Medicinal Plant Extracts Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The market for herbal extracts is expected to grow to reach $17.4 billion in 2024. The CAGR is 7.35 percent. The growing trend towards the use of natural and organic products is driving this growth. The growing awareness of the health benefits of herbal medicines is also driving this growth. Also, advancements in extraction technology and the increasing use of herbal extracts in pharmaceuticals, nutraceuticals and cosmetics are driving this growth. Also, companies like Ginkgo Bioworks, Indena S.p.A. and Herbalife Nutrition Ltd. are taking strategic initiatives to capitalize on this growth. They are investing in research and development to develop new extraction methods and products with improved efficacy. Also, companies are entering into strategic alliances and partnerships to expand their distribution network and product offerings. Recent collaborations between herbal extract manufacturers and pharmaceutical companies have shown the potential for synergistic growth. They are working together to develop new applications for plant-based extracts in the health and beauty industries.

Regional Market Size

Regional Deep Dive

The market for Medicinal Plant Extracts is growing significantly across the world, driven by an increase in the use of herbal medicine and a growing demand for plant-based products. Each region shows its own trends, which are influenced by the local culture, regulatory framework and economic conditions. North America and Europe lead in terms of innovation and regulatory support, while Asia-Pacific is developing as a hub for the sourcing of raw materials and the use of traditional medicine. The Middle East and Africa are seeing a growing interest in indigenous plants, while Latin America is taking advantage of its rich biodiversity to establish a presence in the market.

Europe

• The European Union has implemented stringent regulations on herbal products, leading to increased quality control and safety standards, which are shaping the market dynamics and fostering consumer confidence.
• In Europe, the European Herbal and Traditonal Medicine Association (EHTPA) is promoting the integration of herbal medicine into the modern health system. This could have a positive impact on the market for medicinal plant extracts.

Asia Pacific

• The ayurvedic and herbal medicines are becoming popular in countries like China and India. The government is encouraging the use of ayurvedic and herbal medicines. The local and export markets are growing.
• Innovations in extraction technologies by companies such as Himalaya Wellness and Dabur are enhancing the efficiency and quality of plant extracts, making them more appealing to both domestic and international consumers.

Latin America

• Brazil's National Health Surveillance Agency (ANVISA) has introduced regulations to support the commercialization of herbal medicines, which is likely to enhance the market for medicinal plant extracts in the region.
• Local companies are increasingly collaborating with indigenous communities to source plant materials sustainably, which is expected to create a unique market niche and promote biodiversity.

North America

• The U.S. Food and Drug Administration (FDA) has recently streamlined regulations for herbal supplements, encouraging innovation and market entry for new medicinal plant extracts, which is expected to boost product availability and consumer choice.
• Key players like Gaia Herbs and Herbalife are investing in research and development to create standardized extracts, ensuring quality and efficacy, which is likely to enhance consumer trust and drive market growth.

Middle East And Africa

• The African Union has launched programs to promote the use of indigenous medicinal plants, which is expected to increase awareness and utilization of local plant extracts in healthcare.
• Companies like Phytomedicine and local cooperatives are focusing on sustainable harvesting practices, which not only support the market but also contribute to environmental conservation efforts.

Did You Know?

“Over 80% of the world's population relies on traditional medicine, primarily herbal remedies, for their primary healthcare needs, highlighting the significant role of medicinal plant extracts globally.” — World Health Organization (WHO)

Segmental Market Size

The Medicinal Plant Extracts Market is growing steadily, owing to the increasing interest of consumers in natural remedies and in all-round health. This segment plays a crucial role in the herbal medicines and dietary supplement markets, and it is a crucial market for a growing population of consumers looking for alternatives to synthetic drugs. The market is being driven by the growing prevalence of chronic diseases, which has sparked a demand for natural treatments, and by regulatory support for herbal products, especially in Europe and North America, where guidelines for quality and safety are being established. In the current market, medicinal plant extracts are in a mature stage of development, and companies such as Gaia Herbs and Herbalife are leading the way in product innovation and market penetration. The most important applications are in dietary supplements, food, and cosmetics. Turmeric is used in dietary supplements, and aloe vera is used in cosmetics. The rising importance of sustainability and the impact of the swine flu pandemic on health and well-being are the main trends boosting the market. In addition, technological advances such as improved extraction methods and quality control systems are enhancing the market by ensuring the efficacy and safety of the products.

Future Outlook

The Medicinal Plants market is expected to grow at a CAGR of 7.4 % from 2024 to 2032, with a forecast value from $14.15 billion to $24.97 billion, with a CAGR of 7.3 %. The increasing demand for natural and organic products is based on the growing awareness of the benefits of plant-based medicines. By 2032, medicinal plants are expected to penetrate the modern and traditional medicine systems and reach a penetration rate of over 30% among health-conscious consumers. Supercritical fluid extraction and ultrasonic extraction methods will improve the efficiency and quality of plant extracts, thus increasing the attractiveness of manufacturers and consumers. Also, the development of herbal medicines is supported by the governmental regulatory framework and the policies of the national government. The trend of combining herbal extracts with food and beverages and the development of individualized medicine will also play a significant role in shaping the market. As the industry evolves, the key to capturing the opportunity is to be agile, and the challenges of supply chain management and the environment must be solved.