Herbal medicines, products sector posts 25% per annum growth

K Sunita
06 October 2003

Ahmedabad: The herbal medicines and other herbal products segment seems to be in for good times.

A recent survey by ORG Marg has revealed that the Rs 2,500-crore herbal market has been growing at a healthy 25 per cent per annum. In fact, ORG says the trend is going to continue and by 2005, the market for these products will have doubled.

The market for herbal products comprises the over-the counter (OTC) segment as well as the ethical prescriptions segment. Out of these, the OTC segment is worth Rs 1,800 crore and this has seen a 30-per cent growth. The ethical segment (products sold only through prescriptions) is worth Rs 700 crore. This segment grew at 18-20 per cent.

The World Health Organisation has also been conducting studies on the trends exhibited by herbal medicines and other products. As per its findings, the global market for medicinal plants and their products is likely to grow to $5 trillion by 2050, reflecting an annual growth rate of 14 per cent in the area of alternative medicine.

Currently, the share of Indian exports is 0.5 per cent of the global market, while that of China is 22 per cent. Further, the world trade in flavour and fragrances is estimated at $15 billion. In addition, aromatic oils distilled from about 250 aromatic plants worth $1.2 billion are traded globally.

India ranks third in volume and second in value of the world trade in aromatic oils. India exports Rs 165 crore worth of aromatic oils, while the Indian fragrance industry is worth Rs 5,000 crore.