In recent years, the demand for herbal medicines as natural, low-side-effect, and cost-effective alternatives to synthetic drugs has grown significantly. Iran, with over 8,000 plant species, is one of the richest countries in medicinal plant diversity, offering a valuable opportunity for innovation in the field. Startups play a critical role in transforming research into practical products, creating jobs, and meeting health needs through novel herbal formulations. However, building a successful herbal medicine startup requires an understanding of both scientific and business pathways. This article presents a step-by-step guide to help entrepreneurs in this field.
In recent years, the demand for herbal medicines as natural, low-side-effect, and cost-effective alternatives to synthetic drugs has grown significantly. Iran, with over 8,000 plant species, is one of the richest countries in medicinal plant diversity, offering a valuable opportunity for innovation in the field.
Startups play a critical role in transforming research into practical products, creating jobs, and meeting health needs through novel herbal formulations. However, building a successful herbal medicine startup requires an understanding of both scientific and business pathways. This article presents a step-by-step guide to help entrepreneurs in this field.
How to identify needs:
Explore common health issues such as anxiety, diabetes, insomnia, digestive problems, or skin inflammation
Analyze consumer feedback from social media, online pharmacies, and health forums
Study global trends in natural and wellness products (e.g., anti-aging, immunity boosters)
Once a need is identified, the next step is to choose a medicinal plant with proven benefits and design a suitable product around it.
Key considerations:
Select a plant with scientific evidence and local availability
Use ethnobotanical and pharmacological research as reference
Decide on the dosage form: capsules, syrups, ointments, teas, etc.
Consult pharmacists and traditional medicine experts
Developing an herbal product comes with regulatory responsibilities. You must demonstrate that the product is both safe and effective.
Tasks at this stage:
Compile scientific documentation for regulatory approval
Perform necessary tests (stability, toxicity, quality control)
Understand the procedures for obtaining production licenses from the Food and Drug Administration (FDA of Iran or respective authorities)
A good product needs a smart business model to succeed. You must define how, where, and to whom you’ll sell your product.
Elements of a solid business model:
Define your target customer (e.g., elderly, mothers, athletes)
Choose distribution channels: pharmacies, e-commerce, B2B
Determine revenue model: direct sales, subscription, export
Most startups require funding, mentorship, and infrastructure in the early stages. Specialized accelerators such as Padideh Giah provide these critical resources.
Benefits of joining a herbal-focused accelerator:
Access to labs, scientists, and expert mentors
Support in regulatory documentation and R&D
Initial funding and investor matchmaking
Business training and networking opportunities
After approval, manufacturing should meet Good Manufacturing Practices (GMP). Professional branding and marketing will significantly boost your market success.
Must-do actions:
Work with GMP-certified manufacturers or establish your own facility
Design packaging that reflects safety, nature, and trust
Leverage digital marketing: Instagram, health influencers, website
Attend industry exhibitions and health trade shows
Launching a herbal medicine startup requires a careful mix of scientific rigor, entrepreneurial strategy, and regulatory awareness. With support from expert accelerators, a well-researched product idea, and smart business execution, it is possible to create a high-impact, profitable venture that promotes public health.
