ARTICLE TPR

Contribution of Herbal Products In

Global Market
S.A. Nirmal1, S C Pal2, Otimenyin, S. O3, Thanda Aye4, Mostafa Elachouri5, Sukalyan Kumar Kundu6,
Rajarajan Amirthalingam Thandavarayan7 & Subhash C Mandal8

Abstract: In the present article, an endeavor has been made to present an overview of contribution of herbal drugs to global
market from various countries. Herbal medicinal products are getting global importance because of their health benefits. Their
demand is going to increase because of increased interest of consumers in natural products as they are considered safer
and more cost effective than synthetic drugs in many occasions. According to World Health Organization (WHO) about 80%
population of most developing countries still rely on traditional herbal medicines for their primary health care needs. Overall
international trade in medicinal plants and their products was US$ 60 billion in 2010 and is expected to reach US$ 5 trillion
by 2050. In Asia, the demand of herbal market had almost doubled during late 1990’s due to increase in population. Global
Nutraceuticals Market has been projected to rise at over 8.3% per annum to reach US$ 30 billion in 2015. A large number of food
and pharmaceutical companies are active in the field because they consider that the nutraceuticals market has promising growth
potential. This shows that there is tremendous demand for herbal products and there is urgent need to maintain standardization
of herbal products for its toxicity due to heavy metals, excessive or banned pesticides, microbial contaminants, chemical toxins
produced due to unfavourable or wrong storage conditions or chemical treatment due to storage.

Introduction
India has the world’s oldest and largest traditional system of care needs (Bannerman, 1982). Turnover of herbal medicines in
medicine. Indian system of medicine includes various systems developed countries like United State (USA), Europe, Australia,
such as Ayurveda, Siddha, Unani, Homeopathy, Yoga and and Canada was around US$ 30 billion in the year 2000, which
Naturopathy. India has great traditional knowledge on herbal was increased around 5-15% than the same for the last decade.
medicine and vast plant biodiversity. Indian herbal market is one USA was the fastest growing market where annual retail sale
of the growing market because government set up herbal farm of botanical products had been increased from US$ 200 million
clusters for improving quality of drugs and promotion of exports, in 1988 to US$ 5.1 billion in 1997. Botanical sale in USA was
cultivation of medicinal plants and effective marketing of herbal US$ 14 billions in the year 2009 and by the year 2050 it had
products. Herbal medicinal products are getting global importance been predicted to be US$ 5 trillion (Bhowmik et al., 2009). In the
because of their health benefits. There demand is going to United States alone, it was estimated that herbal usage had been
increase because of increased interest of consumers in natural increased by 380% between 1990 and 1997 (Eisenberg et al.
products as they are considered safer and more cost effective 1998). Similarly, industry demand for herbal products was also
than synthetic drugs in many cases (Kochhar, 1981). According increased due to emergence of new products like health foods,
to World Health Organization (WHO) about 80% population of natural cosmetics, and hygiene products. Overall, international
most developing countries like Asia, Africa, Latin America etc. trade in medicinal plants and their products was US$ 60 billion in
still rely on traditional herbal medicines for their primary health the year 2000, with average annual growth rate of 7% and was
1
Department of Pharmacognosy, Pravara Rural College of Pharmacy, Pravaranagar, M.S., 2Department of Pharmacognosy, NDMVP’s
College of Pharmacy, Nasik, M.S., 3Department of Pharmacology, Faculty of Pharmaceutical Sciences, University of Jos, Jos, Plateau State,
Nigeria., 4Department of Botany, University of Yangon, Myanmar., 5Mohammed I University, Department of Biology, Ethnopharmacology
& Physiology Laboratory, Morocco., 6Department of Pharmacy, Jahangirnagar University, Bangladesh., 7Bristol Heart Institute, Bristol
University, United Kingdom, BS2 8HW., 8Pharmacognosy and Phytotherapy Research Laboratory, Division of Pharmacognosy, Department
of Pharmaceutical Technology, Jadavpur University, Kolkata.

THE PHARMA REVIEW ■ NOVEMBER - decemBER 2013 95

TPR ARTICLE
expected to reach US$ 5 trillion by 2050 (Govt. of India, 2000).
China and India are the top exporting countries and Hong Kong,
Japan, USA and Germany are the leading importers. Supply of
medicinal plants in world is originated from developing countries.
Medicinal plant plays a vital role in the health care needs of
three quarter of the world’s population living in developing
countries. Use of medicinal plants is being steadily increased.
Pharmaceutical and food industries, traditional or alternative
practitioners, folk or household medicine users, cosmetic and
flavor industry and many more need these plants.
World Phytopharmaceutical Market
The interest of pharmaceutical industries towards medicinal
plants is increased in last two decades. This is because of
increased awareness and interest in medicinal plants by public
and scientific community. As a reflection of this by early 1990’s
top 250 pharmaceutical companies started research activities
involving higher plants. In USA, 25% prescriptions are dispensed
with drugs whose active ingredients are derived from plants. Sale
of plant-based drugs in USA amounted to around US$ 4.5 billion
in 1980 and US$ 15.5 billion in 1990 (Farnsworth and Soejarto,
1985). As a result of this, 119 drugs were obtained from 90 plants
in 1995 (Fransworth et al., 1985) and over 130 in 1997 (Sukhdev,
1997). Due to such increasing demand of natural products it was
expected that the share of plant derived prescription drugs would
be increased upto 30% in nearby time (Wilkinson, 2000). Herbal
and botanical products were part of the $28.7 billion in annual
dietary supplement sales in the United States in 2010, according
to Nutrition Business Journal. The market for medicinal herbs
was estimated at more than $3 billion, according to the Medicinal
Plant Working Group. More than 60 million U.S. consumers took
herbal remedies (Austin, 2010). Terpenoids contributed the most
to the sale of plant derived drugs, around US$ 12.4 billion in 2002.
Steroids were another key group in this category. Glycosides
were the next in sale to terpenoids. Flavonoids, saponines,
anthraquinones and digitalis compounds were among the most
significant categories in term of sale. It included alkaloids from
belladonna, cinchona, camptotheca, poppy, rauwolfia, vinca and
others. Other miscellaneous substances included plant-derived
vitamins, psoralens, ephedrines, salicylates and various others.
Important categories like neural, respiratory, digestive, skin
problems, pain and cancer were dominant plant-derived drugs
(Business Communications Company Inc., 1998).
96 THE PHARMA REVIEW ■ NOVEMBER - DECEMBER 2013
Herbal Medicines:
Herbal medicines are also referred as botanical medicines.
It makes use of herbs for therapeutic or medicinal purpose. In
the year 2002, WHO estimated that 4 billion people of the world
population used herbal medicines for their primary health care
(WHO, 2002). Herbal medicine industry is one of the fastest
growing industries in the world. The global pharmaceutical
market was worth US $550 billion in 2004 and has been
increased to US $ 710.2 billion by 2012 (http://www.abpi.org.uk).
Current value sales within the US herbal products market grew
by 3% through 2012, reaching a value of US$ 4.4 billion in 2012
(http://www.companiesandmarkets.com). Global herbal medicine
market is estimated to be worth US$ 26 to 30 billion according to
various estimates. According to WHO, in some Asian and African
countries, 80% of the population depend on traditional medicine
for primary health care (http://hplctraining.blogspot.in).
Use Of Traditional Medicines In Various Countries
The annual turnover of the Indian herbal medicinal industry is
about Rs. 7,500 crore against the pharmaceutical industry’s
turnover of Rs. 14,500 crore with a growth rate of more than
15%. As per the study commissioned by the Associated Chamber
of Commerce and Industry (ASSOCHAM), the Indian herbal
industry is projected to double the turnover to Rs.15,000 crore
by 2015, from the current Rs. 7,500 crore business (http://
smetimes.tradeindia.com). India has a vast and rich resource of
herbal raw materials and it can create a niche for itself in the
global herbal market if the domestic industry produced quality
products of international standards. The apex chamber estimates
global herbal industry to grow to Rs. 70,000 crore by 2015, more
than double from the current level of Rs. 30,000 crore. In India,
there are about 14 well-recognized., 86 medium scale and 8000
small scale manufactures of herbal drugs on record. In addition,
thousands of ‘Vaidyas’, i.e. traditional practitioners, also have
their own miniature manufacturing facilities. The estimated
current annual production of herbal drugs is around Rs. 3500
crores. India with its strong base in traditional knowledge on
herbal medicine and vast plant biodiversity has a great potential
in this sector. 2400 plant species can be used as a source of raw
material but in actual only 960 plant species are used in trade.
In the last few decades, there has been an exponential growth
in the field of herbal medicine and it is getting popularized in
developing and developed countries owing to its natural origin
and lesser side effects. Large quantities of botanicals in India are

consumed by the herbal industry (177,000 MT) and by millions
of rural households (86,000 MT) that depend for their primary
healthcare on this resource. In addition, a large quantity of
botanicals (56,500 MT) is exported from the country (www.nmpb.
nic.in, 2012). This data tells us about huge demand of herbal
drugs. Thus the huge demand of herbal medicines has led to
a sudden increase in herbal manufacturing units. This can be
corroborated from the huge requirement of raw materials by the
industry. The turnover of AYUSH industry is estimated to be more
than Rs. 8800 crore in the year 2020. The domestic market of
Indian systems of medicine & Homoeopathy (ISM&H) is of the
order of Rs. 4000 crore with a total consumption of all botanicals
to a figure of 177000 MT, which is expanding day by day. The
total annual turnover of the Ayurvedic drug manufacturing
industry is estimated to be around Rs. 3,500 crore. There are
total of 9,493 manufacturing units, of which mostly are small
scale units (8,000) having an individual annual turnover of less
than one crore. Some of the well known industrial houses with
individual annual turnover of more than 50 Crores are Dabur
India Ltd, Zandu Pharmaceutical Work Ltd., Himalaya Drug
Company, Shree Baidyanath Ayurved Bhawan Pvt. Ltd., Arya
Vaidya Shala etc. Though the number of manufacturing units
with higher turnover was less, still they consumed about 35% of
the total raw materials used (Joshi, 2008). The total quantity of
exported medicinal plants from India including plant extracts was
57880 MT in the year 2008. Psyllium exports constituted 35.6 %
of total exports of medicinal plants followed by Senna (18.9%).
The total value of plant raw drugs exported (excluding extracts)
was Rs. 354.8 crores corresponding to a quantity of 56,500 MT
in the year 2008. In 2008, the annual export of India’s herbal
sector added to Rs. 807 crores. This included exports worth Rs.
354.80 crores relating to plant raw drugs, Rs. 161 crores relating
to plant extracts and Rs. 291 crores to medicines. It showed
that the finished herbal products constituted nearly 36% of the
total exports of India’s herbal sector and the rest 64% exports
were in the form of raw materials and extracts. On comparing the
export data with previous year shows a 30% sizeable increase of
Rs. 185 Crores. Total 40 numbers of commodities were enlisted
for import. The consolidated figures of such imports amounted
to 37,483 MT (Rs.173 crores) and Gum Arabic constituted the
largest proportion by quantity (12,731 MT; 34 %). The latest
export statistics of India’s herbal products had revealed that India
standed as second leading exporter in the world accounting for
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ARTICLE TPR
Rs. 1318.69 crore for the year 2010-11.As per the latest statistics
available from Pharmexcil, China was the top country leading
in the world in the export of herbals with US$1329.72 million
followed by India with an export figure of US$ 790.56 million for
the year 2010. India was second only to china in the world in the
exports of Ayush and herbals of the total Rs.14000 crore in 2012.
If one looks in terms of net value addition, the Ayush and herbal
sector had shown a growth of 10.89% during 13 years period
between 1995-96 and 2007-08. The herbal exports too have
seen a considerable increase of Rs. 36.76 crore from Rs. 570.76
crore in the year 2009-10 to Rs. 602.57 crore in the year 2010-11.
The major herbal exports of India include Psyllium seeds, Senna
leaves and pads, and various other herbs and herbal products.
Among all Psyllium husk (isobgul husk) contribute a major chunk
of herbal exports which accounts to Rs.425.05 crore. The top
ten countries where India exports its Ayush and herbal products
included Russia, USA, Kazakhstan, UAE, Nepal, Ukraine, Japan,
Philippines, Kenya and Mauritania. Among them Russia led
the list with an import of Rs.138.94 crore of Ayush and herbals
from India. America (USA) stood as second largest importer
accounting to Rs.103.14 crore and Kazakhstan stood 3rd with a
contribution of Rs. 55.24 crore towards India’s Ayush and herbals
for the year 2010-11. (Singh et al., 2005; Ved & Goraya, 2008;
http://pharmabiz.com, 2012)
China and India have well-developed traditional systems, such
as Traditional Chinese Medicine (TCM) and Ayurvedic medicine
respectively. In China, traditional medicines account for 30-50%
of the total medicinal consumption. In 1993, the total sale of
herbal medicines in China was amounted to more than US$ 2.5
billion. The sale increased up to US$ 47.84 billion in 2010 (http://
www.wpro.who.int). In Japan, from 1974 to 1989, there was a 15
fold increase in the sale of Kampo (Japanese traditional method)
medicinal preparations in comparison with only 2.6 fold increase
for mainstream pharmaceutical products. Alternative systems of
plant-based medicine form an important part of the healthcare
systems in most of the Asian, African, Latin American and some
developed countries. Among Asian countries Japan, China and
India have the highest per capita consumption of traditional
medicine. Traditional medicines have been being used effectively
in the Japanese society for more than a thousand years. The
Japanese traditional medicine is popularly called Kampo medicine.
Kampo drug market enjoyed an annual growth rate of 15% over
the period of 1991-1995. Sale of Kampo medicines in 1996 was
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increased up to US$ 56 billion (Okada, 1996). Consisting of
the total sales of all 148 NHI-listed Kampo products, the size
of the Japanese prescription Kampo product market was a little
under US$ 1.21 billion. This figure represented a mere 1.3% of
Japan’s total prescription drug market, which was approximately
US$ 0.1 trillion as of the end of 2012 (http://www.tsumura.co.jp).
Chinese herbal remedies and manufactured products had
a demand in excess of US$ 840 million a year in Japan,
representing 2% of the entire spectrum of market in 2001
(Stephen, 2001). In China, plant-based medicines are the
backbone of the healthcare for a billion people. Medicinal plants
were used by 40% of Chinese urban patients and over 90% of
rural patients for the primary healthcare needs (Xiao, 1991). In
1978 the market for Chinese medicine was US$ 0.44 billion,
which rose to 0.66 billion in 1990 and 1.3 billion in 1992. In 1993,
the total sale of herbal medicines was amounted to more than
US$ 1.6 billion, excluding US$ 400 million worth of exports.
The demand for medicinal plant material in China had grown
annually at 9% up to the year 1997 (He and Sheng, 1997). There
are over 4,000 composite drugs in 40 different formulations in
Traditional Chinese Medicine (TCM). TCM make up to 40% of
the market, while western style drugs work out around 60%.
The annual output value of TCM industry was around US$ 1.8
billion with a volume output of more than 200,000 metric tons in
early 1990’s. The export of TCM was around US$ 480 million in
1992, and US$ 506 million in 1993. The value of those exports
was increased from US$ 600 million in 1996 to US$ 1.8 billion
in 2010. Traditional Chinese medicines include proprietary
Chinese medicines, raw materials and ingredients, as well as
herbal extracts. The value of China's exports of the medicine
was reached US$ 2.33 billion in the year 2012, an increase of
36.2 percent from the year before, according to the chamber. At
the same time, the weight of the exports is increased by 14%
and the prices of such products increased by 23% (Trade Daily,
2000; Jie, 2013).
During 1980s, India was the largest supplier of medicinal plants
to the European Economic Community (EEC) with a supply of
10,055 metric tons of medicinal plant material and 14 metric
tons of plant alkaloids and their derivatives. The annual turnover
of Indian herbal industry was estimated at around US$ 300
million in 1995 (Anonymous, 1996). In 1997-1998, the export
value of Ayurvedic and Unani medicines was about US$ 33.5
million, which dropped to US$ 27.7 million in 1998-1999, and
98 THE PHARMA REVIEW ■ NOVEMBER - DECEMBER 2013
again went up to US$ 31.7 million in 1999-2000. Psyllium husk,
popularly known as isabgol, is a major item with export value of
US$ 23.5 and 19.6 million in 1998-99 and 1999-2000, respectively
(Pharmabiz, 2001). The market for Indian herbal medicine is
increased up to US$ 181.45 billion in the year 2012 and expected
to be increased up to US$ 255.6 billion by 2014 (http://www.
business-standard.com).
The Malaysian herbal industry was estimated at about US$ 315
million per annum, growing annually at a steady pace of 20%
(Bernoma, 1999). The market value, which was estimated at US$
10 million in 1994, grew up to about US$ 15.8 million in 1996.
Today the main products in demand are garlic, echinacea, ginkgo
and evening primrose oil. There are about 1,000 manufacturers
of Malay herbal medicines in Malaysia. The value of global herbal
market for nutraceuticals is at US$ 70 billion and US$ 20 billion
for phytomedicines with an average growth rate between 15 to 20
percent annually in the year 2012 (MaSiuMan, 2012).
Indonesia is the second largest biodiversity centre after Brazil.
In general, 40% of Indonesian population utilizes herbal drugs
for health care needs. In Indonesia, the development of herbal
industry has increased rapidly. In the year 1992, there were 468
registered industries that increased to 807 in 2000. This increase
in number of manufacturing units is the reflection of an increase in
the consumption of herbal medicines in Indonesia. One of the top
companies dealing with manufacture of ‘Jammu’ medicine, namely
‘PT Jammu Air Mancur’, reported an annual income of US$ 360
million, mostly from domestic sales and US$ 9 million from export
of Jammu medicines in 1995. Indonesia exports US$10 million
worth of Jammu traditional herbal medicine annually, while the
domestic market value of Jammu stands at $500 million in the year
2010 (Suherdjoko, 2010).
The use of traditional medicine is a rich tradition to maintain
health, among the people of Cambodia. The ‘Khamer’ is the most
popular traditional medical system. Cambodia has the potential to
source the national requirements of raw material of more than 500
valuable medicinal plants.
The new developments and remarkable progress have been taken
place in the medicinal and aromatic plant sector in the Philippines
since the establishment of the Asian Network on Medicinal and
Aromatic Plants (ANMAP), in June 1993. Many pharmaceutical
companies had expanded their business to herbal medicines and
body care products. Among the exported herbal products, the most
prominent are herbal teas and herbal cosmetics. According to the

Department of Health, the market for nutraceuticals, both, locally
manufactured and imported, is worth about US$ 1.7 billion in
the year 2011. Trade sources estimate that the market for OTC
(over-the-counter) vitamins and dietary supplements was valued
at around US$ 300 million in 2010, or about 18% of the whole
market (Stanton et al., 2011).
Thailand is bestowed with rich natural resources of medicinal and
aromatic plants. There are more than 10,000 species of plants
of which about 1,400 are used as indigenous medicinal and
aromatic plants in Thai traditional Materia Medica. In 2000, there
were 699 manufacturing units of traditional drugs in Thailand
(248 in Bangkok, 451 in the rural areas). Thailand's Public Health
Ministry is targeting a growing market for herbal products, rising
from US$ 9.69 million to US$ 16.15 million and a market value
for herbal dietary supplements from US$ 0.26 billion to US$ 0.32
billion in the year 2013 (http://www.pattayamail.com).
Medicinal plants and herbal drugs have made a tremendous
contribution to the national health and development in Vietnam.
It has been estimated that by the year 2010 Vietnam will produce
itself 70% of the needed medicines. Herbal and plant based
drugs using the indigenous raw materials will account for 30%
of the total value of produced medicines. The country harvests
10,000 tons of medicinal herbs annually and imports 40,000 tons
or 80% mostly from China. Experts note that Vietnam has around
3,850 species of medicinal plants, including valuable ones like
Aloe vera, used widely in cosmetic products, and star anise (also
called Illicium verum), used to make tamiflu. As recently as a
decade or two ago, Vietnam earned hundreds of millions of US
dollars exporting medicinal herbs, both rare and common, that
flourished in the fertile soil and suitable climatic conditions in
different parts of the country. Mango leaves, for instance, were
exported to Russia, valued for the mangiferin element in it that
is used to fight against viruses and treat shingles (Tuyen, 2010).
In Sri Lanka traditional medicine systems are the major users of
medicinal plants. In 1994 over US$ 10 million worth medicinal
plants were imported from India through the Department of
Ayurveda. According to the figures available at the customs, in
1995 Sri Lanka exported 368 metric tons of medicinal plants
valued at US$ 1.53 million, and 65 metric tons (US$ 0.98 million)
of medicaments. In 1996 over sixty species were imported at
an annual value of US$ 1.27 million from India and neighboring
countries. Herbal market in Sri Lanka has been reached to US$
20 billion in 2007 and will be reached to US$ 5 trillion in near
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ARTICLE TPR
future (Hettigoda, 2007).
In South Africa, the demand for indigenous medicines is
considerably higher than for western medicines. In Zambia, 70%
of the population relies on traditional medicines and their trade is
worth over US$ 43 million per annum. There are about 78 species
of medicinal plants used widely in Zambia. In Ethiopia, 70 to 90%
of the population relies on traditional medicine especially from
medicinal plants for their primary healthcare needs. As in many
countries, alternative medicines are widely available in South
African supermarkets, pharmacies and health shops, according
to one industry body, the Health Products Association of Southern
Africa, is worth at least about $250-million a year. The bulk of
traditional medicines are herbal. Each year around 20,000 tons
of plant materials are collected from the 771 plant species used
by local healers (Meyer, 2013).
About 70-80% of the Latin American population relies on
traditional medicine for their healthcare needs. The consumption
of drugs in Latin America was worth US$ 16.5 billion in early
1990’s, slightly less than 5% of the world consumption. The per
capita consumption of drugs is approximately US$ 21. The Latin
America nutraceuticals market reached US$ 7.8 billion in 2011
from US$ 6.6 billion in 2007 with CAGR of 4.2% during 2007-
2011 (http://www.researchandmarkets.com).
Market of Herbal Dietary Supplements In The United
States:
Sales of herbal dietary supplements in the United States was
increased by 4.5% in 2011, reaching a total estimated figure
of nearly $5.3 billion (USD). Sales in the mainstream market
channel was continued to grow, increasing almost 3% over
2010 sales while sales in natural food stores rose by a strong
5.5% (http://cms.herbalgram.org/press/2012). These sales data
indicate continued strong consumer demand for herbs and other
natural plant-derived ingredients as an essential part of their self-
care. The 5 top-selling herbal supplements of 2011 in the health
and natural foods channel, according to SPINS newsletter, were
flaxseed oil (Linum usitatissimum), grass (wheat and barley;
Triticum aestivum and Hordeum vulgare), turmeric (Curcuma
longa), aloe (Aloe vera), and milk thistle (Silybum marianum). The
top-selling herbal singles of 2011 in the food, drug, and mass-
market channel, according to SymphonyIRI, were cranberry
(Vaccinium macrocarpon), soy (Glycine max), saw palmetto
(Serenoa repens), garlic (Allium sativum), and ginkgo (Ginkgo
99
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Multinational Company Herbal companies acquired, Country
American home products Dr. Much, Germany
Boehringer Ingleheim Pharmaton, Switzerland Quest, Canada
Boots Kanold, Germany
Bausch & Lomb Dr. Munn, Germany
Degussa Asta Medica, Germany
Fujisawa Klinge, Germany
Johnson & Johnson / Merck Woelm Pharma, Germany
Pfizer Mack, Germany
Rhone Poulenc Rohrer Natterman, Germany
Sanofi Plant Organ, Germany
Searle Heumann, Germany
SmithKline Beecham Fink, Germany
Solvay Kali Chemie, Germany
Table 1: Acquisitions of European phytomedicine companies by
multinational pharmaceutical companies
biloba) leaf extract. Natural foods channel rankings may include
some combination herbal products, as SPINS codes sales by
primary ingredient (http://cms.herbalgram.org).
Developments in Herbal Medicine Industry
The majority of leading companies, specialized in herbal drugs, are
located in Germany, France, Italy and Switzerland. Some of them
are over 100 years old and many are still privately owned. Some
multinational pharmaceutical companies have bought smaller
herbal companies in Europe (Table 1). A group of multinational
pharmaceutical companies markets herbal medicines in several
countries, which are produced by smaller companies, specialized
in herbal drugs. Examples are Boehringer Ingelheim (Sweden),
Lederle (Australia) and Schering (Belgium and Hungary).
Herbals are the fastest growing segment in the raw materials
market in the USA, valued at over US$ 600 million. The Martin
Bauer Group, a German corporation with over US$ 250 million
in sales and whose subsidiaries include Finzelberg, Plant
Extract (Plantextrakt), Phyto Lab, and Phytocon, is the market
leader. Other major companies include the pharmaceutical
giants Trostburg and Madaus in Germany and Schweizerhall
in Switzerland, as well as specialty company Indena in Italy,
are a US$ 200 million supplier of herbal products for the
pharmaceutical, cosmetic and food industries. The Zuellig Group
is also exclusive US agent for Finzelberg. Euromed, the major
supplier of standardized extracts of saw palmetto, pygeum, and
echinacea, is a wholly owned subsidiary of Madaus in Germany.
100 THE PHARMA REVIEW ■ NOVEMBER - DECEMBER 2013
Madaus generates sales of US$ 400 million per annum from
herbal medicines. Most of the large pharmaceutical companies
have also started the herbal division. Warner Lambert, American
Home Products, Bayer and SmithKline Beecham are all
introducing herbal products. And this adds respectability to this
marginalized market with driving demand for high quality raw
material of medicinal and aromatic plants. The main producers
are manufacturers based in the developed countries, including
the large multinational pharmaceutical companies (Vasisht and
Kumar, 2002).
Nutraceuticals
‘Nutraceuticals’ is a latest term for health foods, The term
‘nutraceuticals’ is an amalgamation of the terms ‘nutrition’ and
‘pharmaceuticals’ used as a marking level to distinguish certain
foods and food ingredients, usually from natural sources, which
confer specific health benefits. Nutraceuticals are the latest
products in a succession of health food evolution.
Major Nutraceutical Products Categories
In the nutraceutical industry major products includes dietary
supplement, such as food supplements, drinks, herbal extracts,
vitamins and essential oils; fortified foods, such as high carotenoid
tomatoes, and vegetables oils modified to improve their fatty acids
profiles; foods and beverages with added bioactive ingredients,
such as ginseng tea or cholesterol lowering phytosterols; and
entire food regimes.
Trends in Global Nutraceuticals Market
The USA leads the market followed by Western European
countries and Japan as both major producer and consumer of
nutraceuticals (Table 2). In 1998-99, the herbal supplements
and vitamins were the strongest performing sector in the global
OTC market, with an annual growth rate of 16%. In 1999, the
global nutraceutical market was valued at US$ 6.8 billion,
almost thrice the value in 1987 (Table 3). It has been projected
to rise at over 8.3% per annum to reach US$ 30 billion in 2015
(Freedonia Group Inc., 2001). Global Nutraceutical Product
market reached US$ 142.1 billion in 2011 (Albany, 2013). The
global market for Nutraceuticals is projected to reach US$250
billion by 2018, driven primarily by the growing affinity among
the general populace towards adopting a healthy lifestyle (http://
www.nutraceuticalsworld.com, 2012).
The global demand for herbal and related extracts in nutraceuticals
grew to US$ 2.8 billion in 1999 from US$ 0.52 billion in 1987,
 ARTICLE TPR
Region Market size (billion US$) Item Demand value (billion US$)
1987 1996 2001 2011
United States of America 10-37
Herbals and related extracts 0.03 0.32 0.65 5.1
Europe Union countries 15-20
Vitamins 0.29 0.48 0.65 10.2
Japan 10-14 Minerals & nutrients 0.56 0.93 1.23 5.4
Table 2: Apparent size of major world market for Nutraceuticals. Total 0.88 1.73 2.53 20.7
(Vasisht and Kumar, 2002)
depicting almost four fold rise in demand. It has been predicted Table 4: The US bulk nutraceuticals demand and growth (http://vestcom.
com, 2012).
that herbal and related extracts will generate the fastest growth Japan is the third largest producer of nutraceuticals in the world
in worldwide demand among all nutraceuticals. The requirement and the largest in the Asia-Pacific region. In 1998, the Japanese
of related nutraceutical ingredients was increased to US$ 16.75 market for vitamins, nutraceuticals and dietary supplements was
billion in the year 2010 and expected to be increased up to US$ estimated to be worth over US$ 18 billion, which means that it
23.7 billion by the year 2015 (http://www.freedoniagroup.com, was more than ten times larger than any European market,
2011). with an increase of nearly 15% from 1994. Dietary supplements
Item Demand value (billion US$)
accounted for the largest share of this market, with sales of more
than US$ 14 billion. Global Nutraceutical Product market reached
1987 1997 1999 2002
USD 142.1 billion in 2011 and is expected to reach USD 204.8
Herbals and related extracts 0.52 1.73 2.90 2.96
billion by 2017, growing at a CAGR of 6.3% from 2012 to 2017.
Vitamins 0.68 1.38 2.30 1.93
Asia Pacific (including Japan) is expected to have the second
Minerals & nutrients 1.14 2.39 1.60 3.31
largest market share after North America by 2017 (Albany, 2013).
Total 2.34 5.50 6.80 8.20
Table 3: Global nutraceuticals demand. Developments in Nutraceutical Industry
(Vasisht and Kumar, 2002) A number of large food and pharmaceutical companies, such as
Kellog, Heinz, Quaker, Unilever, Dupont, Novartis, Cargill, Hormel,
If the term nutraceutical is taken in its broadest sense, including Abbott Laboratories, Royal Numico, Amway, and American Home
health foods, dietary supplements and natural foods, the global Products are active in the field because they consider that the
market had been put at US$ 504 billion (James, 1999). This nutraceuticals market has promising growth potential. The
market value was split equally between the US and the European leading companies in the global market for functional foods are
markets. It contrasted with another study valuing the market for given in Table 5.
functional foods at US$ 32 billion in 1997, rising to US$ 45 billion Trends in Cosmeceuticals Market
by 2002, shared primarily between Japan (US$ 14 billion rising Globally, the market for cosmeceuticals has been estimated
to US$ 19.5 billion), the USA (US$ 10.5 billion rising to US$ 15 at US$ 22 billion, with the fastest growing sector being anti-
billion) and Europe (US$ 7.5 billion rising to US$ 23 billion) (James ageing products. The USA, Japan, Australia, and Europe are
1999). Antioxidants and herbal teas also form an important part the most dominant markets for cosmeceuticals; however, China,
of the nutraceuticals market. Lichtwer’s Kwai, a licensed product Malaysia, Russia, and Latin America have strong potential for
based on garlic for lowering cholesterol had annual sales in long term growth (Technology Catalysts International, 2001).
Europe of US$ 20 million in 1998. Globally, the market for weight In 2000, cosmeceuticals retail sales grew by 7% to nearly US$
control products had been put at US$ 64.1 billion in 1997 (Peet, 4.5 billion. A plant polysaccharide called galacto-arabinan could
1999). The US demand for nutraceuticals increased from US$ possibly become the next big exfoliating ingredient. In the USA,
880 million in 1987 to US$ 1.7 billion in 1996 and was expected the market for cosmeceuticals in 1998 was estimated at US$
to reach US$ 75.3 billion in 2017 (http://www.prnewswire.com). 2.5 billion (Brown, 1998). In the USA, the market for botanical
The herbal and related extracts which formed only 3.40% of ingredients for use in cosmetics and toiletries stood at US$ 345
nutraceuticals demand in 1987 was increased to 18.49% in million in 1998 (Table 6), and was forecasted to be increased
1996 (Table 4). The report from packaged facts, titled Nutritional at 7.9% annually, to reach US$ 980 million by 2015 (Freedonia
Supplements in the US, says sale hit 11.5 billion in 2012 and will Group Inc., 1998).
reach 15.5 billion by 2017 (http://www.nutraingredients-usa.com).
THE PHARMA REVIEW ■ NOVEMBER - decemBER 2013 101
TPR ARTICLE

Country Company Turnover Item Demand value (billion US$)

Functional Total product 1989 1993 1998 2008
food (billion (billion US$)
Aloe extract 38 46 63 115
US$)
Botanical extract 180 230 345 720
United Abbott Laboratories 1.26 12.48
States of Kellog Company 0.90 6.76 Others 22 34 67 174
America
Weider Nutrition 0.25 0.25 Plant acids & enzymes 19 37 65 173
International
Essential oils 101 113 150 258
General Mills 0.20 7.07
Other natural products 85 115 180 385
Tropicana Products 0.10 2.00
Total 265 345 525 1105
Balance Bar Company 0.08 0.08
Table 6: Botanical extract demand in cosmetic and toiletries
Cooke Pharma 0.05 0.05
(Vasisht and Kumar, 2002)
Gum Tech International 0.01 0.01
Product USD (Million)
Germany Molkerei Alois Moeller 0.18 1.20
2002 2007 2012 2017
Switzerland Novartis International 2.40 21.30
Cosmeceutical product demand 3558 5760 8240 11520
Nestle 0.20 51.99
Toni 0.06 1.13 Skin care 2325 3550 5150 7350

France Groupe Danone 0.50 14.10 Hair care 540 660 795 950
Groupe Lactalis 0.17 5.00 Injectables 205 615 990 1430
Groupe Distriborg 0.16 0.25 205 350 500 700
Lip care
Netherland Campina Melkunie 0.55 3.90
Tooth whitening 103 225 280 330
Denmark MD Foods 0.18 3.60
Others 180 360 525 760
United Smithkline Beecham 0.76 12.96
Table 7: Cosmeceutical product and chemical demand
Kingdom (Brandt et al., 2011)
Australia Sanitarium 0.18 0.18 The US demand for cosmeceutical products was projected to
Parmalat 0.11 5.50 increase by 7.6 per cent per annum, to reach US$ 4.3 billion
Italy
in 2005. The demand was increased to US$ 8.24 billion in
Finland Raisio group 0.05 0.90
2012. Accordingly, demand for chemicals was expected to
Belgium Vandermoortele 0.05 0.85
grow faster than shipments of end-use preparations, with the
Sweden Skane Dairy 0.02 0.30 cost of chemicals increasing its share of the total production
Japan Yakult Honsha 1.27 1.27 value of cosmeceuticals to 24% in 2005 (Table 7). The fastest
Otsuka Pharmaceuticals 0.59 3.13 growth among cosmeceuticals will be recorded by professional
Calpis Company 0.48 0.80 products used for appearance enhancing facial implants,
Meiji Milk Products 0.41 3.80
injections, chemical peels and related procedures. The demand
of professional products was expected to rise more than 14%
Snow Brand Milk 0.33 4.64
Products annually to reach US$ 340 million in 2005. This demand was
Suntory 0.30 6.70 increased to US$ 13.39 billion in 2012. According to new report
Takara Shuzo 0.09 1.60
entitled ‘Global Cosmeceuticals Market Outlook 2016’ the market
Table 5: World’s leading functional food companies
was estimated to be valued at US$ 30.5 billion in the year 2013
(Vasisht and Kumar, 2002) and is likely to grow at a consistent CAGR of 7.7% during the
period of 2012-2016 (Pitman, 2013).

102 THE PHARMA REVIEW ■ NOVEMBER - DECEMBER 2013


Chemicals, which were projected to record double digit growth
through 2005 due to their novel or improved performance, include
coenzyme Q 10, which combined antioxidants and exfoliant
action; polyhydroxy acid, with a reduced risk of skin irritation;
eflornithine hydrochloride, a hair growth retardant with new
commercial applications; finasteride, a hair growth stimulant; and
a wide range of botanical and herbal extracts which had crossed
over from the nutraceuticals industry and brought with them an
established reputation of safety and health benefits.
Conclusion
Numerous drugs have entered the international market through
exploration of ethnopharmacology and traditional medicine.
Traditional Indian Medicine and traditional Chinese Medicine
carry many generations' observations that have well-organized
and documented data. China has successfully promoted its own
therapies and drugs like ginseng, ma huang and gingko with
scientific evidences acceptable for the global community. It is no
exaggeration to say that an 'Herbal Revolution' by India is just
waiting to happen. India could truly become a global leader in the
herbal medicine category by inventing and patenting medicines
for several ailments by using a combination or mixture of herbal
formulations. Although herbal medicines have been used for
thousands of years, basic research programmes need to be
focused on the quality assurance. To overcome contaminations
from pesticide residues and heavy metals, there should be
control measures to implement necessary standard operating
procedures (SOPs) at source. Good laboratory practices (GLPs)
and good manufacturing practices (GMPs) are also needed to
produce good quality medicinal products. Without all these
measures, it is impossible to realize the dream of having a major
share of an herbal drug industry despite of having gold mine of
well documented and well-practiced knowledge of traditional
herbal medicines. Both Traditional Indian Medicine and Traditional
Chinese Medicine are great traditions with strong philosophical
basis and could play an important role in new therapies, drug
discovery and development processes. There is an urgent need
for studies to quantify the frequency and potential risk of heavy
metal poisoning from Ayurvedic medicines. Also needed is
'culturally appropriate education' that can inform the public of the
potential for toxicity associated with the many different products
included in this practice.
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