The Medicinal Plant Extracts (MPE) market has been battered by supply chain disruptions in recent years, from extreme weather events to geopolitical tensions, leading to shortages of key plants and volatile pricing. These challenges threaten to derail growth, as manufacturers struggle to secure consistent raw material supplies. Yet, these disruptions have also spurred innovation, with stakeholders adopting strategies to build resilience and ensure long-term stability.

Climate change is a primary culprit. Droughts in India (affecting tulsi and neem crops) and floods in China (disrupting ginseng cultivation) have reduced yields by 20–30% in 2023, causing extract prices to spike by 15–25%. Geopolitical conflicts, such as trade restrictions between China and the EU, have further strained supply chains, forcing manufacturers to seek alternative sourcing regions. For example, European firms previously reliant on Chinese ginseng now explore Korean andCanadian suppliers, though at higher costs. These shortages have not only impacted availability but also quality, as some manufacturers turn to lower-grade or untested plants to meet demand.

To mitigate these risks, the industry is shifting toward strategic sourcing and vertical integration. Many MPE producers are investing in farms to control raw material quality and supply, while others are diversifying suppliers across multiple regions. For instance, [Global Extracts] now sources 40% of its raw materials from certified farms in India, 30% from Vietnam, and 30% from Europe, reducing vulnerability to single-region disruptions. Additionally, advanced inventory management systems and AI-driven demand forecasting are being adopted to anticipate shortages and adjust production schedules proactively.

While these strategies show promise, they require significant investment. Smaller players, lacking resources, may struggle to adapt, potentially leading to market consolidation. The Market Research Future analysis of supply chain resilience evaluates these disruptions, their financial impacts, and actionable strategies for mitigation, making it essential reading for stakeholders seeking to navigate an unpredictable global market.