The global herbal extract market size reached USD 38.59 billion in 2023 and is predicted to achieve around USD 97.57 billion by 2033, growing at a CAGR of 9% from 2024 to 2033.
The herbal extract market is bound to suppliers, manufacturers, end-users, and distributors who are involved in the production of herbal extracts. The herbal extracts are the concentrated forms of plants that contain useful compounds like flavonoids, essential oils, alkaloids, and phytochemicals. For boosting the immune system, losing weight, improving sleep, increasing energy, and enhancing mood, the herbal extract is highly used, leading to the market’s growth.
The herbal extract has major applications in various industries like cosmetics, pharmaceuticals, personal care, food and beverages, aromatherapy, and dietary supplements. Various processing, commercialization, and extraction of the bioactive compounds from the plant for various applications.
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Herbal Extract Market Key Insights:
- Asia-Pacific dominated the herbal extract market with the largest market share of 53% in 2023.
- By source, the fruits, flowers and bulbs segment contributed the biggest market share of 45.85% in 2023.
- By type, the phytomedicines segment accounted for the major revenue share of 35.97% in 2023.
- By application, the pharmaceutical & dietary supplements segment has held the biggest market share of 36.52% in 2023.
Herbal Extract Market Regional Outlook
The Asia-Pacific region occupied over 53 % of the market share in 2023.
The Asia Pacific herbal extract market size was USD 20.44 billion in 2023, calculated at USD 22.89 billion in 2024, and is anticipated to reach around USD 47.55 billion by 2033, with a CAGR of 8% from 2024 to 2033.
Asia-Pacific has various plant species with their medicinal characteristic’s properties. Indian herbal medicines, mainly known as Siddha, Ayurveda, and Unani. have again emerged as popular herbal medical systems. Most of the medicinal plants in India are higher flowering plants, out of which 33% are trees, 32% herbs, 20% shrubs, 12 climbers, and 3% others.
Countries like India, China, and Japan, in large areas, use herbal plants for various cosmetics, food, beverages, and medicinal purposes by using herbal extracts. Not only are the countries amongst the biggest producers, but they also supply the products to other major countries.
- In November 2023, in Mount Taibai, China Jiaherb opened a certified organic farm for herbal extract.
- In October 2023, a study found that the Chinese herbal extracts Ilex purpurea Hassk and Echinacea had both direct and indirect effects on cellular targets and virus particles and demonstrated broad-spectrum antiviral activity against multiple clinical strains of PEDV and PRV.
North America is estimated to be the fastest-growing region during the forecast period of 2024-2033. North America is vigorously involved in innovation and research related to different plant-based ingredients. About 100 medicinal plant products in North America contain antimicrobial properties. Most of the classes of phytochemicals have antiviral, antibacterial, and antifungal. Research organizations in the North American region are investing in herbal extracts to check efficacy, safety, and medicinal properties.
The marketing companies promote the use of natural ingredients, such as herbal extract, which provide health benefits. The United States and Canada-based companies have considerable expertise and experience in marketing and developing herbal extracts.
- In December 2022, North America Medicinal Mushroom Extract (NAMMEX) launched a new formula, which was a combination of organic L-Theanine and red Reishi called MycoCalm.
Herbal Extract Market Segments Outlook
Type Outlook
The dried crop segment dominated the market in 2023. The increasing use of dried crops in the cosmetics industry, food and beverages industries, and pharmaceutical industries contributes to the growth of the herbal extract market. Dried powders of various plants are used as herbicides to manage other weeds. Herbal extracts are used in research and development studies for various disease treatments in dried forms.
- In June 2023, a research paper was published on phytochemical analysis, in vivo, in vitro antioxidant properties in the dried form of Plagiorhegma dubia Maxim, which is a medicinal crop for the treatment of diabetes.
The essential oil segment is the fastest-growing during the forecast period. Essential oils reduce anxiety and pain, boost mood, improve sleep, reduce inflammation, relieve headaches, kill viruses, bacteria, and funguses, improve job performance by reducing stress and increasing attentiveness, and reduce nausea. Essential oils have various applications in different industries. Moreover, the expansion of cosmetics and personal care industries across the globe is observed to propel the segment’s growth in the upcoming years.
Application Outlook
The food and beverages segment dominated the herbal extract market in 2023. Herbal extracts are commonly used in beverages and drinks, and they are collected from several parts of plants. There are various types of herbal teas consumed worldwide by different cultural regions for the prevention of several diseases, pleasure, and taste.
Advanced research and development are necessary to manage the safety, quality, and health of beverages. In that case, novel processing techniques like microencapsulation of herbal extract and spray-dried instant processing are recommended for longer shelf life and minimize health risks from traditional production methods. Mainly, herbal extracts are increasingly being added to staple food items like yogurt, snack bars, and cereals for breakfast to enhance their nutritional quality. Rising demand for packaged food because of busy schedules and changing lifestyles leads to the growth of the segment.
The personal care and cosmetics segment is the fastest-growing during the forecast period. Herbal extracts are ancient methodologies. Their references were discovered in Unani and holy Vedas, which is called a decoction. Herbal extracts are processed to serve health prospects and cure several remedies. Herbal extracts in liquid and other forms have proved to be a panacea for diseases like mental fatigue, cardiac problems, and digestive disorders.
To increase the production of potency, herbal extracts are used in medicines. Herbal extracts are used in various skincare products and cosmetics. Such products are beneficial for better results and less or no side effects. Nowadays, the population is shifting towards herbal cosmetics and nature. Cosmetics, which are made of herbal extracts for haircare, cleansing, fairness, and anti-marks, are popular in the herbal extract market.
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Herbal ExtractMarket Dynamics
Driver
Rising demand for herbal products
In the last few years, herbal extract-based medicines have been considered a main practice in the medical community promoted for allopathic drugs. There has been a change in awareness as scientific research has approved many health benefits of herbal medicines. Even medical practitioners have started recognizing certain herbal medicines. Some of them recommend herbal treatments after evaluating their patients’ medical history and symptoms. Various health organizations have also approved the use of many herbal medicines.
As people become aware of evidence-based herbal practices and extracts through extensive research studies and awareness campaigns, there is more confidence among the masses. Herbal extracts satisfy the increasing consumer need for natural and traditional methods of self-care. Manufacturers effectively promote their herbal extracts as science-backed natural remedies. These factors have led to the increasing acceptance of herbal medicines in modern times. In nutraceuticals, supplements like anti-aging treatments and herbal protein powders lead to demand for herbal products.
Restraint
Longer medicinal process and slower results
Herbal extract-based medicines may have slower results, which may not be as effective as pharmaceutical medicines in some situations. In some critical conditions, using herbal extract remedies may not be suitable as quick results are needed.
Herbal extract-based medicines are ineffective for serious health conditions or serious ailments. Such concerns associated with slower results are observed to limit the adoption of herbal extract-based products. Thereby, the factor acts as a major restraint for the expansion of the market.
Opportunity
Increasing research and development investments
Raised investing in research and development projects permits for the investigation of new herbal sources, formulation methods, and extraction techniques. Researchers look towards the potential of herbal extracts in discovering novel drugs, addressing specific health conditions, and developing new treatments. This becomes an opportunity for the herbal extract market in the healthcare and pharmaceutical industries.
- In January 2023, a research paper published on the development of herbal products using nanotechnology was named nanophytomedicine in the areas of pharmaceutical research.
Herbal Extract Market Scope
| Report Coverage | Details |
| Market Size in 2024 | USD 43.38 Billion |
| Market Size by 2033 | USD 97.57 Billion |
| Growth Rate from 2024 to 2033 | CAGR of 9% |
| Largest Market | Asia Pacific |
| Fastest Growing Market | North America |
| Base Year | 2023 |
| Forecast Period | 2024 to 2033 |
| Segments Covered | Type, Source and Application |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Herbal Extract Market Companies
- Symrise
- Kancor
- Synthite Industries Ltd.
- Ransom Naturals Ltd.
- India Essential Oils
- A.G. Industries
- Flavex Naturextrakte GmbH
- Arjuna Natural Pvt. Ltd.
- Firmenich SA
- Robertet Group
- Sami Spices
- doTERRA
Recent Developments
- In June 2023, a well-known skin care expert Anherb Natural is announced to launch its new product line in the cosmetic industry. Anherb Natural’s vision is to create an image on the beauty market with its best offerings and specialized skin care products.
- In May 2022, Leaven Essentials, an Indian based startup launched the scientific and effective solution, customized according to consumer requirements. With this launch, the company focuses on the manufacturing of standardized herbal extract to food and beverages, cosmetics and pharmaceuticals industries.
