Plant Extracts - Market Insights, Competitive Landscape, and Market Forecast - 2030

Plant Extracts Market By Type (Phytomedicines, Essential Oils, Flavonoids, Oleoresins, And Others), By Form (Powder And Liquid), By Application (Food & Beverages, Pharmaceutical, Cosmetics, Dietary Supplements, And Others), and by geography expected to advance at a respectable CAGR forecast till 2030 owing to the increasing demand of essential oils and fragrance in cosmetic industry and rising demand of natural cosmetic and pharmaceutical products from consumers across the world

The global plant extracts market is estimated to grow at a CAGR of 11.39% during the forecast period from 2024 to 2030. The plant extracts market is observing remarkable market growth primarily owing to the increasing prevalence of obesity, diabetes, cardiovascular disorders, and others which can be managed using various phytochemicals and essential oils, among other plant extracts. Additionally, increasing demand for plant-based ingredients and flavors, rising adoption of herbal products in the cosmetic and pharmaceutical industry, and surging demand for plant extracts in the food and beverage industry will spur the demand for plant extract in the market during the forecast period. Further, the rising awareness about health & wellness among consumers, increasing demand for clean products the increasing launches of ingredients and final products in the market, the presence of key players, and other factors will create a requisite for plant extracts in the market. Therefore, the market for plant extracts is estimated to grow at a substantial CAGR during the forecast period from 2024 to 2030.

Plant Extracts Market Dynamics:

One of the key aspects for driving the plant extracts market is the rising demand for essential oils, herbal flavors, and fragrances in the cosmetic and food & beverages industry.

For instance, essential oils are used in cosmetics, perfumery, food & beverages, and cleaning products. Moreover, they are also used for antiseptic, decongestant, soothing, antispasmodic, and anti-inflammatory properties. Further, some essential oils such as lemon and orange possess, antiseptic, anti-acne, and brightening properties, making them a promising ingredient in the cosmetic industry.

The cosmetic industry is growing exponentially which in turn will affect the demand for essential oils, phytochemicals, and other plant extracts. The plant extracts are also used in soaps, deodorants, brightening creams, hair colors, and other cosmetic products. Thus, the rising demand for cosmetic products will increase the demand for plant extracts ultimately surging the overall market growth of plant extracts during the forecast period.

Moreover, various companies operating in the plant extract market have witnessed an increase in their annual sales and income. For instance, Takasago International Corporation, a major international producer of flavors and fragrances headquartered in Japan, reported YEN 162,440 million in income in the fiscal year 2022- 2022, as compared to YEN 150,367 million in 2020-2022. Similarly, many other key players observed an increase in their annual revenue which indicates that the demand for various essential oils, flavors, perfumes, and other plant extracts is rising across the globe.

Further, in May 2020, the European Food Safety Authority (EFSA) approved plant extracts, concluding that these ingredients are safe to use at the proposed levels in the novel food application. Hence, the growing opportunities for extracts in the food and beverage segment and approval from the EFSA are expected to drive its demand in the market.

Lastly, the rising consumer awareness about the negative health effects of consuming synthetic products is driving demand for plant-based products, owing to which the key players are increasing manufacturing of plant extracts and are also launching new products in the market. For instance, in April 2019, DSM, Vidya Herbs, the leading manufacturer of organic and conventional herbal extracts and natural carotenoids launched a sunflower extract with 40% chlorogenic acids.

Therefore, the factors stated above collectively will drive the overall plant extracts market during the forecast period from 2022 - 2028.

However, the high production cost, side effects of plant extraction medicine, stringent regulatory approval process, and others may halt the growth of the plant extracts market during the forecast period (2022 - 2028).

The plant extracts market was positively impacted during the period of COVID- 19 pandemic owing to the immunity booster property of many plant extracts and products such as elderberry extract, echinacea extract, vitamin C, turmeric, and fruit powder blend. However, during the initial phase of the pandemic, the market witnessed a breakdown owing to the imposition of strict lockdown rules, restrictions in manufacturing, and disruption in raw materials, supply chain, manpower, and other resources, thereby reducing the demand for plant extracts in the market. However, with the increasing demand for plant extracts and products to improve immunity to combat the spread of infection, the demand for plant extracts increased exponentially. Additionally, the preventive measures and care recommended by many government organizations during COVID-19 included many plant extracts and products, thereby encouraging people to consume them to prevent the spread of infection. Thus, the above-mentioned factors were aiding in the growth of Plant Extracts during the pandemic and are anticipated to do the same during the forecast period from 2022 - 2028.

Plant Extracts Market Segment Analysis:

Plant Extracts Market by Type (Phytomedicines, Essential Oils, Flavonoids, Oleoresins, and Others), Form (Powder and Liquid), Application (Food & Beverages, Pharmaceutical, Cosmetics, Dietary Supplements, and Others), and Geography (North America, Europe, Asia-Pacific, and Rest of the World).

In the application segment of the plant extracts market, the food & beverages segment is expected to have a significant revenue share in the year 2023. This was primarily owing to the increasing demand for natural, safe, and minimally processed food products across the globe.

Further plant extracts' antimicrobial properties help preserve food and beverage products for a longer period, which is expected to drive product demand from manufacturers who are focused on increasing product shelf life without sacrificing quality. Also, food and beverage manufacturers are including healthy and nutritional natural extracts in their product offerings due to the rising consumer preference for natural products over synthetic ones and rising demand for superior quality food products.

The plant extracts contain polyphenols, which are vital elements in preventing cardiovascular and neoplastic diseases. Also, health-conscious consumers are getting inclined toward food products with high nutritional content. Thus, food & beverage manufacturers focus on fortifying food products with clean labels (natural and recognizable ingredients) and nutritious plant-based ingredients such as tea extracts.

Additionally, the development of plant extracts by major players for low- and no-alcohol beverages is expected to drive its demand in the market. For instance, in November 2022, Kerry launched its Botanicals Collection Zero, a range of clean-label, "premium" botanical extracts - containing 0% ethanol - designed specifically for the low- and no-alcohol beverage markets.

Therefore, owing to the above-mentioned factors, the demand for food & beverages containing plant extracts rises, thereby the category is expected to witness considerable growth eventually contributing to the overall growth of the global plant extracts market during the forecast period.

Asia-Pacific is expected to hold the largest share of the Plant Extracts Market:

Among all the regions, Asia-Pacific is expected to hold the largest share in global plant extracts in 2022 and is expected to do the same during the forecast period from 2024-2030.

This can be ascribed to the increasing prevalence of obesity, diabetes, cardiovascular disorders, and others, which can be treated using various plant extracts. Moreover, the rising demand for plant extract in the food and beverage industry and the presence of domicile players in the region, are among the key factors that contribute to the growth of the plant extracts market in Asia-Pacific.

Also, the region has many small and medium-sized manufacturers of plant extracts that are well-versed in the processing of plant extracts. For instance, Alchemy Chemicals, Vital Herbs, Sydler, and Plantnat are manufacturers in Indonesia, India, and Thailand and are continuously investing in the market of plant extracts in Asia-Pacific.

Further, India is home to a diverse range of plants and has one of the world's richest medicinal vegetable legacies. Furthermore, plants that contain therapeutic agents are highly valued all over the world because they aid in the prevention of diseases and ailments. With increased ventures and demand for plant-based extracts in various markets around the world from India, there are promising opportunities for new and existing players to tap into the fast-growing market and gain a market position.

Lastly, the penetration of organized and e-commerce retailers in the region is driving the consumption of convenience food products, including ready meals & beverages, packaged snacks, and other products, wherein plant extracts are incorporated to impart flavor, fragrance, and functional properties.

Therefore, the interplay of the aforementioned factors above would provide a conducive growth environment for the Asia-Pacific region in the plant extracts market.

Plant Extracts Market Key Players:

Some of the key market players operating in the plant extracts market include Givaudan, Dohler, Symrise, MartinBauer, ADM, Kemin Industries, Inc., International Flavors & Fragrances Inc., Chr. Hansen Holding A/S, Indena S.p.A., Sensient Technologies Corporation, Nutra Green Biotechnology Co., Ltd., Synergy, Vidya Herbs, TOKIWA PHYTOCHEMICAL CO., LTD., NATIVE EXTRACTS Pty Ltd, Arjuna Natural, RANSOM NATURALS LTD, Kalsec Inc., Plant Extracts International Inc., Blue Sky Botanics, and others.

Recent Developmental Activities in the Plant Extracts Market:

In April 2022, Symrise developed synthetic-grade caprylyl glycol from 100% plant extracts. Symrise is producing it with its proprietary technology.

In May 2022, Synergy Flavors Inc. acquired Innova Flavors, a supplier of savory flavors and ingredients. The acquisition expands Synergy's savory capabilities and will support upcoming new product development in meat alternatives, plant extracts sauces, side dishes, and snacks.

In January 2020, ADM, an American multinational food processing company acquired Yerbalatina, a Brazilian botanical extracts manufacturer to build its presence in the plant extracts market.

In May 2019, Givaudan, a leading player in flavor and fragrance acquired a Vietnamese flavor company. This acquisition strengthens the product portfolio in natural flavor, extract, and essential oils.

Key Takeaways from the Plant Extracts Market Report Study

• Market size analysis for current plant extracts market size (2023), and market forecast for 5 years (2024-2030)
• The effect of the COVID-19 pandemic on this market is significant. To capture and analyze suitable indicators, our experts are closely watching the plant extracts market.
• Top key product/services/technology developments, mergers, acquisitions, partnerships, and joint ventures happened for the last 3 years
• Key companies dominating the global plant extracts market.
• Various opportunities available for the other competitor in the plant extracts market space.
• What are the top-performing segments in 2023? How these segments will perform in 2030.
• Which are the top-performing regions and countries in the current plant extracts market scenario?
• Which are the regions and countries where companies should have concentrated on opportunities for plant extracts market growth in the coming future?

Target Audience who can be benefited from this Plant Extracts Market Report Study

• Plant extracts providers
• Research organizations and consulting companies
• Plant extracts -related organizations, associations, forums, and other alliances
• Government and corporate offices
• Start-up companies, venture capitalists, and private equity firms
• Distributors and traders dealing in plant extracts
• Various end users who want to know more about the plant extracts market and latest developments in the plant extracts market.

Frequently Asked Questions for the Plant Extracts Market:

1. What are plant extracts?

Plant extracts are substances derived from plants and herbs. It contains active compounds such as alkaloids, steroids, tannins, glycosides, volatile oils, phenols, and flavonoids, as well as medicinal properties. These active compounds can be found in a variety of plant parts, including leaves, flowers, bark, seeds, fruits, and roots. Plant extracts are used in a variety of industries, including food and beverage, cosmetics, and pharmaceuticals.

2. What is the global market for plant extracts?

The global plant extracts market is estimated to grow at a CAGR of 11.39% during the forecast period from 2024 to 2030.

3. What are the drivers for the global plant extracts market?

The plant extracts market is witnessing positive market growth owing to the factors such as the increasing demand for plant-based ingredients and flavors, rising demand for plant extract in the food and beverage industry, growing trend of clean label food products, rising adoption of herbal products in the cosmetic and pharmaceutical industry, increasing product launches and approvals, presence of key players in the market, and others will create an exigency for the plant extracts market.

4. Who are the key players operating in the global plant extracts market?

Some of the key market players operating in the plant extracts market include Givaudan, Dohler, Symrise, MartinBauer, ADM, Kemin Industries, Inc., International Flavors & Fragrances Inc., Chr. Hansen Holding A/S, Indena S.p.A., Sensient Technologies Corporation, Nutra Green Biotechnology Co., Ltd., Synergy, Vidya Herbs, TOKIWA PHYTOCHEMICAL CO., LTD., NATIVE EXTRACTS Pty Ltd, Arjuna Natural, RANSOM NATURALS LTD, Kalsec Inc., Plant Extracts International Inc., Blue Sky Botanics, and others.

5. Which region has the highest share of the plant extracts market?

Among all the regions, Asia-Pacific is estimated to hold the major revenue share in the global plant extracts market. This can be ascribed to the increasing prevalence of obesity, diabetes, cardiovascular disorders, and others, which can be treated using various plant extracts. Moreover, the rising demand for plant extract in the food and beverage industry and the presence of domicile players in the region are the reasons which act as a supportive factor for Asia-Pacific plant extract market growth.