Over the past couple of years, data analysts have identified a rising trend of the growth in the adoption rate of natural sources for medicine. This trend has resulted in a hike in the demand for herbal extracts-based medicines which are known to have little to no side-effects. In addition, herbal extracts have found a loyal customer base in the food and beverage industry, garnering favorable reviews owing to the various benefits it offers. The food and beverage industry is just one industry in the long list of sectors making extensive use of herbal extracts, which includes pharmaceuticals, cosmetics like skincare and haircare etc. Other than this, the high spending capacity resulting from the surging per capita income coupled with the inherent properties of herbal extracts that have little to no adverse effect will yield massive profits for the market in the following years.
Pune, India, May 15, 2019 (GLOBE NEWSWIRE) -- As per the report found on Wise Guy Reports (WGR), the global herbal extracts market is projected to close in on a valuation close to USD 3,967.5 million by 2023. The report also states that the market will be represented by a CAGR of 7.52% during the forecast period (2018-2023).
Rising Applications to Enhance Market Growth
The boost in the demand for herbal extracts across various industries such as pharmaceuticals, cosmetics, and food and beverages will have a major impact on the development rate of the herbal extracts market. Case in point being the widespread use of herbal extracts in the food and beverages industry as flavorants, colorants combined with its usage for enhancing the overall nutritional content. In addition, the rising demand for functional foods and beverages like dietary supplements, flavored beverages, and protein bars will also elevate the market position of herbal extracts in the coming years. As per the American Botanical Council, the overall retail sales of herbal supplements in the United States (U.S.) had reached the value of USD 6.9 billion in the year 2015, which surged to USD 7.4 billion by 2016. These numbers point towards the exhilarating pace of the demand for herbal extracts across the globe, and also the growth rate of the market as a whole.
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Growing Popularity of Cosmetics to Support Market Growth
In recent years, herbal extracts have gained immense momentum in the cosmetic industry for application in skin care and hair care products along with perfumes. These types of extracts are highly useful in skin care products for curing acne, eczema, free-radical scavenging, dryness, anti-aging and anti-inflammatory. Whereas in hair care products, these extracts are used as colorants, as anti-dandruff agents and growth stimulants. The increasing trend of blending the cosmetics products with natural extracts is bring further success to the herbal extracts market over the following years. For instance, the U.S. Government Export Association had reported that the total consumer spending on natural cosmetics in Germany had been around USD 13.5 billion in 2015, increasing to 9.2% by the next year.
Market growth to Take a Hit due to Steep Production Costs
The production cost of herbal extracts is generally on the higher side, which could slow down the current growth rate of the global herbal extracts market.
The Dry Form of Herbal Extracts Finds More Customers in the Global Market
Depending on the form of herbal extracts, the global market has been considered for dry and liquid. The report acknowledges the dry segment to be the largest shareholder of the global market in 2018, with its estimated value expected to be USD 10,514.1 million by 2023. Additionally, the liquid segment will be displaying a healthy CAGR of 7.13% over the forthcoming years.
The Pharmaceuticals Segment Rushes Past Competition with the Biggest Share
Application-wise, the global market for herbal extracts is fragmented into food & beverages, pharmaceuticals, cosmetics & personal care and others. Furthermore, the food & beverages segment is split into dietary supplements, functional food & beverages, and others. Among all the applications, the pharmaceuticals segment controlled the substantial share of 38.7% in 2018 and is anticipated to reach the valuation of USD 5,387.8 million by 2023. On the other hand, the cosmetics & personal care segment is on track to experience CAGR of 7.84% during the assessment period.
The worldwide herbal extracts market has been distributed amongst the key regions of Europe, Asia Pacific, North America, and the rest of the world (RoW).
North America Steals the Limelight as Key Manufacturers Grow in the Region
North America held the majority of the total major market share in the year 2018, on account of the increasing implementation of herbal extracts in a variety of personal care and skincare products by the increasing number of prominent manufacturers. In the region, the United States (US) had controlled about 75% of the regional market share in 2018. Also, the region is expected to retain its leading position from 2018 to 2023 owing to the expanding pharmaceuticals industry and the strong support being granted by the government promoting the use of herbal extracts in daily regimen.
Asia Pacific to Grow at the Highest Rate Owing to Rising Applications across Industries
It is anticipated that the region of Asia Pacific will be surging at the highest rate in the near future on account of the rising use of herbal extracts across diverse industries, including skincare, pharmaceutical and functional food & beverage. The report mentions that the region will be expanding at a CAGR of 8% during the review period, wherein China was controlling the maximum share of 35% in 2018 backed the surge in the government involvement in several initiatives for expanding the pharmaceutical sector in the country.
Technological Advancement to Set Off in Motion the Growth of Europe Market
The Europe herbal extracts market is presumed to have a lucrative growth pattern in the coming years, with predictions of it rising at the second highest CAGR of 7.61% owing to various growth factors. The fundamental reasons behind the profitable run of the regional market are the increasing preference for herbal medicines by customers, forgoing the use of traditional medicinal products. Besides, product development coupled with technological advancements is presumed to fuel the growth of the market in the years ahead. As per the report, in the year 2018, Germany was accountable for the maximum share of 23.6% of the herbal extracts market in Europe.
The companies currently ruling the worldwide herbal extracts market include Starwest Botanicals, Inc. (US), Vidya Herbs Private Limited (India), Jiaherb, Inc. (China), Kalsec Inc. (US), Synthite Industries Ltd. (India), Organic Herb, Inc. (China), Mountain Rose Herbs (US), Herbal Extraction Group. Inc (China), Döhler GmbH (Germany), Martin Bauer GmbH & Co. KG (Germany), among others.
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