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The global homeopathic market reached a valuation of 4,6 billion USD in 2020, representing less than 1% of the global healthcare and pharma market. However, its growth is one of the most important in the market with a projected CAGR of between 14 – 18% til 2035.
A similar trend can be observed in the phyto consumer health industry. Sales in Asia and Latin America have been growing at approximately >15% per year.
Infographic: Global Homeopathic Market: Value Forecast by 2035
The Reduction in Growth Rate of the European market
Homeopathy, invented in Germany in 1796, naturally finds its main source of profit from the European continent. This is mainly due to the presence of world-leading firms specializing in the production of these medicines such as: Boiron (France), Waleda (Switzerland) and Heel (Germany).
However, recent events in the sector have put a stop to the development of the market in Europe. The most prominent example being the case of France. Historically the most important market for homeopathy, with approximately 50% of the French population using it on a regular basis, the country stopped reimbursing homeopathic medicines in January 2021, disincentivizing its use. France was hardly the first country, as it followed in the footsteps of its European neighbors, the United Kingdom, Germany and Spain, who have all stopped reimbursing homeopathic medicines over the past five years as well. Ultimate proof of this deceleration on the old continent, Boiron–the world leader in homeopathy with 18% of the worldwide market share–recently achieved more than 50% of its sales abroad.
CPC experts anticipate a profitability shift in the sector from the old European market to more promising ones; with Latin America and Asia presenting the most persuasive cases.
Latin America: A Very Young Phyto and Homeopathic Market
In Latin America homeopathy has found receptive markets in Colombia and Chile, as those are the countries with the most specialized retail shops in proportion to their inhabitants. However, Latin America is still a young market for this self-medication method. Nevertheless, the continent still represents a strong potential market for the following reasons:
- The presence of traditional medicine is not as influential as it is in Asia and the influence of American products on the continent–which tend to be more chemically-based–means that consumers are not familiar with this type of product. However, this means that the market is up for grabs, with little competition.
- The market’s potential will be unlocked when consumers become aware of the uses of homeopathy. It is necessary for the actors of the sector to convince people to believe in homeopathy and its healing power. This is what happened in Chile and Colombia, proving that it is possible with the right strategy.
- The market is structured internally with, for example, the establishment of associations defending and promoting the interests of homeopathy, or the creation of specialized courses in medical studies being relatively easy to institute.
These factors allow us to expect higher market growth in this region than anywhere else. The Latin American homeopathic market is projected to approach 620 million USD by 2035.
Moreover, we can observe that phyto brands from Europe are experiencing very strong growth. This is especially true in the cough and cold, as well as in women’s health segments, which have already made a very high number of sales all over Latin America.
How Chameleon Pharma Consulting Group Can Help You Expand Your Business Internationally
We offer systematic country analysis and selection, as well as partner identification services to help identify the best fitting country and segment for your current portfolio and expansion goals. If you want to expand your homeopathic business internationally, we are here to support you!
Photo by Pretty Drugthings on Unsplash
