Herbal Extract Products Market Expected to Reach $85.1 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Herbal Extract Products Market," The herbal extract products market size was valued at $28.0 billion in 2022, and is estimated to reach $85.1 billion by 2032, growing at a CAGR of 11.9% from 2023 to 2032.

Herbal extract products encompass a broad range of formulations derived from natural sources such as herbs, plants, or botanicals. These products utilize bioactive compounds extracted from plant material, that offer various applications in healthcare, wellness, and skincare. The extraction process involves isolating specific compounds or active ingredients from botanical sources using various techniques. These include solvent extraction, steam distillation, cold pressing, or innovative methods such as supercritical fluid extraction.

The surge in consumer demand for natural remedies, particularly within the domain of herbal extract products, reflects a profound shift in health consciousness and preferences. In addition, concerns regarding the side effects and potential long-term consequences of synthetic pharmaceuticals have steered consumers toward natural alternatives. Herbal extract products are often seen as gentler options with fewer adverse effects, fostering trust and confidence among individuals seeking safer and more sustainable ways to manage health issues. All these factors drive herbal extract products market trends during the forecast period.

However, achieving therapeutic outcomes with herbal extract products might require a certain dosage regimen or a cumulative effect over time. Adjusting to the optimal dosage or allowing sufficient time for the body to respond to the treatment is essential, potentially causing delays in experiencing noticeable effects. All these factors allow consumers to choose alternatives over herbal extract products, which hampers herbal extract products market opportunities.

R&D investments drive innovation, fostering the development of novel formulations, improved delivery systems, and enhanced bioavailability of bioactive compounds in herbal extracts. This leads to more effective and user-friendly products that cater to evolving consumer needs. In addition, robust R&D allows for the exploration of untapped botanical sources and the identification of novel bioactive compounds within plants. All these factors are anticipated to offer new growth opportunities in the herbal extract products market forecast.

The herbal extract product market is segmented on the basis of type, raw material, end-use industry, and region. On the basis of type, the market is segmented into alcohol-based extract, powder-based extract, and oil-based extract. The alcohol-based extract segment is anticipated to grow at the fastest CAGR of 13.3% during the forecast period.

On the basis of raw material, the market is divided into berries, bark, leaves, roots, flowers, fruits, aromatic herbs, and others. The aromatic herbs segment is anticipated to grow at the fastest CAGR of 15.3% during the forecast period. In the health and wellness industry, there is a rise in demand for herbal extract products that offer alternative solutions to conventional medicine. Aromatic herbs such as lavender, rosemary, and eucalyptus are sought after for their therapeutic properties, such as stress relief, improved sleep, and immune support. This demand creates opportunities for innovative formulations, such as herbal tinctures, capsules, and teas, catering to diverse consumer needs.

On the basis of end-use industry, the market is segmented into food & beverage, cosmetics & personal care, pharmaceuticals, and others. The pharmaceuticals segment is anticipated to grow at the fastest CAGR of 13.2% during the forecast period. Advancements in regulatory frameworks create opportunities for herbal extract products. Establishing clear guidelines and standards for the production, quality control, and labeling of herbal medicines enhances consumer confidence and market acceptance. In addition, the shift from curative to preventive healthcare practices has fueled the demand for natural remedies.

On the basis of region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.  The Asia-Pacific region showed the fastest CAGR growth during the forecast period. The proliferation of e-commerce and digital platforms in the Asia-Pacific region provides a vast opportunity for herbal extract products to reach a broader audience. In addition, advances in extraction techniques and technology have enhanced the potency and purity of herbal extracts. All these factors increase the demand for herbal extract products market share in Asia-Pacific.

Key players in the herbal extract products industry include Bio-Botanica, DKSH Holding Ltd., Hunan NutraMax Inc., Mane Kancor Ingredients Private Limited, Martin Bauer, Nexira, Organic Herb Inc., Ozone Naturals, Sabinsa, and Vidya Herbs Pvt. Ltd.

Apart from these major players, there are other key players in the herbal extract products market growth. These include A.G. Industries, Arjuna Natural Pvt. Ltd., Firmenich SA, Flavex Naturextrakte GmbH, Herbochem, India Essential Oils, Kalsec Inc., Ransom Naturals Ltd., Robertet Group, S.A. Herbal Bioactives LLP, Sami Spices, Symrise, Synthite Industries Ltd., Döhler GmbH, and Pioneer Enterprise.

COVID-19 Impact Analysis

The COVID-19 pandemic had significantly influenced the herbal extract product industry, catalyzing shifts in consumer behavior, supply chains, regulations, and overall market dynamics. The pandemic underscored the importance of immune health, prompting individuals to seek ways to support their immune systems and overall well-being. Herbal extract products, known for their potential immune-modulating properties and historical use in traditional medicine, garnered heightened attention. Consumers turned to herbs such as echinacea, elderberry, astragalus, and medicinal mushrooms, seeking their purported immune-strengthening benefits.

Moreover, the pandemic spurred a renewed focus on R&D within the herbal extract industry. There was a growing interest in exploring the potential of specific herbs and natural compounds in mitigating COVID-19 symptoms or supporting overall health during the pandemic. This led to an increase in scientific studies, clinical trials, and research initiatives to understand the efficacy and mechanisms of action of various herbal extracts in combating viral infections or reducing inflammation.

However, this increased demand was met with challenges due to disruptions in supply chains and manufacturing. Lockdowns, travel restrictions, and disruptions in global trade affected the sourcing of raw materials, production processes, and distribution networks. The herbal extract industry encountered delays in obtaining botanical ingredients, impacting manufacturing timelines and product availability. Fluctuating demand and supply imbalances added complexities, affecting the consistency of product availability in some markets. In addition, the pandemic spurred adaptability and innovation within the herbal extract industry. Companies diversified their product lines, introduced new formulations, and focused on addressing specific health concerns related to the pandemic.

Key Market Insights

• By type, the oil-based extract segment was the highest revenue contributor to the market accounting for half of the herbal extract products market value in 2022.
• By raw material, the leaves segment was the highest revenue contributor to the market accounting for more than one-fourth of the herbal extract products market share in 2022.
• By end-use industry, the food and beverage segment was the highest revenue contributor to the market accounting for more than two-fifths of the herbal extract products market share in 2022.
• By region, Asia-Pacific was the highest revenue contributor accounting for more than one-third of the herbal extract products market analysis in 2022.
• Asia-Pacific is the fastest growing region representing 13.1% of CAGR to the market.