According to Allied Market Research's report, the global ayurvedic herbal extract market generated $41.5 billion in 2022, and is anticipated to generate $68.6 billion by 2032, rising at a CAGR of 5.2% during the forecast period. The rising popularity of herbal medicine and the increase in consciousness about health & wellness among people are anticipated to drive the growth of the global ayurvedic herbal extract market during the forecast period. The Asia-Pacific region is projected to hold the majority of the market share by 2032.
The report indicates that consumers are increasingly prioritizing beauty and skin care products that align with their wellness values. This rising preference for natural treatments with less minimal side effects in the cosmetic and medical sectors are driving the market, as well as the growing awareness regarding the adverse effects associated with synthetic therapies. A global shift towards natural solutions and the increasing technological advancements are projected to offer new opportunities for market expansion. High production costs and the shortage of raw materials for herbal products may hamper the ayurvedic herbal extract market growth.
The ashwagandha sub-segment of the global ayurvedic herbal extract market accounted for the largest share of 14.1% in 2022 and Allied Market Research projects it to grow at a CAGR of 8.41% during the forecast period. Increased demand for dietary supplements and the growing awareness regarding the medicinal and nutritional benefits of ashwagandha is contributing to ashwagandga's growth.
The ayurvedic herbal extract market in the Asia-Pacific region accounted for the largest share of 42.7% in 2022 and is predicted to grow at a the highest CAGR of 6.18% during the forecast period. Per the report, the growth is mainly due to the wide availability of herbal plants in the region, the therapeutic effect of herbal products, the age-old tradition of people using natural herbs and the adoption of healthy lifestyle after pandemic.