The global plant extracts market is projected to grow from USD 30.8 billion in 2021 to USD 55.3 billion by 2026, at a CAGR of 6.0% from 2021 to 2026.
With the growing health awareness, the increasing prevalence of chronic diseases, and the need for nutrition enhancements among consumers, plant extracts find applications in various end-user industrial applications. The demand for cosmetics products made of plant-derived ingredients also remains high as these ingredients enhance the product value due to their health benefits for the skin. Various types of plant extracts are also used as key ingredients in food & beverage products and dietary supplements due to their health and nutritional benefits, which cater to nutritional deficiencies, provide required nutrients in the body and boost the immunity and overall well-being of consumers. Owing to its increasing applications across industries, the growth of the plant extracts market is projected to remain high during the forecast period.
Increasing health and wellness trend is leading to a rise in demand for clean label products, which is one of the major driving factors for the plant extracts market.
Most consumers in the developed countries have been looking for food products, without any inclusion of artificial additives, due to the associated long-term adverse health effects. Manufacturers are inclined toward the usage of natural flavoring agents, preservatives, and sweeteners as they are the key ingredients used to make the food tasty and to extend the shelf-life of the product. With the growing awareness of health products, consumers are increasingly looking for less processed and more natural foods & beverages. This is being reflected in the clean label movement spreading across the packaged food industry across the globe. Consumers are paying close attention to and examining labels and nutritional ingredients more than ever. The sales of clean label products are not just limited to foods & beverages that consumers believe are healthful. On the contrary, the salty snack, frozen food, cookie, and candy categories are seeing marked growth with clean label products. Since plant extracts are clean label ingredients, so this is expected to fuel the overall plant extracts market.
The market for flavors and fragrances is projected to grow at the highest CAGR between 2021 and 2026.
The flavor and fragrances segment among the various plant extracts type to expected to grow at the highest rate during the forecast period. Flavorings are prepared from essential oils, such as almond and lemon, vanilla, fresh fruits by expression, and ginger by extraction. Younger consumers are driving the trend toward more natural and organic flavors because they read labels and want to know where their ingredients come from. This has triggered manufacturers to develop more natural formulations and brands that have realized consumers are willing to pay a premium if they know flavors are organic and sustainably sourced. With the increase in the trend of the vegan population globally, the demand for flavors extracted exclusively from plants is gaining more market share.
The cosmetic application segment of plant extracts is projected to grow at the highest CAGR between 2021 and 2026.
The market for cosmetic application is expected to grow the fastest in the plant extracts market. Plant extracts or herbal extracts are primarily added to cosmetic formulations due to several associated properties, such as antioxidants, anti-inflammatory, antiseptic, and antimicrobial properties. Even today, people in rural and urban areas depend upon herbs for traditional cosmetics. Plant extracts, as a whole or part, have been used for various ailments of the skin, hair, and dental care for overall appearance. Herbal cosmetics products claimed to have efficacy and intrinsic acceptability due to routine use in daily life and avoid the side effects, which are commonly seen in synthetic products. Owing to the awareness of the environmental damage caused by industrialization, a trend has developed to use products with natural ingredients. Various adverse effects may occur in the form of acute toxicity, percutaneous absorption, skin irritation, eye irritation, skin sensitization and photosensitization, subchronic toxicity, mutagenicity, and phototoxicity by the usage of synthetic products that is why today's generation prefers herbal cosmetics for hair, skin, and dental care.
The rhizomes and roots sources segment in the plant extracts market is projected to grow at the highest CAGR between 2021 and 2026.
Rhizomes & roots of various plants offer several biological properties due to the presence of various phytochemicals. These parts of the plants offer pharmacological properties; hence, are used to manufacture extracts for medicinal purposes. These parts of plants offer therapeutic uses and are also used in cosmetics to treat various skin diseases. The roots used are either solid, fibrous, or fleshy. Roots of Ginseng, Stinging Nettle, and Devil's claw are commonly used to manufacture plant extracts. Rhizomes are the elongated stems that generally grow below the ground. Ginger, Wild Columbine, and Bloodroot are commonly used rhizomes that offer medicinal properties. Turmeric, which is widely used to manufacture Curcumin extracts, offers several anti-inflammatory and antioxidant properties, due to which it is widely used in cosmetics, personal care, and Pharmaceuticals industries.
North America market for plant extracts is projected to grow at the highest CAGR during the forecast period.
The market for plant extracts in North America is projected to witness the highest growth rate during the review period. The region is one of the major importers of various types of plant extracts due to the continued acceptance of exotic foods and flavors. Antibiotic- and hormone-free ingredients and local and organic consumer goods are expected to gain market share as consumers seek these green and ethical attributes in their nutraceuticals, cosmetics, and food & beverage products to fit the 'wellness' lifestyle trend. These trends are further projected to attract investments from plant extract-based product manufacturers across the globe, driving the plant extracts market. The North American market acquired the least share in global plant extract production. This is due to the lack of necessary environmental conditions (light, temperature, water, humidity, and nutrition) for plant cultivation in the region. However, natural products in the North American market have experienced strong market growth in the last decade, as consumers increasingly demand nutritional and cosmetic products derived from natural sources.
Key Topics Covered:
2 Research Methodology
3 Executive Summary
4 Premium Insights 4.1 Opportunities in the Plant Extracts Market 4.2 Plant Extracts Market, by Type, 2021 vs 2026 4.3 Plant Extracts Market, by Application and Region 4.4 Plant Extracts Market, by Source 4.5 Asia-Pacific: Plant Extracts Market, by Application and Country, 2020 4.6 COVID-19 Impact on Plant Extracts Market
5 Market Overview 5.1 Introduction 5.2 Market Dynamics 5.2.1 Drivers 22.214.171.124 Adverse Side-Effects of Synthetic Flavors Led to An Increase in Demand for Natural Favors 126.96.36.199 Increasing Health and Wellness Trend Led to a Rise in Demand for Clean Label Products 5.2.2 Restraints 188.8.131.52 Stringent Regulations and International Quality Standards 184.108.40.206 Inadequate Supply of Raw Materials and Price Fluctuation 5.2.3 Opportunities 220.127.116.11 Growing Trend of Veganism and Vegetarianism Among Consumers 18.104.22.168 Identification of New Herbs and Spices in Accordance with Changing Consumer Preferences and Tastes 5.2.4 Challenges 22.214.171.124 Similar Products Led to Intense Competition and Product Rivalry 126.96.36.199 Availability of Substitutes and Adulterated Products 5.3 Impact of COVID-19 on Market Dynamics
6 Regulatory Framework 6.1 North America 6.1.1 United States 6.1.2 Canada 6.2 Europe 6.3 Asia-Pacific 6.4 South America
7 Industry Trends
8 Plant Extracts Market, by Type
9 Plant Extracts Market, by Application
10 Plant Extracts Market, by Source
11 Plant Extracts Market, by Region
12 Competitive Landscape
13 Company Profiles 13.1 Key Players 13.1.1 Symrise 13.1.2 Sensient Technologies Corporation 13.1.3 International Flavors & Fragrances, Inc. 13.1.4 Givaudan 13.1.5 Dohler 13.1.6 Synergy Flavors 13.1.7 Synthite Industries Private Ltd 13.1.8 Pt. Indesso Aroma 13.1.9 Vidya Herbs Private Ltd 13.1.10 Nutra Green Biotechnology Co. Ltd 13.2 Other Players 13.2.1 Kalsec Inc 13.2.2 Martin Bauer Group 13.2.3 Kangcare Bioindustry Co.Ltd 13.2.4 Native Extracts Pty. Ltd 13.2.5 Ransom Naturals Ltd 13.2.6 Blue Sky Botanics Ltd 13.2.7 Shaanxi Jiahe Phytochem Co.Ltd (Jiaherb, Inc.) 13.2.8 Tokiwa Phytochemical Co.Ltd 13.2.9 Prinova Group LLC 13.2.10 Arjuna Naturals Extracts Ltd