Ashwagandha Extract Market Expected to Reach $2.5 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Ashwagandha Extract Market," The ashwagandha extract market was valued at $864.30 million in 2021, and is estimated to reach $2.5 billion by 2031, growing at a CAGR of 11.4% from 2022 to 2031.

Withania somnifera, a nightshade-family fruiting plant commonly known as winter cherry, is known as ashwagandha in Sanskrit. Similar to tomatillos and ground cherries, ashwagandha produces little orange berries in papery husks. Although ashwagandha berries are technically edible, the dried root is the component of the plant that is most in demand. For thousands of years, ayurvedic therapy has relied on the withanolides, which are natural steroids found in ashwagandha root. Withania Somnifera (Ashwagandha) is increasingly in demand in developed markets. This is attributed to changing consumer preferences and trends in the food and beverage sector, which increase demand for herbal and nutritious food ingredients. Additionally, a number of brands have debuted their ashwagandha product line. With increased knowledge and understanding of the advantages of products, consumers are increasingly more careful of the components they ingest. Additionally, it is used to treat a range of diseases and conditions, such as cancer, diabetes, hypertension, stress, rheumatic disorders, and asthma. As a result, the ashwagandha market size is anticipated to rise at a significant rate due to an increase in consumer interest in ashwagandha. As a result, the market's demand for ashwagandha herbs is rising.

There has been an upsurge in the user base of different social media platforms and other types of internet websites, owing to the large scale distribution of internet services across the world. This user base consists of children, teenagers, middle aged as well as the elderly population. Considering this, most of the engaged stakeholders in the ashwagandha extract market are moving on to digital forms for advertising and marketing. With the help of the internet, companies can help spread knowledge about their products to the farthest reaches of the world and can help improve the awareness regarding their products, especially among their target market. Thus, growing awareness regarding the availability of ashwgandha based sports nutrition, dietary supplement, functional food and others are likely to spur the growth of the ashwagandha extract market size during the forecast period.  

According to the ashwagandha extract market analysis, the ashwagandha extract industry is segmented into form, application, distribution channel and region. On the basis of form, the market is categorized into powder, capsules/tablets and others. On the basis of application, it is segmented into sports nutrition, food and beverages, dietary supplements and others. On the basis of distribution channel, it is segregated into business to business and business to consumer. On the basis of region, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, UK, Spain, Italy, Russia and Rest of Europe), Asia-Pacific (China, Japan, India, Australia and New Zealand, South Korea and Rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, Turkey and Rest of LAMEA).

According to the ashwagandha extract market demand, on the basis of form, the capsules/tablets segment was the highest contributor to the market this is majorly attributed to convenience provided by the capsules/tablets forms as it can be easily consumed.  Ashwagandha is well tolerated; pills and capsules do a better job of masking its distinct odor than extracts and powders. Thus, people majorly prefer to buy capsules/tablets of ashwagandha than other forms.

According to the ashwagandha extract market trends, on the basis of application, the food and beverage segment was the considerable contributor to the market, with $154.0 million in 2021, and is estimated to reach $516.8 million by 2031, at a CAGR of 13.0% during the forecast period. Ashwagandha has been increasingly been used in the food and beverages owing to its mental and physical benefits. For instance, it might encourage healthy sleep, lessen anxiety and stress, and even enhance cognitive functioning in some people. It is used in various food products such as bakery and cereal products, juices and beverages, sweets products and others. The cookies made with ashwagandha were a good source of several bioactive ingredients that will aid in the enhancement of general health. Indu and Awasthi investigated and made biscuits with grains, beans, and ashwagandha root powder in varying quantities (3%, 4%, and 5%), and the optimal combination was discovered at the level of 5% inclusion. According to the study, enhanced biscuits were full of protein, fiber, minerals, and energy while also improving their therapeutic capabilities. The 2% Ashwagandha root powder added to baked goods like flat bread and thepla (India local food product) has been shown to have a lower glycemic index, which also lowers the risk of developing diabetes. Thus, above-mentioned factors are likely to propel the growth of the ashwagandha extract market size during forecast period.

According to distribution channel, the business to business segment was the significant contributor to the market, with $298.6 million in 2021 and is expected grow at a CAGR of 11.1% during the forecast period. B2B sales refer to transactions that take place between businesses rather than between businesses and individual customers. In B2B sales, ashwgandha extract manufacturers sell bulk quantities of their products to end users in industries such as sports nutrition, food & beverages, dietary supplements, pharmaceuticals and others. Thus, growing use of ashwgandha in above mentioned end use industries are likely to propel the ashwagandha extract market growth through business to business segment during the forecast period.      

According to the ashwagandha extract market opportunity, region wise, North America held the major ashwagandha extract market share in 2021, and is expected to maintain its market share throughout ashwagandha extract market forecast period. The ashwagandha extract market in North America is anticipated to grow significantly during the forecast period. Food producers are being forced to tailor their products in this direction by the rise and evolution of wellness-focused diets and the increase in spending on functional and fortified foods. The market for functional, dietary supplement, and sports nutrition products based on ashwagandha is expanding in the European region for a number of reasons, including the large spending power of consumers and economic stability. North America ashwagandha extract market is expanding as a result of increased consumer awareness of the advantages of food products containing ashwagandha increase in use across a variety of end-use applications, including sports nutrition, weight management, clinical nutrition, heart health, and others.

The players operating in the global ashwagandha extract industry have adopted various developmental strategies to expand their market share, increase profitability, and remain competitive in the market. The key players profiled in this report The Himalaya Drug Company, Dabur India Ltd., Emami Limited, Kairali Ayurvedic Group, P&G, Patanjali Ayurved Limited, Kerry Group PLC, Shree Baidyanath Ayurveda Bhawan Pvt. Ltd., Taos Herb Company and Unilever PLC.