Ayurvedic Herbal Extract Market Expected to Reach $68.6 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Ayurvedic Herbal Extract Market," The ayurvedic herbal extract market was valued at $41.5 billion in 2022, and is estimated to reach $68.6 billion by 2032, growing at a CAGR of 5.2% from 2022 to 2032.

The ayurvedic herbal extract industry includes the production, distribution, and consumption of herbal extracts derived from traditional ayurvedic practices. These extracts, obtained from various medicinal plants and herbs, are valued for their holistic health benefits. This industry offers consumers with a diverse range of products for wellness, pharmaceuticals, nutraceuticals, and personal care applications.

The global ayurvedic herbal extract market growth is driven by an increasing preference for natural products with minimal side effects in the medical and cosmetic sectors. The market growth is also boosted by a rising awareness regarding the adverse effects associated with synthetic therapies. Ayurvedic herbal extracts are gaining traction in both developing and developed countries, driven by their natural origin and lower likelihood of side effects. A notable advantage lies in the phytochemicals of herbal extracts, bypassing the need for digestion and ensuring quick absorption, providing greater convenience compared to the consumption of raw herbs. The market is growing due to an increasing awareness regarding the advantages and characteristics of herbal extracts. All these factors projected to drive the ayurvedic herbal extract market size during the forecast period.

The shortage of raw materials for herbal products is primarily due to their seasonal availability and insufficient supply, posing challenges in the manufacturing process. This scarcity is expected to impact the herbal extracts market negatively. In addition, fluctuating prices of these raw materials are further expected to hamper market growth during the forecast period. The combination of seasonal availability and price volatility highlights the need for strategic planning and supply chain management within the herbal extracts industry to mitigate these challenges and ensure a stable market environment. All these factors restrict the ayurvedic herbal extract market forecast period. 

The ayurvedic herbal extract market opportunities is driven by a global shift towards natural and holistic wellness solutions. As consumers increasingly prioritize health-conscious choices, the demand for ayurvedic herbal extracts is expected to increase, presenting a lucrative opportunity for market expansion. The recognition of Ayurveda's efficacy in promoting overall well-being and addressing specific health concerns has led to increased adoption of ayurvedic herbal extracts in pharmaceuticals, nutraceuticals, personal care, and cosmetics. Moreover, the rising consumer awareness regarding the therapeutic benefits of ayurvedic ingredients is driving innovation in product formulations. In addition, side effects from allopathic medicines, such constipation, dermatitis or skin rashes, diarrhea, headaches, dry mouth, and sleeplessness, are now well known to the public. Because of these adverse effects, people are also able to retain their health by switching to Ayurveda and ayurvedic medicines.

The ayurvedic herbal extract market share is segmented on the basis of type, application, and region. By type, it is classified into ashwagandha, ajwain, bramhi, ginseng, cardamom, cumin, basil, neem, licorice root, turmeric, rosemary, and others. By application industry, it is classified into food & beverages, personal care & cosmetics, pharmaceutical & nutraceutical, and animal feed. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the ayurvedic herbal extract market analysis report include 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.

The report offers a comprehensive analysis of the global ayurvedic herbal extract market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights on the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the market.

Impact of COVID-19 on the Global Ayurvedic Herbal Extract Industry

• The global ayurvedic herbal extract industry experienced both challenges and opportunities due to the COVID-19 pandemic. Supply chain disruptions and logistical issues hindered production and distribution, impacting overall market growth. However, increased consumer interest in health & wellness during the pandemic led to a surge in demand for ayurvedic products, creating new opportunities for market expansion and innovation in the sector.
• During the COVID-19 pandemic, there was a rise in demand for immune-boosting foods. Herbal goods are natural and widely available in countries such as India and China, and have long been used to cure a variety of ailments and as personal care items. Therefore, scientific investigations and experiments on the human body are being done to find different products based on plant extracts.
• The post-COVID-19 period has spurred increased interest in ayurvedic herbal extracts, as consumers prioritize health & wellness. The global ayurvedic herbal extract industry experiences a surge in demand, driven by a growing awareness regarding traditional medicine's holistic benefits. This shift reflects an increased focus on natural remedies, creating new opportunities for the industry's expansion and innovation.

Key Findings of the Study

• Based on type, the ashwagandha gas sub-segment emerged as the global leader in 2022 and it is anticipated to be the fastest growing during the forecast period.
• Based on application, the personal care & cosmetic sub-segment emerged as the global leader in 2022 and the pharmaceutical & nutraceutical sub-segment is predicted to show the fastest growth in the upcoming years.
• Based on region, Asia-Pacific registered the highest market share in 2022 and is anticipated to be the fastest growing during the forecast period.