The Herbal Extracts is forecast to remain the expansion over the next few years. According to the WK-chem Research "Global Herbal Extracts Professional Survey Report 2022, Forecast to 2027", With the The rising consumer awareness of the side effects of allopathic medicines and growing awareness about the medicinal benefits as well as the therapeutic effect of herbal products, the Herbal Extracts industry is developing at an steady speed. The compound annual growth rate (CAGR) for the 2022-2027 period is projected to be 6.3% base on WK-chem Research regression analysis model.
Analysts' Viewpoint
"The increasing global food and beverage industry growth owing to rising global population and food demand which driving the growth of global herbal extracts market. The global population becoming more and more health-conscious due to climatic changes, excess working, busy lifestyle and increased standard of living. This enabling consumers to incline towards natural and organic food products to maintain health and fitness which creating a huge demand for organic herbal extracts and ingredients across the globe. Besides the rising middle-class population and increasing, disposable incomes strengthened the expenditure power of consumer on healthy, organic and natural food and beverage products which become key growth driver of global organic herbal extracts market. Organic herbal extracts include ingredients such as Aloe Vera, Sage, Marjoram, Cardamom, Oregano, Coriander, and many other herbs. These herbs have many health benefits for humans and animals in the treatment of many health-related issues and diseases. Owing to these factors pharmaceutical and personal care industries creating a huge demand for herbal extracts and boosting the market growth." said Amy, Senior analyst, Chemical & Material Market Research Center in WK-chem Research. Product Introduction: Herbal extracts are the extraction of plants, vegetables, spices and many other plants and herbs which are cultivated with natural and organic treatment. The organic herbal extracts are the essential ingredients in the food and beverage, pharmaceutical, healthcare, cosmetic and other industries. Herbal extracts are the most demanding ingredients in today's food and beverage and pharmaceutical industry. The food manufacturers use organic herbal extracts as ingredients in the manufacturing of food products. The ingredients not only provide test and flavor but also provide several healthy minerals, vitamins, carbohydrates, and many other healthy ingredients. These characteristics of organic herbal extracts are making it special and unique ingredients in the food and beverage industry. Dietary supplements manufacturers creating huge opportunities for the global organic herbal extracts market.
Market insight
-Market Driving Factor: Increasing Market Demanding With the increase in the demand for food and beverages that are gluten-free, free from artificial flavors and colors and free from preservatives, key players in the market are focusing on R&D investments in launching herbal extracts that will cater to the needs of consumers. Additionally, increased consumer awareness about the adverse side effects of synthetic chemicals used in food and beverages has led to a rise in demand for natural ingredients such as herbal extracts. Moreover, several regulations have been imposed by global health organizations and food safety associations to prohibit the use of artificial flavorings in food and beverages and promote the use of naturally extracted counterparts such as herbal extracts. Such regulations that promote the use of herbal ingredients and ban synthetic ingredients from food and beverage products will drive the growth of the herbal extract market. Thus, the demand for herbal extracts-based food and beverages is expected to increase during the forecast period owing to the rising health consciousness among consumers and concerns over the adverse side effects of synthetic flavorings used in food and beverages. This will boost the growth of the herbal extract market during the forecast period. -Market Restraining Factor: Tightened Market Admittance Criterion Vendors in the herbal extract market face the challenge of adhering to the stringent quality standards that are applicable for manufacturing herbal extract products. Herbal products and extracts are prepared from raw materials of herbal origin, which are obtained from various geographical and commercial sources. As a result, it is not possible to ascertain the conditions to which they may have been subjected. Furthermore, the procedures and techniques used in the manufacture and quality control of herbal products often differ from those used for conventional pharmaceutical products, consumer products, and food and beverages. Owing to the complexities involved in the cultivation of naturally grown herbal plants, there are chances for contamination of the herbal extracts with toxic materials. Production and processing activities related to the raw materials used to manufacture herbal extracts have a direct influence on the quality of the herbal extracts. For this reason, manufacturers of herbal extract products have to follow the guidelines for good manufacturing practices (GMP). Following these stringent regulations and guidelines provided by global food safety associations is a challenge for vendors in the global herbal extract market and can have a negative impact on the growth of the global herbal extract market during the forecast period.
Market Segmentation
: Based on Compositions, the Herbal Extracts market could be segmented into: Phytomedicines & Herbal Extracts, Spices, Essential Oils, Flavors & fragrances. Among these segments, the flavors & fragrances are the fastest-growing segment type during the forecast period due to the increase in the demand for high indulgence food items and aromatic cosmetic products. This has triggered manufacturers to develop more natural formulations and brands that have realized consumers are willing to pay a premium if they know flavors are organic and sustainably sourced. With the increase in the trend of the vegan population globally, the demand for flavors extracted exclusively from plants is gaining more market share. Based on Raw Materials, the Herbal Extracts market could be segmented into: Fruits, Flowers, and Bulbs. Among these segments, the flowers segment is projected to hold the largest market share during the forecast period. All these sources are used in diverse applications, including herbal extracts, flavors and fragrances, aromatherapy, personal care, and toiletries. Owing to multiple functionalities and the presence of several phytochemicals, these parts of the plants are majorly used for extraction and are in high demand from various industries. Based on Application, the Herbal Extracts market could be segmented into: Pharmaceutical & Dietary Supplements, Food & beverages, cosmetics. Among these segments, the Pharmaceuticals & dietary supplements segment is projected to dominate the plant extracts market by application. This growth can be attributed to the increasing awareness of people related to bacterial resistance toward allopathic medicines. As a result of the increasing incidents of illnesses due to stressful and busy lifestyles, consumers are demanding functional food and supplements for regular consumption. Some of these supplements include phytomedicines and herbal extracts, which are composed of naturally occurring components; they are scientifically showed to promote positive effects on the target functions beyond basic nutrition.
Competition Landscape
: This WK-chem Research market report is designed to help clients improve their market position, and in line with this, this report provides a detailed analysis of several leading Herbal Extracts companies that include Organic Herbal Extracts Market are Ransom Naturals Ltd., Nature's Way Products, LLC, Synergy Flavors, D?hler, Gaia Herbs, Natrol, LLC, Oregon's Wild Harvest, Natural Factors Nutritional Products Ltd., Herb Pharm, Arjuna Natural Pvt. Ltd., Nutra Green Biotechnology Co., Ltd., Select Botanical, Blue Sky Botanics, Sabinsa Corporation, Martin Bauer Group, Banyan, Botanicals, Naturalin Bio-Resources Co. Ltd, Sanat Products LTD., Kalsec Inc, Carrubba INC, Prakruti Products Herbal Extracts
Regional Market Analysis
In terms of geography, the global Herbal Extracts market has been segmented into: North America, Asia Pacific, Europe, South America, and the Middle East and Africa.
Countries such as China and India rely on traditional medicines that are majorly derived from plant extracts which leads to the considerable market share in the global market. The market for plant extracts in the region is thriving due to strong local and international demand. The region has several small and medium-sized manufacturers of plant extracts that are well-versed with the processing of plant extracts and aware of the benefits offered by them. Manufacturers in Indonesia, India, and Thailand are continuously investing in the market and focusing on innovation to expand their product range.
Market Prospect & Suggestion
-Key Market Trends
Shifting consumer preference from clean to clear label: Clean label is a macro trend that is evolving and expanding as younger generations enter the workforce and gain buying power, thus influencing trends. Understanding what consumers are looking for on their label affects almost every aspect of product development. Clean label consumers still want a short, understandable ingredient list. They also aspire for a clear label, meaning that the products they are purchasing are sustainably sourced and packaged, and are safe for the environment and people. The rapidly shifting preference of consumers from clean label herbal extracts to clear label herbal extracts is expected to boost the sales of organic herbal extracts across the globe. Increased positioning of products free from GMOs, gluten, peanuts, soy, and other allergens: The precarious nature of consumers has always been the reason behind market dynamics. When it comes to a healthy lifestyle, consumers are extremely careful about their choices of ingredients. This reasonable health-consciousness and prudence in consumers are favoring pure and naturally developed herbal extracts. The absence of genetically modified organisms, gluten, soy, and dairy in botanical extracts is sparking interest in new consumers all over the world. Consumers' increasing preferences for herbal extracts that are free from any additives, preservatives, and chemicals are expected to increase the sales of organic herbal extracts across the globe.
-Suggest Market Strategies:
Leading manufacturers of organic herbal extracts are taking a structured approach for the production and development of new products using appropriate analytical methodologies to ensure quality control
Manufacturers in the global organic herbal extracts market are focusing on cutting-edge technology and sophisticated processes in order to help their innovation capabilities. They are investing in the research and development of new products in order to provide to changing preferences of its consumers.
Cagr: 6.3%
Region with the largest share: Asia-Pacific
Largest country in largest share region: China
Product Type(by Composition): Phytomedicines & Herbal Extracts, Spices, Essential Oils, Flavors & fragrances
Product Type(by Raw Materials): Fruits, Flowers, and Bulbs
Application: Pharmaceutical & Dietary Supplements, Food & beverages, cosmetics
Leading Company: Organic Herbal Extracts Market are Ransom Naturals Ltd., Nature's Way Products, LLC, Synergy Flavors, D?hler, Gaia Herbs, Natrol, LLC
