Herbal Extracts Development Proposed by BASF for Beauty Industry

Published: 14 Nov 2024

Author: Precedence Research

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As of 2024, BASF, one of the major players in the herbal extract market, announced a significant advancement in the development of plant-based active ingredients aimed at enhancing skin care and cosmetic formulations. This move is part of the company’s broader initiative to expand its portfolio in the natural and sustainable ingredients space, responding to the growing consumer demand for clean beauty and eco-friendly products.

BASF unveiled a new herbal extract derived from the ancient plant, Centella Asiatica, which has shown promising results in promoting skin regeneration and reducing visible signs of aging. The extract is produced using green extraction technologies, which use minimal water and energy, aligning with BASF’s commitment to sustainable production practices. This innovation not only enhances the therapeutic efficacy of herbal extracts but also emphasizes the growing trend of sustainability in the herbal extract market.

In recent years, the herbal extract market has seen remarkable growth. For example, the global demand for herbal-based cosmetics has surged by over 25% in the last five years, driven by the increasing consumer preference for natural ingredients.The countries of Asia Pacific like China, India, South Korea and Japan have a history and tradition of utilizing herbal extracts for medicinal purposes. This region’s affinity towards herbal extracts for multiple purposes coupled with favorable governmental policies has helped the region to dominate the herbal extract market. 

Herbal Extract Market Size and Forecast

The global herbal extract market size is calculated at USD 43.38  billion in 2024 and is expected to grow from USD 48.90 billion in 2025 to approximately USD 97.57 billion by 2033, registering a healthy CAGR of 9% from 2024 to 2033. The United States herbal extract market size is projected to achieve USD 18.67 billion by 2033.

Herbal Extract Market Key Takeaways

• Asia Pacific generated more than 53% of market share in 2023. The countries of this region have a long tradition of herbal extract applications. For example, in China, there is an established system for registration and regulation of traditional Chinese medicinal products that include herbal extracts. 
• By source, the fruits, flowers and bulbs segment has dominated the market with the largest market share of 45.85% in 2023. The consumer preference towards natural sources for health benefits has driven this segment’s growth.
• By type, the phytomedicines segment accounted for the biggest market share of 35.97% in 2023. The natural and clean plant based medicinal sources are becoming a popular choice amongst the consumers.
• By application, the pharmaceutical & dietary supplements segment contributed the largest market share of 36.52% in 2023. The scientific evidence supporting the benefits of herbal extracts will further help market growth.

Herbal Extract Market Report Scope

Herbal Extract Market Key Players

• Symrise
• Kancor
• Synthite Industries Ltd.
• Ransom Naturals Ltd.
• India Essential Oils
• A.G. Industries
• Flavex Naturextrakte GmbH
• Arjuna Natural Pvt. Ltd.
• Firmenich SA
• Robertet Group
• Sami Spices
• doTERRA

Major Highlights from Herbal Extract Companies

• With extensive research efforts, herbal extracts are finding applications across different industries from pharmaceuticals to food and beverages. Major companies of the herbal extract market are taking measures to find new uses for the herbal extracts. 
• In October 2024, Symrise’s cosmetics division launched Flowerconcentrole. A collection of easy to formulate and good quality olfactive flower extract that will work well for all products as well as skin types. Devised by Symrise’s Actimood technology, these products have mood-enhancing properties. 
• In October and November 2024, DSM- Firmenich will present “Imagine: The Future of Fragrances in the Middle East”, an exhibition which will be a multi-sensory experience at Al Shindagha Museum. These fragrances will be a blend of traditional and modern, that will honor Dubai’s history of fragrances. 

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