Plant extracts market is projected to register a CAGR of 5.57% and reach a value of USD 53,694.4 million by 2028. A plant extract is a substance or an active ingredient with desirable properties; this extract is removed from the plant tissues, usually by treating it with a solvent, to be used for a particular purpose. Roots, bulbs, fruits, leaves, barks, and stems are among the major sources of plant extracts. Aloe vera extracts, citrus fruits extracts, herbal extracts, flower extracts, and other plant extracts are widely used in herbal medicines, food & beverages additives, functional food & beverages, and personal care.The rising demand for dietary supplements products is supporting the rise in the sales of plant extracts among consumers.The increasing use of plant extracts in personal care products consumers is expected to drive the growth of the global plant extracts market during the forecast period. Furthermore, the growing demand for natural food ingredients is further expected to witness the growth of the global plant extracts market during the forecast period. However, limited availability and fluctuating prices of raw materialsare expected to hinder market growth in the coming years.
Plant-based ingredient and supplement producer Farlong Nutraceutical has begun the application process with the FDA for the GRAS designation of the natural components Xiaohongshen and Qingyangshen. Together, they form the basis of InnerPure Colon Detox, an all-natural blend of eight different herbal extracts that is the company's secret formula. To evaluate the benefits of InnerPure Colon Detox on regular bowel movements, weight management, and acne, Farlong is currently undertaking a 30-day double-blind, placebo-controlled safety and efficacy study with 125 healthy human volunteers.
COVID-19 Impact Analysis
The advent of the global pandemic, COVID-19, resulted in a global crisis. Impacting over 210 countries, the outbreak has already created an economic backlog worldwide. With over 165 million COVID-19 cases worldwide, along with 3.4 million fatalities during the fourth week of May 2021, the global pandemic COVID-19 is deemed to create a chaotic environment, thereby resulting in global rescission. With the rapidly rising cases, the global plant extracts market is getting affected in many ways.
As the global economy struggles with the pandemic situation, its impact on the global trade and supply chain is growing owing to the rapid weakening of global investment flows. Strict containment measures imposed by the governments of various countries and preventive measures to control the impact of the outbreak have led to significant restrictions in transportations, driving a knock-on effect globally. Transportation is crucial in the supply chain of any market, as it is responsible for transferring the raw materials to manufacturers and then distribute the final product from the manufacturers to the retail market. The pandemic had brought the transportation of goods to a near halt across the globe to stop the spread of the virus.
In these unprecedented times, low working efficiency and lockdown in various regions have led to delays in product delivery. Many logistics companies were operating at low efficiency with very few working staff, which led to the disruption of the supply chain. The low efficiency of delivery systems of e-commerce websites and logistics companies and disruptions in international and modern trade has severely impacted the supply chain of the plant extracts market.
Eevia Health has made an extract from a plant that helps with memory and sleep. Today, at the Supply Side West trade event in Las Vegas, Nevada, the world premiere of Feno-CerasusTM is taking place. A tart cherry anthocyanin extract that has been standardised is the new component (Prunus Cerasus). New product development at Eevia Health is focused on their cognitive impacts, such as on sleep, memory, stress, and cortisol.
The global plant extracts market has witnessed a significant growth rate over the last few years and is projected to register a 5.57% CAGR during the forecast period. Various factors are driving the growth of the market.The rising demand for dietary supplements, increasing use of plant extracts in personal care products, and growing demand for natural food ingredients aremajorly driving the growth of the plant extracts market.The rising demand for natural and organic fragrances and the growing popularity of Ayurveda are also factors creating an opportunistic market for the market players to grow and expand.However, limited availability and fluctuating prices of raw materials are restricting the growth of the market.
The organic segment of the food industry is growing at a significant rate globally. Consumers around the world are becoming more aware of the adverse impact of chemicals on their health. This increasing health consciousness has led to a high preference for products with minimal or no chemicals. The increasing focus of consumers on health and wellness can be attributed to the growing incidences of lifestyle disorders, such as obesity, osteoporosis, diabetes, and cardiovascular diseases. This has changed consumer food choices and perception of natural ingredients. Consumers are also concerned about the impact of chemicals on the environment and health, leading to a shift to organically cultivated and processed products. Thus, the rising consumer preference for natural and clean-label products drives the demand for plant extracts in the food & beverage industry. This demand is especially high in North America and Europe, owing to the high demand for healthy and natural food products. A survey conducted by the International Food Information Council Foundation in the US in 2020 found that around 70% of consumers are willing to shift product choices to avoid artificial ingredients. These consumers are also willing to pay extra for products that do not use artificial ingredients. Considering this trend, several food products and beverages manufacturers are shifting to natural flavors as ingredients that offer several health benefits. Thus, the growing demand for natural food ingredients is expected to drive the global plant extracts market during the forecast period.
The demand for plant extracts has been increasing at a high pace across the globe. Several plant extracts are available in the market; ginger, cinnamon, cardamom, clove, nutmeg, rosemary, pepper, parsley, and thyme are the most widely used by manufacturers of pharmaceuticals and dietary supplements, food & beverages, and cosmetics, among others. Soil and climatic conditions play vital roles in the production of fruits, vegetables, herbs, and spices. Specific temperature requirements are essential for the optimum production of herbs, spices, fruits, flowers, and tea leaves. Therefore, Climatic conditions greatly affect crop production with natural disasters, including hurricanes, landslides, floods, and hostile weather conditions, adversely affecting the overall production of raw materials. Moreover, the production of certain plant extracts is limited to a few countries. For instance, ginger is mostly cultivated In China, India, Thailand, Indonesia, Bangladesh, the Philippines, South Korea, and Sri Lanka. The production of ginger is low in North America and Europe, making market players based in these regions dependent on imports. On the other hand, the production of cinnamon is limited to Sri Lanka, Indonesia, China, Vietnam, the Netherlands, the US, Germany, and France.
An increasing number of consumers are interested in buying only chemical-free products. Consumers are becoming highly inclined toward natural and organic personal care products. According to MRFR analysis, the organic personal care products market is projected to reach USD 19.5 billion by 2028. The demand for natural and organic ingredients is increasing among various application industries owing to the rising demand for plant extracts among consumers. Consumers are increasingly becoming aware of the harmful effects of synthetic chemicals, which is influencing manufacturers to adopt natural ingredients in their product offerings. Thus, the demand for plant extracts is increasing, especially in personal care products.
Siliphos, a natural alternative to retinoids, has been added to Givaudan Active Beauty's well-aging product line. Siliphos is derived from milk thistle fruits utilizing phytosome technology, making it safe for sensitive skin. The business claims that Siliphos can reduce wrinkles without causing any negative effects, which puts it in direct competition with retinoids. It is also superior than bakuchiol, a natural retinol substitute.
Based on type, the global plant extracts market has been segregated into phytomedicines & herbal extracts, essential oils, spices, flavors & fragrances. The phytomedicines & herbal extracts segment accounted for the largest market share in 2020, while essential oils is expected to register the highest CAGR of 5.86% during the forecast period.
By source, the global plant extracts market has been segmented into fruits, flowers, & bulbs, leaves, rhizomes & roots, and barks &stems.Theleaves segment is projected to exhibit the highest CAGR of 5.77% during the forecast period.
Based on application, the global plant extracts market has been segmented into pharmaceuticals & dietary supplements, food & beverages, personal care, and others. The pharmaceuticals & dietary supplements segment accounted for the largest market share of 36.28% in 2020 and is expected to register a CAGR of 5.36% during the forecast period.
Givaudan Active Beauty has introduced Centella CAST, a natural remodeling partner derived via green fractionation from one of the most well-known medicinal herbs, Centella Asiatica. This hero ingredient works on four levels to restore skin elasticity, density, and firmness and reduce the appearance of stretch marks for all users by targeting the mechanisms responsible for stretch mark production. Stretch marks, often known as straie, are skin discolorations that can occur at any time in a person's life, regardless of gender. Stretch marks affect up to 86%1 of American teenagers and 50%2 of pregnant women.
Global Plant Extracts Market Share, by Region, 2020 (%)
Sources: MRFR Analysis
By region, the global plant extracts market has been divided into North America, Europe, Asia-Pacific, South America, Middle East & Africa.North America accounted for the largest market share of 32.02% in 2020. Europe was the second-largest market in 2020 and is projected to exhibit a CAGR of 5.59% during the review period.The market in Asia-Pacific is expected to register the highest CAGR during the forecast period.
North America is an attractive region among the manufacturers of plant extracts. The region accounted for a 32.02 % share of the market in 2020 and is projected to expand at a rate of 5.24% during the forecast period, 2021–2028. The increasing demand for natural ingredients in several food & beverages is anticipated to further propels the growth of the plant extracts market in North America. Product innovation in the food & beverage industry is another major factor leading to market growth. Consumers are highly inclined toward skincare products with natural ingredients, which leads to an increase in the application of plant extracts in radiance and anti-cellulite products. Moreover, the rising demand for herbal medicinal products and supplements is projected to boost the growth of the plant extracts market in the region. In the North American plant extracts market, the US is estimated to retain its dominance during the forecast period. The market in the US is projected to be valued at USD 12,329.1 million by the end of 2028, registering an above-average growth of 5.19%. However, the market in Canada is projected to exhibit the highest CAGR of 5.60% during the review period.
Europe accounted for the second-highest market share of 30.56% in 2020 and is expected to be the most lucrative regional market for plant extracts during the review period. One of the significant factors for the growth of plant extracts is the increasing consumption of functional beverages, which is exceptionally high in European countries. Consumers prefer healthy and nutritious drink alternatives over calorie-heavy soft drinks that have little or no functional benefits. This shift in preference results from the focus on preventive healthcare and the growing awareness of health and wellness among people. Product development and technological upgrade drive the growth of the functional beverages market in the European countries during the forecast period. Apart from that, the increasing demand for chemical-free cosmetics is encouraging the manufacturers of skincare products to incorporate plant extracts and other natural ingredients. The presence of cosmetics manufacturers in the region is expected to lead to the growth of the market during the forecast period. Additionally, the increasing demand for organic plant extracts in application industries is expected to add to the market growth and create opportunities for the market players during the forecast period.
Asenzya®, formerly known as "Foran Spice Company," was acquired in 2021 by Solina Group, a renowned European producer of savory ingredients solutions. Solina will be able to increase its presence in the European spice and herb extract industry by acquiring the innovative Asenzya® brand.
As part of its strategy to increase its presence in the lucrative European spice and herbs extract industry, Germany's leading spice producer, Fuchs Group, announced in 2020 that it had purchased Bart's Ingredients from the UK-based private equity firm Langholm Capital.
The market comprises tier-1 players along with some local players with diverse product portfolios. Companies such as Givaudan SA (Switzerland), International Flavors & Fragrances Inc (US), Symrise (Germany), Sensient Technologies Corporation (US), and Synergy Flavors Inc. (US) dominate the market due to brand reputation, product differentiation, financial stability, and strong distribution network. The players are focused on lowering their environmental footprint and investing in research and development along with strategic growth initiatives such as acquisitions and product launches to strengthen their market position and capture a large consumer base.
Prominent players in the global plant extracts market include Givaudan SA (Switzerland), International Flavors & Fragrances Inc (US), Symrise (Germany), Sensient Technologies Corporation (US), Synthite Industries Ltd (India), Synergy Flavors Inc. (US), Döhler Group (Germany), Indesso (Indonesia), Vidya Herbs (India), and Nutra Green Biotechnology Co., Ltd. (China).
Few developments that occurred in recent times influencing the market growth of plant extracts are listed below:
Scope of the Report
Global Plant Extracts Market, byType
Global Plant Extracts Market, by Source
Global Plant Extracts Market, by Application
Global Plant Extracts Market, by Region
|Market Size||USD 53,694.4 Million|
|Forecast Period||2021- 2028|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Type, Source, Application, and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Givaudan SA (Switzerland), International Flavors & Fragrances Inc (US), Symrise (Germany), Sensient Technologies Corporation (US), Synthite Industries Ltd (India), Synergy Flavors Inc. (US), Döhler Group (Germany), Indesso (Indonesia), Vidya Herbs (India), and Nutra Green Biotechnology Co., Ltd. (China).|
|Key Market Opportunities||Rising Demand for Natural and Organic Fragrance|
|Key Market Drivers||Growing Demand for Natural Food Ingredients|
Plant Extracts Market is expected to reach a value of USD 53,694.4 million by 2028, registering a CAGR of 5.57%.
The market is driven by consumers' growing preference for natural and clean-label products.
Major players in the plant extracts market include Givaudan SA (Switzerland), International Flavors & Fragrances Inc (US), Symrise (Germany), Sensient Technologies Corporation (US), Synthite Industries Ltd (India), Synergy Flavors Inc. (US), Döhler Group (Germany), Indesso (Indonesia), Vidya Herbs (India), and Nutra Green Biotechnology Co., Ltd. (China).
North America can dominate in the global plant extracts market till 2028.