcare, and
 Siemens Healthineers

Factors Affecting the Supply

Supply is the quantity of a commodity which is offered by a firm or a seller at a

particular price during a given period. In other words, supply is that part of stock which is
brought into the market for sale. A market supply refers to the quantity of a commodity that
all firms are able to offer at a particular price during a given period of time. These are the
factors which affect the changes in supply, price of the given commodity, price of other
goods, prices of factors of Production (inputs), state of technology, government policy,
natural conditions, and calamities. Even when key players costs are high, some herbs and
medicinal company will insists to sustain the price as low in order to draw people to their
establishments. Herbs oils and medicinal must purchase the natural herb to be used in
preparation of their processed products. When prices rise, the herbs oil and medicinal
company haven’t choice but to absorb the traditional cost because the increase in cost are
often transitory in nature. Goods prices are not only serve as an essential indication of the
balance between output and supply, but they also have significant implications when it
comes to affordability of herbs oil and the level of income. When it comes to running a
successful natural herbs oil business, several expenditures and aspects are too considered
in order to illustrate the combinations of inputs to be used to produce any given level of
output. This idea serves as aid to eliminates scenarios in which output inputs are redundant
or wasted throughout the production process. Utilizing technology can assists in increasing
supplies and increasing the efficiency if the process. Digital technology has helped the herbs
oil and other medicinal products become more efficient, more productive, and better at
providing customer service which are the tiktok facebook, and Instagram platforms. Due to
the massive number of businesses adopting digital transformation, those that do not run the
risk by utilizing the software being left behind.