The Herbal extract market is centered around extracts derived from medicinal plants and herbs that are used as therapeutic ingredients in pharmaceuticals, nutraceuticals, food and beverages, and cosmetic products. Main advantages of herbal extracts include safety, efficacy due to presence of multiple bioactive compounds, lack of adverse side effects, and cost-effectiveness. Rising awareness about preventive healthcare and inclination towards herbal products with presumed fewer side effects have been driving greater demand for herbal extracts.
The Global Herbal Extract Market is estimated to be valued at US$ 41.8 Bn in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the herbal extract are Botanic Healthcare, VIDYA HERBS Pvt. Ltd, Allicin Pharm, HerbalHills, Acara bioherb PVt. LTD., Pioneer Enterprises (I) Private Limited, Sydler India Pvt. Ltd, Herbal Creations, Alpspure Lifesciences Private Limited, IDOBIO CO., LTD., Döhler GMB, MartinBauer. Growing consumer preference for herbal ingredients is fueling demand for herbal extracts from nutraceutical, food and beverage, pharmaceutical and cosmetic industries. Significant expansion of herbal extracts market is expected in Asia Pacific region owing to availability of raw materials, traditional use of herbal medicines, and emerging economies.
Market key trends
One of the major trends in the Herbal Extract Market Trends is renewed consumer interest in natural products. Factors such as growing health and wellness trend, perceived safety of natural ingredients, and rising consumer spending on healthy products have been driving increased demand for herbal extracts in various industries. Growing popularity of traditional Chinese medicine and Ayurveda globally has also contributed to the naturalization trend in the healthcare industry, benefiting the herbal extract market. Furthermore, innovations in herbal extract technology aimed at improving extraction efficiency, standardization, and stability of active ingredients are expected to present new opportunities for market participants.
Porter's Analysis
Threat of new entrants: Herbal extract market requires high capital investment and R&D which creates barriers for new players. Bargaining power of buyers: Large buyers can negotiate lower prices and demand high quality products. Bargaining power of suppliers: Due to availability of substitute raw materials, suppliers have moderate bargaining power. Threat of new substitutes: With advancements, new extraction technologies pose threat of new substitutes. Competitive rivalry: Market is dominated by few large established players.
The Herbal Extract Market Size And Trends in Asia Pacific region is valued at US$ 12.9 Bn in 2024, accounting for over 30% of the global market share. The region is densely populated with a rich variety of medicinal herbs contributing significantly to overall demand.
North America region is forecast to grow at a CAGR of 8.2% during 2024-2031, fastest among all regions. Increasing consumer shift towards herbal dietary supplements and nutraceuticals as a preventive healthcare approach is propelling market growth. Rising popularity of Ayurveda and traditional Chinese medicines is also fueling demand.
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