PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1250728
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1250728
According to Stratistics MRC, the Global Plant Extracts Market is accounted for $16.61 billion in 2022 and is expected to reach $26.80 billion by 2028 growing at a CAGR of 8.3% during the forecast period. A material derived from plants and herbs is known as a plant extract. It is a source of active substances like alkaloids, steroids, tannins, glycosides, volatile oils, phenols, and flavonoids as well as having therapeutic characteristics. The leaves, flowers, bark, seeds, fruits, and roots of the plant, as well as other parts, contain these active chemicals. Many industries, including those in the food and beverage, cosmetic, pharmaceutical, and other sectors, use plant extracts.
According to the Centre for the Promotion of Imports, around 700 plant-based medicines are available in Germany, which are manufactured by companies such as Heinrich Klenk and Schaper & Brummer among others and are prescribed by 70% of the physicians in the country
Increasing demand for natural food ingredients
Globally, the organic food sector is increasing at a significant rate. People are becoming more conscious of the harmful effects that chemicals have on their health. The increased consumer focus on health and wellness may be attributed to the rising prevalence of lifestyle disorders such obesity, osteoporosis, diabetes, and cardiovascular diseases. As a result, person's culinary preferences and attitudes on natural ingredients have shifted. Customers are turning more and more to items that are grown and processed organically as a result of their worries about the effects of chemicals on the environment and their health. As a result, the demand for plant extracts in the food and beverage industry is driven by consumers' growing preference for natural and clean-label products.
Shortage of raw materials
Some plant species are no longer available due to forest degradation and species extinction. The supply is also limited because these medicinal plants are only grown in a few nations. Additionally, because these plants only produce once a year and have limited supply, there is an imbalance in supply and demand. It also has an impact on the cost of raw materials and the expenditure of shortage makes it expensive. It becomes challenging to standardise the final product's price because of these wide price differences. Thus, the above factors are restraining the market growth.
Rising demand for natural and organic fragrance
Consumers are becoming more and more interested in purchasing exclusively chemical-free goods. Personal care products made from natural and organic ingredients are increasingly popular with consumers. Public awareness of the dangers of synthetic chemicals is rising, which is pressuring manufacturers to include natural substances in their product line-ups. Thus, there is a rising need for plant extracts, particularly in personal care products.
Challenges of plant extracts
Crop inadequacies and scarcities were brought on by a slowdown in production, a lack of harvest workers, and a lockdown that affected port closures. These failures are made worse by extreme weather conditions, such as torrential rain in southern Europe or extreme drought and wild fires in Eastern Europe. The spice industry in Europe and the surrounding areas is heavily dependent on imports. The spice trade is directly impacted by irregularities in freight and logistics. Consequences like the scarcity of shipping containers are all-pervasive and result in sharp price increases. The market is constrained because demand exceeds supply, making annual needs risky despite season harvests and disruptions to supply continuity.
The COVID-19 outbreak has slowed down the expansion of numerous international industries, which has resulted in widespread disruption for both buyers and sellers. Global markets and production facilities have been closed, which has halted the product's production, sale, and marketing. Also, it has given the businesses a chance to maintain their business strategies and relationships with their supply chains.
The herbs & spices segment is expected to be the largest during the forecast period
The herbs & spices segment is estimated to have a lucrative growth, due to consumers' increasing global health concern, plant extracts from herbs and spices are expanding in popularity. The market expansion of this is driven by trendy flavours and flavoured beverages with sustainable and healthy ingredients. Due to their therapeutic properties as an antioxidant, anti-inflammatory, antdiabetic, antihypertensive, and antibacterial, spice extracts like cinnamon and cloves are widely used by beverage manufacturers. As a result, the demand for spice extracts in the healthier beverage industry is booming, driving the growth of the herbs and spices segment during the forecast period.
The food & beverages segment is expected to have the highest CAGR during the forecast period
The food & beverages segment is anticipated to witness the fastest CAGR growth during the forecast period, as it is frequently associated with particular health benefits, such as invigorating, boosting the immune system, enhancing skin health, enhancing focus, and giving relaxation. The use of extracts from various plant components as antioxidants, antimicrobials, flavourings, colouring agents, enzymes, nutrient enhancers, and packaging additives in the food sector has led to the segment's expansion. Plant extracts are utilised as colourants and flavorants in the food and beverage sector to improve the overall nutritional content.
Asia Pacific is projected to hold the largest market shares during the forecast period owing to the raw materials are readily available and the atmosphere is conducive to the expansion of the extraction facilities. Also, local businesses are constantly expanding their product lines by focusing on innovation and investing in the market. Also, this region is anticipated to experience the highest growth due to an increase in consumer knowledge of the health advantages of plant extracts as well as an increase in disposable income.
North America is projected to have the highest CAGR over the forecast period, owing to the rising demand for natural ingredients in a variety of foods and beverages. Another key driver of market expansion in the food and beverage sector is product innovation. Due of the strong consumer preference for skincare products made with natural components, plant extracts are being included in radiance and anti-cellulite treatments more frequently.
Some of the key players profiled in the Plant Extracts Market include Sensient Technologies Corporation, Givaudan, Synergy Flavors, Dohler, Symrise, International Flavours & Fragrance Inc., Synthite Industries Private LTD, Vidya Herbs Private LTD, PT Indesso Aroma, Kalsec Inc., Indena S.P.A, Nutra Green Biotechnology Pvt Ltd, Naturex Inc., Mane Fils SA., Evolva, Prinova Group LLC., Plant Extracts International, Blue Sky Botanics Ltd., Ransom Naturals Ltd and Organic Herb.
In June 2019, Givaudan, the global leaders of flavors and fragrances, inaugurated its new flagship innovation center in Switzerland. The major aim of this innovation center is to create different and sustainable flavor, taste and fragrance solutions for the food and beverage and beauty, personal and home care industries.
In June 2019, the nutrition division of Symrise Diana Food has opened a new Research and Development Centre in Canada. The creation of new product and processes will be a key focus in new facility.
In May 2019, Givaudan, the global leaders of flavors and fragrances, announced the acquisition of Vietnamese flavor company Golden Frog to strengthen the product portfolio in natural flavor, extracts and essential oils.
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Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.