Herbal Extract Market Size - Global Industry, Share, Analysis, Trends and Forecast 2023 - 2032

Herbal Extract Market Highlights

• Global herbal extract market revenue is expected to increase by USD 78.1 billion by 2032, with a 7.1% CAGR from 2023 to 2032
• Asia-Pacific region led with more than 41% of herbal extract market share in 2022
• North America herbal extract market growth will record a CAGR of more than 7.7% from 2023 to 2032
• By product, the dried crops are the largest segment of the market, accounting for over 39% of the global market share
• By application, the personal care & cosmetics predicted to grow at a notable CAGR of 7.6% between 2023 and 2032
• Increasing consumer preference for natural and plant-based products, drives the herbal extract market value

Herbal extracts are concentrated solutions obtained from plants through various extraction methods, such as steam distillation, solvent extraction, or cold pressing. These extracts contain the active compounds of the plant, including essential oils, antioxidants, and other bioactive substances. Herbal extracts have been used for centuries in traditional medicine for their therapeutic properties, and they are now gaining popularity in modern healthcare and wellness industries.

The market for herbal extracts has experienced significant growth in recent years, driven by increasing consumer awareness and demand for natural and plant-based products. For instance, the market value of plant-based foods in the U.S. stands at $8.1 billion. In 2023, six out of every ten U.S. households bought plant-based foods. Factors such as the rising preference for herbal remedies, the perception of herbal extracts as safer alternatives to synthetic ingredients, and the growing interest in preventive healthcare have contributed to the expansion of the herbal extract market. For instance, according to National Institute of Health, over the last thirty years, there has been a significant surge in the utilization of herbal medicinal products and supplements, with no fewer than 80% of individuals globally depending on them for aspects of their primary healthcare needs. Additionally, the beauty and personal care industry has embraced herbal extracts for their purported skin benefits, further boosting the market. With ongoing research and development in the field of herbal medicine, the market for herbal extracts is expected to continue its upward trajectory as consumers seek sustainable and holistic approaches to health and well-being.

Global Herbal Extract Market Trends

Market Drivers

• Increasing consumer preference for natural and plant-based products
• Growing awareness of the therapeutic properties of herbal extracts
• Surge in demand for herbal remedies in the healthcare industry
• Adoption of herbal extracts in the beauty and personal care sector
• Ongoing research and development in herbal supplements market

Market Restraints

• Lack of standardized regulations for herbal extract products
• Limited scientific evidence supporting the efficacy of some herbal extracts

Market Opportunities

• Expansion of herbal extracts in the functional food and beverage sector
• Integration of herbal extracts in pharmaceutical formulations

Herbal Extract Market Report Coverage

Herbal extracts, sourced from a diverse array of plants such as fruits, leaves, roots, and flowers, offer distinctive health-enhancing qualities. Their versatility extends across various industries. In traditional medicine, they've been cherished for generations for their innate healing abilities. In contemporary times, herbal extracts are integral to pharmaceuticals, nutraceuticals, and dietary supplements, owing to their potential health advantages. Moreover, they play a vital role in the food and beverage sector, enriching products with natural antioxidants, flavors, and nutrients. In cosmetics and personal care, herbal extracts are favored for their skin benefits, often incorporated into formulations for their soothing, anti-inflammatory, and anti-aging properties.

The herbal extract market has witnessed robust growth in recent years, driven by a global shift towards natural and sustainable products. Consumers are increasingly seeking alternatives to synthetic ingredients, favoring herbal extracts for their perceived health benefits and minimal environmental impact. The demand for herbal extracts spans various industries, including pharmaceuticals, food and beverages, and cosmetics, contributing to the market's overall expansion. For instance, in 2021, Manipal Group, a company based in India specializing in functional food and botanical ingredients, unveiled the opening of a new manufacturing plant dedicated to the production of herbal extracts. These specialized ingredients are crucial in the manufacturing of dietary supplements.

One key driver of industry growth is the growing awareness of preventive healthcare and holistic well-being. For instance, in June 2021, Vasu Healthcare Pvt Ltd., an Indian-based herbal company, introduced a new line of herbal supplements to the market. This product range, branded as "Vasu Safe Herbs," aims to enhance individuals' overall health and well-being. Consumers are proactively incorporating herbal extracts into their lifestyles, relying on these natural solutions for various health concerns. Additionally, the beauty and personal care sector has embraced herbal extracts due to their perceived skin-enhancing properties, further fueling market growth. As research and development in herbal medicine continue to advance, innovations in extraction techniques and formulations are likely to drive the herbal extract industry even further, meeting the rising demand for plant-based solutions in diverse applications.

Herbal Extract Market Segmentation

The global herbal extract market segmentation is based on product, application, and geography.

Herbal Extract Market By Product

In terms of products, the dried crops segment accounted for the largest industry share in 2022. Drying crops is a traditional technique for preserving the beneficial compounds found in plants, extending the shelf life of herbal extracts while maintaining their effectiveness. This approach has gained traction due to its alignment with sustainability practices, enabling the conservation of herbal resources without compromising their potency. The versatility and user-friendliness of dried plant materials are significant drivers of the growth in this segment. Dried herbs offer a convenient and potent source of active ingredients, making them ideal for pharmaceuticals, dietary supplements, and herbal remedies. Moreover, the food and beverage industry is increasingly seeking dried crops for their products, such as teas, infusions, and culinary creations, further boosting demand.

Herbal Extract Market By Application

According to the herbal extract industry forecast, the personal care and cosmetics sector are poised for considerable expansion in the forthcoming years. Herbal extracts are highly esteemed for their perceived skin-improving attributes, such as antioxidative, anti-inflammatory, and moisturizing properties. The surge in the clean beauty movement has prompted the integration of herbal extracts into a broad array of personal care and cosmetic formulas, spanning from facial serums and creams to shampoos and body lotions. A key catalyst for growth in this domain is the increasing consumer consciousness regarding the potential risks associated with synthetic and chemical components in conventional beauty items. Herbal extracts present a natural and comprehensive alternative, resonating with individuals seeking skincare solutions that resonate with their sustainability and well-being values. Additionally, the extensive variety of herbal extracts available enables cosmetic firms to develop products tailored to specific skin types and concerns, further bolstering the segment's expansion.

Herbal Extract Market Regional Outlook

North America

Herbal Extract Market Regional Analysis