Entrepreneurs’ Perspectives towards the Competitive Environment of Herbal Medicine Extracts Industry

Abstract

Objective: To analyze the current state and competitive capabilities of Thai herbal medicine extract industry. Methods: This qualitative research consisted of the study on secondary data related to competitive landscape of herbal medicine extract industry, and in-depth interviews with 14 entrepreneurs or factory representatives involved in producing herbal extracts for the herbal medicine industry selected through purposive sampling. Results: The herbal medicine extracts market in Thailand was worth approximately USD 0.81 million in 2022, ranking 31st globally with a market share of 0.41% of the global herbal medicine extract market. The country's market share was expected to grow at a compound annual growth rate (CAGR) of up to 7.38%. In terms of exports, Thailand's herbal extract market was expected to increase to USD 13.77 million, accounting for 0.31% of the global herbal extract export market. However, Thailand has imported a continuously increasing quantity of herbal extracts over the past six years (from 2560 to 2565) due to a rise in demand, leading to a trade deficit in herbal extracts. In order to enhance competitiveness, it was crucial to focus on the development of raw material quality and human resources, gaining access to capital, adopting modern technologies, understanding market demands for quality and safety of herbal medicine extracts. Additionally, strategic planning and effective management were essential for sustainable growth and competition in the market. Conclusion: The herbal medicine extract industry in Thailand has the potential to compete in the present and future market with expected growing trends both in domestic and global markets. Development of technology and innovations in herbal extract production, and expansion of collaboration in research and development will strengthen and increase competitiveness in global market of herbal extract.