May 27, 2024
Herbal Extract Market

Herbal Extract Market Estimated to Witness High Growth Owing to Increasing Health Concerns

The global herbal extract market is anticipated to witness high growth during the forecast period. Herbal extracts are concentrated forms of herbs that provide several medicinal, antioxidant and therapeutic benefits. Increasing health consciousness, rising shift towards plant-based products and growing awareness about the side-effects of synthetic products are accelerating the demand for herbal extracts. Herbal extracts find wide applications in pharmaceuticals, food & beverages, personal care, and nutritional supplements industry due to their anti-inflammatory, anti-aging, immunity boosting and digestive health supporting properties. The global herbal extract market is estimated to be valued at US$ 41.8 billion in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the herbal extract market are Botanic Healthcare, VIDYA HERBS Pvt. Ltd, Allicin Pharm, HerbalHills, Acara bioherb PVt. LTD., Pioneer Enterprises (I) Private Limited, Sydler India Pvt. Ltd, Herbal Creations, Alpspure Lifesciences Private Limited, IDOBIO CO., LTD., Döhler GMB, MartinBauer. The herbal extract market provides multiple opportunities for industry players in the form of product innovation and development of herbal nutraceuticals and functional foods. Additionally, the growing trend of herbal cosmetics provides ample opportunities for key companies offering herbal extracts.

Globally, Europe dominated the Herbal Extract Market Demand  in 2020 due to rise in demand for natural ingredients and growing health concerns. However, Asia Pacific is anticipated to be the fastest growing region on account of increasing population, rising per capita income, growth of nutraceuticals industry and improving healthcare infrastructure. Key market players are expanding their production facilities in developing Asian countries to leverage growth opportunities in these emerging economies.

Market drivers

The increasing focus on preventive healthcare and growing adoption of healthy lifestyles are the major drivers boosting the growth of global herbal extract market. Herbal extracts have various therapeutic properties that help in improving immunity, lowering inflammation and aiding weight management. Additionally, rising awareness about the benefits of herbal supplements for heart health, fatigue relief and digestive disorders is further propelling the market growth. Moreover, advancement in extraction technologies is enabling large scale low-cost production of herbal extracts which is expected to fuel the market growth over the forecast period.

PEST Analysis
Political: Domestic and international regulatory changes impact the growth of the herbal extract market. Herbal extracts are regulated differently across regions and countries which makes trade and commerce challenging.
Economic: Macroeconomic factors such as GDP growth, per capita income, consumer spending have a significant influence on the herbal extract market performance. Higher disposable incomes boost demand for herbal extracts.
Social: Changing consumer preference toward herbal and natural products drives market growth. People are more inclined toward herbal extracts and supplements for healthcare needs.
Technological: Advances in extraction technologies allow for higher yields and better quality of extracts. New research on phytochemicals in plants aids product innovation.

The market value is currently concentrated in Asia Pacific region, primarily in China, India and other Southeast Asian countries. This is due to easy availability of raw materials and long history of using herbal medicines. North America is another major regional market aided by growing health awareness and demand for natural ingredients.

The fastest growing regional market for herbal extracts is expected to be Latin America over the forecast period. Countries like Brazil, Mexico are witnessing rising disposable incomes and changing preferences of consumers towards herbal remedies. Furthermore, trade relations are strengthening supply chains within the region along with other developing nations. Improved access to healthcare and commercial potential is spurring more investments in herbal extraction sector of Latin America.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.