PHI Group has commissioned a research team from Auburn University to study the global markets and demand for organically grown medicinal plants.
Conventional vs Plant Based Pharmaceutical Products
Because of a growing interest and improved technology for extracting beneficial products from medicinal plants, the consumption and production of such compounds has increased significantly in the last two decades. Considering that, it takes an average of 12 years and in excess of $2.5 billion dollars to bring conventional drugs to the market, the move to plant extracts is well underway. The conventional drug market is expected to grow at a CAGR of only 5.1 percent between 2013 and 2020.
Contrast this with the medicinal plant market, which is expected to see a CAGR of 117.9 percent growth rate between 2015 and 2020. The cost, time and safety of bringing plant-based pharmaceuticals to market are far less of a concern as well.
Plant based drugs are far less expensive and safer because of the avoidance of the chemical synthesis process. Plant based pharmaceutical products are extracted from their source and processed which renders these products in the form of active complexes which preserves the efficacy of the original source plant. The result is fewer or no side effects and a process that is far less time consuming to get to the market.
Market Segment Focus for Maximum ROI
The market information and trends for this expanding market is still limited and separated into categories of use. Therefore, the purpose of this research is to determine the market segments related to supply and demand of medicinal and aromatic plants in the world, and then focus more specifically on major production and consumption markets. Four topics of focus will be on the production, medicinal applications, and market analysis of turmeric, saffron, bitter melon, and some major potential medicinal and aromatic plants. The remaining focus is on trends and solutions of switching from conventional farming to organic farming of these crops to meet the future food and medicinal consumption. This research will be carried out by performing statistical and econometric analyses on the data collected from field trip visits, UN Comtrade, FAQ, International Organization of Scientific Research (IOSR), the American Botanical Council, the statistics of the U.S., India, EU, and other Asian countries, ICIS, country reports, and technical documents.
This research will be especially useful with regard to PHI Group’s relationship with Tho Xuan Duong JSC, a Vietnamese company recognized by Guinness World Records that has four centuries of history in Vietnamese traditional medicine and herbs. The information garnered through the research will aid both companies in broadening their reach globally in the medicinal plant-based pharmaceutical market.