HERBAL EXTRACT MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Herbal Extract Market Size and Trends

The Herbal Extract Market size is valued at US$ 41.8 Billion in 2024 and is expected to reach US$ 81.1 Billion by 2031, growing at a compound annual growth rate (CAGR) of 9.9% from 2024 to 2031.

Segment Analysis:

In terms of application, the Herbal Extract Market is segmented into functional food and beverages. Among the segments, functional food contributes the highest share of the market owning to the rising health consciousness.

Functional food contains bioactive compounds sourced from herbs that provide additional health benefits beyond basic nutrition. The growing awareness about preventive healthcare and focus on maintaining wellness naturally has increased the demand for functional food products fortified with herbal extracts. Particularly, herbal extracts are increasingly being added to staple food items like breakfast cereals, yogurt, and snack bars to enhance their nutritional profile. Changing lifestyles and busy schedules have led to a rise in demand for convenient packaged food that can fit into people's daily routine while also offering health advantages. This ongoing trend is propelling the use of herbal extracts in functional food applications. Moreover, various herbal components have scientifically proven health-promoting properties like antioxidant, anti-inflammatory, and antimicrobial activities which consumer seek to gain through their diets. This drives food companies to introduce novel products containing safe and quality herbal extracts.

In terms of type, the Herbal Extract Market is segmented into leaves, flowers, fruits & bulbs, and barks & stems. Among these segments, leaves contributes the highest share of the market.

Leaves are the primary organ for photosynthesis in plants and thus contain high concentration of bioactive compounds that provide health benefits to humans. Many commonly used herbs including thyme, oregano, sage, basil, lavender, mint etc. are sourced from their leaves which have established medicinal properties. Leaves of these herbs have significant levels of antioxidants, vitamins, minerals and other phytochemicals. They find applications as flavouring and preservative agents in food and cosmetic products due to anti-microbial benefits. Moreover, leaves are extensively utilized in herbal medicines and dietary supplements owing to easy availability and processing. Technological advancements have enabled large-scale and sustainable harvesting of leaves to meet the growing demand from herbal extract industry. Their wide applications, therapeutic properties and consistent supply chain have made leaves the dominant segment in the herbal extract market.

Herbal Extract Market- Trends

• Increasing spending on herbal supplements and remedies globally: The global demand for herbal supplements and remedies has been steadily rising in the past few years. Consumers are increasingly turning to natural options to support their health and wellness. This rising interest in herbal products is having a significant impact on the herbal extract market. As more people incorporate herbal supplements in their daily routines to boost immunity, address minor health issues or promote relaxation, the sales of herbal extracts used in formulating these supplements have also increased substantially. Many supplement manufacturers have reported a surge in demand for popular herbal extracts like turmeric, ginger, garlic, holy basil, ashwagandha etc. as such ingredients are considered beneficial for general wellness. The increased commercial cultivation and production of herbs used globally in supplements has also spurred the herbal extract industry's growth.
• Advancement in extraction technologies: The advancement in extraction technologies is having a significant impact on the herbal extract market. Newer and innovative extraction methods allow for more effective and efficient extraction of active compounds from herbs. This enables extraction of a wider variety of compounds from various plant parts like roots, bark, leaves, seeds etc. that previously were difficult to access and extract. Some of the modern extraction techniques gaining popularity include supercritical fluid extraction, ultrasonic-assisted extraction and enzyme-assisted extraction. Supercritical fluid extraction uses carbon dioxide under high pressure and temperature conditions as a solvent. It is a greener alternative to traditional organic solvents as CO2 is non-toxic, non-flammable and easily recyclable. This technique helps extract heat-sensitive or volatile compounds without degrading them. Ultrasonic-assisted extraction uses ultrasonic waves to disrupt plant cell membranes and accelerate mass transfer of compounds into the solvent, resulting in faster and better extractions. Enzyme-assisted extraction involves usage of enzymes to break down plant cell walls and facilitate release of compounds. This method is beneficial for isolation of compounds that may otherwise be locked within cellular structures.