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India Herbal Extracts Market - Forecast(2024 - 2030)
India Herbal Extracts Market Overview
India Herbal Extracts Market size is estimated to reach $2.6 billion by 2027, growing at a CAGR of 11.7% during the forecast period 2022-2027.
Herbal extracts can be outlined as essential oils or substances extracted from
plants. First, the product is boiled in a solvent like water or alcohol, and
then the sediment is filtered out. The extract is then dried to convert into a
powder. Ashwagandha, basil (tulsi), garlic (Allium sativum bulb), organic
spirulina, mint, and others are the primary example of plants used for their
extracts. The appearance, taste, and aroma of the extract depend upon the
quality of raw materials considered. The efficiency of the extraction process
may allow extracting more from less raw materials; moreover, it can also be
enhanced through the type of technology or equipment being used. Extracts are
categorized into standardized and unstandardized forms. Unstandardized extract
extends several advantages over herbal powders, such as better absorption in the
body because of high solubility. The only drawback associated with this form of
extracts is that there is no way to measure their potency. Standardized extracts solve this problem by extracting a specific component of the plant.
The heightening usage of herbal extracts in food and beverages, pharmaceutical,
and cosmetics has broadened their demand. Moreover, soaring demand for RTE food
and RTD beverages, changing tastes and preferences, health benefits of herbal
extracts, and rising disposable incomes are factors set to drive the
growth of the India Herbal Extracts Industry for the period 2022-2027.
Report Coverage
The report: “India Herbal Extracts Market Forecast
(2022-2027)” by Industry ARC covers an in-depth analysis of the following
segments of the India Herbal Extracts Market.
Key Takeaways
- Widescale usage in personal care, cosmetics, and food & beverages is a preeminent driver driving the growth of the Indian Herbal Extracts Market. Environmental calamities and hampered production activities because of the COVID-19 are said to reduce the market growth.
- Detailed analysis of the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the India Herbal Extracts Market report.
India Herbal Extracts Market- Application (%) for 2021.
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India Herbal Extracts Market Segment Analysis - By Source
The India Herbal Extracts Market, based on the form, can be further segmented into Neem (margosa), Henna, Sandalwood, Ambla (Emblica Officinalis), Basil (Tulsi), Mint, Ashwagandha, Aloe-vera, Thyme, and Others. Herbs like Neem held the largest market share owing to their heavy demand for producing food and several cosmetics products. Neem is well-known for its healing properties because of the presence of Sulphur compounds. Its leaf infusion plays a significant role in soothing rashes, inflammation, and itching. Within the dental field, neem is used for reducing the severity of gingivitis. Plaque-induced gingivitis is the most common form of periodontal disease, which is considered the second most common oral disease after dental caries, affecting more than 75% of the population worldwide.
Similarly, henna is used extensively as
chemical dyes and colorants. Ambla (Emblica Officinalis) has a special place as
a medicine because of its rich vitamin C nature. It is also used in various
personal care products like oils, tonics, cleansers, and others. the segment of
aforementioned herbs is estimated to be the fastest-growing, with a CAGR of 12.8%
over the forecast period 2022-2027. This growth is owing to proliferating demand
for cosmetic products and various food and beverages.
India Herbal Extracts Market Segment Analysis - By Application
The India Herbal Extracts Market, based on applications, can be further segmented into personal care & cosmetics, food and beverages, pharmaceuticals, and others. Food and beverages and personal care & cosmetics are the dominant segments that hold the largest share of the market. Herbal extracts play a significant role as antioxidants, coloring agents, packaging additives, nutrient enhancers, enzymes, and antimicrobial agents in the food industry. The rapid increase in population has soared the demand for food; as a result, the overall demand for herbal extracts is climbing up the ladder. The same segments are estimated to be the fastest-growing, with a CAGR of 12.6% over the forecast period 2022-2027. Owing to their anti-inflammatory and antiseptic properties, herbal extracts have emerged as an inextricable part of the personal care and cosmetics industry too. They are extensively used in various skin care products as they help slow down the aging process by minimizing oxidative stress.
India Herbal Extracts Market Drivers
Growing health complications are anticipated to boost market demand.
Owing to the surging old-age population and widespread
pollution, the prevalence of several health problems and medical illnesses has
reached unprecedented levels. Rising cancer cases, digestion problems,
obesity, diabetes, premature greying of hairs, hair loss, skin problems, and
others have heightened the demand for effective and safe cures. Herbal extracts
owing to their rich carotenoids and polyphenols nature play a potent role in curing
the aforementioned complications. Atopic dermatitis, acne, dry skin, psoriasis,
and melasma are common skin problems. According to a report, nearly 2.4 percent
of the world's population suffers from dermatitis. Acne is the most common skin problem in the U.S. that affects more than 50 million people every year.
In addition to that, nearly 2 to 3 percent of the world population (125-130
million) have psoriasis problems. Therefore, as the geriatric population is
anticipated to touch the 2 billion market before long, the figures are likely
to expand.
Revolutionizing retail industry is expected to boost market demand.
Owing to a lack of demand and sellers, sometimes it becomes
hard to buy such products in impoverished areas. However, internet penetration
into rural areas has opened up several opportunities and ways for people to
shop. There are nearly 658 million active internet users in India as of 2022
and out of which nearly 300 million users belong to rural areas. By 2025, it is
anticipated that the total number will reach 900 million, and rural areas will
have more users than urban centers. As a result, e-commerce is
gaining its ground and making shopping quite efficient. Furthermore, brands are
actively recruiting and partnering with YouTube creators or genuine content
creators and portraying how the inclusion of such herbs can benefit them
in their daily lives. With the ever-growing social media base in regions such as
India, the market to publish the benefits of herbs can laud a long way for
companies.
India Herbal Extracts Market Challenges
Environmental calamities and negatively hit production are Anticipated to hamper the market growth.
The rising cost of production because of the soaring crude oil prices has challenged the steady growth of the herbal extracts market in
India. Breaking the last 14-year record, the crude oil price reached $140 on March
7. Moreover, soaring inflation rates inside the country affect
consumers' purchasing power. In March 2022, India witnessed 17 months' highest
CPI inflation rate of 6.95 percent. Nevertheless, environmental calamities like
soil erosion, floods, changing durations of seasons, worsening soil fertility,
and reduction in organic content of soil are other prominent factors likely to
impact the market negatively.
India Herbal Extracts Industry Outlook:
Product launches, mergers and acquisitions, joint ventures,
and geographical expansions are key strategies adopted by players in the Market.
India Herbal Extracts market top 10 companies include-
- Green Earth Products
- Pioneer Enterprise
- Prakruti Products Pvt Ltd.
- Asean Aromatics Pvt Ltd.
- Envin Food & Industries
- Indo World Trading Corporation
- Dabur Ayurvedic Specialities Ltd.
- Synthite Industries Ltd.
- Lotus Herbals Ltd.
- Vidya Herbs Pvt Ltd.
Recent Developments
- On April 3, 2022, researchers at Banaras Hindu University claimed that nimbolide (a neem plant extract) has proven to be efficacious cancer of immune cells (T cell lymphoma). Moreover, the researchers also claimed that this anticancer bioactive component could play a significant role in treating hematological malignancies (cancer in blood-forming tissues).
- On January 20, 2022, New Delhi, India-based natural cosmetics company “Lotus Herbals” announced the successful acquisition of the 25 percent stake in Gurgaon, Haryana-based direct-to-consumer cosmetic industry Conscious Chemist. The financial details of the transaction were not revealed by the company. The investment is aimed at boosting the company’s clean beauty DTC space.
- On August 31, 2020, Lotus herbals publicized the successful acquisition of 100 percent ownership interest in New Delhi, India-based company Vedicare Ayurveda Ltd (a firm known for its ayurvedic products). The acquisition has strengthened Lotus’ premium wellness & beauty space by putting certified-natural personal care products brand “SoulTree’ in its portfolio. The total value of the transaction stands at around $13 million.
Relevant Links:
European Plant Extracts Market – Forecast (2022 - 2027)
Report Code: FBR 0351
Herbal Tea Market – Forecast (2022 - 2027)
Report Code: FBR 13025
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2027)
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