Traditional medicine is emerging as a growing export opportunity, (Image courtesy of Dongshin University)
SEOUL, Jan. 7 (Korea Bizwire) — As aging populations and chronic illnesses drive a shift in global healthcare toward prevention and cost reduction, traditional medicine is emerging as a growing export opportunity, according to a report released by the Korea International Trade Association (KITA) on January 6.
The report, titled “The Era of Global Traditional Medicine: Competitiveness of Korea’s Traditional Medicine Industry and Export Strategies,” highlights the rapid growth of the global traditional medicine market.
Valued at $518.6 billion in 2022, the market is projected to reach $768.2 billion by 2027, growing at an annual rate of 8.2%.
The World Health Organization (WHO) has advocated for the use of traditional medicine as a cost-effective means of preventing chronic diseases. Major countries, including China, India, Japan, and Germany, have bolstered their markets through prominent companies like Tongrentang, Himalaya, Tsumura, and Weleda.
The report also notes the alignment of traditional medicine with wellness trends, appealing to high-income consumers in Western markets. In North America, the sector continued to expand even during the COVID-19 pandemic, signaling further growth potential.
In South Korea, the domestic traditional medicine market grew from ₩11 trillion in 2017 to ₩12.6 trillion in 2021, a 14.8% increase over four years. Additionally, medical tourism centered on Korean traditional medicine (Hanbang) has surged, driving demand for related products and services.
A survey of 231 Korean traditional medicine companies conducted by KITA revealed that 56.7% observed growing interest and demand for traditional medicine, while 64.1% reported positive impacts on sales.
However, only 26.4% of these companies are currently exporting their products. The main barriers include a lack of market and export information (89.4%), funding constraints (30.6%), and differing certification standards across countries (25.3%).
Despite lagging behind competitors like China and India, South Korea holds significant potential in value-added sectors such as processed natural materials and functional health foods, according to Lim Ji-hoon, a senior researcher at KITA. “Expanding product lines to include natural new drugs and health supplements could diversify Korea’s export portfolio and strengthen its position in the global market,” Lim said.
As the global market for traditional medicine continues its rapid growth, 2025 could mark a turning point for South Korea’s efforts to leverage its traditional medicine industry as a key economic driver.
Lina Jang (linajang@koreabizwire.com)
