Plant Extract Market: Current Analysis and Forecast (2022-2030)

Plant extracts are widely used in a variety of industries as a valuable source of natural compounds with potential therapeutic benefits. Moreover, Steam distillation, cold pressing, and solvent extraction are just a few of the methods used to produce plant extracts. They are used in cosmetics, pharmaceuticals, food and beverage, and other industries.

The Plant Extract Market is expected to grow at a strong CAGR of 9.2% during the forecast period (2023-2030) owing to the rising demand for natural and organic food and beverages. In addition, the market is anticipated to expand in the coming years due to the growing awareness of natural products' advantages and therapeutic potential. The food and beverage industry makes extensive use of plant extracts as natural flavorings and additives, which is propelling the plant extract market's expansion. In 2019, the International Food Information Council Foundation conducted a study that found that 59% of Americans said they always read the labels on packaged food before buying it for the first time, and 24% of them specifically looked for specific claims, such as that the food product contained a natural formulation.

Based on the extraction technique, the market is segmented into medicinal plant extracts and aromatic plant extracts. Amongst these, the medicinal plant extracts segment dominated the market in 2022 due to the use of medicinal plant extracts in the treatment of various health conditions, such as cardiovascular diseases, cancer, and neurological disorders, which has driven the growth of the plant extract market. As per the World Health Organization, in 2021, cardiovascular diseases were responsible for an estimated 17.9 million deaths in 2019, or 32% of all deaths worldwide. Heart attack and stroke were the cause of 85% of these deaths.

By product type, the market is segmented into phytomedicines, essential oils, flavonoids, oleoresins, and others. Among these, essential oils are expected to grow with a significant CAGR during the forecast period due to the increased therapeutic benefits of natural and herbal products. The market for plant extracts has grown as a result of the use of essential oils to treat conditions like insomnia, anxiety, and depression. As per the Anxiety Disorders Association of America, in 2022, around 15 million adults, or 7.1% of the U.S. population affected by social anxiety disorder.

By form, the market is segmented into powder and liquid. Among these, powder form captured the majority share of the plant extract market in 2022 due to the rising demand for plant extracts in various industries such as cosmetics, food & beverages, pharmaceuticals, and others which is easy to utilize.

On the basis of end-users, the market is segmented into pharmaceuticals, cosmetics, dietary supplements, and food & beverages. The pharmaceutical category is expected to grow at a substantial CAGR during the forecasted period. This is because of the growing number of clinical trials and research on the effectiveness of plant-based products in the development of pharmaceuticals.

For a better understanding of the market adoption of the Plant Extract industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and Rest of Asia-Pacific), Rest of World. North America is expected to grow with a significant CAGR during the forecast period (2023-2030) due to the growing number of clinical trials and research on the efficacy of plant-based products for treating a variety of health conditions is driving the growth of the market. Moreover, the rise in demand for herbal products is increasing among consumers. According to the Nutrition Business Journal (NBJ), sales of herbal dietary supplements in the United States reached an estimated USD 11.261 billion in 2020, surpassing USD 10 billion for the first time.

Some of the major players operating in the market include: Givaudan, Dohler GmbH, 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.