Plant Extracts Market Size was valued at USD 37.1 billion in 2022. The Plant Extracts market is projected to grow from USD 39.1 Billion in 2023 to USD 54.2 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 5.5% during the forecast period (2023 - 2030). The market is being driven by elements like consumer awareness, shifting lifestyles, rising adoption of products made with natural ingredients, and biotechnological developments. The demand for natural extracts has also increased over the past few years as a result of macroeconomic factors like rising consumer disposable incomes, R&D, imports and exports, expansion of the agriculture sector, ageing of the population, and population growth. In a number of industries, including food and beverage, cosmetics, perfumery, pharmaceuticals, and nutraceuticals, natural extracts are becoming more and more popular. Such market drivers expected to drive the market growth.
Type: Secondary Research, Primary Research, MRFR Database and Analyst Review
Essential oils are widely used in cosmetics, perfumery, food and beverages, cleaning products, and home fragrances, for their relaxing, stimulating, antiseptic, bactericidal, decongestant, soothing, antispasmodic, and anti-inflammatory properties. Aside from fragrance, essential oils such as lemon and orange have antiseptic properties, making them promising cosmetic active ingredients. Essential oils with anti-acne, anti-aging, skin lightening, and sun protection properties are also used in skincare. Skincare is the most important product category, with many products containing natural ingredients. According to Statista, the revenue in the Beauty & Personal Care market amounts to US$571.10bn in 2023. The market is expected to grow annually by 3.80% (CAGR 2023-2027), thereby driving demand for essential oil and plant extracts market.
Essential oils are primarily used as fragrances, but other plant-based extracts are also utilized for their active properties. Essential oils can also be found in soaps, cosmetics, and deodorants. Companies in the ecosystem are working to expand the market for essential oils in cosmetics. Primavera Life, a manufacturer of natural cosmetics and essential oils, incorporates essential oils from all over the world into its products, including lemongrass from Bhutan and Nepal, cajeput from Cambodia, and lemon verbena and myrtle from Peru.
The perfumery and personal care industries typically use more expensive essential oils. According to the European Federation of Essential Oils (E.F.E.O), fragrances, cosmetics, and aromatherapy account for roughly one-third of essential oil demand. The cosmetics industry is expected to increase demand because many natural and conventional cosmetics companies use essential oils as fragrances. Eucalyptus, citrus, floral oils, tea tree, and lavender are among the highly valued essential oils used as fragrances. Geraniol, citral, linalool, limonene, and citronellol are some of the other well-known fragrances. Such factors are projected to be a major market driver for Plant Extracts market revenue.
The Plant Extracts market segmentation, based on Type, includes Phytomedicines & Herbal Extracts, Essential Oils, Spices, and Flavors & Fragrances. Phytomedicines and herbal extracts are expected to grow rapidly in the plant extract market due to their widespread use in the pharmaceutical and food industries. Consumer awareness of the negative health effects of consuming synthetic products is driving demand for plant-based products. The use of essential oils as an antioxidant, antimicrobial agent, and shelf-life extending agent is growing in the food and beverage industry, which is expected to support essential oil market growth. For example, Young Living Essential Oil launched its offering and solution in the Southeast Asian market of the Philippines in November 2018.
FIGURE 2: PLANT EXTRACTS MARKET, BY TYPE, 2022 & 2030 (USD MILLION)
Type: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Plant Extracts market segmentation, based on Source, includes Fruits Flowers & Bulbs, Leaves, Rhizomes & Roots, and Barks & Stems. Leave segment is expected to be fastest growing segment during the forecast period. This segment includes extracts obtained from various leaves, such as tea leaves, eucalyptus leaves, and neem leaves. These extracts are used in various applications such as food and beverages, cosmetics, and pharmaceuticals. For example, tea extracts are used in beverages due to their stimulant properties, while eucalyptus extracts are used in cosmetics due to their antimicrobial properties.
The Plant Extracts market data has been bifurcated by Application into Pharmaceuticals & Dietary Supplements, Food & Beverages, Personal Care, and Others. The food and beverage segment is expected to have the largest market share because it is often associated with specific health properties such as energizing, immune system boosting, skin health improvement, increasing focus, and providing relaxation. Extracts derived from various parts of plants serve a variety of functions in the food industry, including antioxidants, antimicrobials, flavoring, coloring agents, enzymes, nutrient enhancers, and packaging additives, resulting in the segment's expansion. Plant extracts are used as colorants and flavorants in the food and beverage industries to improve overall nutritional content. Growing demand for functional foods and beverages such as protein bars, dietary supplements, and flavoured beverages is expected to drive market growth.
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America is an attractive region among the manufacturers of plant extracts. The rising demand for natural ingredients in a variety of foods and beverages is expected to fuel the growth of the plant extracts market in North America. Another major factor driving market growth is product innovation in the food and beverage industry. Consumers are increasingly interested in skincare products made with natural ingredients, which has led to an increase in the use of plant extracts in radiance and anti-cellulite products. Furthermore, rising demand for herbal medicinal products and supplements is expected to drive growth in the region's plant extracts market. The US Plant Extracts market is expected to maintain its dominance in the North American plant extracts market, whereas the Canada plant extracts market is the fastest growing during the forecast period.
Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: PLANT EXTRACTS MARKET SHARE BY REGION 2022 (%)
Type: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe Plant Extracts market held the second-largest market share in 2022 and is expected to be the most profitable regional market during the review period. The increasing consumption of functional beverages, which is particularly high in European countries, is one of the significant factors driving the growth of plant extracts. Customers prefer healthy and nutritious drink alternatives to calorie-laden soft drinks with little or no functional benefits. This shift in preference is the result of a greater emphasis on preventive healthcare and a growing public awareness of health and wellness. Product development and technological advancements drive the growth of the European functional beverages market during the forecast period. Aside from that, the growing demand for chemical-free cosmetics is encouraging skincare product manufacturers to incorporate plant extracts and other natural ingredients. Further, the Italy Plant Extracts market held the largest market share, and the Germany Plant Extracts market was the fastest growing market.
Asia Pacific Plant Extracts market had the significant revenue share. The plant extracts market in the region is thriving due to high domestic and international demand. Vital Herbs, Alchemy Chemicals, Sydler, and Plantnat are just a few of the small and medium-sized plant extract manufacturers in the region who are aware of the benefits of plant extract manufacturing. Further, the China Plant Extracts market held the largest market share, and the India Plant Extracts market was the fastest growing market in the Asia-Pacific region.
The major market players of natural extracts such as essential oils, oleoresins, herbal extracts, natural colours, and dried crops invest in R&D initiatives to provide customers with new and improved products. Companies form alliances with other manufacturers in order to produce potential products that meet the specific needs of their customers. Manufacturers are also investing in new and advanced manufacturing technologies that improve process efficiency while lowering manufacturing costs and time. Market participants are also attempting to acquire raw material manufacturers through backward integration. Synthite Industries Ltd., for example, has integrated backward with raw material sustainability initiative, namely Farmtech, to work closely with farmers and control raw ingredient quality.
The Plant Extracts market major player such as 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), Nutra Green Biotechnology Co. Ltd. (China), and Others.
Givaudan SA is a Swiss multinational company that specializes in fragrances, flavors, and active cosmetic ingredients. The company is also involved in the plant extract market, providing natural ingredients and extracts for use in a variety of industries including food and beverage, personal care, and household products.
International Flavors & Fragrances Inc (IFF) is a company that specializes in the creation and production of flavors, fragrances, and other specialty ingredients for various consumer goods industries. One of the areas of expertise for IFF is plant extract, which is used in the creation of natural flavors and fragrances. IFF's plant extract portfolio includes a wide range of natural materials, such as herbs, spices, fruits, and flowers. The company uses a variety of extraction methods, including steam distillation, solvent extraction, and supercritical fluid extraction, to isolate and capture the natural aroma and flavor compounds found in these plants.
Plant Extracts Industry Developments
April 2022: Symrise created synthetic grade caprylyl glycol using only plant extracts. Symrise creates it using its own proprietary technology.
May 2021: Innova Flavors, a supplier of savoury flavors and ingredients, was acquired by Synergy Flavors Inc. The acquisition broadens Synergy's savoury capabilities and will aid in the development of new products in meat alternatives, plant extract sauces, and side dishes.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 37.1 billion |
| Market Size 2023 | USD 39.1 billion |
| Market Size 2030 | USD 54.2 billion |
| Compound Annual Growth Rate (CAGR) | 5.5% (2023-2030) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2030 |
| Historical Data | 2018 - 2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Source, Application and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | 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), Nutra Green Biotechnology Co. Ltd. (China), and Others |
| Key Market Opportunities | · Increasing disposable income and changing lifestyle creates lucrative opportunity |
| Key Market Dynamics | · Growing Demand for Natural Food Ingredients · Growing Cosmetic Industry |
Plant Extracts Market Highlights:
Frequently Asked Questions (FAQ) :
The Plant Extracts market size was valued at USD 37.1 Billion in 2022.
The market is projected to grow at a CAGR of 5.5% during the forecast period, 2023-2030.
North America had the largest share of the market.
The key players in the market are Givaudan SA (Switzerland), International Flavors & Fragrances Inc (US), Symrise (Germany), and Sensient Technologies Corporation (US).
The Phytomedicines & Herbal Extracts segment dominated the market in 2022.
The Food & Beverages segment had the largest share in the market in 2022.
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