Global Natural Extracts Market - 2023-2030

Overview

Global Natural Extracts Market reached US$ 11.1 billion in 2022 and is expected to reach US$ 23.2 billion by 2030, growing with a CAGR of 9.6% during the forecast period 2023-2030.

The increased health and environmental awareness among people resulted in their wise selection of products that are healthy and safe for the environment. Natural and clean-label products are receiving wide popularity as healthy choices, positively impacting the market growth. Natural extracts are extracted from various plant and animal-based natural raw materials giving a choice of vegan options in the market.

The biotechnological advancements in the field of natural extract production help in the wide expansion of the market. For instance, various studies and research revealed that a combination of various novel methods including enzyme-assisted, ultrasound-assisted and supercritical fluid extraction were recorded to be effective and efficient for the extraction of oleoresins and essential oils.

Natural extracts show high applications in different industries. Each kind of natural extract has wide priorities in specific applications. The health benefits associated with these natural extracts are increasing their demand among consumers. On the other hand, the ecological properties and natural sourcing of these products is motivating manufacturers to incorporate these ingredients in their product offerings.

Dynamics

Increased End-Use Applications

Natural extracts are incorporated in various industries due to their increased applications. Various types of natural extracts including essential oils, oleoresins and herbal extracts are used as functional foods, nutraceuticals, flavors and fragrances. They have end-use applications in food industries, pharmaceuticals and cosmetic industries. In the food industry, natural extracts are used in various roles such as natural colorants, flavoring and preservative agents.

Manufacturers are introducing new products in this category driving the market growth. For instance, In October 2021, Layn Natural Ingredient Corp, one of the world's largest innovators of natural botanical extract ingredients and solutions introduced SustaNX, the newest ingredient in its Plantae PRESERVATION. The Plantae PRESERVATION series provides clean-label and natural, preservation solutions for food and beverage, flavour, fragrance, and pet food.

The extracts are also popular in the pharmaceutical domain due to their rich medicinal properties. In May 2022, Arjuna Natural, an Indian firm focused on the production of plant-based active compounds introduced Rhuleave-K, the acute pain relief product formulated with turmeric, boswellia and other active ingredients. These extracts are claimed to be 100 % pure and natural and the composition is designed with advanced clinical formulas and technology that enhance its natural health benefits.

Various Partnerships help in the Global Expansion of the Market

Natural extracts are used as essential ingredients and additives in various applications from food & beverage to cosmetics. With the wide applications of these products, there is a greater need for proper implementation of natural extracts production, processing and distribution. The various partnerships among the market players help in the wide expansion of the market.

In January 2021, Ransom Naturals, a leading developer and manufacturer of natural extracts and products announced its partnership with Barentz International, a leading global life science ingredients distributor. Through this partnership, the company can have a hassle-free distribution of pharmaceutical and nutraceutical botanical products in about 38 countries.

In June 2020, Symrise AG, a German chemicals company that is a major producer of flavours and fragrances announced the partnership with CRIEPPAM, a France-based technical organization. The collaboration with this organization helps Symrice to identify the best inter-cropping options in lavender farming and improve the biodiversity of the plant. The quality and yields of lavender and lavender essential oils are expected to be improved.

High Price of Natural Extracts

Natural extracts are expensive compared when compared to other low-cost alternatives in the market. These products are produced from the naturally sourced raw materials. The processing of these products includes complex manufacturing processes for the extraction, concentration and purification of the product. More resources and time are consumed in providing a natural extract that is of high value.

In the process of providing a 100% natural and safe product, the manufacturers need to go through a set of regulatory frameworks. All the required procedures result in an expansive end-product. Price-sensitive people prefer synthetic products that provide the same functional benefits with less price, restraining the market growth.

Segment Analysis

The global natural extracts market is segmented based on product, application and region.

High Use of Essential Oils in Various Industries

The global natural extracts market is segmented based on products into oleoresins, herbal extracts, essential oils, natural colors and dried crops. The essential oils segment accounted for the largest segment in the global market due to its increased demand in various applications from food & beverage, personal care & cosmetics, and aromatherapy.

Some natural extracts are used as a preservative in the food industry and as an anti-inflammatory agent in natural cosmetics. The essential oils are widely popular for their use in aromatherapy in stimulating muscular aches and circulation. In June 2023, ACTIZEET, a leading natural health and wellness brand, Revolutionary Pure Essential oils in the Indian market. This new line of essential oils is gaining popularity with health-conscious Indian consumers who are willing to embrace the benefits of aromatherapy.

New launches increase segment growth. For instance, Botanical Innovations, manufacturers of a unique range of nutraceuticals launched microencapsulated essential oils in August 2023. This botanical breath microencapsulated essential oils powder is opening a new range of applications in improving product efficiency by enhancing the sensory properties of the product. This new technology of microencapsulation is designed in such a way as to allow gradual and sustained release of essential oil compounds.

Geographical Penetration

Increased Demand for Natural and Organic Products in Asia-Pacific

Asia Pacific is considered the fastest-growing region in the global natural extracts market. With the increased health consciousness, the consumers of this region are highly demanding natural and organic products is positively impacting the market growth. The high use of natural extracts in various end-user industries with multiple applications boosts this regional market growth.

Manufacturers are targeting this region's consumers to expand their market. In January 2023, a Brazil-based vegan personal care product manufacturer, Surya Brasil introduced a new kind of Henna Cream range. The company launched its product line in Asian countries that are expanding rapidly in countries including India. The new product range uses Brazilian organic extracts and is specifically meant for Indian hair and scalp types and is receiving a greater response from consumers.

Major global players are concentrating on establishing new manufacturing plants in Asian countries that are developing rapidly. For instance, Givaudan, a Swiss multinational manufacturer of flavors, and fragrances, announced its 2025 strategy to expand the company's reach to global consumers. The company opened its fragrance production facility in China in October 2020 and is expected to receive immense innovative and consumer-preferred fragranced products.

Competitive Landscape

The major global players in the market include: Symrise AG, Mane Kancor, Synthite Industries Ltd., Ransom Naturals Ltd., India Essential Oils, A.G. Industries, Flavex Naturextrakte GmbH, Arjuna Natural Pvt. Ltd., Robertet Group and Sami Spices.

COVID-19 Impact Analysis:

The outbreak of the COVID-19 pandemic had a moderate impact on the global natural extracts market. Manufacturers of all industries faced problems in arranging required resources such as raw materials and labor during the pandemic situations. With the lockdown regulations, the government declared the temporary shutdown of some of the manufacturing units, interrupting the market growth.

The natural extracts are used as ingredients in various industries. The improper distribution channels during the pandemic created a disturbance in the demand-supply chain for the end-use industries. The shutdown of offline sales channels also had a bad impact on the market, creating economic disturbances. The application of the e-commerce sector in natural extracts procurement and sales helped increase the market sales in a pandemic.

Consumers' focus on health and well-being increased immensely in the pandemic situation. People started focusing on the healthy intake of food products. The demand for natural extracts increased with the increased consumer awareness regarding the health advantages of natural extracts. Manufacturers are focused on launching new products that are incorporated with natural extracts, driving the market demand.

Russia- Ukraine War Impact

The Russia-Ukraine war had a negative impact on many industrial sectors, including food and food service categories. Manufacturers of all industries faced challenges in sourcing raw materials and other resources in war conditions due to interrupted supply chain activities. Global imports and export activities were disrupted, creating an economic disturbance in every industrial sector, including the natural extracts market.

By Product

• Herbal Extracts
• Essential Oils
• Natural Colors
• Oleoresins
• Dried Crops

By Application

• Personal Care & Cosmetics
• Food & Beverage
• Animal Feed
• Pharmaceuticals
• Nutraceuticals
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• In January 2022, Archer Daniels Midland, an American multinational food processing and commodities trading corporation, announced the acquisition of SoNatural, a Brazilian producer of natural extracts and ingredients. The acquisition helps the ADM company to expand its natural extract market.
• In November 2021, Givaudan, a Swiss multinational manufacturer of flavours, fragrances and active cosmetic ingredients, declared the acquisition of a German biotech company AMSilk. Through this acquisition, Givaudan improved its portfolio of natural ingredients and increased company product offerings.
• In August 2020, Symrise, a German chemicals company, introduced SymControl Scalp in its product offering. The company addresses the sebum overproduction issue on the scalp and released this product with Tetraselmis Suecica extract to normalize sebum production and promote good hair health.

Why Purchase the Report?

• To visualize the global natural extracts market segmentation based on product, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of natural extracts market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global natural extracts market report would provide approximately 53 tables, 52 figures and 214 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies