Herbal Extract Market by Source (Mint, Lavender, Basil, and Others), Product Type (Flavors, Tincture, Powder, Spices, Essential Oils, Fragrances, and Others), Application (Pharmaceuticals, Personal Care & Cosmetics, Food & Beverages, and Others), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032.

Herbal Extract Overview

Herbal extract is a diluted form of the medicinal or healing characteristics of a plant. It is produced by extracting the active components of a plant, such as its leaves, flowers, roots, or seeds with a solution of water or alcohol. This procedure helps in the collection and preservation of the plant's beneficial chemicals. Traditional medical practices utilized herbal extracts as they are thought to provide a number of health advantages, such as easing the effects of some ailments, enhancing general well-being, and encouraging the process of natural healing. The active components in various plants determine the unique effects of the herbal extract. For example, plant extracts, such as ginger, ginseng, and turmeric are recognized for their anti-inflammatory and antioxidant qualities. Herbal extracts are frequently utilized in a variety of forms, depending on the intended application, such as tinctures, capsules, lotions, or teas. They can be consumed orally, applied topically, or used as natural health product components. Although herbal extracts can be helpful, it's vital to remember that they should only be taken under supervision. Before using herbal extracts, it is advised to speak with a healthcare provider or certified herbalist especially if you have any current medical issues. This will make sure they are safe and suitable for your particular requirements.

Global Herbal Extract Market Analysis

The global herbal extract market size was $45.69 billion in 2022 and is predicted to grow with a CAGR of 6.9%, by generating a revenue of $86.28 billion by 2032.

COVID-19 Impact on Global Herbal Extract Market

The COVID-19 pandemic has had a moderate impact on the growth of the herbal extract market. While the demand for herbal extracts increased, supply chain disruptions and changing consumer behavior presented challenges for the industry. The demand for herbal extracts increased as people opted for natural remedies to boost their immune systems and maintain overall health during the health crisis. With the widespread lockdowns and restrictions imposed during the pandemic, many individuals turned to herbal extracts as alternative forms of medicine. People started using herbal extracts like echinacea, elderberry, and garlic to support their immune systems and alleviate symptoms of common ailments.

However, the herbal extract industry also faced challenges due to the pandemic. The global supply chains were disrupted, making it difficult to source raw materials and manufacture herbal extracts. Travel restrictions and logistical issues hindered the transportation of these products, leading to delays in production and delivery. Moreover, the closure of physical retail stores and decreased foot traffic affected the distribution and sales of herbal extracts. Many consumers shifted to online shopping, leading to an increase in e-commerce platforms for herbal extract sales. The COVID-19 pandemic has also highlighted the importance of research and scientific validation in the herbal extract industry. Consumers are now more cautious and demand evidence-based information regarding the efficacy and safety of these products.

Increasing Consumer Awareness About the Therapeutic Properties of Herbs to Drive the Market Growth

Herbal extracts offer several benefits for individuals, as they are natural & safe to use and have therapeutic properties. Herbal extracts are derived from plants, making them a natural and safe alternative to synthetic products. They often have fewer side effects compared to chemical-based substances. Besides, many herbal extracts possess therapeutic properties that can support overall health and well-being. They have been traditionally used in various cultures for their medicinal benefits. Moreover, herbal extracts are flexible and may be used for a variety of applications including nutritional supplements and cosmetic products and aromatherapy and traditional medicine. Also, there is an increased demand for herbal extracts as people become aware of their health and seek natural alternatives. All these factors are driving the growth of the herbal extraxts market.

Lack of Standardization to Impact the Market Growth

Herbal extracts frequently lack regulated production techniques resulting in variances in quality, potency, and consistency., This makes determining the efficacy and safety of herbal products challenging for users. Due to a lack of scientific proof, many herbal extracts have not undergone extensive scientific examinations to confirm their claimed advantages or examine their potential detrimental effects. Because of this lack of evidence, there is some uncertainty regarding the efficacy and safety of herbal treatments. Besides, despite being frequently regarded as natural herbal extracts nonetheless have the potential to be harmful to certain people. Herbal remedies may cause allergic responses and drug interactions or unwanted side effects in some people. Moreover, mislabelling and adulteration of herbal extracts is another factor projected to impede the growth of the market during the forecast period.

Government Initiatives and Regulator Support to Drive Excellent Opportunities for Future

The governments of various countries across the globe are taking initiatives to promote the use of herbal extracts. The regulatory support by governments is likely to encourage the production of herbal extracts and boost growth opportunities for the market. For instance, the Ministry of Finance in India announced a package of Rs. 4000 crores under the ‘Atma Nirbhar Bharat’ scheme for the promotion of herbal cultivation. The Indian Ministry has developed a draught scheme for medicinal plant cultivation & marketing. Besides, the growing popularity of herbal extracts in variety of industries, including food & beverage, pharmaceuticals, cosmetics, and others is fuelling the demand for herbal extracts. Moreover, the development of high-quality products by key market players is the factor projected to create more growth opportunities for the herbal extracts market in the forecast period.

Global Herbal Extract Market Share, by Source, 2022

The basil sub-segment accounted for the highest market share in 2022. This is mainly because basil is a popular herb known for its distinct aroma and taste. Basil extract is commonly used in cooking to improve the flavor of foods. Its fragrance and spicy flavor complement a variety of cuisines including Italian and Thai and Mediterranean. Basil extract has powerful antioxidants in it including antioxidants and aromatic substances, these antioxidants may lower the risk of chronic illnesses by defending the body's cells from injury from dangerous free radicals. Some of the chemicals present in basil extract, such as eugenol and rosmarinic acid, have anti-inflammatory activities. These qualities may aid in the reduction of inflammation in the body, which is advantageous in disorders, such as arthritis and inflammatory bowel disease. Besides, nutritional value in basil extract is an excellent source of calcium, iron, vitamin K, and vitamin A, among other important components. All these health benefits associated with basil is predicted to drive the sub-segment's growth in the coming years as well.

Global Herbal Extract Market Share, by Product Type, 2022

The essential oils sub-segment accounted for the highest market share in 2022.  The various good qualities linked with essential oils have helped them become more popular. Many essential oils are said to provide health advantages, such as supporting better sleep, reducing headaches, increasing immunity, and improving digestion. Besides, some essential oils, such as rosehip, tea tree, and lavender oils have favorable effects on the skin. They can moisturize and calm irritability and support the preservation of a clear complexion. Essential oils with antibacterial characteristics, such as lemon and eucalyptus and peppermint can be utilized in natural cleaning solutions as an alternative to harsh chemicals. Moreover, essential oils are used in massage treatment to assist ease muscular tightness, reduce inflammation, and give pain relief when diluted with a carrier oil. All these factors make the essential oils sub-segment the most profitable one.

Global Herbal Extract Market Share, by Application, 2022

The food & beverages sub-segment accounted for the highest market share in 2022. Herbal extracts are widely used to improve the flavor and scent of food and beverages. They provide distinctive and natural flavors that appeal to customers who seek natural and organic foods. Herbal extracts may produce a variety of tastes ranging from mild to powerful and are used in a variety of goods including sauces, soups, bakery items, teas, and drinks. In addition, there has been a growing trend towards natural and healthier food and beverage options. Consumers are increasingly seeking products that are free from artificial additives, preservatives, and synthetic flavors. Herbal extracts offer a natural alternative to artificial flavorings and are perceived as healthier options. Moreover, incorporating herbal extracts into food and beverages allows manufacturers to tap into the rich heritage and traditional wisdom associated with these natural ingredients, appealing to consumers who value cultural authenticity.

Global Herbal Extract Market Share, by Region, 2022

The Asia-Pacific herbal extract market generated the highest revenue in 2022. Because of its rich cultural legacy and traditional customs passed down through generations, Asia-Pacific is the main region for the usage of herbal extract. Many nations in the region, including China, India, and Japan, have a long history of employing herbal treatments for a variety of health reasons. In this region, people have a strong awareness and faith in the therapeutic benefits of natural plants. Herbal extracts have been used in the treatments of traditional medical systems like ‘Traditional Chinese Medicine’ and ‘Ayurveda’ for ages in this region. The availability and diversity of medicinal plants in the region also contributes to its dominance in herbal extract usage. The Asia-Pacific region is home to a wide range of plant species with medicinal properties, which are cultivated and harvested for their beneficial compounds. Furthermore, the increasing global interest in natural and alternative healthcare approaches has further fueled the demand for herbal extract in the region.

Competitive Scenario in the Global Herbal Extract Market

Some of the leading herbal extract market players are S.A. Herbal Bioactives LLP, Herbochem, Changsha Luyuan Bio-Technology Co., Ltd, Döhler, Synthite Industries Ltd, Kalsec Inc, Naturex SA, Organic Herb Inc., and VIDYA HERBS.