Herbal extracts to reach US$59.4 bn by ‘25, 10-15% being organic
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Dr H N Shivaprasad
October 01 , 2020
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The global herbal extracts market has been growing at a continuous pace because of its various health benefits and increasing awareness about side-effects from using chemical-based products. Consumers are increasingly becoming aware of the food safety issues and environmental issues because of their increased concern about health, the environment’s health and its global implications. Organic food and food supplements have become a viable alternative for an increasing number of consumers, who are worried about the presence of chemicals / pesticides residue and the negative consequences on the environment caused by intensive production methods. Many farmers also now see organic farming to stabilise or even increase their income due to public policy support and growing market demand. The applications of organic herbal extracts include food & beverages, nutraceuticals, organic certified food supplements, organic certified dietary supplements, organic functional foods, certified organic cosmetics & personal care, pharmaceuticals, and others.
Global Organic Herbal Extracts Market Organic herbal extracts are the extraction of plants, spices which are cultivated with natural and organic treatment. Organic herbal extraction can be in the form of essential oils, flavours and fragrances, extracts, spices or in other forms. Organic herbal extracts are the most demanding ingredients in today’s food and beverage, dietary supplements and pharmaceuticals industries. Food manufacturers use organic herbal extracts as ingredients in the manufacturing of food products. These characteristics of organic herbal extracts are making it special and unique ingredients in the food and beverage industry. Dietary supplements manufacturers are creating huge opportunities for the global organic herbal extracts market. Organic extracts have a strong consumer base in the healthcare and cosmetics industry. Herbal extracts contain beneficial phytochemicals supplements for human health and acting as natural antioxidants.The consumer attraction towards organic or chemical free products is likely to contribute to the growth of organic extracts market. Growing demand for organic extracts from various industries such as food and beverages, pharmaceuticals to impart colour, flavour, and nutrition is anticipated to boost the growth of the organic extracts market in the near future. Consumers are now attracting more towards herbal cosmetic and personal care products and raising the demand for organic extracts in the global market.
Popular organic herbal extracts in demand include extracts such as turmeric, bacopa, garcinia, cinnamon, holy basil, triphala, ashwagandha, amla, black pepper, andrographis and so on. The global organic extracts market includes North America, Latin America, Europe, CIS & Russia, Japan, Asia Pacific excluding Japan (APEJ), and the Middle East and Africa (MEA). Among the mentioned regions, North America is projected to show dominance over other regional segments. The rising demand and preference for organic products and a healthier lifestyle among the population are the key driving factors for the organic extracts market in the region. .Europe and APEJ are expected to grow significantly due to the growth of food - beverage industry and pharmaceutical industry in the regions. Prominent organic herbal extracts manufacturers from India are investing to expand the distribution network and attract more consumers towards the organic and herbal products. The marketing strategy by manufacturers is expected to contribute for the growth of organic extracts market in the coming period. According to MarketsandMarkets analysis, the herbal extracts market is estimated to be valued at US$23.7 billion in 2019 and is projected to reach US$59.4 billion by 2025, at a CAGR of 16.5% from 2019 to 2025. Out of which, 10-15% will be covered by organic herbal extracts which is a premium and upcoming opportunity.
Regulations pertaining to Organic herbal extracts India Organic - National Programme for Organic Production (NPOP) The national programme involves accreditation programme for certification bodies, norms for organic production, promotion of organic farming. The NPOP standards for production and accreditation system have been recognised by European Commission and Switzerland as equivalent to their country standards. Similarly, USDA has recognised NPOP conformity assessment procedures of accreditation as equivalent to that of the US. NPOP proposes to provide an institutional mechanism for the implementation of National Standards for Organic Production (hereinafter referred to as ‘NSOP’). The Agricultural and Processed Food Products Export Development Authority (APEDA) was established by the Government of India under the Agricultural and Processed Food Products Export Development Authority Act passed by Parliament. APEDA shall function as the Secretariat for the implementation of the NPOP.
USA: The National Organic Program (NOP) NOP develops the rules & regulations for the production, handling, labelling, and enforcement of all USDA (The United States Department of Agriculture) organic products. This process, referred to as rulemaking, involves input from the National Organic Standards Board (a Federal Advisory Committee made up of 15 members of the public) and the public. The NOP also maintains a handbook that includes guidance, instructions, policy memos, and other documents that communicate the organic standards. When the final NOP rule was published in December 2000, the labelling of dietary supplements (as well as other non-food products, such as cosmetics and body care products) was stated as “outside the scope of these regulations.”However, in August 2005, NOP announced that any raw or processed agricultural product that meets NOP standards can be labeled and marketed as organic “irrespective of the end use of the product.” This means that dietary supplements may be marketed with organic labelling, so long as they contain agricultural products such as herbs or vitamins and minerals derived from organically produced plants or animals; and comply with the NOP regulation.
(The author is director, Prakruti Products Pvt Ltd. He can be reached at shiv@prakruti.com)
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