Herbs & Spice Extracts Market Size, Share Report, Analysis, Trends, Growth, 2030

Herbs & Spice Extracts Industry Prospective:

The global herbs & spice extracts market size was evaluated at $11 billion in 2022 and is slated to hit $18 billion by the end of 2030 with a CAGR of nearly 7.4% between 2023 and 2030.

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Herbs & Spice Extracts Market: Overview

Spices are derived from many parts of the plant, including barks, fruits, leaves, seeds, roots, etc., and are used for flavor, color, aroma, and preservation of food and beverages. Furthermore, herbs refer to plants with aromatic leaves. Increasing consumer preference towards ready-made spices to save cooking time and experience real flavor coupled with rising demand for authentic ingredients is stimulating market growth. Herbal extracts are derived from herbal seeds, flowers, and stems

Key Insights

• As per the analysis shared by our research analyst, the global herbs & spice extracts market is projected to expand annually at the annual growth rate of around 7.4% over the forecast timespan (2023-2030)
• In terms of revenue, the global herbs & spice extracts market size was evaluated at nearly $11 billion in 2022 and is expected to reach $18 billion by 2030.
• The global herbs & spice extracts market is anticipated to grow rapidly over the forecast timeline owing to favorable features such as anti-inflammation, anti-oxidant, anti-microbial, and antiseptic features of the product.
• In terms of form, the powder segment is slated to register the highest CAGR over the forecast period.
• Based on product type, the spice extracts segment is projected to record a massive surge in the coming years.
• Based on the sales channel, the indirect sales segment is projected to lead the segmental space in the upcoming years.
• Region-wise, the North American herbs & spice extracts industry is projected to register the fastest CAGR over the assessment timeline.

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Herbs & Spice Extracts Market: Growth Factors

Beneficial product features to drive the global market trends over the forecast period

Favorable features such as anti-inflammation, anti-oxidant, anti-microbial, and antiseptic features of the product will steer the growth of the global herbs & spice extracts market. Growing intake of healthy diets along with the popularity of ready-to-eat dishes as well as processed & convenient diets will embellish the global market trends. An increase in the awareness of medicinal features of herbs & spice extracts will embellish the growth of the market globally.

The escalating popularity of new food recipes along with the thriving tourism sector is predicted to catapult the global market elevation. Setting up of new units is predicted to contribute notably towards the growth of the global market. For instance, in May 2023, Vidya Herbs, a manufacturer of herbal extracts, launched a manufacturing unit in Bunnel and promised nearly 100 jobs in the region.

Herbs & Spice Extracts Market: Restraints

Disorganized processing procedures and lack of strong infrastructure facilities to put brakes the global industry expansion by 2030

Uncertain climatic conditions in various countries could affect the growth of herbs & spices and in turn, could impede the global herbs & spice extracts market growth. An inefficient storage method is anticipated to hinder the growth of the global industry. Disorganized processing methods and lack of availability of strong infrastructure facilities in a few of both developed nations as well as developing ones can restrict the growth of the industry globally. 

Herbs & Spice Extracts Market: Opportunities

Escalating popularity of botanical flavors from customers is expected to open new growth avenues for the global market

Growing demand for botanical flavors among the end-users along with the rising preference for variations in the flavored food items is anticipated to create new growth opportunities for the global herbs & spice extracts market in the years ahead.

Herbs & Spice Extracts Market: Challenges

Low access to raw components can put a big challenge for the global industry expansion over 2023-2030

Less availability of raw materials along with the disruptions in the supply chain activities can put a big challenge to the expansion of the global herbs & spice herbs industry. Furthermore, a rise in the import costs of the product can hinder the growth of the industry across the globe.

Herbs & Spice Extracts Market: Segmentation

The global herbs & spice extracts market is sectored into form, product type, sales channel, application, and region.

In terms of form, the herbs & spice extracts market across the globe is segregated into powder, liquid, and other segments. Furthermore, the powder segment, which acquired nearly 51% of the global market revenue in 2022, is projected to register the fastest CAGR over the forecast timeline. Moreover, the segmental surge over the coming eight years can be due to the demand for ready-made foods along with easy-to-consume diets coupled with changing lifestyles.

Based on the product type, the global herbs & spice extracts industry is divided into herb extracts and spice extracts segments. Moreover, the spice extracts segment, which led the product type space in 2022, is expected to dominate the segmental expansion even during the forecast timespan. The growth of the segment over the assessment timeline can be subject to rapid urbanization with rising disposable income, shifting consumer preference towards consumption patterns, socioeconomic, and demographic factors. Moreover, spice extracts enhance flavor and taste along with various health benefits as well as anti-oxidant and antiseptic features.

Based on the sales channel, the herbs & spice extracts market globally is sectored into direct sales and indirect sales segments. Furthermore, the indirect sales segment, which leads the sales channel space in 2022, is anticipated to boost the global market expansion by 2030. The growth of the segment in the upcoming years can be owing to increasing internet penetration globally along with rising consumer awareness about the benefits of indirect sales.

Based on the application, the global herbs & spice extracts industry is divided into food, beverages, personal care, nutraceuticals, pharmaceuticals, and other segments.

Herbs & Spice Extracts Market: Report Scope

Herbs & Spice Extracts Market: Regional Insights

Asia-Pacific is predicted to establish a strong foothold in the global Herbs & Spice Extracts market in the coming decade

Asia-Pacific, which accounted for nearly two-thirds of the global Herbs & Spice Extracts market revenue in 2022, will be the leading region in the next eight years. Moreover, the regional market elevation over the forecast timeline can be credited to the wide presence of different types of herbs and spices in the region along with an increasing population with rising disposable income. Furthermore, the region is also the leading producer and exporter of herbs and spices across the globe, which is further likely to drive the regional market value.

North American herbs & spice extracts industry is set to register the highest CAGR in the forecast timeline. The growth of the industry in North America over the forecast timeline can be owing to the presence of giant players in countries such as Canada and the U.S. Furthermore, the rise in the demand for herbs & spices along with the rise in the trade potential of small-scale farmers will steer the regional industry trends.

Herbs & Spice Extracts Market: Competitive Space

The global herbs & spice extracts market profiles key players such as:

• Naturex SA
• Kerry Group Plc
• Sensient Technologies Corporation
• Firmenich SA
• Symrise SG
• Ajinomoto Co. Inc.
• Takasago International Corp.
• Archer Daniels Midland Company
• Dohler GmbH
• Givaudan SA.

The global herbs & spice extracts market is segmented as follows:

By Form

• Powder
• Liquid
• Others

 By Product Type

• Herb Extracts
• Spice Extracts

By Sales Channel

• Direct Sales
•  Indirect Sales

By Application

• Food
• Beverages
• Personal Care
• Nutraceuticals
• Pharmaceuticals
•  Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa