Global Plant Extracts Market Ascends at a Healthy CAGR of 12%

Introduction

A plant extract is a substance or active ingredient with desirable properties used for a particular purpose. Usually, a solvent is used to extract it from plant tissues. Plant extracts are primarily derived from roots, bulbs, fruits, leaves, bark, and stems. Aloe vera extracts, citrus fruit extracts, herbs, flower extracts, and other plant extracts are frequently used in herbal medicines, food and beverage additives, functional food and beverages, and personal care products.

Market Dynamics

Growing Demand for Dietary Supplements Drives the Global Market

Extracts of ginger, green tea, and echinacea are used in several dietary supplements. Due to its rich phytochemical properties, ginger is an ideal herbal remedy for many chronic diseases. Ginger extract has anti-inflammatory qualities that aid in easing the symptoms of osteoarthritis, preventing diabetes, and lowering LDL lipoprotein levels, which are closely linked to cardiovascular diseases. The use of dietary supplements has grown over the past few years, and soon the market is expected to grow exponentially.

The global market for dietary supplements is expanding due to rising healthcare costs and the resulting focus on preventive medicine. Consumers are becoming more health conscious globally, which impacts the demand for dietary supplements as natural alternatives to prescription medications. The body receives essential nutrients from dietary supplements, which improve immunity and metabolism.

The Growing Market for Natural and Organic Flavors Creates Tremendous Opportunities

Consumer interest in buying entirely chemical-free products is growing. Consumers are increasingly interested in personal care products with natural and organic ingredients. According to an analysis, the market for organic personal care products is projected to grow to USD 19.5 billion by 2024. There is a growth in demand for natural and organic components across various application industries due to customers' increased demand for plant extracts. Additionally, as consumers become more aware of the risks associated with synthetic chemicals, manufacturers are under pressure to include natural components in their product ranges. Plant extracts are therefore becoming increasingly necessary, especially for personal care goods.

Regional Analysis

North America is the most significant global plant extracts market shareholder and is expected to grow at a CAGR of 5.34% during the forecast period. The market for plant extracts in the region is expected to grow due to rising dietary supplement consumption. The consumption of dietary supplements is rising quickly in North America due to several factors. Due to increasing medical service costs, consumers are adopting healthier lifestyle choices, and dietary supplement demand and consumption have significantly increased. As the demand for natural ingredients in various foods and beverages grows, the market for plant extracts in North America is anticipated to grow. In addition, product innovation is a significant force behind the market expansion in the food and beverage industry. Plant extracts are used in radiance and anti-cellulite products more frequently due to the strong consumer preference for skincare products made with natural ingredients.

Europe is expected to grow at a CAGR of 5.69% during the forecast period. One of the key drivers of the growth of plant extracts is the rising acceptance of functional beverages, which is exceptionally high in European countries. Consumers prefer non-soft drink alternatives to those high in calories and low in nutrition. This shift in preference can be attributed to the focus on preventive healthcare and people's increasing awareness of health and wellness. In addition, product development and technological advancement will drive market growth for functional beverages in European countries during the forecast period. Due to the presence of cosmetics manufacturers in the region, the market is expected to grow during the forecast period. The rising demand for organic plant extracts in application industries is also anticipated to present opportunities for market participants.

Key Highlights

• The global plant extracts market was valued at USD 33.9 billion in 2022. It is expected to reach USD 94.1 billion by 2031, growing at a CAGR of 12%during the forecast period (2023–2031). 
• Based on type, the global plant extracts market is bifurcated into phytomedicines and herbal extracts, essential oils, spices, and flavors and fragrances. The phytomedicines and herbal extracts segment is the highest contributor to the market and is expected to grow at a CAGR of 5.58% during the forecast period.
• Based on the source, the global plant extracts market is bifurcated into fruits, flowers and bulbs, leaves, rhizomes and roots, and barks and stems. The fruits, flowers and bulbs segment owns the highest market share and is expected to grow at a CAGR of 5.70% during the forecast period.
• Based on the application, the global plant extracts market is bifurcated into pharmaceuticals and dietary supplements, food and beverages, and personal care. The pharmaceuticals and dietary supplements segment is the highest contributor to the market and is expected to grow at a CAGR of 5.46% during the forecast period.
• North America is the most significant global plant extracts market shareholder and is expected to grow at a CAGR of 5.34% during the forecast period.

Competitive Players

Competitive Players

The global plant extracts market’s major key players are Givaudan Sa, International Flavors & Fragrances, Inc, Symrise, Sensient Technologies Corporation, Synergy Flavors, Inc, Synthite Industries Ltd, Döhler Group, Indesso, Vidya Herbs, and Nutra Green Biotechnology Co., Ltd.

Recent Developments

Market News

• In October 2022, IFF announced the establishment of its new Singapore Innovation Center, the first of its global network of research, creative, and application centers to integrate the technologies, capacities, and knowledge of all four business divisions—Nourish, Health & Biosciences, Scent, and Pharma Solutions. It is the largest IFF property, with over 11,000 square meters.

Segmentation

Global Plant Extracts Market: Segmentation

By Type

• Phytomedicines and Herbal Extracts
• Essential Oils
• Spices
• Flavors and Fragrances

By Source

• Fruits
• Flowers and Bulbs
• Leaves
• Rhizomes and Roots
• Barks and Stems

By Applications

• Pharmaceuticals and Dietary Supplements
• Food and Beverages
• Personal Care

By Regions

• North America
• Europe
• Asia-Pacific
• South America
• The Middle East and Africa