Complementary and Alternative Medicines Market Research Report: by Type (Ayurveda, Homeopathic, Mud therapy, Yoga, Meditation, Tai Chi, and Qigong, Biofeedback, Guided Imagery, Hypnosis, Chiropractic, Physiotherapy, Massage, Acupuncture, Reiki, Electromagnetic Therapy), Application (Depression and Anxiety, Pain Management, Chronic Diseases, Neurological Disorders, Infertility, Skin Disorders, Weight Loss), Geographical Outlook - Global Industry Analysis and Forecast to 2024

Market Outlook

The complementary and alternative medicines market revenue stood at $192.0 billion in 2018, and it is expected to progress at a CAGR of 6.0% during 2019–2024. The growth can be attributed to the increasing usage of traditional medicines and therapies, rising geriatric population, surging product launches, soaring awareness of the side-effects associated with allopathic medications, and growing prevalence of an unhealthy lifestyle.

The nature-based category, under the type segment, held the largest market share in 2018, of 38.7%. Furthermore, this category will exhibit the fastest growth, at a CAGR of 6.6%, in the coming years. This can be owed to the fewer side-effects and cost-effectiveness of natural medicines and high demand for the prevention and management of medical conditions.

The therapy classes category, within the mode of service segment, is expected to grow at the fastest pace between 2019 and 2024. This will be due to the spurring demand for therapies for several medical conditions. The category held a 60.3% share in 2018, and it will account for a 61.2% share in 2024.

The yoga and meditation centers category, under the end user segment, generated the highest revenue in 2018 due to the soaring awareness about these centers. Moreover, the category is expected to register the highest CAGR, of 6.6%, in the foreseeable future.

Globally, the European in the complementary and alternative medicines market held the largest share, of 33.4%, in 2018. The Asia-Pacific (APAC) region is expected to exhibit the fastest growth, at a CAGR of 6.8%, in the foreseeable future.

Market Dynamics

Investments in new and effective products are a major trend in the complementary and alternative medicines industry. For instance, Dabur India Ltd. introduced an array of herbal-based products, such as Dadimavaleha and Pudin Hara antacid, during 2017–2018. Pudin Hara is a ready-to-use natural solution for gastrointestinal diseases comprising mint, mentha oil, godhuma, shatavari, and several other herbs. Dadimavaleha helps in curing acidity, whereas Vasant Meha Ras, another product launched by the company, is used to manage diabetes.

Additionally, Boiron India introduced standardized homeopathic medicines in June 2018 to enhance the homeopathy standards and ensure the presence of better-quality products. Likewise, in January 2019, Vitruvi launched a novel collection of beauty rituals in its dynamic skincare collection that encompasses essential oils and carrier oils. Such products available in the market for complementary and alternative medicines will attract a large number of consumers.

The rising prevalence of an unhealthy lifestyle has boosted the growth of the complementary and alternative medicines market. The potential of these medicines and therapies is being analyzed for the management of a wide range of conditions, including obesity, hypertension, insomnia, and stress. As per Our World in Data, 3.4% and 3.8% of the global population had anxiety and depression, respectively, in 2017. Similarly, according to the World Health Organization (WHO), the number of individuals living with diabetes grew to 422 million in 2014 from 108 million in 1980. The WHO also reported that 1.6 million deaths in 2016 were caused due to diabetes, worldwide.

Nations with a rich diversity of conventional medicines and therapies act as a key catalyst for the industry growth. The WHO reveals that approximately 80% of the people depend on traditional medicines to manage cough, cold, and gastrointestinal disorders.

Moreover, the side-effects associated with allopathic medicines support the market growth. There are several instances where patients being administered allopathic medicines have reported rashes, insomnia, dizziness, internal bleeding, vomiting, seizures, and diarrhea. For instance, aspirin causes heartburn, vomiting, and seizures due to drug–drug interaction and drug–food interaction. To avoid such side-effects, complementary and alternative medicines are gaining popularity for the management of several diseases.

Competitive Landscape

In recent years, major players in the global complementary and alternative medicines market have taken several strategic measures, such as product launches, acquisitions, and expansions to sustain and improve their position in the industry. For instance, in February 2019, Dabur India Ltd. launched two new Ayurvedic products — Ratnaprash, a health restorative, and Hridayasava, a special medicine for improving heart health — to enhance its Ayurvedic healthcare product portfolio.

Similarly, in January 2018, Rocky Mountain Oils LLC, a provider of natural single and blended essential oils, launched Ava Shield, a new line of all-natural personal and home care products.

Cipla Limited, Boiron, Dabur India Ltd., Novartis AG, Weleda AG, Arya Vaidya Pharmacy, Pekana-Naturheilmittel GmbH, and Biologische Heilmittel Heel GmbH are the leading players in the complementary and alternative medicines market.