Traditional Medicine Emerges as Key Export Sector Amid Global Shift Toward Preventative Healthcare

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.

Source : http://koreabizwire.com/traditional-medicine-emerges-as-key-export-sector-amid-global-shift-toward-preventative-healthcare/302848

Comprehension

What factors are driving the global shift in healthcare toward traditional medicine?
How much was the global traditional medicine market worth in 2022, and what is it projected to reach by 2027?
Which organization has advocated for the use of traditional medicine to prevent chronic diseases?
Name some countries and companies mentioned in the report that have prominent traditional medicine markets.
How much did the South Korean traditional medicine market grow between 2017 and 2021?
What percentage of surveyed Korean traditional medicine companies reported growing interest and demand for their products?
What are the main barriers preventing Korean companies from exporting traditional medicine products?
According to the report, what steps could South Korea take to strengthen its position in the global traditional medicine market?

Discussion

Why do you think traditional medicine is becoming more popular globally?
How can traditional medicine contribute to cost reduction in healthcare?
What are the benefits and challenges of exporting traditional medicine products?
How do cultural perceptions influence the acceptance of traditional medicine in different countries?
Do you think traditional medicine can replace modern medicine for some health conditions? Why or why not?
What could South Korea learn from countries like China and India to improve its traditional medicine industry?
How can governments support the growth of traditional medicine industries in their countries?
What role does medical tourism play in promoting traditional medicine?
How do you think wellness trends have influenced the popularity of traditional medicine in Western markets?
Should more research and development be invested in traditional medicine? Why or why not?

Vocabulary

Prevention – Actions taken to stop something from happening, especially diseases.
Chronic – Long-lasting or recurring, especially in reference to illnesses.
Advocated – Publicly supported or recommended.
Wellness – The state of being in good physical and mental health.
Surged – Increased suddenly and significantly.
Barriers – Obstacles that make it difficult to achieve something.
Certification – Official approval to meet a certain standard.
Portfolio – A collection of products, services, or investments offered by a company.