Echinacea Extract Market

Global Echinacea Extract Market Size (2024 to 2029)

The global echinacea extract market is expected to reach USD 2.71 billion by 2029 from USD 1.83 billion in 2024, growing at a compound annual growth rate (CAGR) of 8.15% during the forecast period.

Global Echinacea Extract Market Share Insights:

• The medicinal grade segment is expected to have a dominant market share due to the numerous health-promoting benefits of echinacea extract.
• The North American region is expected to have a significant market share in the echinacea extract market.
• The U.S. is the largest market for herbal and cosmetic products, and echinacea suppliers have a huge opportunity in this region.

Global Echinacea Extract Market Drivers:

The growing demand for herbal medicinal products is a major factor driving the growth of the Echinacea extract market. The increasing trend in the shift of consumption behavior towards nutritious and healthy products raises the demand for echinacea products. There is a robust growth in herbal products over the past few years. The numerous health benefits offered by the Echinacea make it a more demanded product in the healthcare industry. It is believed that the Echinacea helps in lowering blood sugar levels, boosting immunity to combat viruses & infections, reducing the feeling of anxiety, treating common skin concerns, and protecting against cancer. This, coupled with the increase in spending on health & wellness along with the growing prevalence of chronic conditions, including geriatrics, are fuelling the growth of the global echinacea extract market. 

The emerging trend of grooming and the increase in disposable income is helping to raise the demand for herbal beauty products, which ultimately drives the demand for echinacea extract. Among consumers, there is an increase in awareness about the importance of herbal products in maintaining beauty and grooming. The increase in the per capita disposable income of the people has increased the share of health and beauty care expenditures in the overall expenditure. There is an increase in focus of the market players towards the investment in research and development to meet the growing needs of the consumers, driving the development of herbal (Echinacea) medicines and Echinacea products. Echinacea products include cosmetics and others. These factors are providing a lucrative opportunity in the global echinacea extract market.

Global Echinacea Extract Market Restraints:

Despite the promising growth and immense market development opportunities, the Echinacea extract market faces several challenges restraining its growth and expansion. The challenges include regulatory hurdles, supply chain disruptions, and the need for continuous innovation to stay ahead of the competition. These factors not only act as restraints to the market but also affect the sales and revenue for the market, resulting in a declining growth rate if the proper strategic decisions are not implemented by the market stakeholders. The other restraints to the growth of the market include the lack of skilled labor coupled with the rise in the cost of cultivation. Echinacea cultivation requires skilled labor, and it is a long-term investment process for the manufacturing industries in terms of time and money.

Impact of COVID-19 on the global echinacea extract market:

COVID-19 has had a significant impact on the growth of the Echinacea Extract market during the pandemic period. The rapid spread of the pandemic and government measures to prevent COVID-19 from further spreading has created certain challenges for businesses and the entire market. The imposition of the lockdown and restrictions on traveling has led to considerable disruptions in the logistics of in-store consumable sales and the supply chain of the industry. However, there has been a positive impact on the echinacea market during the pandemic period by increasing its market share with the increase in the demand for herbal products. People believed that the herbal product would not only prevent or treat COVID-19 but may provide relief from certain conditions like stress, anxiety, and other problems caused by lifestyle changes. Natural and organic ingredients have gained demand during the pandemic period. Based on the previous use of Echinacea for treating the common cold and other ailments, the preparation of Echinacea during the COVID-19 situation has accelerated. The rise in the consumer focus on skin and hair care amid the lockdown restrictions during the pandemic period boosted cosmetic and personal care products, resulting in the expansion of the echinacea extract market in the coming years.

REPORT COVERAGE:

This research report on the global echinacea extract market has been segmented and sub-segmented based on product, application, distribution channel, & region.

Global Echinacea Extract Market - By Product:

• Reagent Grade
• Food Grade
• Medical Grade
• Others

Based on product, the medical grade segment accounts for the largest share in the echinacea extract market during the forecast timeline. The numerous health-promoting benefits associated with Echinacea are a driving factor for the segmental growth in the market. Medical-grade Echinacea is used in medical applications, including pharmaceuticals and medicinal products for biocompatibility. The manufacturers of the pharmaceutical industry started utilizing echinacea extract in medicinal applications because of its medicinal properties.

Global Echinacea Extract Market - By Application:

• Medicine
• Food and Beverages
• Dietary Supplements
• Ornamental
• Beauty Products
• Essential Oils
• Others

The medicine segment is expected to have a large market share in the echinacea extract market. Echinacea extract is widely used as an herbal product to fight against infections, mostly for the treatment of the common cold, upper respiratory infections, and flu. It is also used in the treatment of several other infections, such as vaginal yeast infections, urinary tract infections, HPV (Human Papillomavirus), nose & throat infections, herpes, and others.

Global Echinacea Extract Market - By Distribution Channel:

• Online Stores
• Retail Stores
• Hypermarket/Supermarket
• Herbal Speciality Stores

The supermarket/hypermarket is anticipated to dominate the echinacea extract market in the forthcoming years. The ease and convenience provided by these marketplaces attract more consumers towards it. The supermarket/hypermarket acts as a single umbrella store for almost all the products belonging to the different categories. These stores provide an attractive pricing strategy and offer discounts to target price-sensitive customers.

Online stores will become more popular in the coming years. This is the best store to purchase the products and target the people who are busy with their daily work. These stores are available throughout the day and deliver the product to the doorstep. This not only reduces the time but also provides various attractive offers according to the situation.

Global Echinacea Extract Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

North American region is expected to dominate the echinacea extract market during the forecast timeline. The U.S. is the key market for herbal and cosmetic products, presenting as a key attractive area for echinacea suppliers. In the U.S. and Canada, Echinacea ingredients are widely used as an herbal medicine. It is mostly consumed in pills, liquid extracts, teas, dried herbs, capsules, and dietary supplements. Echinacea purpurea is native to the U.S. and has naturalized itself in certain parts of Canada. Hence, people in this region use these plant ingredients to heal many conditions such as flu and cold. These ingredients also boost the immunity. In the coming years, North America’s echinacea extract industry share is expected to grow substantially with the increase in its application in the pharmaceutical industry. Echinacea extract has become a primary ingredient in most of the different varieties of medicines in the recently launched medicines, propelling the growth of the echinacea extract market. Several studies have shown that the herb has a potentially positive effect against the coronavirus.

KEY MARKET PLAYERS:

The Major Players in the Echinacea Extract Market are Jamieson Wellness Inc.; Bioforce AG; Nutraceutical (Solaray); Xi’an Rainbow Biotech Co., Ltd; Shaanxi Jintai Biological Engineering Co., Ltd; Gonmisol; Ancient Green Fields; Gaia Herbs; Solgar Inc; Nature’s Bounty (Bountiful Co); Jarrow Formulas; Combination Products.

RECENT HAPPENINGS IN THE MARKET:

• In 2023, lemon balm and Echinacea were the first ingredients launched by Ayana Bio. The specialty of these ingredients is they are made via plant cell culture. The aim behind this process is to provide a consistent supply of botanicals without the supply chain problems that are generally present with traditional agriculture.
• In 2022, Solgar Inc. launched the Ester C Immune Complex, an immunity-boosting product. It is a new soft gel formulation that is easy and convenient to use. It has Echinacea, elderberry, and astragalus, which are scientifically studied immune-enhancing ingredients.