Why Herbal Extracts Market is Growing Significantly

Government Initiatives

To create awareness among consumers related to the benefits offered by natural ingredients and extracts, governments of various countries have started taking initiatives and are investing in research and development. Many big companies have also started investing in research and development to innovate and come up with new herbs and spices to meet consumer preferences. The high demand for herbal extracts has also contributed to the growth of distributors in the market that cater to consumer demands from niche markets.

Increasing Demand of Natural Flavours

The development of new plant based flavours and fragrances favoured by consumers pose new opportunity areas for herbal extract manufacturers. Also, changes in lifestyles and the increase in the demand for natural flavours from consumers are observed in developing economies, leading to the growth in the demand for herbal extracts.

Globalization has also played a major role in the growth of herbal extracts market. It has led to greater exposure to flavours and fragrances of various cultures. Hence, identifying new and exotic spices, herbs and their properties in accordance with the changing consumer preferences is vital for herbal extract manufacturers.

Use in Personal Care Products

The fruits and flowers segment is used in diverse applications, including fragrances, flavours, 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 in various industries across the globe. In the food and beverages application, flowers and fruits are generally used to provide flavours and aroma.

High Focus of Players on R&D

The market for plant extracts is highly fragmented, comprising a significant number of leading and small players. A large number of players in the market are located in Asia Pacific region and offer a variety of products.

With the increase in the demand for natural, clean labelled food and cosmetic products, key players in the market are focusing on research and development investments to launch herbal extracts that would cater to the requirements of food and beverage, pharmaceuticals and cosmetic industries across the world to produce extracts according to the needs of the consumers.

Future Expectations

Asia Pacific is expected to witness considerable growth in the coming years. The easy availability of raw products and suitable environment for the growth of plants used for extraction will positively leverage the herbal extracts market. The demand of herbal beverages such as chamomile, peppermint tea and herbal coffee has increased dynamically in the recent years, which is projected to offer growth opportunity for herbal extracts manufacturers in the future. Also, the use of essential oils as an antioxidant, antimicrobial agent and shelf life extending agent will increase in the food and beverage industry, which will further compliment the market growth of herbal extracts.