Complementary and Alternative Medicines Market Overview
The global complementary and alternative medicines market generated $192.0 billion revenue in 2018 and is projected to advance at a CAGR of 6.0% during the forecast period, mainly on account of increasing product launches, rising usage of traditional medicines and therapies, increasing geriatric population, unhealthy lifestyle, and risk of side-effects associated with allopathic medications.
Based on type, the complementary and alternative medicines market is classified into nature-based, mind-body intervention-based, manipulative body-based, and energy-based products. Among these, the nature-based category accounted for 38.7% share in 2018. It is also expected to be the fastest growing category in the market, with a CAGR of 6.6%, during the forecast period. This is mainly due to low side-effects of nature-based medicines, increasing demand for prevention and management of medical conditions, and inexpensive nature of CAM products.
Based on mode of service, the complementary and alternative medicines market is categorized into therapy classes, direct consultation, and e-learning. Among these, the therapy classes category is expected to witness the fastest growth during the forecast period, owing to the increasing demand for therapies for the management of various medical conditions. The category held a market share of 60.3% in 2018 and is further expected to hold 61.2% share by 2024.
Furthermore, yoga and meditation centers were observed to be the largest end users of CAM, mainly due to the increasing popularity and awareness about these centers. The category is also expected to witness the highest CAGR, of 6.6%, during the forecast period.
Globally, Europe held the largest share, of 33.4%, in 2018, in the complementary and alternative medicines market. Whereas, APAC is expected to be the fastest growing market for CAM, which is progressing at a CAGR of 6.8% during the forecast period.
Complementary and Alternative Medicines Market Dynamics
With the rising demand for alternative medicine and therapies, players in the complementary and alternative medicines market are heavily investing in the launching of new and effective products in the industry, which is one of the major trends observed in the market. For instance, Dabur India Ltd. launched a variety of herbal-based products, such as Pudin Hara Antacid and Dadimavaleha. Pudin Hara Antacid consists of Godhuma, Shatavari, Mentha oil, Pudina, and numerous other beneficial herbs that is a ready-to-use natural solution for all gastrointestinal diseases, during 2017–2018. The company also launched Dadimavaleha, which helps in curing acidity; Vasant Meha Ras to manage diabetes; and many others.
Similarly, in June 2018, Boiron India launched pre-medicated standardized homeopathic medicines in India, intended to boost homeopathy standards in the country to ensure the presence of good-quality products. Moreover, in January 2019, Vitruvi launched a new collection of beauty rituals in its dynamic skincare collection, which includes carrier oils and essential oils. Hence, the introduction of such products in the complementary and alternative medicines market is expected to attract large number of customers.
Globally, the demand for alternative medicine and therapies is increasing due to unhealthy lifestyle. Therefore, the potential of alternate medicines is being evaluated for the management of a range of medical conditions, such as hypertension, stress, insomnia, and obesity. According to Our World in Data, 3.8% and 3.4% of the total world population had depression and anxiety, respectively, in 2017. Further, as per the World Health Organization (WHO), the number of people suffering from diabetes rose from 108 million in 1980 to 422 million in 2014. Also, it has been reported that 1.6 million deaths occurred due to diabetes in 2016, worldwide.
Besides, countries with rich diversity of traditional medicines and therapies are driving the complementary and alternative medicines market. According to the WHO, approximately 80% of people rely on traditional medicines for the management of medical conditions such as cold, cough, and gastrointestinal disorders.
Further, side-effects associated with allopathic medicines is also driving the growth of the complementary and alternative medicines market. There have been many instances when patients taking allopathic medicines have reported various side-effects, such as rashes, dizziness, diarrhea, seizure, vomiting, insomnia, and internal bleeding. For example, aspirin, one of the most common drugs, is believed to cause side-effects such as seizures, vomiting, and heartburn. These side-effects can happen due to many reasons, such as drug-drug interaction and drug-food interaction. Due to these side-effects, preference of consumers has been shifting toward the adoption of alternative medicines and therapies, which help in the management of various diseases, with no side-effect.
Complementary and Alternative Medicines Market 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.