Herbal Extract Products Market By Type (Alcohol Based Extracts, Powder Based Extracts, Oil Based Extracts), By Raw Materials (Berries, Bark, Leaves, Roots, Flowers, Fruits, Aromatic Herbs, Other), By End-use Industry (Food and Beverage, Cosmetics and Personal Care, Pharmaceuticals, Others): Global Opportunity Analysis and Industry Forecast, 2023-2032
The global herbal extract products market was valued at $28.0 billion in 2022, and is projected to reach $85.1 billion by 2032, growing at a CAGR of 11.9% from 2023 to 2032.
Herbal extract product is a concentrated form of plant-derived compounds, typically obtained by using solvents or other extraction methods to isolate specific components from the whole plant or its parts. These extracts are available in diverse forms such as tinctures, powders, oils, and capsules, each preserving specific compounds based on the extraction method employed. In tinctures often use alcohol or glycerin to draw out and preserve constituents of the plants. Conversely, oil-based extracts capture fat-soluble compounds, while water-based extracts isolate water-soluble compounds. This versatility allows for a wide range of applications, from dietary supplements and traditional medicine to skincare and aromatherapy.
Herbal extracts offer several advantages such as they concentrate the active ingredients which makes it easier to ingest and potentially provides a more pronounced effect. In addition, the extraction process removes unwanted components such as fiber or bulky material which makes the product easier to digest and more palatable. Furthermore, the versatility of herbal extracts extends to various forms of administration. They are consumed as supplements, incorporated into teas, used topically in skincare, or even employed in culinary creations. This flexibility enhances their accessibility and usability, allowing individuals to integrate these natural remedies into their daily routines with ease.
Advanced extraction techniques such as supercritical fluid extraction, microwave-assisted extraction, and ultrasound-assisted extraction have revolutionized the process by improving yield rates, reducing extraction times, and preserving the bioactive compounds present in herbs. These methods ensure higher purity and potency of extracts, and contribute to the development of a broader range of extracts, catering to various consumer needs and preferences. In addition, advancements in manufacturing technologies such as filtration, separation, and continuous flow processes have also witnessed noteworthy progress. All these factors drive the demand for herbal extract products market value 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 growth.
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 oil-based extract type accounted for half of herbal extract product market share in 2022 and is expected to maintain its dominance during the forecast period. The health and wellness sector offers substantial opportunities for oil-based extracts, especially in dietary supplements, herbal remedies, and natural medicine. In addition, the rise in demand for natural and organic ingredients in cosmetics & personal care products presents a significant opportunity for oil-based extracts 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 leaves segment accounted for more than one-fourth of herbal extract product market share in 2022 and is expected to maintain its dominance during the forecast period. Consumers have increasingly sought products made from organically grown leaves, free from pesticides and synthetic chemicals. This trend aligns with a broader movement towards clean-label and natural products, emphasizing transparency in sourcing and production methods. In addition, companies have responded by prioritizing sustainable farming practices and obtaining certifications to cater to this growing consumer segment.
On the basis of end-use industry, the market is segmented into food & beverage, cosmetics & personal care, pharmaceuticals, and others. The food and beverage segment accounted for more than two-fifths of herbal extract product market share in 2022 and is expected to maintain its dominance during the forecast period. Continuous innovation in extraction methods and formulations amplifies the versatility of herbal extracts, allowing for new applications and improved bioavailability, augmenting their appeal in food & beverage creations. In addition, bartenders and mixologists experiment with herbal extracts to concoct unique cocktails and mocktails, tapping into growth in interest of consumers in novel drinking experiences. All these factors increase the demand for herbal extract products in the food & beverage industry.
On the basis of region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. On the basis of region, Asia-Pacific accounted for more than one-third of herbal extract product market share in 2022 and is expected to maintain its dominance 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. 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.
Key findings of the studyOn the basis of type, 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 aromatic herbs segment is anticipated to grow at the fastest CAGR of 15.3% during the forecast period.
On the basis of the end-use industry, the pharmaceuticals segment is anticipated to grow at the fastest CAGR of 13.2% during the forecast period.
Region-wise, Asia-Pacific has the highest share in 2022 in terms of revenue.
Key Benefits For StakeholdersThis report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the herbal extract products market analysis from 2022 to 2032 to identify the prevailing herbal extract products market opportunities.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the herbal extract products market segmentation assists to determine the prevailing market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global herbal extract products market trends, key players, market segments, application areas, and market growth strategies.
Key Market SegmentsBy TypeAlcohol Based Extracts
Powder Based Extracts
Oil Based Extracts
By Raw MaterialsBerries
Bark
Leaves
Roots
Flowers
Fruits
Aromatic Herbs
Other
By End-use IndustryFood and Beverage
Cosmetics and Personal Care
Pharmaceuticals
Others
By RegionNorth America
U.S.
Canada
Mexico
Europe
Germany
France
Italy
Spain
UK
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Myanmar
Indonesia
Philippines
Singapore
Thailand
Viet Nam
Malaysia
Rest of Asia-Pacific
LAMEA
Brazil
South Africa
Saudi Arabia
Rest of LAMEA
Key Market PlayersNexira
Mane Kancor Ingredients Private Limited
Vidya Herbs Pvt. Ltd.
Bio-Botanica
Sabinsa
MartinBauer
Hunan NutraMax Inc.
Organic Herb Inc.
DKSH Holding Ltd.
Ozone Naturals
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