US Herbal Extract Market Size was estimated at 7.14 (USD Billion) in 2023. The US Herbal Extract Market Industry is expected to grow from 7.9(USD Billion) in 2024 to 14.5 (USD Billion) by 2035. The US Herbal Extract Market CAGR (growth rate) is expected to be around 5.676% during the forecast period (2025 - 2035).
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The US Herbal Extract Market has been significantly influenced by rising consumer interest in natural health products. This trend is driven by a growing awareness of the benefits of herbal remedies and a shift towards holistic approaches to health and wellness. Many consumers are looking for alternatives to pharmaceuticals for managing health issues, thus boosting the demand for herbal extracts. Moreover, the increasing emphasis on clean label products, wherein consumers demand transparency about ingredient sourcing and product formulations, is shaping the market. There are substantial opportunities to be explored in the realm of organic herbal extracts as consumers become more health-conscious.With stringent regulations from the FDA regarding dietary supplements, producers are encouraged to invest in quality control and certification processes to meet consumer expectations and regulatory standards. This is especially pertinent as the US agricultural landscape continues to adapt, with more farms embracing sustainable practices which not only align with consumer preferences but also enhance the value of herbal products.
Recent trends show a notable rise in the integration of herbal extracts into functional foods and beverages, further propelled by interest in wellness and preventive healthcare. The popularity of plant-based diets has also amplified the market for vegan and vegetarian products, where herbal extracts play a key role in flavoring and health benefits.Additionally, the COVID-19 pandemic has heightened consumers' focus on immunity-boosting products, prompting herbal extract companies to innovate with immune-supporting ingredients. Overall, the US Herbal Extract Market is evolving, shaped by consumer preferences, regulatory landscapes, and an expanding awareness of health and wellness options.
US Herbal Extract Market Drivers
Rising Consumer Demand for Natural Ingredients
In the United States, there is a growing trend towards natural and organic products, pushing consumers to seek alternatives to synthetic ingredients. According to the Organic Trade Association, organic sales in the US reached approximately USD 62 billion in recent years, indicating a substantial shift in consumer behavior. This demonstrates a considerable interest in the US Herbal Extract Market Industry as consumers become more informed about the benefits of herbal extracts over chemical alternatives.As health-conscious individuals increasingly prioritize natural ingredients in food, cosmetics, and dietary supplements, businesses within the US Herbal Extract Market Industry are poised for significant growth. Companies such as Herbalife Nutrition Ltd. and Gaia Herbs are major players that capture this market shift by offering a wide range of herbal extract products tailored to meet consumer demands for health and wellness. Therefore, the increasing consumer demand for natural ingredients is indeed a powerful driver for expansion in the US Herbal Extract Market.
Growing Health Awareness and Preventive Healthcare
The United States has witnessed a noticeable rise in health awareness among its population, leading to an increased focus on preventive healthcare. Reports from the Centers for Disease Control and Prevention indicate that in the past decade, there has been a significant rise in health expenditures advocating for preventive measures, which stood at under USD 15 billion and is expected to grow. This trend reflects broader consumer recognition of the importance of maintaining health, encouraging many to incorporate herbal extracts into their diets for their purported medicinal benefits.As a consequence, the US Herbal Extract Market Industry is likely to flourish given the emphasis on avoiding illness through natural means. Major organizations like National Institutes of Health actively support research into herbal remedies, lending further credence to the health benefits of these extracts.
Increase in the Number of Research and Development Initiatives
In the United States, there has been significant growth in Research and Development (R&D) initiatives focusing on herbal extracts and their potential health benefits. Funding from federal agencies like the National Center for Complementary and Integrative Health is contributing to more comprehensive studies exploring herbal extracts' efficacy. Current projections indicate that R&D investment in herbal products could exceed USD 600 million this year alone, demonstrating an increased commitment to understanding these products.Consequently, the scientific validation through R&D efforts boosts consumer confidence in the US Herbal Extract Market Industry, encouraging a shift towards embracing herbal solutions. Organizations such as the American Botanical Council play an important role in fostering these R&D initiatives, leading the charge in educating both consumers and healthcare professionals about the advantages of herbal extracts.
Regulatory Changes Favoring Herbal Products
Regulatory bodies in the United States are becoming increasingly supportive of herbal products, facilitating their growth in the market. The Food and Drug Administration's recent guidelines have streamlined the approval process for herbal extracts, making it easier for new products to be introduced. For instance, the FDA has developed regulations that clarify how companies can market herbal supplements without compromising consumer safety. This regulatory shift enables an influx of innovation within the US Herbal Extract Market Industry, as companies can more readily explore and develop new formulations.With supportive regulations and a focus on consumer safety, organizations like the Council for Responsible Nutrition advocate for transparency and quality in herbal products, paving the way for responsible growth in this sector.
US Herbal Extract Market Segment Insights:
Herbal Extract Market Source Insights
The US Herbal Extract Market, categorized by Source, showcases a diverse array of offerings that play a vital role in various industries such as food and beverages, pharmaceuticals, and personal care. The Source segment encompasses popular herbs including Mint, Rosemary, Thyme, Basil, Dill, Lavender, and others, each contributing unique flavors, aromas, and health benefits. Mint, for instance, is widely recognized for its refreshing taste and is often used in beverages and culinary dishes, indicating its significant position in the market. Similarly, Rosemary holds importance due to its antioxidant properties and is frequently used in food preservation and as a flavoring agent. Thyme is celebrated for its medicinal properties and versatility in culinary applications, providing substantial appeal to consumers seeking natural remedies. Basil, known for its aromatic and flavorful characteristics, denotes its importance in the herbal extract sphere, particularly in sauces and dressings. Dill adds a distinct taste to various dishes and is revered in pickling processes, thereby maintaining its strong presence in the market. Lavender, recognized for its calming effects, is gaining traction in both the culinary world and personal care products, showcasing the adaptability of herbs to meet consumer demands for wellness and relaxation. The Others category includes various herb extracts that further diversify the market, emphasizing the growing trend towards utilizing natural ingredients in formulations. As consumer preferences shift toward health-conscious products, the US Herbal Extract Market is experiencing substantial growth, driven by the demand for natural flavors and health benefits associated with these herbal sources. While challenges such as supply chain complexities and fluctuating agricultural conditions may impact the availability of these extracts, opportunities arise from the increasing consumer inclination for organic and sustainably sourced herbs. The market segmentation effectively captures the nuances and trends influencing the herbal extraction landscape, especially within the context of evolving consumer behavior in the United States. The continual rise in the popularity of herbal extracts, underpinned by both traditional uses and modern applications, highlights the enduring relevance of this Source segment in a rapidly changing market environment.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Herbal Extract Market Form Insights
The US Herbal Extract Market, particularly within the Form segment, showcases a diverse range of products with notable characteristics that cater to various consumer needs and preferences. The Liquid/Tinctures category is significant due to its rapid absorption and ease of use, making it a popular choice for those seeking quick benefits from herbal extracts. Powders, on the other hand, maintain a strong consumer base as they offer versatility in applications such as food, beverages, and supplements, appealing to health-conscious individuals wanting to incorporate herbal benefits into their daily life.Essential Oils occupy a crucial space within the market, valued for their aromatic properties and therapeutic uses in aromatherapy and personal care, underscoring the growing trend towards natural and holistic wellness solutions. Other forms also contribute to the market's richness, encompassing a variety of herbal products that cater to niche markets and specialized consumer preferences. In this dynamic market landscape, each form presents unique growth opportunities driven by rising health awareness, increased demand for natural ingredients, and the expanding herbal wellness landscape in the United States.The evolving consumer perception towards herbal remedies continues to bolster the US Herbal Extract Market segmentation, as individuals gravitate towards plant-based alternatives for health and lifestyle enhancement.
Herbal Extract Market Application Insights
The Application segment of the US Herbal Extract Market plays a crucial role in defining its growth trajectory. Notably, the Food and Beverages sector utilizes herbal extracts for flavoring, coloring, and preservation, aligning with the increasing consumer preference for natural ingredients. Similarly, the Pharmaceuticals domain increasingly integrates herbal extracts due to their medicinal properties, contributing to the rising trend of alternative and holistic health solutions. The Personal Care and Cosmetics industry extensively harnesses these extracts for their beneficial effects on skin and hair, enhancing product desirability while appealing to health-conscious consumers.Additionally, the Other applications, which may include niche markets, signify opportunities for innovation as they address specific consumer needs. Collectively, these sectors underscore the significance of the US Herbal Extract Market segmentation, reflecting evolving consumer tastes, enhanced product formulations, and a growing shift towards wellness and sustainability, thereby supporting market growth.
US Herbal Extract Market Key Players and Competitive Insights:
The US Herbal Extract Market has experienced significant growth over the past few years, driven by increasing consumer demand for natural and organic products, as well as a growing awareness of the health benefits associated with herbal extracts. This market is characterized by a diverse range of players, from small startups to established companies, each contributing to the competitive landscape with a variety of product offerings and marketing strategies. The market is segmented into various categories based on application, such as food and beverages, dietary supplements, personal care products, and others. As the trend towards natural health solutions continues to gain traction, companies are focusing on innovation, sustainability, and maintaining high-quality standards to differentiate themselves from competitors. The competitive dynamics within this market highlight the importance of strategic partnerships, research and development efforts, and the ability to adapt to evolving consumer preferences.A. Hodgson has a prominent presence in the US Herbal Extract Market, leveraging its long-standing reputation for quality and expertise in herbal formulation. The company prides itself on sourcing high-quality raw materials, ensuring that its products meet stringent quality standards. One of the strengths of A. Hodgson lies in its extensive product portfolio, which caters to various industries including food and beverage, dietary supplements, and cosmetics. By establishing strong relationships with suppliers and customers, A. Hodgson ensures a consistent supply chain and fosters brand loyalty. The company also focuses on research and development to create innovative solutions tailored to consumer needs, enabling it to maintain a competitive edge in this crowded market.Sabinsa stands out in the US Herbal Extract Market, renowned for its commitment to research and the development of evidence-based herbal extracts. The company offers a wide range of products, including standardized herbal extracts, specialty ingredients, and nutritional supplements, catering to both manufacturers and consumers. One of Sabinsa's key strengths is its focus on quality and safety, which is underscored by its rigorous testing protocols and compliance with regulatory standards. The company actively invests in research, exploring the therapeutic potential of various botanicals, which not only positions it as a leader in innovation within the herbal extract space but also enhances its credibility. Over the years, Sabinsa has expanded its market presence through strategic mergers and acquisitions, allowing it to broaden its product offerings and strengthen its distribution channels across the US. This has positioned Sabinsa well to meet the growing demand for herbal extracts, while promoting sustainability and responsible sourcing practices.
Key Companies in the US Herbal Extract Market Include:
A. Hodgson
EMSL Analytical
Ginkgo BioWorks
Herbalife
Solae
Kalsec
Naturex
Thar Process
Nutraceutical International
Martin Bauer Group
Ashland
Bio Botanica
Indena
Extracts from Nature
US Herbal Extract Market Industry Developments
Recent developments in the US Herbal Extract Market have seen significant activity with companies like Sabinsa and Ginkgo BioWorks expanding their portfolios. The market is experiencing growth driven by rising consumer demand for natural health products, which has been further stimulated by an increasing focus on wellness and preventive healthcare. In terms of mergers and acquisitions, in June 2023, Herbalife announced its acquisition of a smaller herbal supplement company to enhance its product offerings and market share, a move that reflects the competitive landscape of the herbal market. Kalsec and Naturex are also focusing on enhancing their extraction technologies to cater to evolving consumer preferences. The North American herbal extract market is projected to maintain a steady growth rate, with an increasing valuation driven by innovative product launches. Major happenings in the past few years include regulatory advancements in herbal product approvals by the FDA in March 2022, encouraging more players to enter the space. With the emphasis on sustainability and organic sourcing, companies like Ashland and Extracts from Nature are leading initiatives that align with environmental standards and consumer expectations for clean label products in the herbal extract segment.
US Herbal Extract Market Segmentation Insights
Herbal Extract Market Source Outlook
Mint
Rosemary
Thyme
Basil
Dill
Lavender
Others
Herbal Extract Market Form Outlook
Liquid/Tinctures
Powders
Essential Oils
Others
Herbal Extract Market Application Outlook
Food & Beverages
Pharmaceuticals
Personal Care & Cosmetics
Others
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 7.14(USD Billion) |
| MARKET SIZE 2024 | 7.9(USD Billion) |
| MARKET SIZE 2035 | 14.5(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 5.676% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | A. Hodgson, Sabinsa, EMSL Analytical, Ginkgo BioWorks, Herbalife, Solae, Kalsec, Naturex, Thar Process, Nutraceutical International, Martin Bauer Group, Ashland, Bio Botanica, Indena, Extracts from Nature |
| SEGMENTS COVERED | Source, Form, Application |
| KEY MARKET OPPORTUNITIES | Growing demand for natural remedies, Increasing popularity of plant-based products, Rising health-conscious consumer base, Expansion of e-commerce channels, Emerging applications in cosmetics and food. |
| KEY MARKET DYNAMICS | Increasing consumer health consciousness, Rising demand for natural products, Regulatory challenges and compliance, Technological advancements in extraction, Strong competition among suppliers |
| COUNTRIES COVERED | US |
Frequently Asked Questions (FAQ) :
The US Herbal Extract Market is projected to be valued at 7.9 billion USD in 2024.
By 2035, the market is expected to reach a value of 14.5 billion USD.
The expected compound annual growth rate (CAGR) for the market from 2025 to 2035 is 5.676%.
As of 2024, the Mint sub-segment is projected to generate the highest revenue at 1.9 billion USD.
The Rosemary sub-segment is expected to be valued at 2.7 billion USD by 2035.
Major players in the market include A. Hodgson, Sabinsa, Ginkgo BioWorks, and Herbalife among others.
The Thyme sub-segment is valued at 1.3 billion USD in 2024.
The Basil sub-segment is projected to reach 1.8 billion USD by 2035.
The market faces challenges such as regulatory hurdles and competition from synthetic alternatives.
The Dill sub-segment is expected to grow to a value of 2.1 billion USD by 2035.
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