The global herbal extracts market size was USD 34.4 Billion in 2022 and is expected to reach USD 56 Billion by 2031, expanding at a CAGR of 7% during the forecast period, 2023–2031. The market growth is attributed to the rising demand and awareness about herbal products.
Growing awareness about medicinal benefits associated with the application & consumption of products containing herbal extracts are expanding their popularity among the health-conscious population. Compared to chemical-based alternatives, herbal extract-based products are safe to use for humans. Thus, a large pool of consumers prefers safe and effective products over synthetic products, which in turn increases the demand for herbal products. This is anticipated to propel the market during the forecast period. For instance,
- According to an article published by WHO on 25 March 2022, over 80% of people across the world use herbal or plant-based medicines and supplements for preventive healthcare and treating certain diseases. The article further states that herbal medicines are mainly used in ancient medical practices including ayurvedic treatments and acupuncture
Low cost of extraction associated with natural ingredients as compared to synthetic alternatives is expected to further support the market growth. Natural ingredients sourcing and extraction is a renewable solution, as plants & herbs grow back after a certain amount of time. This gives a sustainable option for key players to expand their businesses, which further boosts the market.
The market report finds that the COVID-19 pandemic created growth opportunities that boosted revenue generation in the global herbal extracts market. A major revenue share of the market is attributed to the rising sales of essential and nutritive products and increasing demand for various items, including personal care and pharmaceutical products, during the pandemic.
The rapid expansion of e-commerce platforms that offer a variety of essential items to customers boosted the demand for herbal extracts during the pandemic. Researchers focused on different natural and medicinal plant extracts to combat the effects of the pandemic by introducing immunity supplements and flavored syrups. A sudden disruption in the supply chain caused by the global health crisis did not result in a noticeable decline in the sales of herb extract.
Impact of Artificial Intelligence on Herbal Extracts Market
Integration of artificial intelligence (AI) in solutions that perform the extraction of herbal ingredients from plants is expected to gain popularity during the assessment period. One of the AI-assisted methods of extracting organic ingredients from plants is Ultrasonic Extraction, which involves the extraction of bioactive compounds such as flavonoids, phenolics, thymols, and protein.
These compounds contain anti-inflammatory and antioxidant properties and are used in the preparation of products including herbal medicines and food & beverages. Thus, extraction of these compounds using AI-assisted ultrasonic extraction helps market players to speed up and expand their production, which in turn is likely to fuel the market.
Herbal Extracts Market Dynamics
Key Drivers
Health benefits of natural extracts are anticipated to increase its demand in the pharmaceutical and nutraceutical industry. Herbal extracts are projected to aid in blood pressure regulation, weight management, and prevention of diseases. The market is driven by the increasing awareness regarding the therapeutic properties of herbal products.
- As per an article published by the American Botanical Council, the demand for herbal supplements in the US grew by over 25% and totaled around USD 2.1 billion in 2020, as compared to 2019. The article stated that maintaining cardiovascular health, improving immunity, and managing mental conditions such as anxiety and stress were the major reasons that facilitated the demand for herbal supplements among consumers.
Rising demand for herbal medicines, dietary supplements, and ingredients is contributing to the expansion of the market. Changing lifestyles, adoption of natural ingredients, and rising disposable incomes of the population in various regions are some factors that are projected to drive the market in the forecast period.
Existing Restraints
Shortage of raw materials in the manufacturing process of herbal products is attributed to its seasonal availability and insufficient supply. Fluctuation in the prices of the products is estimated to restrain the herbal extracts market in the projection period.
Emerging Opportunities
Key market players are focusing on the production of herbal products with cost-effective herbal extraction methods. Technological advancements in the supply chain are projected to propel the market. Rising demand for instant-use products is projected to create lucrative opportunities in the market. Manufacturers of herbal extracts are focused on investing in marketing strategies that result in the formation of opportunities.
Scope of Herbal Extracts Market Report
The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Herbal Extracts Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Form (Liquid, Powder, Essential Oil, and Others), Source (Mint, Rosemary, Thyme, Basil, Dill, Lavender, and Others), and Application (Food & Beverages, Pharmaceuticals, Personal Care & Cosmetics, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Herbal Extracts Market Size and Analysis, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Vidya Herbs Pvt. Ltd.; Changsha Langyuan Bio-Tech Co., Ltd.; Herbochem; S.A. Herbal Bioactives LLP; Herbochem; Kalsec Inc.; Naturex SA; Döhler; Synthite Industries Ltd.; Mountain Rose Herbs; Organic Herb Inc; and Vidya Herbs Pvt. Ltd.
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Herbal Extracts Market Segment Insights
Form Segment Analysis
On the basis of form, the market is segregated into liquid, powder, essential oil, and others. The powder segment is projected to expand at a high CAGR and hold a market share of around USD 6 Billion to USD 10.5 Billion during the forecast period. The growth of the powder segment is attributed to its easy storage and spill-proof properties.
The liquid segment is estimated to register a revenue of about USD 3.44 Billion during the assessment period. The segment growth is attributed to the high demand for producing liquid pharmaceutical and personal care products.
Source Segment Analysis
Based on source, the herbal extracts market is divided into mint, rosemary, thyme, basil, dill, lavender, and others. The basil segment is expected to expand at a significant growth rate during the projection period, due to its medicinal use in pharmaceuticals and traditional medicine formation. It is known to be a holy herb in various countries in South Asia, including India and Nepal, and is a staple ingredient in the Mediterranean cuisine.
Application Segment Analysis
On the basis of application, the market is segmented into food & beverages, pharmaceuticals, personal care & cosmetics, and others. The food & beverages segment is expected to register robust growth during the forecast period, due to the rising demand for natural & minimal processed food products and instant food options. Beverages made from natural extracts with various health benefits are popular among consumers.
Herb extracts are prominent ingredients in the formulation of pharmaceutical products attributed to their healing properties. Ointments, creams, tablets, and other medicinal products are some applications of herbal extracts, due to their healing properties.
Regional Analysis
In terms of region, the global herbal extracts market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is projected to dominate the market during the assessment period, due to the rising demand for herbal products in bulk and the high consumption rate for herbal tea and beverages. The region registered a market share of about 39% in 2022. Additionally, increased demand for herbal cosmetics and personal care products is anticipated to boost the market in the region.
- According to a report published on 8 August 2023, the natural cosmetics and personal care industry in Indonesia is expected to grow more than 27% from 2023 to 2027 and reach over USD 300 million. Moreover, surging demand for organic-ingredients-based products in the Asia Pacific countries is further boosting the market.
North America is anticipated to witness the growth of the herbal extracts market, attributed to the presence of a major number of herbal extract manufacturers and producers in the region. In addition, with the latest herbal ingredient extraction technology and developments, the region is estimated to contribute to significant revenue generation in the market.
Segments
The herbal extracts market has been segmented on the basis of
Form
- Liquid
- Powder
- Essential Oil
- Others
Source
- Mint
- Rosemary
- Thyme
- Basil
- Dill
- Lavender
- Others
Application
- Food & Beverages
- Pharmaceuticals
- Personal Care & Cosmetics
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Vidya Herbs Pvt. Ltd.
- Changsha Langyuan Bio-Tech Co., Ltd.
- Herbochem
- S.A. Herbal Bioactives LLP
- Herbochem
- Arjuna Natural
- Naturex SA
- Döhler
- Symrise
- Mountain Rose Herbs
Competitive Landscape
Key players competing in the global herbal extracts market are Vidya Herbs Pvt. Ltd.; Changsha Langyuan Bio-Tech Co., Ltd.; Herbochem; S.A. Herbal Bioactives LLP; Herbochem; Kalsec Inc.; Naturex SA; Döhler; Synthite Industries Ltd.; Mountain Rose Herbs; Organic Herb Inc; and Vidya Herbs Pvt. Ltd.
These companies adopted various strategies, such as mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to increase their market share and expand their consumer base globally. For instance,
- In May 2022, Arjuna Natural announced a new post-workout pain reliever. The main purpose of the product is to provide a safe and herbal remedy that provides instant relief from pain.
- In August 2020, Symrise launched SymControl Scalp to resolve the issue of sebum overproduction during scalp treatment. The product contains the extract of Tetraselmis Suecica, which is useful in controlling sebum production and promoting hair health, and mannitol to safeguard hair and scalp from environmental factors such as pollution.
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