The Global Ayurvedic Herbal Extract Market Projected to Grow at a CAGR of 5.15% and Generate a Revenue of $68,564.3 Million by 2032Download Sample Reports Overview
The global ayurvedic herbal extract market size is predicted to be valued at $68,564.3 million by 2032, surging from $41,501.3 million in 2022, at a noteworthy CAGR of 5.15%.
Impact Analysis of COVID-19 on the Ayurvedic Herbal Extract Market
Despite facing initial challenges during the COVID-19 pandemic, the ayurvedic herbal extract market has showed flexibility and adaptability. The increased focus on health & wellness during the global crisis has further boosted the demand for ayurvedic products. Consumers, seeking natural remedies to enhance their immunity, have turned to ayurvedic herbal extracts.
In the post COVID-19 pandemic period, there has been a notable surge in the demand for ayurvedic herbal extracts. With an increased focus on holistic well-being and natural immunity, consumers are turning to traditional remedies. Ayurvedic extracts are gaining prominence for their potential immune-boosting properties and holistic health benefits. This shift in consumer behavior reflects a growing preference for natural, time-tested solutions in the post-pandemic period.
Global Ayurvedic Herbal Extract Market Analysis
The increasing demand for natural and functional ingredients from consumers, the expansion of nutraceuticals and functional foods, the clean labeling movement, the development of research bolstering health claims, and the trend toward personalization and customization are the main factors leading to an increase in use of herbal extracts in the nutrition industry. Herbal extracts, sourced from plants, are recognized as natural components that align with the current clean labeling trends. In response to consumer demand, the nutrition industry is integrating herbal extracts into a range of products, serving as natural flavorings, colorants, and functional ingredients. All these factors are anticipated to drive the market growth in the upcoming years.
The ayurvedic herbal extract market faces a significant obstacle in the form of high production costs. The need for specialized cultivation practices, meticulous extraction processes, and quality control measures are all major factors projected to hinder the market growth. These requirements contribute to higher operational expenses, impacting the overall affordability of ayurvedic herbal extract market growth. The industry players are exploring cost-effective technologies and sustainable practices, aiming to strike a balance between quality and production costs.
Increased investments in R&D initiatives pave the way for the exploration of novel herbal sources, advanced extraction methods, and innovative formulation techniques. This exploration results in the creation of herbal extract products that boast enhanced efficacy, improved bioavailability, and targeted applications. These R&D investments not only facilitate the development of unique offerings but also create several growth opportunities in the market. The increased focus on R&D empowers researchers to search new therapeutic applications for herbal extracts, expanding their potential roles in addressing specific health conditions and creating innovative treatments.
Global Ayurvedic Herbal Extract Market, Segmentation
The ayurvedic herbal extract market is segmented on the basis of type, application, and region.
The type segment is classified into ashwagandha, ajwain, bramhi, ginseng, cardamom, cumin, basil, neem, licorice root, turmeric, rosemary, and others. Among these, the ashwagandha sub-segment is anticipated to be the fastest growing during the forecast period. Ashwagandha extract is available in powder form in the market. Powdered ashwagandha root is usually consumed or used topically to ease joint pain or as part of an ayurvedic skincare form when mixed with ghee, honey, or water. Ashwagandha extract powder is increasingly being used in the food & beverage, pharmaceutical, and other sectors, as well as sports nutrition. This is due to the fact that ashwagandha powder has a longer shelf life and is naturally incredibly soluble. Therefore, ashwagandha manufacturers are looking after increasing powdered ashwagandha production capacity. Therefore, the market for ashwagandha extract in powder form is expanding. Ashwagandha's rising popularity as an adaptogenic herb, known for stress relief and overall well-being, is a key factor driving the segment growth. Consumers are increasingly embracing ayurvedic solutions, contributing significantly to the market expansion.
The application segment is further classified into food & beverages, personal care & cosmetics, pharmaceutical & nutraceutical, and animal feed. Among these, the pharmaceutical & nutraceutical sub-segment is projected to witness the highest CAGR in the upcoming years. The ayurvedic herbal extract market growth is driven by the increase in demand from the pharmaceutical & nutraceutical segment. In the pharmaceutical industry, ayurvedic herbal extracts are increasingly recognized for their therapeutic properties, contributing to the development of natural and holistic healthcare solutions. Similarly, in the nutraceutical sector, these extracts are gaining popularity as consumers seek plant-based alternatives for nutritional support and well-being. The pharmaceutical & nutraceutical segment serves as a key driving factor, driving the demand for ayurvedic herbal extracts as integral components in formulations that promote health & wellness. This trend reflects a convergence of traditional wisdom and modern healthcare needs, positioning ayurvedic herbal extracts as pivotal contributors to the overall market expansion.
The ayurvedic herbal extract market size in Asia-Pacific is projected to show the fastest growth during the forecast period. Increasing consumer awareness regarding the side effects of allopathic medicines, as well as rising focus on medicinal benefits and therapeutic impact of herbal products, are some of the key elements driving the Asia-Pacific ayurvedic herbal extract market share. Therefore, there is a rising demand in the region for herbal extracts, dietary supplements, and herbal-based personal care products. In addition, the increasing prevalence of cardiovascular and other diseases is caused by a lack of essential nutrients in the diet, and the inclusion of synthetic products in the diet has driven the use of herbal extracts in food & beverage products consumed in countries such as China and India. Therefore, these factors are projected to drive market expansion in the region during the forecast period.
Key Players in the Global Ayurvedic Herbal Extract Market
Some of the companies operating in the ayurvedic herbal extract market analysis are Nexira, Blue Sky Botanics, MartinBauer, Synergy, Döhler GmbH, The Biolandes Group, Kalsec Inc., Vidya Herbs Pvt. Ltd., International Flavors & Fragrances Inc., and Synthite Industries Ltd.