Background: Medicinal plants play a pivotal role in the traditional medicine system in Ethiopia. Since the outbreak of the COVID-19 pandemic, domestic demand for medicinal plants has increased, particularly for Artemisia annua species. However, coupled with the secrecy nature in medicinal plant utilization, knowledge regarding marketing and value addition of medicinal plants is lacking in the literature. The objective of the present market study was to investigate the marketing and value addition of Artemisia annua and other major medicinal plants in selected towns of Southern Ethiopia. Methodology: Primary data were collected using questionnaire, focus group discussions, and personal observations with producers and traders. Marketing benefits of the potential medicinal plants were captured by total return and marketing margins. Result: The major medicinal plants in Chencha area were Artemisia annua, Stevia rebaudiana, and Silybum marianum, Echinops kebericho and Silene macrosolen Steud are widely used in Tula and Hawassa; Ocimum tenuiflorum and Ruta graveolens were found in Basha area, while Zehneria scabra was found in Chencha and Basha. The above-mentioned medicinal plants are used to treat various illnesses, while generating income to the local communities. The marketing or profit margins of the value-added products indicated a share of 28.6%, 14.36%, 14.31%, and 42.73% for producers, local collectors, and traders in Arbaminch and Addis Ababa, respectively. Conclusion: Up scaling the cultivation and commercialization of these medicinal plants has the potential to maintain the public health while providing alternative income sources for local communities in Ethiopia. In an effort to capture local value addition of medicinal plants, processing materials, market outlets, and road infrastructures should be improved.

No abstract