About This Report

Organic Herbal Extracts Market, by Source (Vegetables, Plants, Leafs, Spices, Grass, and Others), By Ingredient Type (Flavors and Fragrances, Essential Oils, Spices, and Others), By Form (Powder, and Liquid), By Application (Food and Beverages, Pharmaceutical, Cosmetic and Personal Care, and Others), and by Region (North America, South America, Europe, Asia Pacific, The Middle East, and Africa) - Size, Share, COVID Impact Analysis, Growth, Outlook, and Opportunity Analysis, 2020 - 2028

Natural plant chemicals are concentrated into solutions known as organic herbal extracts, which are taken from various plant parts including leaves, roots, flowers, or seeds and then either dissolved in water or organic solvents. Due to their health-promoting qualities and natural origin, these extracts are used in a variety of applications in the food and beverage, pharmaceutical, cosmetic, and personal care industries. The fact that organic herbal extracts come from plants that were cultivated without the use of synthetic pesticides, fertilisers, or genetic engineering makes them a popular option for customers looking for natural and organic products.

In 2020, the Organic Herbal Extracts market was valued at US$ YY million, and it is anticipated to be around US$ YY million by 2027. Over the forecast period, the market is expected to grow at a CAGR of YY%.

Increasing demand for natural and organic products and growing popularity of functional foods and beverages are the drivers, but stringent regulatory requirements are the restraint

Customers are getting more concerned about their health and are looking for items that don't contain artificial chemicals, preservatives, or additions. As they are viewed as natural and healthy, this trend is boosting demand for organic herbal extracts. For instance, In September 2020, PepsiCo unveiled Driftwell, a functional beverage containing natural ingredients to promote relaxation and reduce stress, including chamomile and lavender. Driftwell was founded as a result of the growing need for natural and useful products that support wellbeing and good health. Furthermore, Foods and beverages are increasingly being made healthier by adding functional ingredients, such plant extracts, to them. In many different products, including protein bars, energy drinks, and dietary supplements, organic herbal extracts are used. To fulfil the rising demand for functional foods and beverages, several food and beverage firms are adding herbal extracts to their products. For instance, Coca-Cola recently introduced a line of beverages with functional ingredients that include botanical extracts like ginger and turmeric.

However, Strict regulatory requirements have been imposed on producers of organic herbal extracts, which may increase the time and cost needed to bring products to market. For instance, Recent changes to the organic farming and production laws in the European Union are intended to increase the uniformity and transparency of organic products. On January 1, 2021, the new rules become operative. Adding to this, a new advisory on the use of natural flavours in food was recently released by the Food and Drug Administration (FDA) in the United States. The guidelines offer suggestions regarding how to identify a flavor's artificial or natural status and how to label natural flavours on food packaging.

The Food and Beverage segment is expected to account for significant market share by application segment

The global Organic Herbal Extracts market is mainly classified based on Source, Ingredient Type, Form, and Application. On the basis of Source, market is divided into vegetables, plants, leaf, spices, grass, and others. By Ingredient Type, the market is classified into flavours and fragrances, essential oils, spices, and others. Based on the Form, the market is categorised into powder, and liquid. By Application, the market is segmented into food & beverages, pharmaceuticals, cosmetic and personal care, and others.

By application, the food and beverage segment are currently the largest segment in the organic herbal extracts market in terms of market share. This is mostly because the food and beverage industries are seeing an increase in demand for natural and organic components. Tea, juices, and snacks are just a few examples of the many food and beverage products that use organic herbal extracts as flavouring, preservatives, and natural colourants. This segment's expansion is also being fuelled by the expanding trend of incorporating herbal supplements in foods and beverages. For instance, Tata Tea, an Indian tea manufacturer, announced the release of a new line of organic herbal tea blends named Tata Tea Kahwa in March 2021. Moreover, these blends contain spices like cinnamon, cardamom and saffron. The concoctions are advertised as all-natural treatments for illnesses affecting immunity, stress, and digestion. Adding to this, The German company Symrise AG, which produces natural flavours and perfumes, introduced a line of organic herbal extracts for use in beverages in September 2021. The variety of products were created to satisfy the rising demand for natural and organic ingredients in the beverage sector and comprises extracts from herbs including hibiscus, rosehip, and nettle.

Interesting Facts of Organic Herbal Extracts Market

• Based on the source, the market for organic herbal extracts is dominated by the plants category. This is because plants are a plentiful source of bioactive substances including alkaloids, flavonoids, and phenolic acids, which have multiple health advantages and are frequently employed in a variety of products like medications, food and beverages, and cosmetics.
• On the basis of ingredient type, essential oils segment holds a major market share in the organic herbal extracts industry. This is because essential oils, which are strong and highly concentrated plant extracts used in a variety of products including food and drink, personal care items, and aromatherapy, are the cause.
• By form, the liquid sector dominates the market for organic herbal extracts due to the fact that liquid herbal extracts are simple to use, practical, and simple to incorporate into a variety of products.
• The market for organic herbal extracts in North America is anticipated to grow as a result of factors such as growing consumer demand for natural and organic products, increased consumer awareness of the health benefits of herbal extracts, and rising acceptance of the use of herbal supplements in food and beverages.

Asia Pacific will account for the largest share of the Organic Herbal Extracts industry

The organic herbal extracts market will be dominated by the Asia-Pacific region in terms of both production and consumption. A few of the major reasons influencing the growth of the organic herbal extracts market in this area include the region's vast population, growing public awareness of the health benefits of organic and natural products, and the traditional usage of herbal treatments in nations like China and India. Additionally, the growing demand for premium organic and natural products in nations like China, India, and Japan has increased consumer disposable incomes, which is further boosting the expansion of the organic herbal extracts market in the region. For instance, The Chinese company Guangzhou Hanfang Pharmaceutical announced in March 2021 that it will invest in a new plant in Guangzhou to produce herbal extracts. According to the company, the country's demand for organic herbal extracts is rising as people become more aware of the advantages of natural and organic products for their health. 
Global Organic Herbal Extracts Market key Players:
Some of the major competitors in the global Organic Herbal Extracts market include Dohler, Martin Bauer Group, Venkatesh Naturals, VidyaHerbs, Natural Factors Nutritional Products Ltd., Pioneer Enterprise, Phyto Herbal, MRT Green Products, Bioforce USA, Ransom Naturals Ltd., Nature's Way Products, LLC, Synergy Flavors, Gaia Herbs, and Nutra Green Biotechnology Co., Ltd.
The Organic Herbal Extracts industry is extremely competitive with aggressive market strategies of global and regional companies looking to strengthen market position through new product launches, collaborations, and facility expansions. The following are some recent market developments:

• BI Nutraceuticals, a US-based manufacturer of natural ingredients, launched a new line of organic herbal extracts in February 2021 for use in functional foods and beverages. The line includes extracts from plants with well-known health benefits, including ashwagandha, holy basil, and turmeric.
• In August 2021, The Indian company Sula Vineyards introduced a new line of organic wines that are created from grapes that are farmed without the use of pesticides or chemicals. According to the company, growing knowledge of the health advantages of natural and organic products has increased demand for organic wines in India.
• The Japanese corporation Asahi Group Holdings announced in July 2021 that it would be introducing a new line of organic beers to Japan. The company believes that the country's growing health consciousness among consumers is driving more demand for organic beer.
• The South African company, BioAlchemy, launch new range of organic herbal extracts on April 2021. The company announced that its products are made from sustainably harvested herbs and are free of artificial additives.
• In November 2020, Ghanaian company PhytoTrade Africa announced a new project to increase the production of organic herbal extracts in Africa. The goal of the project is to enhance sustainable agriculture while encouraging small-scale farmers to produce organic herbal extracts.

Frequently asked questions about global Organic Herbal Extracts Market

Q: What is the current size of the global Organic Herbal Extracts market?
Ans: The Organic Herbal Extracts market was valued at YY million US$ in 2020 and is projected to reach YY million US$ by 2027, at a CAGR of YY% during the forecast period.

Q: What are the major opportunities in Organic Herbal Extracts industry?
Ans: Market opportunities include growing customer interest in natural and organic products as well as increased knowledge of the health advantages of herbal extracts.

Q: What is the major driving factor for Organic Herbal Extracts industry?
Ans: The growing tendency towards adopting a healthy lifestyle and the rising demand for natural and organic products are the two main factors propelling the organic herbal extracts market.

Q: Which region is expected to have the largest share of the Organic Herbal Extracts market?
Ans: Asia Pacific is expected to have the largest share of the Organic Herbal Extracts market.

Q: Which form segment will dominate the Organic Herbal Extracts market?
Ans: By form, the liquid sector dominates the market for organic herbal extracts due to the fact that liquid herbal extracts are simple to use, practical, and simple to incorporate into a variety of products.