The global herbal medicine market has experienced significant growth over the past two decades. Increasing awareness of the side effects of chemical drugs, the rising popularity of traditional and complementary medicine, and advances in plant-based pharmaceuticals are among the driving forces. This article provides a comprehensive overview of the herbal medicine market across three levels: Iran, the MENA (Middle East and North Africa) region, and the global landscape.
The global herbal medicine market has experienced significant growth over the past two decades. Increasing awareness of the side effects of chemical drugs, the rising popularity of traditional and complementary medicine, and advances in plant-based pharmaceuticals are among the driving forces. This article provides a comprehensive overview of the herbal medicine market across three levels: Iran, the MENA (Middle East and North Africa) region, and the global landscape.
Iran is home to more than 8,000 plant species, including around 2,300 medicinal plants, making it one of the richest botanical ecosystems globally. According to the Ministry of Agriculture, over 100,000 hectares of land in Iran are dedicated to cultivating medicinal herbs. The domestic herbal medicine market was valued at approximately 25 trillion rials (about $500 million) in 2023.
Despite this potential, Iran holds less than 0.5% of global herbal exports. Key barriers include the dominance of raw material exports, limited industrial processing, lack of internationally recognized brands, and challenges meeting global quality standards.
Development of the pharmaceutical value chain from cultivation to final product
Export to neighboring countries with cultural and medicinal ties
Investment in health-focused accelerators and biotech startups
With a population of over 500 million, the MENA region represents a large and growing consumer base for herbal products. Countries like the UAE, Saudi Arabia, Egypt, and Turkey have significantly invested in traditional medicine and herbal pharmaceuticals in recent years.
Cultural affinity for Islamic and Greco-Arabic traditional medicine
Government support for integrating traditional remedies into healthcare systems
Dependence of some countries on imports of processed herbal drugs
Given Iran’s strategic location and cultural similarities with many MENA nations, it is well-positioned to capture a larger share of this regional market.
According to reports from agencies like Grand View Research, the global herbal medicine market was valued at around $200 billion in 2023 and is projected to exceed $415 billion by 2030. The Compound Annual Growth Rate (CAGR) is estimated at 8.2%.
Increasing demand for natural and side-effect-free treatments
Expansion of the herbal supplements market
Entry of major pharmaceutical companies into the phytopharmaceuticals segment
China and India: Global leaders in production and traditional medicine systems
Germany and France: Pioneers in standardized herbal pharmaceuticals
USA: One of the largest consumer markets for natural supplements
Modern technologies are reshaping the herbal medicine industry. From AI-assisted drug formulation to nano-delivery systems and digital platforms for online distribution, innovation is accelerating market growth and scalability.
Formulation of stable and effective phytopharmaceuticals
Development of clinical databases for efficacy and safety
Production of advanced dosage forms (e.g., soft gels, patches, transdermal systems)
Lack of harmonized regulations and quality standards across countries
Inadequate technological infrastructure in some developing nations
Limited support for startups and innovative ventures
Establishing specialized accelerators in herbal and health sectors
Government incentives for the export of value-added herbal products
Collaboration with international organizations such as WHO, EMA, and regulatory authorities
The herbal medicine market is transitioning from a traditional sector to an industrial and technology-driven field. Iran, with its rich natural resources, scientific heritage in traditional medicine, and potential for exports, can become a major player in the global herbal industry. Strategic investment in innovation, branding, and infrastructure can unlock sustainable growth, improve public health, and enhance national competitiveness in the global health economy.
