How To Start Herbal Medicine Business

Souvik Dey Souvik Dey
Mar 12, 2021 7 min read
How To Start Herbal Medicine Business

Sales of herbs or herbal medicinal products have grown significantly in recent years. Starting this business has great prospects. More and more people especially from developed countries switch from conventional pharmacy to herbal medicine. Starting a herbal business is promising but you need a good business model. The positive experience drives this business up a lot. To start this type of business, you need to have prior knowledge of traditional medicine.

You need to do deep research and create a business model for the product, the price, the promotion, and distribution. Planning and research are some of the key factors for a successful business because there is a lot of competition in the market. Here in this post, we will discuss briefly how to start a herbal medicine business and excel in this business.

How to Start A Herbal Medicine Business

How to Start A Herbal Medicine Business

The Name of the Business

The name of the business is very much important. Naming company can be challenging and time-consuming. Your company name is an important part of your company’s identity. Once you understand what you want your company then start thinking about words that describe your industry also think about words that describe your competitors.

Plain words make it very difficult to differentiate your company from competitors. You’ll want your company’s name to evolve as trends evolve, so be careful to identify the trends and to avoid following them.

Know Your Herbs

Before starting into a herbal business, you should have the basic knowledge of herbal remedies and applications. You need to know about each herb that you are using. And Ensure that your products are both safe and effective. You have to decide which herbs you want to grow. In general, it’s a good idea to focus on a select few when you’re growing for the market rather than offering a huge selection. Only use organic fertilizers, as they help plants grow healthier.

Some name of common medicinal herbs:

  • Chamomile
  • Echinacea
  • Feverfew
  • Garlic
  • Ginger
  • Gingko
  • Ginseng
  • Goldenseal
  • Milk thistle
  • Saint John's wort
  • Saw palmetto
  • Valerian

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Plan Your Business

Global herbal medicine market revenue, by product
Global Herbal Medicine Market Revenue, By Product


A clear plan is essential for a successful entrepreneur. The cost of starting this type of business differs greatly depending on the business models. The easiest and cheapest way to start this type of business is to purchase the medicinal herbs through a wholesaler and then resell these herbs online. Opening a permanent store to sell medicinal herbs requires a person to have access to much more capital. The largest expense for those who decide to grow their medicinal herbs is the land.

Depending on your business model, you will have to pay monthly for rent, utilities, seeds, inventory, and labor.

Charge of Customers

It depends on your product’s quality, uniqueness, and where you choose to sell. Business owners with unique products have much more flexibility in setting their prices.


Medicinal herbs businesses that re-sell bulk herbs typically charge 30% or more over their costs. Businesses that grow medicinal herbs can also plant culinary herbs to diversify their customer base. All owners of medicinal herbs businesses can create “value-added” products.


When it comes to strength as a company, you have a wide range of herbal medicines and teas for the different ailments that can meet the needs of a wide range of consumers.

Herbal plants
Herbal Plants

The most common business structure types are the sole proprietorship, partnership, limited liability company(LLC). Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your medicinal herbs business issued.

Marketing of Herbal Medicine

Herbal medicines are available in various dosage forms such as tablets, extracts, dried plants, and others. The global herbal medicines market is segmented based on type, the medical market is segmented based on product type, application, and geography. The Global Herbal Medicine Market is expected to register a CAGR of 5.88% to reach USD 1,29,689.3 Million by 2023. According to the National Center for Biotechnology Information, 2015, the World Health Organization (WTO), reported that around 70% to 80% of people globally rely on herbal sources for their treatment.

  • Marketing via email was one of the first digital advertising methods, but it’s still one of the most effective.
  • Pay close attention to federal, state, and local regulations. The herbal medicine industry has been subject to many investigations regarding product marketing and benefits.
  • Partner with local health-related businesses. Producers will have the most credibility in their communities.
  • Establish a product website.

Obtain Necessary Permits And Licenses

To manufacture Ayurvedic / Herbal products in India, we need a license from AYUSH and not from FSSAI.

Below are 3 types of manufacturing licenses issued by AYUSH :

  • Complete Manufacturing License - It is a full fledged manufacturing license. In this case you will be both marketing and manufacturing the product. Thus you will have to setup your own manufacturing unit. You will have to fulfill all the requirements stated by state authority of AYUSH.
  • Loan License - It is a manufacturing license where you loan a manufacturing unit of a third party manufacturer to make your products. Thus you will not have to own a manufacturing unit.
  • Contract/ Third party manufacturing - is a License where you will use the manufacturing license of a third-party manufacturer to manufacture the product. You will be just marketing the product. Thus you don't have to own any manufacturing unit and don't have to get any license.

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How To Promote Your Herbal Business

Product Knowledge

When we speak of herbs, it is very important to have a basic knowledge of what you are going to sell. It is of utmost importance to know each herb that is going to be a part of your business plan.

Knowing Your Market

Creating your herbal product and putting it on your website is not enough to grow your business. You need to identify the ones you are making your product for. Your products need to solve the problems of the target audience. Presenting your product to the wrong group of people will only hold back your business from growing.

Guiding And Communicating

Herbal products are needed by the consumers when their concerns are related to health. You will stand a better chance of selling your products if you can guide them about the products and their uses. This will instantaneously earn the much-needed trust of your customer which is always a positive aspect in marketing your business.

Affordable Pricing

You need to keep in mind that the products you are selling don’t suffer from the issue of overpricing. The urge to keep the products underpriced is helpful for any business owners, you have to vary much care about that you have not faced any losses.

Branding Via App

Having an app for your business not only creates a digital marketing channel but also stand out from the competitors.

Offers Coupons And Discounts

This is a great way to attract the first batch of customers and lift your business from the ground when you are just a beginner. Offering too much will increase the consumer's unhealthy expectations. So make the marketing plan with great efficiencies.

Active On Social Media

Advertising via social media costs very less and offers other benefits as well. In this way, consumers get involved in the process of marketing your herbal business. You must regularly update your social profiles and the posting of contents that are engaging and interesting.

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How to start herbal products business in India?

Things to consider before starting a herbal product business:-

  1. Market Research.
  2. Know your herbs.
  3. Licensing & Registration.
  4. Location.
  5. Marketing.

How do I get Ayush license?

The Procedure to Obtain Licence for herbal products in India:-

  • Visiting the Website.
  • Review of Documents.
  • Approval by the Commissioner.
  • Obtaining the License.

What is Ayush certification?

Quality Council of India has been engaged for voluntary certification of quality of Ayurveda Siddha Unani (ASU) products. AYUSH Standard and AYUSH Premium Marks are awarded for products moving in the domestic and international market respectively.

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