Herbal and botanical extracts are booming worldwide, with the market projected to grow at an annual rate of 5.5% annually between now and 2030, reaching a value of USD 54.2 billion.
The Rooibos Council said that Rooibos, known for its versatility and health benefits, like supporting heart health, aiding in stress management and digestion, is beginning to make significant inroads into this market, steadily becoming a notable player in the global extracts industry.
Adele du Toit, spokesperson for the Rooibos Council, said more than half of global consumers are now seeking products featuring botanicals, driven by a shift toward natural ingredients, rising health consciousness and a growing preference for functional foods, beverages and clean skincare. “Macroeconomic factors like increasing disposable incomes, advancements in biotechnology and an ageing population are further fuelling this surge.”
Du Toit added that the market for green Rooibos extract alone, currently valued at approximately USD 141 million, is projected to grow at a compound annual growth rate (CAGR) of 6.3% over the next five years, reaching an estimated value of USD 227 million,. “Sourced from the Aspalathus linearis plant, indigenous to South Africa, Rooibos extracts are used in a variety of sectors, including food and beverages, cosmetics, nutraceuticals and health supplements. This rapidly growing market not only boosts Rooibos’ economic significance, but also positions SA as a key player in global agriculture and trade.”
Du Toit said that Rooibos extracts are essentially concentrated versions of the Rooibos plant. “We extract the bioactive compounds from purified Rooibos leaves and stems by soaking them in hot water. After filtration and concentration, the solution undergoes further processing through evaporation to produce a highly concentrated Rooibos extract, which is then dried into a fine powder. These extracts are packed with antioxidants like aspalathin and nothofagin, which are known to offer health benefits, such as reducing inflammation, supporting heart health and combating oxidative stress.”
Du Toit added that Rooibos extracts come in two main types (red and green): Red Rooibos extract is produced from fermented Rooibos leaves. The fermentation process gives the extract its characteristic reddish-brown colour and sweet, earthy flavour. While the antioxidant levels are slightly lower than in green Rooibos, red Rooibos extract remains a popular choice for applications emphasising taste and general health benefits.
Du Toit added that Green Rooibos extract is derived from unfermented Rooibos leaves, which are processed to prevent oxidation. This version retains a lighter colour and grassy flavour, as well as higher antioxidant levels. Green Rooibos extract is especially prized in products marketed for maximum health efficacy.
Du Toit said that as South Africa is the sole producer of Rooibos, it holds a unique position in the global market. “Rooibos extracts are exported to key regions, which include Europe, Asia, North America, Australia and New Zealand.”
Du Toit added that the demand for Rooibos extracts reflects a broader trend toward natural, sustainable ingredients. “Green and red Rooibos extracts each offer unique benefits and their applications span diverse industries. This growth underscores the country’s capacity to meet international demand while maintaining stringent quality standards.”
Du Toit said that the Rooibos extract market is on an upward trajectory, and challenges such as climate change and rising production costs pose risks. “However, the industry is adapting through research into drought-resistant farming methods and sustainable harvesting techniques. By investing in innovation and sustainable practices, the Rooibos industry is well-positioned to maintain its competitive edge.”
BUSINESS REPORT