Fueling the Future: Thailand’s Push for Herbal Industry Growth
Government Support as a Catalyst
The Thai government is actively being encouraged to enhance its support for the local herbal industry. A key action item is increasing the use of Thai traditional medicine within the country’s public health system to 10%. Such a shift is poised to instill confidence among small and medium-sized enterprises (SMEs) in the herbal sector. A champion of this initiative, Sittichai Daengprasert, underscores that government support would simplify business planning and facilitate export growth.
Did you know? With enhanced state backing, Thailand could potentially emerge as the herbal hub of Southeast Asia.
Current Status and Potential Growth
At present, herbal medicines comprise 2.21% of all medicines used in Thailand, overshadowed by imported drugs. In stark contrast, the value of local traditional medicines is approximately 1.5 billion baht, paling in comparison to the overall 70.5 billion baht worth of all medicines handled.
Saran Jaewjira, a leading voice from the Herbal Products Association, advocates for the inclusion of more herbal products on the national list of essential medicines. This inclusion would foster greater domestic use and recognition, consequently supporting higher export potentials.
Thailand: An Export Powerhouse
Thailand remains the largest herbal product exporter in Southeast Asia, yet it falls outside the global top 10 exporters. With major export markets like Japan (19.5%), India (14.8%), China (13.6%), and Saudi Arabia (13%), there is substantial potential for growth. Yet, the remaining 39.1% of exports are spread across various other countries, indicating untapped markets.
Striving for International Standards
The Herbal Industry Club advocates for local manufacturers to adopt standards such as Good Manufacturing Practice (GMP) and the Pharmaceutical Inspection Cooperation Scheme (PIC/S). These standards, crucial for maintaining product quality and safety, have been achieved by 56 factories. A stamp of such international standards not only improves market credibility but also enhances export capabilities.
FAQs About Thailand’s Herbal Industry
1. Why is the government pushing for more traditional medicine?
Increasing the use of traditional medicine can bolster local industry, reduce dependency on imports, and support health system sustainability.
2. What is the global significance of Thailand’s herbal industry?
As demand for alternative and holistic treatments rises, Thailand’s position as a leading herbal exporter puts it at a strategic advantage in global health markets.
3. How can SMEs benefit from this initiative?
Increased government support and market confidence can lead to enhanced innovation, business expansion, and access to international markets.
A Call to Action
As Thailand aims to elevate its position in the world’s herbal market, the integration of traditional medicine into mainstream healthcare is not just a policy objective, but a promising pathway forward. Explore more insights on our site and consider subscribing to our newsletter for the latest updates on industry transformations.
Quick Tip: Manufacturers aiming for international success should actively pursue GMP and PIC/S certification.
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