The Malagasy plant extracts are gaining increased popularity during the coronavirus situation. Pharmaceutical companies in the organic herbal extracts market are capitalizing on this opportunity to produce capsules using Malagasy plant extracts that hold promising potentials to treat COVID-19. This trend is prominent in Madagascar and other African countries where there is abundance for the Malagasy plant. Thus, African manufacturers can upgrade their supply and export chains to tap into revenue opportunities during the pandemic. As such, medications with anti-malarial properties are being highly publicized for treatment of coronavirus in patients. This factor is likely to drive the organic herbal extracts market.
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Clean Labels Help Prevent Adverse Events Caused Due to Yeast Extracts
The organic herbal extracts market is slated to register a favorable CAGR of 4.8% during the forecast period. Manufacturers are diversifying their production in yeast extracts that act as flavoring agents in beverages and bread. However, it has been found that many individuals experience mild flushing on their skin and headaches after consuming foods and beverages made from yeast extracts. Hence, manufacturers should incorporate clean labels on products to make people aware about the product’s ingredients. They are working with the medical community to establish the judicial use of yeast extracts in food and beverage (F&B) products.
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EU Organic Regulations Help Innovate in F&B Products
Apart from food and essential oils, manufacturers in the organic herbal extracts market are unlocking revenue opportunities in cosmetics and personal care products. This explains why the organic herbal extracts market is predicted to reach US$ 8.4 Bn by the end of 2030. Manufacturers are increasing their product portfolio in organic and certified flavors in F&B products. In order to expand their business in Europe, companies are adhering to the EU organic regulations to innovate in F&B products.
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Health and Nutrition Industries Establish Stable Revenue Streams for Manufacturers
Botanical extracts are being highly publicized for innovations in the health and nutrition industries. Nexira— a supplier of acacia, natural ingredients, and botanical extracts is expanding its business streams in health, nutrition, and F&B products, owing to growing awareness about organic and herbal ingredients in products. The burgeoning demand for natural and high quality products are acting as growth drivers for the organic herbal extracts market. The clean label movement is fueling market growth, since growing awareness about dietary benefits of organic ingredients is surging in the market landscape.
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