Herbal extracts are potent concentrations of active plant elements created by using various solvents or methods to extract herbal compounds. These extracts are utilized for medical, nutritional, or cosmetic purposes and often contain the essential components responsible for the plant's therapeutic properties.
Herbal extracts can be obtained in various forms, such as tinctures, oils, capsules, powders, or teas. They are highly favored in traditional medicine, herbalism, and alternative health treatments because of their extensive appeal. Some noteworthy herbal extracts include echinacea, ginkgo biloba, garlic, turmeric, and others. It is vital to recognize that herbal extracts may offer potential health benefits, but their efficacy and safety can vary.
The flourishing consumer inclination towards natural and organic products is crucial in expanding the herbal extract market. Consumers are becoming conscious of the harmful effects that synthetic chemicals and artificial additives have on their health and the environment. They prioritize herbal extracts above synthetic alternatives for skincare, haircare, healthcare, and well-being due to their sustainability and eco-friendliness.
According to Forbes, just 58% of customers across all age categories indicated their readiness to pay a premium for sustainable options until 2020. By 2022, about 90% of Generation X consumers indicated their intention to increase their budget for sustainable products by at least 10%, compared to just over 34% recorded two years earlier. The propensity of Gen X consumers to endorse sustainable products has increased by more than 25%. In comparison, their willingness to allocate more funds towards sustainable things has experienced a significant jump of 42%. These variables collectively contribute to the global market's overall growth.
The growing efforts in research and development of herbal extracts are generating new prospects for market growth. Various research institutes, universities, and organizations are presently conducting studies to explore the potential of herbal extracts in treating a wide range of diseases and problems. For instance, in August 2023, researchers from Hong Kong Baptist University (HKBU) found that isoliquiritigenin (ISL), a flavonoid obtained from licorice, can hinder the progression of pancreatic cancer. Moreover, it can potentially enhance the efficacy of conventional chemotherapy drugs in treating pancreatic cancer.
Furthermore, in October 2023, the NICM Health Research Institute of Western Sydney University conducted clinical trials to examine the effects of a botanical extract on individuals with moderate cognitive impairment (MCI). The results indicated that the herbal extract notably improved participants' memory in less than three months. Sailuotong (SLT) is a botanical preparation containing standardized extracts from Panax ginseng, Ginkgo biloba, and Crocus sativus L. These factors are expected to generate opportunities for market expansion.
Asia-Pacific is the most significant global herbal extract market shareholder and is expected to expand substantially during the forecast period. The regional market is witnessing substantial expansion as a result of the ample production and consumption of herbal extracts, the presence of diverse flora and fauna that provide numerous sources of herbal extracts, and the longstanding tradition and culture of utilizing herbal extracts in various medicinal practices such as Ayurveda and Traditional Chinese Medicine (TCM). Ayurveda and Traditional Chinese Medicine (TCM) are ancient medical systems that utilize botanical extracts as the main components of their therapeutic interventions. Their comprehensive methodology, organic source, and effectiveness have garnered acknowledgment and approval worldwide.
Moreover, the industry players also provide innovative herbal extracts to thrive in the highly competitive setting. For instance, in June 2021, Durmeric, a Mumbai-based company focusing on ayurvedic goods, offered liquified herbal extracts that have improved absorption and enhanced effectiveness. The company currently provides ten products from popular herbs, such as cinnamon, tulsi, rosemary, and ginger.
The key global herbal extract market players are Botanic Healthcare, VIDYA HERBS Pvt. Ltd; Allicin Pharm; HerbalHills; Pioneer Enterprises (I) Private Limited; Acara Bioherb Pvt. LTD.; Sydler India Pvt. Ltd; Herbal Creations; IDOBIO CO., LTD.; Döhler GMB; Alpspure Lifesciences Private Limited; MartinBauer; and others.