Plant extracts are derived from plants and herbs. It is a source of active substances like alkaloids, steroids, tannins, glycosides, volatile oils, phenols, and flavonoids and has therapeutic characteristics. The leaves, flowers, bark, seeds, fruits, and roots of the plant, as well as other parts, contain these active chemicals. Various industries use plant extracts, including those in the food and beverage, cosmetic, pharmaceutical, and other sectors. The main elements stimulating the market's expansion are the rising demand for plant extracts in the food, beverage, and cosmetics industries.
By 2028, the market for plant extracts is expected to register a CAGR of 5.57% and reach a value of USD 53,694.4 million.
The use of plant extracts in traditional medicine and functional foods is expanding significantly. The growing customer desire for food that is natural, microbiologically safe, and doesn't have any added chemicals as preservatives.
The increased demand for natural food ingredients will likely drive the global plant extracts market size during the forecast period. However, in the upcoming years, the market expansion is anticipated to be hampered by the restricted supply and fluctuating raw materials prices.
Trends and Opportunities in the Plant Extracts Market
Plant-derived components are also highly demanded in cosmetics due to their skin-health benefits. Due to its health and nutritional advantages, which treat dietary deficiencies, provide the body with essential nutrients, and boost consumers' immunity, plant extracts are also used as key ingredients in foods, beverages, and dietary supplements. The market for plant extracts is anticipated to proliferate over the forecast period because of its expanding usage across sectors.
Therefore, several well-known food and beverage companies worldwide consider including plant components in their patented products as consumer perceptions about plant-based foods shift.
Additionally, the unpleasant side effects of synthetic tastes boosted demand for natural flavors, supporting the expansion of the worldwide plant extracts market. A growing number of people are becoming concerned about the safety of food additives and their potential adverse health effects. More people know the risks of consuming synthetic chemicals in food and beverages. The FDA suggests adopting organically derived alternatives to the prohibited flavors since they are safer.
In the healthcare industry, plant extracts are widely used. Many therapies highly utilize these extracts because of their outstanding therapeutic properties. Based on these uses, it is anticipated that the global market for plant extracts will expand exponentially over time. Additionally, some exotic plants are used in aromatherapy procedures like saunas and massage. These uses constitute a significant contributor to the current expansion of the global market for plant extracts.
Some of the most recent developments in this industry that depict the coming future stands as below:
- To increase its online presence in North America, Givaudan SA joined Knowde in February 2021, a top online marketplace for food and beverage ingredients, personal care, nutritional products, polymers, and chemicals. Through this alliance, Givaudan can take the lead position as the Taste & Wellbeing store on Knowde's new food and nutrition platform.
- A significant collaborative venture with Döhler was announced in June 2020 by SPC (Australia). Döhler will be able to grow its business in Australia and the Asia-Pacific region thanks to this relationship.
- Arjuna Edayar Team received Factory Grading Gold Certificates in March 2019 at the Safety Awards Dispersal Function in Kerala's Ernakulam.
- Arjuna Natural Ltd. was awarded a new European patent in 2019 for improving the bioavailability of a formulation containing curcumin.
The global plant extract market is expected to expand during the projected period. The worldwide plant extract market is anticipated to increase as consumers become more aware of the advantages of plant-based foods and food products. This also signifies the global growth and mediums that frame the landscape for the plant extracts market.