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Opportunities and Challenges in The Emerging Global Herbal Medicine Industry
Nimfa D. Montes,Normito R. Zapata Jr. 한국무역연구원 2012 The International Academy of Global Business and T Vol.8 No.2
Herbal medicine plays a major role in the health and wellbeing of consumers. Global Industry Analysts, Inc. (GIA) reported that the herbal supplements and remedies market will reach an estimated US $107 billion in 2017. Rapid market growth is caused by an aging population and consumers’ inclinations toward a healthier lifestyle. Some intrinsic benefits from using natural herbs and botanical derivatives such as efficacy, little or no side effects and economy are realized. However, evidence of product safety founded on scientific research and clinical trials will remain a crucial factor to ensure long-run industry success. With the growing interest in herbal medicine, a country’s entrepreneurs manufacture herbal products to obtain a fair market share through licensing. Consequently, they must address the limited supply of quality raw materials at competitive costs. Hence, this paper determines the vision and mission of the industry and enterprises; identifies key opportunities and threats as well as key strengths and weaknesses; and formulates effective strategies through SWOT analysis. Concrete measures must be undertaken: a) pursue an effective strategic alliance between pharmaceutical companies and farmers; b) determine quality standards for raw materials and finished products; c) utilize appropriate technologies; d) enhance the role of consolidators; and e) engage new product development.