What are the benefits of investing in the herbal extracts industry?

The global herbal extracts industry is expected to grow with a significant growth rate of 7.79% from 2019 to 2024. It is also expected to reach a market value of USD 15.09 billion by the end of 2024. This is a report generated by market research in the future. The reason for this is that increasing incidences of rashes and inflammation caused by the consumption of products containing synthetic chemicals has come under notice. At the same time there is a growing awareness that is occurring for the therapeutic properties of herbs which are influencing the growth of herbal extracts market around the globe.

The global herbal extracts market has been analysed for four key regions -- North America, Europe, Asia-Pacific and the rest of the world. The North American herbal extracts market has further been segmented into the US, Canada, and Mexico. The European herbal extracts market has been classified into China, India, Japan, Australia and New Zealand, and the rest of Asia-Pacific. The herbal extracts industry in the rest of the world has been segmented into South America, the Middle East, and Africa. It has been found that through the use of herbal extracts in medicine, there is a huge potential for several health benefits which include advantageous biological activity such as anti-cancer, wound healing activity, antidiarrheal, antimicrobial, analgesic and antioxidant properties. Consumers are now viewing natural products as healthier alternatives to synthetic products. These are some of the key factors estimated to fuel the demand for the herbal extracts in the forecasted period.

The market is segmented on the basis of Type into Spices, Essential Oils and Natural Extracts, Flavours and Fragrance, Phytomedicines and Herbal Extracts, Phytochemicals, Others. The rising demand for herbal extracts in the pharmaceuticals and cosmetic sectors is one of the major factors contributing to the growth of the market. These extracts isolated from plants are used for many cosmetic applications such as derma protection and regeneration, soothing & anti-inflammation, moisturising, brightening & lightening, hair care, ageing, and many others. Therefore the rising awareness regarding the side effects of allopathy medicines is another driving factor for the market.

Currently, Europe is the largest market for herbal extracts globally. Despite low production, Europe is much inclined towards the import of herbal extracts from developing regions such as Asia-Pacific and the Middle-East and Africa. About 97% of the total imported spice & herbs come from developing countries. On a global scale, Europe is a mature market for herbal extracts and the growth rate is comparatively slower than other regions. The global herbal extracts industry is competitive, with a significant presence of numerous global and regional players. The rising consumer preference towards the products with natural ingredients is one of the important factors which is expected to drive the herbal extracts market at a global level. The widespread acceptance of natural food and drinks in diet, using herbal medicines as an alternative to other medicines and the chemical based cosmetic products. To ascertain these trends new developments are coming up in the extraction process to make the extracts cost efficient and increase the yield. On the basis of application, pharmaceuticals have the highest market share in the application of herbal extracts followed by food segment due to increased health awareness and increasing use of herbal food and drinks.