Introduction – Current State of Play: The Herbs Sector in Malaysia
The herbs industry in Malaysia is undergoing a major transformation as of July 2025. From sweeping government policies to unpredictable climate conditions and shifting global demand, the sector is riding a wave of both opportunities and challenges.
Let’s start with policy. The Malaysian government has long recognized the potential of the herbal industry, naming it a key contributor under the National Key Economic Area (NKEA) since 2011. Ambitious targets were set, projecting growth from RM17 billion in 2013 to RM32 billion by 2020. With new initiatives like the National Agro-Food Policy (NAFP) and the National Herbs Development Council, the government is doubling down on its support in 2025.
Yet, despite its rich biodiversity, Malaysia imports more herbs than it exports. Between 2009 and 2014, imports ballooned by 45% annually, reaching over USD 2 billion. Climate change further complicates the equation. Unpredictable rainfall and temperature shifts have led to poor harvests and rising prices.
On the flip side, consumer demand for traditional and natural remedies is surging. Malaysians are turning to herbs not just for flavor, but also for wellness. That demand is fueling innovation—but it’s also raising the bar for quality, consistency, and supply chain resilience.
This is where platforms like Freshdi come in. Freshdi helps businesses stay agile by offering market intelligence, verified supplier data, and insights into RFQ (Request for Quotation) trends—all crucial in a fast-moving sector like herbs.
Ready to dive deeper? Let’s explore what’s making headlines in Malaysia’s herbs market.
Deep Dive – What’s Making Headlines? Key Recent News & Impacts
1. Health Trends Fuel Market Growth
Consumers in Malaysia—and across Asia—are becoming more health-conscious. They’re actively seeking out natural remedies and culinary herbs with health benefits like anti-inflammatory and antioxidant properties. This growing preference has propelled the herbs and spices market from USD 336 million in 2019 to a projected USD 518 million by 2024, with a CAGR of 9%.
2. Traditional Medicine Makes a Comeback
With over 2,000 medicinal plant species, Malaysia is a hub for traditional remedies. Herbs like Tongkat Ali and Kacip Fatimah are gaining international recognition, further boosting local demand and global export potential.
3. Supply Chain Shifts Open Investment Opportunities
As global supply chains diversify post-pandemic, Malaysia is attracting foreign investment. Its strategic location and political stability make it a prime candidate for companies looking to set up regional hubs.
4. Government Backing Is Stronger Than Ever
The Malaysian government is investing in research, cultivation, and large-scale processing of herbs. New centers of excellence are being planned to drive R&D and innovation.
5. But Challenges Remain
Inconsistent raw material supply, quality control issues, and limited cultivation areas present ongoing hurdles. Imported herbs are still crucial to meeting demand, but this dependency introduces volatility.
6. Investment Boom in Q1 2025
Malaysia approved RM89.8 billion (USD 21.2 billion) in investments in Q1 2025. The services sector, which includes herbal processing and distribution, saw the largest share.
7. Strategic Partnerships Are on the Rise
In late 2024, China Wantian Holdings and Hin Sang Group announced a strategic partnership aimed at entering the functional food and herbal health markets in Southeast Asia.
These developments reflect a sector full of promise—but one that requires smart navigation. And that brings us to the top players in the space.
Top 5 Verified Herbs Suppliers in Malaysia – Navigating Current Market Realities
These suppliers have been selected based on export performance, certifications, global reach, and verified buyer reviews on Freshdi. If you’re sourcing herbs in 2025, these are the names to know.
1. Linaco Ingredients Sdn Bhd
- Overview: A leading name in herbs and spices, Linaco offers a wide range of processed herbs for both culinary and medicinal use.
- Strengths: ISO-certified, Halal-approved, and known for consistent quality across global markets.
- Specialties: Dried herbs, organic turmeric, ginger, lemongrass, and tamarind.
- Export Reach: Southeast Asia, Middle East, Europe.
- Why Choose Them: Proven track record and strong supply chain practices make Linaco a preferred choice for large-scale buyers.
2. Biotropics Malaysia Berhad
- Overview: Government-backed and focused on nutraceuticals, Biotropics is a top player in herbal extracts and supplements.
- Strengths: Emphasizes research and traditional healing systems.
- Specialties: Tongkat Ali extract, Kacip Fatimah extract, and other standardized herbal compounds.
- Export Reach: Europe, North America, and the Middle East.
- Why Choose Them: Ideal for businesses in the health and wellness sector.
3. Herbagus Sdn Bhd
- Overview: A growing SME with a focus on sustainable herb cultivation and local sourcing.
- Strengths: Works closely with indigenous communities and local farmers.
- Specialties: Fresh and dried local herbs like Pegaga, Misai Kucing, and Tongkat Ali.
- Export Reach: ASEAN and Australia.
- Why Choose Them: Great for buyers seeking ethical sourcing and traceability.
4. Euro-Atlantic Sdn Bhd
- Overview: Known for its premium food ingredients, Euro-Atlantic has expanded into herbs and spices in response to market demand.
- Strengths: Cold chain logistics and HACCP-certified processing.
- Specialties: Fresh culinary herbs like rosemary, basil, and thyme.
- Export Reach: Singapore, Hong Kong, and Japan.
- Why Choose Them: Best for premium foodservice and retail channels.
5. Nutriva International Sdn Bhd
- Overview: A herbal supplement manufacturer with a strong emphasis on quality and innovation.
- Strengths: GMP-certified, in-house R&D team, private labeling options.
- Specialties: Herbal capsules, teas, and powders.
- Export Reach: Middle East, Europe, and China.
- Why Choose Them: Perfect for health brands looking for white-label herbal products.
Dynamic Ranking Note: Supplier performance may vary based on seasonality, demand, and RFQ volume. Platforms like Freshdi offer dynamic rankings—such as “Top Suppliers of the Month”—which reflect real-time updates and buyer feedback.
Market Navigation – Strategic Responses to The Prevailing Herbs Landscape in Malaysia
Opportunities for Businesses
1. Capitalize on Health Trends
With the wellness industry booming, now’s the time to focus on herbal supplements, teas, and natural remedies. Herbs like turmeric, ginger, and Tongkat Ali are especially hot right now.
2. Leverage Malaysia’s Culinary Diversity
The local food culture is rich in herbs and spices, offering opportunities for product differentiation. Think pre-mixed herbal seasonings or innovative herbal beverages.
3. Tap into Export Markets
Malaysia’s unique offerings (like Kacip Fatimah) can appeal to international buyers seeking authentic and functional herbs.
Challenges to Watch
1. Supply Instability
Heavy reliance on imported herbs due to insufficient local cultivation can affect pricing and availability.
2. Quality Control
Adulteration and lack of standardization remain serious issues. Buyers must vet suppliers rigorously—with tools like Freshdi’s supplier verification coming in handy.
3. Land Constraints
Limited space for large-scale herb farming means competition for high-quality raw materials will remain stiff.
Smart Sourcing Strategies
- Invest in Supplier Relationships: Build long-term ties with reliable partners like Linaco or Biotropics.
- Adopt Sustainable Practices: Encourage suppliers to follow Good Agricultural Practices (GAP) to ensure consistent quality.
- Use Tech for Forecasting: Platforms like Freshdi provide tools for tracking RFQ trends and market forecasts—super useful for planning ahead.
Short-Term Outlook
From now through early 2026, the market is expected to continue its upward trend, with a projected value of RM28 billion by 2027. However, traditional Chinese herb retailers are seeing a dip due to modern consumer habits. Younger buyers are favoring modern pharmacies and online platforms, forcing traditional players to modernize or risk decline.
Conclusion – Key Takeaways for Businesses in a Dynamic Market
The herbs industry in Malaysia is more dynamic than ever. With strong government support, rising consumer demand, and growing export opportunities, the market is ripe for growth. But that growth comes with challenges—from unstable supply and climate risks to shifting consumer preferences.
To navigate this evolving landscape, businesses must:
- Stay informed about market shifts.
- Choose verified, high-performing suppliers.
- Embrace sustainable and tech-driven sourcing.
- Keep up with consumer trends and quality standards.
This is where platforms like Freshdi shine. They provide real-time insights, alert you to major RFQ changes, and connect you to suppliers who are not just surviving—but thriving—in this complex environment.
Key Takeaways
- Malaysia’s herbs market is growing but faces supply and climate challenges.
- Government initiatives and rising health trends are fueling sector growth.
- Supplier verification and sustainable sourcing are critical.
- Platforms like Freshdi offer real-time insights and supplier access.
- The market is shifting towards tech-driven, health-focused products.
Buyer’s Checklist – For Sourcing Herbs in Malaysia (June 2025 Edition)
✅ Vet suppliers via platforms like Freshdi
✅ Prioritize suppliers with certifications (GMP, ISO, Halal)
✅ Ask about traceability and sustainability practices
✅ Monitor RFQ trends monthly
✅ Diversify sourcing to reduce dependency on imports
✅ Align products with current health and wellness trends
Future Outlook
By 2027, Malaysia’s herbal industry could be worth RM28 billion. But only those who adapt to climate challenges, consumer shifts, and tech integration will thrive. Strategic sourcing, sustainability, and real-time insights will define the leaders of tomorrow.
How Freshdi Empowers Buyers
- Verified Supplier Listings
- Real-Time Market Insights
- Dynamic RFQ Tracking
- Supplier of the Month Rankings
- Secure B2B Sourcing Platform
Explore it all at Freshdi.
Frequently Asked Questions (FAQs)
1. Why is Malaysia a key player in the herbs market?
Malaysia’s rich biodiversity, combined with government support and established trade links, makes it a natural hub for herbal products.
2. What are the most in-demand herbs from Malaysia?
Tongkat Ali, Kacip Fatimah, turmeric, ginger, and lemongrass are among the most sought-after herbs in 2025.
3. How can I ensure quality when sourcing herbs from Malaysia?
Work with certified suppliers and use platforms like Freshdi to verify credentials, check reviews, and track RFQ trends.
4. What challenges should I expect when sourcing from Malaysia?
Expect variability in raw material supply, climate-related disruptions, and quality control challenges.
5. Is it better to source from large or small suppliers?
It depends on your needs. Large suppliers offer scalability, while smaller ones may provide niche products and flexible terms.
References
- https://ap.fftc.org.tw/article/1385?utm_source=openai
- https://ap.fftc.org.tw/article/828?utm_source=openai
- https://www.mayway.com/articles/herb-supply-sustainability-update-october-2023?utm_source=openai
- https://6wresearch.com/industry-report/malaysia-medicinal-herbs-market-outlook?utm_source=openai
- https://pmc.ncbi.nlm.nih.gov/articles/PMC10158762/?utm_source=openai
- https://www.reuters.com/markets/asia/malaysia-records-approved-investments-21-billion-q1-2025-06-11/?utm_source=openai
- https://www.biotropicsmalaysia.com/latest-news/understanding-malaysias-huge-potential-in-the-herbal-industry?utm_source=openai
- https://www.thestar.com.my/news/nation/2025/06/23/twilight-years-of-the-trade?utm_source=openai
