The impact of COVID-19 on the herbal medicine market

The Covid-19 pandemic has shaped people's behavior to better care for themselves. Natural health care products have also gained popularity among these consumers. Traditional Thai herbal medicine is an alternative way to cure Covid-19 effectively. Specifically, the Andrographis Paniculata or green chiretta is an effective way to work against the spread of the SARS-COV-2 infection. However, little is known about the change in the herbal medicine market in Thailand. This study aims to examine the change in the herbal medicine market due to the occurrence of the Covid-19 pandemic in Thailand and the characteristics of the customers who will still use herbal medicine in the post-COVID-19 period. The data is drawn from the Department of Business Development, Ministry of Commerce from 2018 to 2021. The results show that the capital spending of newly established pharmaceutical and medical supply businesses in Thailand has tripled, increasing from 1.51 billion Thai baht in 2019 to 4.69 billion THB in 2020. The current price of Andrographis Paniculata has grown 5-6 times since the pre-pandemic period. The selling price per bottle increased from 80-150 to 280-400 baht. The price of dried leaves also increased from 80-120THB per kilogram to 800-1,200THB per kilogram, about a ten-fold increase. The result shows that the increased demand for the Andrographis Paniculata to reduce the spread of Covid-19 has driven the price of these herbal medicines up. Also, this study identifies the customer’s behavior by comparing (2) the pre-Covid-19 period and post-Covid-19 period to examine the changing behavior of herbal medicine use. Moreover, it investigates the customers who will still use herbal medicine products in the post-Covid-19 period by identifying the demographics, characteristics, and marketing factors that make them continue to use. The results be a guideline for future herbal medicine product business owners to understand their customers in the post-Covid-19 period better. The final result of this study will be in form of the characteristics of the customers that are likely to continue using the herbal medicine after Covid-19 ended along with the marketing plan and packaging mockup of the products refers by the answer of the customers in questionnaire survey.