Herbal Extract Market Size, Share, and Analysis By Source (Mint, Lavender, Basil, and Others), By Form (Liquid and Powder), By Application (Food & Beverages, Pharmaceuticals, Personal Care, and Others), and Regional Forecast, 2024-2032

Herbal extract market size has grown extraordinarily as consumers are becoming more health-conscious and shifting trends towards natural ingredients. Herbal extracts are derived from natural sources compared to their counter-products derived from chemicals and other synthetic agents. The use of chemical products is associated with several diseases that negatively affect the human body. Hence, the demand for natural ingredients such as herbal extracts has increased significantly in recent years. 

Countries such as China, India, Japan, among others, have large cultivation areas under herbal plants. These regions have developed traditional approaches to extract natural ingredients from the plants and produce different kinds of products. Additionally, the cost associated with the extraction of active ingredients is comparatively lower than synthetic compounds. Thus, the cost-effectiveness related to the use of natural ingredients helps companies to develop new products containing active ingredients obtained from herbal sources.

Purchasing and consumption patterns of consumers are also changing rapidly, with more emphasis on products that are composed of natural ingredients. As consumers are increasingly becoming health conscious,  the demand for natural ingredients is increasing rapidly. In developed economies, there is a growing trend of purchasing clean label products as they increase the transparency and traceability of the products.  

Despite the increasing demand for such products, there is a lack of standardization in the production process, affecting the quality of the materials manufactured by the process. The raw material prices may fluctuate due to the low productivity and growth of the herbs, thus causing volatility in the price of products manufactured using plant extracts. Additionally, the availability of other synthetic substitutes also restrains the herbal extracts market growth. 

Impact of COVID-19 on the Herbal Extracts Market

During the COVID-19 pandemic, the demand for food products that help boost immunity increased. Herbal products are natural and readily available in countries such as India and China; and have been traditionally used for treating various diseases and personal care products. Hence, scientific studies and trials are conducted on the human body using several products based on herbal extracts to identify the positive impact of these products on the patients.

Key Insights

The report will cover the following key insights:

• Overview of parent/ related Market


• Supply Chain Analysis


• Industry SWOT Analysis


• Impact of COVID-19 on Herbal Extract Market

Analysis

Different types of herbal plants such as aloe Vera, turmeric, and others are some of the ingredients used as herbal extracts. They are available in various forms, such as powder and liquid forms. The liquid form is widely used to produce different pharmaceuticals, personal care, and nutraceutical products.

Regional Analysis

The Asia-Pacific is one of the largest herbal extract markets that uses herbal extracts in manufacturing products such as pharmaceuticals, personal care products, and others. Countries such as India, China, and Japan produce different varieties of herbal products.  Consumers also have an age-old tradition of preferring to use products composed of herbal extracts. Hence, companies are also involved in developing new varieties of products consisting of herbal extracts to meet the growing demand in the market.  

Key Players Covered

• S.A. Herbal Bioactives LLP


• Herbochem


• Changsha Luyuan Bio-Technology Co. Ltd.


• Döhler


• Synthite Industries Ltd.


• Kalsec Inc.


• Naturex SA


• Organic Herb Inc.


• VIDYA HERBS

Herbal Extract Market Segmentation Analysis

Key Industry Developments

• In 2021, India-based functional food and botanical ingredient supplier Manipal Group announced the launch of a new manufacturing facility specializing in herbal extracts production. These nutraceutical ingredients are used in the production of dietary supplements.


• In June 2021, Vasu Healthcare Pvt Ltd., a Herbal company based in India, launched new herbal suppl ements range in the market. The product range was marketed under “Vasu Safe Herbs,” which helps promote people's overall health and well-being. 


• In 2017, Sensient Flavors, a U.S.-based manufacturer of flavors, announced the launch of All Natural Flavor Collections, which includes herbal extracts as one of their key ingredients.