Plant Extracts Market Size, Share & Trends Analysis Report 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) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global plant extracts market size 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).

A plant extract is a material or active ingredient with desirable qualities employed for a particular purpose. It is typically extracted from plant tissues using a solvent. The principal sources of plant extracts are roots, bulbs, fruits, leaves, bark, and stems. Herbal medicines, food and beverage additives, functional food and beverages, and personal care products frequently use aloe vera extracts, citrus fruit extracts, herbal extracts, flower extracts, and other plant extracts. The use of plant extracts in traditional medicine and functional foods is expanding significantly. Market growth is anticipated to be fueled by consumers' growing demand for food that is natural, microbiologically safe, and does not include any added chemical preservatives.

Market Dynamics

Global Plant Extracts Market Drivers

Growing Demand for Dietary Supplements

Dietary supplements frequently contain plant extracts. Several dietary supplements use the extracts of ginger, green tea, and echinacea, with ginger extract being the most widely used. Ginger is a perfect herbal treatment for several chronic disorders due to its abundant phytochemical properties. Ginger extract has anti-inflammatory properties that help to reduce osteoarthritis symptoms, prevent diabetes, and lower LDL lipoprotein levels, which are closely associated with cardiovascular diseases. 

Rising healthcare costs and the ensuing emphasis on preventive medicine contribute to the growth of the global market for dietary supplements. Globally, consumers are becoming more health conscious, which affects the sales of dietary supplements as natural alternatives to prescription drugs. Dietary supplements give the body vital nutrients, boosting immunity and metabolism.

Increasing Use of Plant Extracts in Personal Care Products

The demand for goods made with natural and healthy ingredients is rising as consumers' health concerns grow. Various antioxidants, minerals, vitamins, and other bioactive compounds are abundant in plant extracts. Natural and healthy plant extracts are becoming increasingly popular in place of various synthetic ingredients in personal care products. Personal care product manufacturers are switching to natural, nutrient-rich ingredients with several health advantages, including enhanced skin and strong antioxidant and antibacterial properties.

Over the past few years, the demand for natural and organic cosmetics has skyrocketed worldwide. Injurious chemical components in skincare products include phthalates, parabens, and synthetic colors. For instance, the preservative parabens, primarily used in cosmetics, interfere with hormonal function, increasing the risk of breast cancer and reproductive toxicity. The personal care industry is expanding due to the rising demand for natural products.

Global Plant Extracts Market Restraints

Negative Impact of Weather on Raw Material

The demand for plant extracts has been rapidly increasing all around the world. The most popular plant extracts used by producers of pharmaceuticals and dietary supplements, food and drink, cosmetics, and other products are ginger, cinnamon, cardamom, clove, nutmeg, rosemary, pepper, parsley, and thyme. Fruits, vegetables, herbs, and spices can only be produced in certain soil types and climates. A certain temperature is required for the best production of herbs, spices, fruits, flowers, and tea leaves. Since natural disasters like hurricanes, landslides, floods, and hostile weather negatively impact the overall production of raw materials, climatic conditions significantly impact crop production.

Global Plant Extracts Market Opportunities:

Growing Market for Natural and Organic Flavors

More consumers are becoming interested in purchasing only chemical-free goods. Personal care products made from natural and organic ingredients are increasingly popular with consumers. By 2024, the market for organic personal care products is anticipated to reach USD 19.5 billion, according to sr analysis. Due to the rising demand for plant extracts among consumers, there is an increase in the demand for natural and organic ingredients across various application industries. In addition, consumer awareness of synthetic chemicals' dangers is rising, pressuring manufacturers to include natural ingredients in their product lineups.

Consequently, there is a rising need for plant extracts, particularly personal care products. Several businesses are entering and growing in the natural fragrance market to meet the rising demand for natural and organic products. Thus, it is anticipated that during the forecast period, the players operating in South Asia and the Middle East and Africa's fragrance market will benefit from the growing demand for natural and organic fragrances.

Regional Analysis

By region, the global market is segmented into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global market shareholder and is expected to grow at a CAGR of 5.34% during the forecast period. The rising consumption of dietary supplements is anticipated to fuel the expansion of the plant extracts market in the area. Consumers are switching to healthier lifestyle choices due to rising medical service costs, and both demand and consumption for dietary supplements have significantly increased. The market for plant extracts in North America is expected to expand due to the rising demand for natural ingredients in various foods and beverages. Another critical driver of market expansion in the food and beverage sector is product innovation. Due to the strong consumer preference for skincare products made with natural ingredients, plant extracts are being used in radiance and anti-cellulite products more frequently. Additionally, the region's market for plant extracts is anticipated to grow due to the rising demand for herbal supplements and medicines.

Europe is expected to grow at a CAGR of 5.69% during the forecast period. The rising popularity of functional beverages, especially in European nations, is an essential factor contributing to plant extracts growth. Alternatives to soft drinks that are high in calories and low in nutrition are preferred by consumers over those. The emphasis on preventive healthcare and people's growing awareness of health and wellness is to blame for this shift in preference. Product development and technological advancement will fuel market growth for functional beverages in European nations over the forecast period. In addition, the demand for chemical-free cosmetics is driving skincare product manufacturers to include plant extracts and other natural ingredients. The market is anticipated to expand due to the presence of cosmetics manufacturers in the area. Additionally, it is expected that there will be opportunities for market participants during the forecast period due to the rising demand for organic plant extracts in application industries.

Nutraceuticals' rising production and consumption can be linked to expanding the plant extracts market in the Asia-Pacific region. Drugs are more expensive than nutritional supplements in the region. The consumption of nutraceuticals is predicted to rise in several Asia-Pacific nations' aging populations, which will hasten the development of plant extracts. Furthermore, several processed foods contain plant extracts as an ingredient. The rising per capita disposable income, urbanization, and consumers' busy lifestyles are all contributing to an increase in processed food consumption across the emerging economies of the Asia-Pacific region. Additionally, many producers of processed foods have begun to increase their output, which is anticipated to further contribute to the expansion of the Asia-Pacific plant extracts market.

The South American market is expanding due to the rising demand for natural, health-promoting ingredients in food and beverages, with Brazil accounting for a sizable portion of the market. Sales in the area are anticipated to grow as consumer awareness and demand for organic plant extracts increase. The Middle East and Africa's growing application industries are expected to contribute to expanding the regional plant extracts market. The GCC nations are anticipated to significantly contribute to expanding the market for plant extracts in the Middle East.

Segmental Analysis

The global market is segmented by type, source, and application.

Based on type, the global 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. Herbal extracts and phytomedicines describe the use of plants and herbs to treat and prevent human illnesses. It is a type of herbal medicine that has therapeutic and restorative properties. Since these plant-derived medicines exhibit a wide range of biological activities, they have been used to treat and prevent disease throughout history. These phytomedicines can be found in many places, including curcumin, garlic, ginger, ginseng, garcinia, tea tree, and basil. 

Herbal solutions in liquid form are called extracts. Due to their antioxidant, anti-inflammatory, antiseptic, and antimicrobial properties, they are typically added to cosmetic formulations. Turmeric, rosemary, mint, basil, chives, sage, bay leaf, and thyme are the most frequently used herbs to extract plant materials. Because these herbs are used in many food, beverage, and pharmaceutical products worldwide, the demand for them is rising quickly.

Essential oil is a concentrated hydrophobic liquid made up of chemical compounds from volatile plants (quickly evaporated at room temperature). Rose oil, clove oil, lavender oil, garlic oil, eucalyptus oil, and chamomile oil are typical sources of essential oils. It is widely used in aromatherapy, food preservatives, flavorings, and pesticides.

Based on the source, the global 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. Due to the numerous associated health benefits and high nutritional value, the segment has one of the most used plant extracts in the world. For instance, citrus fruits, which are used to make essential oils, phytomedicines, and herbal extracts, have antimicrobial and anti-cancer properties. Fruits, flowers, and bulbs are in high demand due to the growing market for plant-based products in the pharmaceutical, dietary supplement, and cosmetic industries.

Leaf extracts extract functional and nutritive elements from leaves for medical applications. Numerous antimicrobial, antioxidant, anti-inflammatory, and antiseptic properties are present in them. For instance, olive plant leaves are used to make olive leaf extract. Oleuropein is one of the substance's active components. This nutrient is thought to help olive leaf extract's anti-inflammatory and antioxidant properties. Similarly, different kinds of leaves are employed, including neem, peach, and bay leaves.

Based on the application, the global 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. They treat minor digestive issues, nausea, inflammation, and chemotherapy side effects in pharmaceuticals and dietary supplements. Additionally, they help to strengthen defenses against antihepatotoxicity and gastric ulcers. The application industry for dietary supplements is expanding, propelling the segment's growth. Another factor encouraging the use of plant extracts in pharmaceuticals and dietary supplements is their antimicrobial properties, which help limit the growth of aspergillus, a fungus known for producing aflatoxin, a carcinogen.

Plant extracts are used as a flavoring and even preservatives in dairy and frozen desserts, bakery and confectionery, sauces, dressings, and other food products. They serve as emulsifiers in the manufacturing of bakery goods. They are also utilized in various drinks, such as tea, carbonated soft, and energy drinks. The market for plant extracts is expected to expand as the consumption of plant-based beverages rises rapidly worldwide. Additionally, due to consumers' growing preference for products with clean labels, energy drink manufacturers have been concentrating on adding such natural extracts.

Impact of covid-19

Recent Developments

• October 2022- Together, Givaudan and TMIC launched "Creatogether," China's first AI-powered fragrance co-creation service.
• 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.