Japan Herbal Medicine Market Size, Share, and COVID-19 Impact Analysis, By Form (Tablets & Capsules, Liquid & Gel, and Powder), By Application (Pharmaceutical & Nutraceutical, Personal Care & Beauty Products, and Food & Beverages), By Distribution Channel (Hospital Retail Pharmacies, and E-Commerce), and Japan Herbal Medicine Market Insights, Industry Trend, Forecasts to 2035

Japan Herbal Medicine Market Insights Forecasts to 2035

• The Japan Herbal Medicine Market Size was Estimated at USD 2.84 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of 12.95% from 2025 to 2035
• The Japan Herbal Medicine Market Size is Expected to Reach USD 10.8 Billion by 2035

According to a research report published by Spherical Insights & Consulting, the Japan Herbal Medicine Market Size is anticipated to reach USD 10.8 Billion by 2035, Growing at a CAGR of 12.95% from 2025 to 2035. The Japan herbal medicine market is experiencing growth due to the increasing integration of traditional Japanese practices like Kampo medicine with modern medicine, the expansion of product offerings, and government support for research and development. Consumers are also turning to herbal remedies as alternatives to traditional healthcare, driven by rising healthcare costs and a decline in public trust in the conventional system.

Market Overview:

The Japan herbal medicine market involves producing, distributing, and consuming herbal medicines, covering traditional Japanese (Kampo) and non-Kampo medicines. Kampo, based on ancient Chinese medicine and Japanese mythology, is especially deep-rooted and established in the Japanese healthcare delivery system. The market covers products made from herbal medicine used to prevent and cure chronic diseases, as well as improve general wellness. The aging population in Japan is exhibiting a significant move towards preventative care, which is causing an increasing demand for herbal medical devices that promote total well-being. Opportunities to be tapped are the convergence of traditional Japanese herbal practice with advanced technology.
Opportunities for biopharmaceutical firms in Japan to venture into the therapeutic potential of herbal compounds are immense through research. The government initiative to promote research in herbal medicine, along with supportive regulations, is stimulating growth in the market. The government supports the integration of Kampo medicine with Western medical practices, allowing physicians to prescribe Kampo medicines within the national health insurance system. The increasing requirement for natural and organic products is driving the herbal medicine sector to innovate in terms of launching new products as well as building on existing lines.

Report Coverage

This research report categorizes the market for the Japan herbal medicine market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan herbal medicine market. Recent market developments and competitive strategies such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan herbal medicine market.

Driving Factors:

The Japan herbal medicine market is growing hugely due to a rise in the demand for alternative therapies among many individuals. It is driven by the aging society and an improvement in health consciousness. The revival of the traditional Japanese system of herbal medicines, Kampo, in the healthcare system and its prescription with formulations under national health insurance is indicative of its increasing popularity. The government of Japan has come to recognize the potential of herbal products in the health industry, thus encouraging the growth of the Japan herbal medicine market. There is an increasing demand for natural and herbal medicines among Japanese consumers due to a need for safer, more holistic health options.

Restraining Factors

The increased price of some ingredients, the complexity of regulations, and consumer demand for locally manufactured products restrict the growth of the Japan herbal medicine market.  

Market Segmentation:

The Japan herbal medicine market share is classified into form, application, and distribution channel.

• The tablets & capsules segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan herbal medicine market is segmented by form into tablets & capsules, liquid & gel, and powder. Among these, the tablets & capsules segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. The tablets & capsules segment is preferred for its ability to mask unpleasant herbal flavours and accommodate advanced pharmaceutical technologies like sustained-release formulations.

• The pharmaceutical & nutraceutical segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan herbal medicine market is segmented by application into pharmaceutical & nutraceutical, personal care & beauty products, and food & beverages. Among these, the pharmaceutical & nutraceutical segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is attributed to increasing demand for natural and plant-based remedies for health management and overall wellness, as well as a growing preference for herbal ingredients in pharmaceutical and nutraceutical segment. The increasing trend towards herbal medicines as safer options to chemical drugs, particularly for chronic diseases and preventive medicine.

• The hospital retail pharmacies segment held a significant share in 2024, and is expected to grow at a significant CAGR during the forecast period.

The Japan herbal medicine market is segmented by distribution channels into hospital retail pharmacies, and e-commerce. Among these, the hospital retail pharmacies segment held a significant share in 2024, and is expected to grow at a significant CAGR during the forecast period. hospital retail pharmacies play a central role in offering herbal medical devices, making it easier for patients are looking for complementary therapy in addition to mainstream medicine.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan herbal medicine market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Fujicco
• Suntory
• Kampo
• Takeda Pharmaceutical
• Showa Pharmaceutical
• Nihon Kotsu
• Kawasaki Heavy Industries
• Fujifilm
• Tsumura
• Kirin Holdings
• Mitsubishi Tanabe Pharma

Recent Developments:

In April 2024, Mitsui & Co. and Rohto Pharmaceutical jointly acquired Eu Yan Sang International, a Singapore-based traditional Chinese medicine company, for approximately $590 million. This acquisition aims to expand Rohto's and Mitsui & Co.'s presence in Southeast Asia and China. 

In August 2023, Tsumura announced a partnership with a technology firm to integrate AI into their herbal formulation processes, enhancing product efficacy and customer personalization.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at the Japan, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Japan herbal medicine market based on the below-mentioned segments: 

Japan Herbal Medicine Market, By Form

• Tablets & Capsules
• Liquid & Gel
• Powder

Japan Herbal Medicine Market, By Application

• Pharmaceutical & Nutraceutical
• Personal Care & Beauty Products
• Food & Beverages

Japan Herbal Medicine Market, By Distribution Channel 

• Hospital Retail Pharmacies
• E-Commerce