Plant Extracts Market By Product Type (Spices, Essential oils, Phytochemicals, Phytomedicines, Others), By Basis of Form (Dry, Liquid), By End-Use Industry (Pharmaceuticals, Food and Beverages, Personal Care, Chemicals), By Region And Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, And Forecast 2023-2032

Report Overview

Plant Extracts Market size is expected to be worth around USD 103.5 Bn by 2032 from USD 52.1 Bn in 2022, growing at a CAGR of 7.3% during the forecast period from 2023 to 2032.

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The plant extracts market incorporates a vast multitude of products originating from the botanical domain, including, but not limited to, herbs, fruits, flowers, and vegetables. Botanical extracts are utilized in a wide variety of industries, including cosmetics, pharmaceuticals, culinary delicacies, and a vast number of additional fields. The primary objective of this particular blog post will be to identify and investigate the most significant trends, ground-breaking innovations, and ethical dilemmas that plague the plant extracts market.

Plant extracts, by definition, comprise a collection of heterogeneous compounds derived from a variety of botanical sources. These extracts are utilized in a wide range of industries, including the cosmetic industry, pharmaceutical sector, culinary sector, and agricultural sector. The inherent value of plant extracts lies in their extraordinary capacity to provide a variety of natural benefits, spanning from essential vitamins and minerals to potent antioxidants. Moreover, their multifarious functionality includes, to name a few, facilitating enhanced digestion, mitigating inflammatory responses, and boosting energy levels.

In response to growing concerns about synthetic products, the use of plant extracts as a viable alternative has experienced a meteoric rise in popularity. The allure of these botanical extracts derives from their inherent nature as products derived from natural sources with commendable ecological impact, biodegradability, and sustainability. In addition, they contain a wealth of bioactive compounds that have the potential to have a positive influence on human health. Polyphenols, a notable subgroup found in plant extracts, have been scientifically proven to possess anti-inflammatory and antioxidant properties, all with the goal of enhancing human health.

The ever-changing landscape of the plant extracts market perpetually generates novel innovations, each with the potential to upend established norms. In the domain of nanotechnology, the primary objective is to improve the bioavailability and efficacy of plant extracts, which is a prime example of a ground-breaking technological development. The linchpin of this innovative technique is the fragmentation of plant extracts into minute particles, which confers enhanced absorption capabilities within the human body. In addition, another commendable advancement has occurred in the realm of plant-based meat substitutes, which are effectively constructed from plant extracts and mimic the flavor profiles and textural characteristics of authentic meat.

Driving factors

Increasing Demand in the Cosmetics Market

The Plant Extracts Market is experiencing a rise in demand due to a number of factors, one of which is its use in the cosmetics industry. Due to their anti-acne, anti-aging, and sun protection properties, essential oils are extensively used in cosmetics. Perfumery and organic personal care products also incorporate more expensive oils. According to market.us, a third of the demand for plant extracts is generated by fragrances, cosmetics, and aromatherapy. Companies such as Primavera Life are expanding their market for essential oils in cosmetics, which has a positive effect on the plant extracts market. Notable fragrances include geraniol, citral, linalool, limonene, and citronellol. Popular fragrances include eucalyptus, citrus, fragrant oils, tea tree, and lavender.

Impact of Regulation on the Plant Extracts Market

Constantly shifting regulations can have an effect on the plant extracts market. As consumers become more aware of the environmental impact of essential oil use, regulations may become more stringent, impacting the price and availability of these products. Additionally, emerging technologies, such as the use of natural preservatives in hygiene products, may have an effect on the plant extracts market. These technologies could increase the demand for plant extracts and provide the industry with new opportunities.

Market Disruptors for Plant Extracts

The emergence of new plant-based ingredients and the growing prominence of CBD and hemp-derived products are two factors that have the potential to alter the competitive landscape of the plant extracts market. These disruptors may alter consumer demands and present difficulties for existing businesses. As more consumers pursue natural and sustainable alternatives, plant-based ingredients such as CBD and hemp are acquiring popularity in various industries, including the cosmetics market. This shift in consumer preferences may necessitate that businesses in the plant extracts market adapt and innovate in order to remain competitive.

Restraining Factors

Inadequate raw materials and limited availability

The Plant Extracts Market confronts numerous obstacles, including a lack of basic materials due to deforestation and extinction of species. Certain flora are only cultivated in a handful of countries, which contributes to the limited supply. The challenge is exacerbated by the imbalance between supply and demand, which places a strain on the industry.

Fluctuating costs for raw materials and supply constraints

A significant obstacle is the fluctuating cost of basic materials, which is influenced by factors such as inflation, global economic changes, and supply-demand imbalances. Unpredictable weather and global climate change also contribute to crop failures and shortages, resulting in supply constraints. These obstacles generate uncertainty and threaten the plant extracts market's stability.

Import reliance and a distorted supply chain

Significant challenges are posed to the spice trade by its high reliance on imports and distorted freight and logistics. The dearth of shipping containers results in astronomical price increases and a disruption of supply continuity. In addition, demand consistently exceeds supply, even during seasonal harvests, which exacerbates the difficulties encountered by the industry.

Sustainable Solutions for the Plant Extracts Market

To surmount these obstacles, the industry of plant extracts must implement sustainable solutions. This includes promoting reforestation programs to combat the deficiency of basic materials and preserve wildlife habitats. Diversifying supply sources by investigating additional countries where plants can be grown can help reduce the supply-demand imbalance.

Improving Local Production and Supply Chain

Supply constraints can be reduced by enhancing transport and logistics systems to strengthen the supply chain. Investing in weather-resilient transportation infrastructure can improve the dependability of the supply chain. Moreover, investing in sustainable practices, such as vertical farming, and decreasing reliance on imports can result in more reliable sources of supply. Local production encourages greater control over the production process, including the procurement of primary materials, quality control, and transportation costs.

Product Type Analysis

Dominating the Plant Extracts Market are Phytomedicines. Due to their many uses, plant extracts have become very popular. Phytomedicines, essential oils, tastes & perfumes, and others comprise the plant extracts market. The phytomedicines category dominates the market. Plant-based phytomedicines have been used for ages to treat a variety of maladies. They include plant extracts and have several medicinal properties. Pharmaceuticals, nutritional supplements, and functional foods use them because of this.

Consumer trends encourage phytomedicines expansion. Consumers want natural, side-effect-free goods. Synthetic pharmaceuticals have side effects, whereas plant-based therapies are safe and sustainable. As customers become more health- and environment-conscious, this tendency will continue. Given these characteristics, phytomedicines is expected to develop the quickest in the future years. Arthritis, respiratory, and digestive problems will drive demand for plant-based therapies. The growing frequency of chronic illnesses worldwide has increased demand for natural therapies, further fueling phytomedicines growth.

End-Use Industry Analysis

Plant extracts are dominated by the Food and Beverage Segment. Plant extracts are utilized in numerous applications, such as pharmaceuticals, dietary supplements, and food and drink. The food and beverage segment has emerged as the market leader among these applications, accounting for the largest share of the plant extracts market.

Consumer trends encourage food and beverage expansion. Consumers want natural and organic items that taste good and are healthy. Compared to harmful synthetic chemicals, plant extracts are harmless and sustainable. Vegans and vegetarians are also buying plant-based items, which boosts the food and beverage sector. Due to these factors, the food and beverage sector is expected to develop the quickest. Plant extracts are used in drinks, bread and confectionery, and dairy goods. The food and beverage sector will also profit from expanding customer demand for natural and organic goods and knowledge of plant-based health advantages.

Key Market Segments

By Product Type

• Spices
• Essential oils
• Phytochemicals
• Phytomedicines
• Others (flavors, fragrances, herbal extracts, and natural extracts)

By Basis of Form

• Dry
• Liquid

By End-Use Industry

• Pharmaceuticals
• Food and Beverages
• Personal Care
• Chemicals

Growth Opportunity

Growing Utilization in Food and Medicine

The demand for plant extracts in food and medicine is propelling the growth potential of the plant extracts market, as herbs and spices are increasingly used to conceal undesirable properties. In recent years, consumers' desire for natural and healthful products has become a significant trend, leading to an increase in demand for plant extracts. In numerous industries, these extracts are essential for extending shelf life and reducing microbial contamination.

Natural Ingredients and Health Benefits are in High Demand.

The rising demand for natural ingredients is one of the main factors driving the global plant extracts market. Health-conscious consumers seek out products with health benefits, and plant extracts provide the vitamins, antioxidants, and minerals necessary for good health maintenance. To meet this demand, numerous varieties of plant extracts derived from herbs, fruits, vegetables, and seasonings are available.

Benefits of Herbal Extracts to Health

Due to their numerous health benefits, herbal extracts are in great demand. They are used to treat melancholy, anxiety, and insomnia, among others. Herbal extracts have anti-inflammatory and antioxidant properties that contribute to immune system enhancement. In addition, these natural extracts are advantageous for skin care, hair care, and overall health.

Prolonged shelf life and organic preservation

The plant extracts market is driven by their capacity to extend shelf life and reduce microbial deterioration in products. Manufacturers can use plant extracts to increase the retail life of their products without sacrificing quality or flavor. In addition to serving as natural preservatives in food products, plant extracts are an excellent substitute for synthetic preservatives.

Synthetic Products and Research and Development Efforts Face Difficulties

The availability of synthetic products with uniform quality and lower prices poses a challenge to the expansion of the plant extracts market. Natural plant extracts cannot be replaced by synthetic products, despite the fact that they may pose competition. The industry is investing in R&D to create innovative new products that will strengthen their position in the global plant extracts market.

Latest Trends

Government Support and Initiatives

Governments throughout the world are advocating the use of plant extracts for their therapeutic properties and as food and beverage constituents. The FDA in the United States and the European Medicines Agency in Europe recognize the significance of plant extracts and have provided guidelines and recommendations for their use.

Increasing Companies' R&D Efforts

Companies are investing in research and development to innovate and create new products based on plant extracts. The widespread use of plant extracts in the cosmetics and personal care industries has spurred the development of novel applications. Companies are considering adding plant extracts to haircare, skin care, and other personal care products.

Demand for Natural and Herbal Products is Growing

The trend toward natural and healthful alternatives among consumers is fueling the demand for plant extracts. Growing awareness of the adverse effects of synthetic products has increased the demand for natural alternatives, such as plant extracts. Growing demand for functional foods and nutraceuticals has also contributed to the expansion of the plant extracts market. Herbal extracts possess antimicrobial properties that can increase the expiration life of food products and decrease decomposition. In the food industry, they are increasingly used as natural preservatives. For instance, rosemary extract is frequently utilized in meat products, whereas grapefruit seed extract is utilized in cosmetics and personal care products.

Synthetic Product Rivalry and Price Constraints

Many consumers continue to favor synthetic products due to their lower price and greater availability, posing a threat to plant extracts. Plant extracts can be expensive and difficult to find. However, ongoing research and technological progress are anticipated to increase production efficiency and cost-effectiveness.

Herbal Extracts as an Alternative Medicine

Herbal extracts are becoming increasingly popular as alternative treatments for a variety of health conditions. Herbal extracts are being developed into supplements and vitamins that target specific health requirements, as consumers seek natural alternatives.

Investment by Givaudan in a New Flavours Center

Givaudan's investment in a new technical and commercial center for Flavours in Morocco demonstrates the company's dedication to expanding its product offerings in Africa and the Middle East. This investment is anticipated to stimulate the regional plant extracts market.

Regional Analysis

In recent years, the Plant Extracts Market has expanded at a rapid rate, and this growth is anticipated to continue in the future years. Asia-Pacific holds a prominent position among the regions that are contributing to the development of this industry, due to its rich heritage of traditional medicine and natural resources. In this article, we will examine why the Asia-Pacific region is experiencing significant growth in the global plant extracts market, as well as how this is expected to influence the future of the industry.

Plant extracts are derived from various natural sources, such as fruits, vegetables, blossoms, and botanicals. As consumers become more aware of the adverse effects of synthetic pharmaceuticals, they are increasingly turning to natural alternatives. This change in consumer preference has propelled the expansion of the plant extracts market. In addition, the Asia-Pacific region has an abundance of natural resources and a long tradition of traditional medicine, both of which have contributed to the development of natural extraction techniques. Using these methods, the region has been able to produce high-quality plant extracts for the global market.

A significant population in the Asia-Pacific region has utilized traditional herbal remedies for centuries. These medications, derived from plant extracts, have been used to treat a variety of ailments. In recent years, there has been a significant increase in the demand for herbal medications due to a growing awareness of the benefits of natural alternatives. This demand has been bolstered by the increasing prevalence of chronic diseases and the geriatric population. As a consequence, production and export of herbal medicines from the Asia-Pacific region have increased.

Due to the abundance of aromatic plants, the Asia-Pacific region is renowned for its wide variety of aromas and fragrances. The region is renowned for its aromatic plants, which are utilized in industries as diverse as fragrances, cosmetics, and cuisine. Due to its tranquil and therapeutic properties, aromatherapy has also gained popularity in the region. In addition, the increasing use of essential oils in fragrances has contributed to the expansion of the plant extracts market.

Key Regions and Countries

North America

• US
• Canada
• Mexico

Western Europe

• Germany
• France
• The UK
• Spain
• Italy
• Portugal
• Ireland
• Austria
• Switzerland
• Benelux
• Nordic
• Rest of Western Europe

Eastern Europe

• Russia
• Poland
• The Czech Republic
• Greece
• Rest of Eastern Europe

APAC

• China
• Japan
• South Korea
• India
• Australia & New Zealand
• Indonesia
• Malaysia
• Philippines
• Singapore
• Thailand
• Vietnam
• Rest of APAC

Latin America

• Brazil
• Colombia
• Chile
• Argentina
• Costa Rica
• Rest of Latin America

Middle East & Africa

• Algeria
• Egypt
• Israel
• Kuwait
• Nigeria
• Saudi Arabia
• South Africa
• Turkey
• United Arab Emirates
• Rest of MEA

Key Players Analysis

The global plant extracts market is expanding at a rapid rate due to the rising demand for natural products derived from plants and the rising awareness of the health benefits associated with them. In order to meet the increasing demand for natural and healthy products, the main players in the plant extracts market are concentrating on developing new and innovative plant extracts. Givaudan, Symrise AG, International Flavors & Fragrances Inc., Sensient Technologies, and Kerry Group are some of the main market participants.

These businesses are devoting significant resources to research and development in order to create novel and high-quality plant extracts. Through mergers, acquisitions, collaborations, and partnerships, they are also concentrating on expanding their product portfolio. For instance, in 2020, Symrise AG acquired the fragrance and aroma division of Sensient, which substantially expanded the former's capabilities in the plant extracts market.

The market participants are also concentrating on expanding their presence in emerging markets like Asia-Pacific and Africa. They are investing in these regions in order to capitalize on the expanding demand for plant extracts in the food and beverage, cosmetics, and healthcare industries. The plant extracts market is poised for significant development in the coming years, and these key actors are positioned to capitalize on this opportunity.

Top Key Players in Plant Extracts Market

• Organic Herb Inc.
• Plant Extracts International Inc.
• Network Nutrition Pty Limited
• FT Technologies Inc.
• Lehmann & Voss & Co. KG
• Ingredia Inc.
• TimTec, Inc.
• Alkaloids Corporation
• Herbal Extract Company
• Nantong Sihai Plant Extracts Co., Ltd.

Recent Development

In February 2021, New goods and solutions for changing customer tastes have transformed the plant extracts market. Givaudan Taste & Wellbeing launched Advanced Tools for Modelling (ATOM) to enhance food and taste compositions using AI. This technology offers new market choices and customer insights.

In February 2021, International Flavors & Fragrances Inc. (IFF), a prominent provider of binders, plant-based proteins, and texturants, combined with DuPont's N&B, a major player in the plant extracts market. This combination has increased revenue exponentially and diversified the client base, enabling sustainable plant extracts market growth.

In September 2021, ADM, a worldwide leader in nutrition and ingredient solutions, acquired Brazilian plant-based extracts and ingredients maker Yerbalatina Phyto actives. ADM's plant extracts market position has grown with this purchase.

In October 2021, Cargill, the world's largest food and agribusiness company, upgraded Nutrena Nature Wise formulations. These solutions boost chicken health and production, offering poultry producers a natural and sustainable alternative.

In November 2021, Sensient's flavors & extracts section launched Boundless chili-based extracts. This product line offers distinct tastes for diverse consumer preferences, broadening the market's plant extracts.

In December 2021, ADM purchased Latin American and Caribbean flavor and specialty ingredient supplier FISA. ADM can now provide more products and increase its position in the plant extracts market.

In July 2022, Symrise launched Maison Lautier 1795, a naturals brand, and its first three product lines. This announcement reinforces Symrise's commitment to sustainability and innovation in the plant extracts market.

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