Herbal Extract Market Analysis APAC, North America, Europe, Middle East and Africa, South America - China, US, India, Germany, Canada - Size and Forecast 2024-2028

Herbal Extract Market Size 2024-2028

The herbal extract market size is forecast to increase by USD 39.2 billion at a CAGR of 14.96% between 2023 and 2028.

• The market is experiencing significant growth, driven by the increasing demand for food and beverages with natural and herbal ingredients. Consumers are increasingly seeking healthier alternatives, leading to a in demand for herbal extracts. Moreover, advancements in extraction techniques have enabled the production of high-quality herbal products, further fueling market growth. However, companies operating in this market face challenges such as stringent regulations and quality control issues.
• To capitalize on this opportunity, companies must focus on innovation, adherence to regulatory standards, and delivering consistent product quality. By staying abreast of consumer trends and investing in research and development, players can differentiate themselves and gain a competitive edge in the market.

What will be the Size of the Herbal Extract Market during the forecast period?

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• The market in the United States is experiencing significant growth due to increasing nutritional requirements and consumer interest in natural health solutions. This market encompasses various extraction methods, including cold pressing, phytochemical extraction using supercritical fluids, and traditional techniques such as distillation. Key herbal extracts include alkaloids like curcumin from turmeric, Anise seed extract, and Fenugreek seed extract, which offer antimicrobial properties and bioactive compounds. The market's expansion is driven by the rising demand for herbal extracts in various industries, including cosmetics, dietary supplements, health and wellness, food and beverages, and personal care. Consumers seek these products for their therapeutic properties and the convenience of addressing multiple health concerns through one solution.
• Organic herb cultivation is a growing trend, ensuring the availability of raw materials for the production of high-quality herbal extracts. Essential oils and aromatherapy are also gaining popularity, while Ayurvedic treatments continue to influence the market's direction. Overall, the market's size and growth are attributed to the hectic lifestyle of modern consumers and the desire for natural, holistic health solutions.

How is this Herbal Extract Industry segmented?

The herbal extract industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Application
  • Pharmaceuticals
  • Personal care
  • Others
• Type
  • Liquid
  • Powder
• Geography
  • APAC
    • China
    • India
  • North America
    • US
    • Canada
  • Europe
    • Germany
  • Middle East and Africa
  • South America

By Application Insights

The pharmaceuticals segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth in the nutrition industry due to the increasing focus on health and wellness. Functional foods and beverages, as well as nutraceutical supplements, are incorporating herbal extracts for their therapeutic properties and health benefits. Turmeric oil, Anise seed extract, and Fenugreek seed extract are popular choices due to their antimicrobial properties and bioactive compounds, including flavonoids, alkaloids, and phytochemicals. Organic herb cultivation is a priority for companies to meet consumer trust and clean labeling requirements. Technology advancements, such as cold pressing and supercritical fluid extraction, ensure the preservation of essential oils and mechanisms of action.

Herbal extracts are used in various applications, including pharmaceuticals, food and beverages, personal care, and aromatherapy. The therapeutic applications of herbal extracts, such as those derived from Turmeric, Ashwagandha, and traditional remedies like Ayurvedic treatments, offer solutions for numerous illnesses. The hectic lifestyle of consumers has created a demand for herbal extracts that cater to their nutritional requirements. Consumer trust in natural ingredients and medicinal properties has led to the preference for herbal extracts over synthetic ingredients. The market is expected to continue growing as scientific research uncovers new mechanisms of action and therapeutic applications for these valuable extracts.

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The Pharmaceuticals segment was valued at USD 14.00 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 29% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in Asia Pacific has experienced notable growth due to increasing consumer consciousness regarding the potential side effects of conventional medicines and the therapeutic benefits of herbal products. This trend has fueled the demand for herbal extracts, nutraceuticals, and herbal-infused personal care products in the region. Moreover, the escalating prevalence of obesity and related health issues, such as cardiovascular diseases, in countries like China and India, has led to the incorporation of herbal extracts in food and beverage products. The use of these extracts is also driven by scientific research uncovering their mechanisms of action and medicinal properties, particularly in addressing illnesses like inflammation, stress, and anxiety.

The market is further by advancements in technology, such as cold pressing and supercritical fluid extraction, ensuring clean labeling and organic herb cultivation to meet the evolving nutritional requirements of consumers. Key bioactive compounds, such as flavonoids, alkaloids, and phytochemicals, found in herbal extracts, contribute to their therapeutic applications in various industries, including food and beverages, dietary supplements, aromatherapy, and cosmetics. Consumer trust in herbal extracts' health benefits and traditional medicine practices continues to grow, making them a preferred choice for addressing hectic lifestyles and maintaining overall wellness.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in the adoption of Herbal Extract Industry?

• Increasing demand for food and beverages with herbal ingredients is the key driver of the market.

• The market is experiencing significant growth due to the increasing consumer preference for natural food and beverage ingredients. With a rise in awareness about the potential health risks associated with synthetic additives, key market participants are investing heavily in research and development to launch herbal extracts that cater to this demand. Global health organizations and food safety associations have imposed regulations to limit the use of artificial flavorings and promote the use of naturally extracted alternatives, further fueling market growth.
• Consumers are seeking food and beverage options that are free from gluten, artificial flavors, colors, and preservatives, and herbal extracts offer a natural solution to meet these needs. The market is expected to continue its expansion as consumers increasingly prioritize health and wellness in their dietary choices.

What are the market trends shaping the Herbal Extract Industry?

• Advancements in extraction techniques is the upcoming market trend.

• The market is experiencing significant growth due to advancements in extraction methods and analytical techniques. These innovations, including solvent extraction, distillation, cold pressing, and supercritical fluid extraction, optimize the extraction of active compounds from plants, ensuring a higher yield of beneficial components. These techniques also maintain the herbal material's integrity, resulting in potent and reliable natural products that cater to the increasing consumer demand. The trend of improving extraction techniques is expected to continue driving market growth throughout the forecast period.
• By utilizing these advanced methods, manufacturers can produce herbal extracts that meet the highest standards, making them a valuable addition to various industries, such as pharmaceuticals, food and beverage, and cosmetics. The market's growth can be attributed to this ongoing innovation and the consumer preference for natural, effective solutions.

What challenges does the Herbal Extract Industry face during its growth?

• Providing high-quality herbal products is a key challenge affecting the industry growth.

• The market poses unique challenges for companies due to the intricacies involved in manufacturing products from naturally sourced herbal materials. Adhering to stringent quality standards is essential in this market, as herbal extracts are derived from various geographical and commercial sources, making it difficult to ensure consistent conditions during cultivation and processing. Furthermore, the methods and techniques used in the manufacture and quality control of herbal extracts differ significantly from those employed for conventional pharmaceuticals, consumer products, and food and beverages.
• The complexity of growing herbal plants naturally increases the risk of contamination with harmful substances. companies must navigate these challenges to deliver high-quality herbal extracts to consumers.

Exclusive Customer Landscape

The herbal extract market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the herbal extract market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, herbal extract market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

Dohler GmbH - The company specializes in providing herbal extract solutions, including African Botanical Extracts. Our offerings cater to various industries, enhancing product efficacy and sustainability through innovative, plant-based ingredients. African Botanical Extracts are sourced ethically and undergo rigorous testing to ensure quality and consistency. These extracts offer numerous benefits, such as antioxidant properties and anti-inflammatory effects, making them a valuable addition to diverse applications. Our commitment to research and development ensures we stay at the forefront of the natural ingredients market, delivering effective and sustainable solutions to our clients.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Dohler GmbH
• Herbal Creations
• Herbochem
• India Essential Oils
• K. Patel Phyto Extractions Pvt. Ltd.
• Kalsec Inc.
• MB Holding GmbH and Co. KG
• Mountain Rose Herbs
• Naturalin Bio Resources Co. Ltd.
• Natures Way Brands LLC
• Naturex SA
• Organic Herb Inc.
• Ransom Naturals Ltd.
• SA Herbal Bioactives LLP
• Sami Spices
• Shaanxi Jiahe Phytochem Co. Ltd.
• Starwest Botanicals.com Inc.
• Synergy Flavors Inc.
• Synthite Industries Pvt. Ltd.
• Vidya Herbs Pvt. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

The market continues to experience significant growth as consumers increasingly seek natural solutions for maintaining health and wellness. Functional foods, a segment of the nutrition industry, have gained popularity due to their ability to provide additional health benefits beyond basic nutritional requirements. Herbal extracts derived from various plants, including turmeric and anise seed, have garnered attention for their bioactive compounds and therapeutic properties. Turmeric oil, obtained from the rhizome of the turmeric plant, is rich in flavonoids and curcumin. These compounds are known for their antimicrobial properties and medicinal properties, making turmeric oil a valuable addition to food and beverages, dietary supplements, and aromatherapy.

Anise seed extract, on the other hand, contains alkaloids and phytochemicals, which offer health benefits and contribute to the flavor and aroma of various food products. The nutrition industry has seen advancements in technology, such as cold pressing and supercritical fluid extraction, which have improved the efficiency and quality of herbal extract production. These methods ensure the preservation of the bioactive compounds and maintain the integrity of the raw materials. Consumer trust in herbal extracts has been growing, as people look for clean labeling and natural alternatives to synthetic ingredients. The therapeutic applications of herbal extracts extend beyond food and beverages, with personal care and cosmetics industries also incorporating them into their products.

Ayurvedic treatments, a traditional medicine practice, have gained popularity in the Western world for their health benefits. Herbal extracts derived from ashwagandha, fenugreek seed, and other plants have been used to treat various illnesses and promote overall wellness. The hectic lifestyle of modern consumers has led to an increased demand for these natural remedies. The market is driven by scientific research and the mechanisms of action of these bioactive compounds. The antimicrobial properties of herbal extracts, for instance, offer potential solutions to various illnesses and contribute to the development of new therapeutic applications. The availability of raw materials and ongoing research into the therapeutic properties of various herbs continue to fuel the growth of the market.

As consumers become more health-conscious and seek natural alternatives to conventional drugs, the demand for herbal extracts is expected to continue growing. In , the market is experiencing significant growth due to the increasing demand for natural solutions in the health and wellness industry. The use of herbal extracts in functional foods, dietary supplements, personal care products, and traditional medicine practices offers numerous health benefits and contributes to the development of new therapeutic applications. The ongoing research into the mechanisms of action of bioactive compounds and the advancements in extraction technologies are expected to further fuel the growth of this market.

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What are the Key Data Covered in this Herbal Extract Market Research and Growth Report?

• CAGR of the Herbal Extract industry during the forecast period
• Detailed information on factors that will drive the growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across APAC, North America, Europe, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the herbal extract market growth of industry companies

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