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The herbal extract market size is estimated to grow at a CAGR of 12.97% between 2022 and 2027. The market size is forecast to increase by USD 29.19 billion. This herbal extract market report extensively covers market segmentation by application (pharmaceuticals, personal care, and others), type (liquid and powder), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
One of the key factors driving the herbal extract market growth is the growth of herbal medicine. There is an increasing preference for alternative solutions among consumers for various health issues, which is fuelling the demand for herbal extracts. For example, Himalaya Herbals provides a varied range of herbal goods, including their Liv.52 liver care supplement manufactured from natural extracts. Additionally, there is a growing awareness among several government bodies regarding the value of traditional medicine and advocates for its incorporation into healthcare systems. For example, the Ministry of AYUSH of the Indian government encourages Ayurveda and traditional herbal practices, emphasizing the usefulness of herbal extracts such as Ashwagandha and Turmeric. Hence, such factors are expected to positively impact the market which, in turn, will drive the market growth during the forecast period.
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A key factor shaping the herbal extract market growth is the availability of plant-based alternatives in food and beverages. The increase in plant-based diets has had a significant impact on the global herbal extract market. There is an increasing focus by several manufacturers on adding herbal extracts to various foods and beverages as more consumers select healthier and more sustainable eating choices. Manufacturers are increasing the entire sensory experience and nutritional value of food and beverages by adding natural flavors, colors, and useful characteristics.
Moreover, turmeric extract is widely used to impart brilliant color and anti-inflammatory properties in beverages and snacks. In addition, rosemary extract is added to provide a distinct flavor to a variety of food products as well as it acts as a natural preservative. As a result of this trend, there is an increasing preference for clean-label ingredients, and it presents numerous potentials for the herbal extract market to expand its applications in the global food and beverage industry. Hence, such factors are expected to drive market growth during the forecast period.
High production cost is one of the key challenges hindering the herbal extract market growth. The major concern regarding herbal extract is obtaining and processing of herbal ingredients which can be time-consuming and resource-intensive, leading to higher costs for manufacturers. For instance, the main contributing factor to the increasing manufacturing cost is the extraction and purification techniques for uncommon or specialized herbs.
Moreover, other factors involved in manufacturing including labor, energy, and equipment all contribute to increased production costs. In addition, several manufacturers are forced to adhere to strict regulatory standards such as Good Manufacturing Practices (GMP) which can further boost the costs. Hence, such factors can negatively impact the market which in turn will hinder the market growth.
The increasing demand for wellness products will fuel the liquid segment which will increase the market growth. There is a significant growth in the liquid segment due to various factors such as convenience, rapid absorption, and a wide range of uses. The main advantage of the liquid segment is that it offers precise dosing and can be readily used in a variety of products, including beverages, supplements, and cosmetics. Additionally, several beverage companies are increasingly incorporating liquid herbal extracts into functional drinks for health-conscious consumers. Hence, factors such as increasing demand for wellness products, greater consumer preference for natural extracts, and the adaptability of liquid extracts in culinary and personal care applications are expected to fuel the growth of this segment which, in turn, will drive the market growth during the forecast period.
The growing popularity of plant-based and sustainable lifestyles will fuel the powder segment which in turn will increase the market growth. There is an increasing preference for the powder segment among consumers due to its convenience, versatility, and ease of implementation into a variety of products. Some of the types include powdered turmeric has anti-inflammatory qualities, powdered ginseng has energy-boosting properties, and powdered echinacea has immune support properties. Factors such as an increase in demand for natural remedies during the COVID-19 pandemic, prolonged shelf life, and suitability for supplements, beverages, and cosmetics fuel the growth of this segment. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
The pharmaceuticals segment is estimated to witness significant growth during the forecast period. There is an increasing demand for the consumption of functional foods and supplements due to the rising number of people diagnosed with chronic diseases due to changes in lifestyles and eating habits. Several extracts in the form of supplements can be consumed by people frequently as they are sourced from naturally occurring components.
The pharmaceuticals segment was the largest segment and was valued at USD 12.65 billion in 2017.
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There is an increasing adoption of herbal extract supplements as it scientifically proven to encourage the health of consumers in addition to offering numerous nutritional benefits. Furthermore, there is an increasing application of herbal extracts in pharmaceutical companies in the form of phytomedicines and supplements. Additionally. several market players in the global herbal extract market provide a wide variety of herbal extract products including shwagandha root extract, amla extract, black pepper extract, Boswellia serrata extract, Coleus forskohlii extract, curcuma longa extract, fenugreek extract, Garcinia gummi-gutta extract, moringa leaf extract, rosemary extract, and others. Some of the key health benefits offered by these supplements include providing relief for colds and coughs, promoting respiratory health and digestive health, offering antioxidant properties, lowering blood sugar levels, maintaining liver health, metabolic health, immune system support, kidney health, and others. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
The increased awareness regarding wellness will fuel the personal care segment which in turn will increase the market growth. There is an increasing use of herbal extracts in skincare, haircare, and cosmetics due to the increase in consumer demand for natural and sustainable ingredients. Several manufacturers are increasingly incorporating Plant-based extracts like aloe vera, chamomile, and green tea are being incorporated into products, noting their calming and revitalizing effects. Additionally, there is a growing popularity for clean beauty and organic formulations which fuels the the use of herbal extracts in the personal care segment. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
APAC is estimated to contribute 31% to the growth of the global market during the forecast period.
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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Some of the key factors that are significantly contributing to the growth of the herbal extract market in the APAC region include increasing consumer awareness of the side effects of allopathic medicines and growing awareness about the medicinal benefits as well as the therapeutic effect of herbal products. As a result, it has led to the rising demand for herbal extracts, dietary supplements, and herbal-based personal care products in the region. In addition, the growing number of obese people and the increasing prevalence of cardiovascular and other diseases are caused by the deficiency of essential nutrients in the diet and the inclusion of synthetic products in the diet has fuelled the use of herbal extracts in food and beverage products consumed in countries like China and India. Hence, such factors are expected to drive the market growth in the region during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global herbal extract market witnessed a mixed impact due to supply chain disruptions, lower productivity, and decreased consumer spending which negatively impacted the market whereas rising health consciousness and interest in natural therapies have increased the demand for herbal extracts used in immune-boosting products in APAC. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the increasing demand for herbal extracts. Such factors are expected to drive the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The herbal extract market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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 market 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.
The herbal extract market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Herbal Extract Market Scope |
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Report Coverage |
Details |
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Page number |
151 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 12.97% |
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Market growth 2023-2027 |
USD 29.19 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
11.86 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 31% |
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Key countries |
US, Canada, China, India, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
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., 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., and Natures Way Brands LLC |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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