PLANT EXTRACTS MARKET ANALYSIS

Plant Extracts Market Size and Trends

The plant extracts market is estimated to be valued at USD 42.54 Bn in 2024 and is expected to reach USD 89.43 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 11.2% from 2024 to 2031. 

Discover market dynamics shaping the industry request sample copy

The global plant extracts market is expected to witness strong growth over the forecast period. The rising demand for natural ingredients from industries such as pharmaceuticals, functional food & beverages, and cosmetics is expected to drive the growth of the market. Growing awareness regarding the health benefits of plant extracts along with the increasing consumer preference for herbal and natural products are further expected to support the increasing demand. Moreover, the expanding application scope of plant extracts in nutraceuticals, skincare and emerging industries such as cannabis is projected to create new opportunities for players in the market. However, factors such as pricing pressures, seasonal availability of raw materials, and stringent regulations are expected to pose challenges to market players over the coming years.

Rising popularity of herbal medicines

The use of plant extracts in herbal medicines is growing globally due to the increasing concerns about the potential side effects of synthetic drugs. Many people now prefer taking herbal remedies made from plant extracts to treat common health issues like cough, cold, digestive problems, etc. as they believe that natural remedies are safer and more effective than allopathic medicines. Various plant extracts like ginger, turmeric, garlic, aloe vera, basil, etc. have been used extensively in Ayurveda and Chinese traditional medicines for centuries to treat numerous ailments without any major side effects. With growing evidence of their healing properties, herbal medicines are gaining more trust among the public.

More people are now turning to herbal supplements containing various plant extracts to boost their immunity, energy levels and overall well-being in a natural way. The elderly population in particular favors herbal medicines to avoid health complications associated with prolonged usage of synthetic drugs. Herbal remedies are also becoming increasingly popular as an alternative to painkillers and anti-depressants. The COVID-19 pandemic has further accelerated the demand for immunity-boosting herbal medicines made from Adaptogenic plant extracts. Many Ayurvedic and Chinese medicines use plant extracts like ashwagandha, tulsi, shatavari, ginseng, etc. to fight stress and infections in a natural manner without any side effects. Manufacturers are developing more efficacious herbal formulations containing standardized extracts from these medicinal plants to capitalize on the rising preference for natural remedies.

Market Concentration and Competitive Landscape

Get actionable strategies to beat competition: Get instant access to report

Consumer interest in natural personal care products

Rising health and environmental concerns have prompted many consumers to look for natural and sustainable personal care products containing plant extracts. People are increasingly wary of chemicals in cosmetics and want to switch to formulations containing botanical extracts that are gentler on the skin as well as the environment. With growing research supporting the skin healing and anti-ageing properties of various plant extracts, there is soaring demand for natural beauty products incorporating these natural ingredients.

Manufacturers are actively responding to this consumer sentiment by launching more green personal care ranges containing extracts from fruits and plants that are rich in antioxidants. Some of the most popular botanical extracts finding applications in natural skin, hair and oral care products include aloe vera, green tea, pomegranate, grapeseed, jojoba, calendula, neem, ginger, turmeric, etc.

Key Takeaways from Analyst:

The plant extracts market holds significant opportunities over the next five years driven by increasing demand for natural and herbal ingredients in food and beverages, pharmaceuticals, and personal care products industries globally. The growing health-consciousness among consumers has pushed product developers to increasingly utilize plant and herbal extracts in various applications.

The North America region dominated the global plant extracts market in 2020 and the trend is likely to continue during the forecast period. This can be attributed to rising per capita income, growing health awareness and cultural inclination towards herbal products in the region. Changing customer preferences towards green and natural products also presents a strong growth prospect for players in the plant extracts space.

Factors such as pricing pressures from product commoditization and uncertainty over raw material supply could pose challenges. Furthermore, the intricate extraction process coupled with the requirement of specialized extraction machinery increases input costs. Stringent regulatory norms and certification requirements in developed markets also act as a restraint.

Market Challenges: High costs associated with R&D of plant extracts

The research and development required to discover and verify the medical applications of plant extracts is an extremely expensive and lengthy process. Pharmaceutical companies must invest significant resources into conducting laboratory and clinical testing to study how plant compounds may treat or prevent diseases. Often, many plant extracts do not end up having useful medical properties or their effects are too minor to justify developing into drugs. According to data from the World Health Organization, nearly 80% of plant extracts that enter the preclinical trial phase will never make it to human testing due to insufficient efficacy, unacceptable toxicity levels, or other safety issues. The vast sums required for unsuccessful research projects acts as a deterrent for companies and restricts further investment in exploring nature's pharmacopeia of potential treatments.

Market Opportunities: Emerging markets in Asia Pacific and Latin America

The plant extracts market in emerging economies of Asia Pacific and Latin America promises significant growth opportunities going forward. These regions are home to a diversity of native plant species that have historically formed the basis of traditional medicine systems. With growing global interest in herbal supplements and natural ingredients, plant-based therapies from these regions are gaining more mainstream acceptance.  Countries such as India, China, Brazil, and Mexico have a strong cultural emphasis on herbal remedies and medicinal plants. For example, according to the World Health Organization (WHO), around 80% of the Indian population still relies on traditional Ayurvedic and herbal medicine. There has also been a steady rise in upper and middle class populations in these developing nations who are more aware of natural ingredients and their health benefits. Local companies are increasingly investing in extraction technologies to derive active pharmaceutical ingredients from indigenous plants. They aim to develop standardized herbal formulations for export markets, in line with international regulatory standards.

Discover high revenue pocket segments and roadmap to it: Get instant access to report

Insights by Product Type: Growing Demand for Natural Products Boosts the Essential Oils Segment

In terms of product type, essential oils is expected to contribute 36.4% share of the market in 2024, owing to the growing consumer preference for natural products. As people become more health conscious, they are drawn to essential oils due to their numerous benefits and lack of synthetic chemicals. Compared to other plant extracts, essential oils offer a more concentrated format that packs the therapeutic essence of plant ingredients into small volumes. This has made them highly sought after as natural alternatives in various applications. Their use in aromatherapy and alternative medicine is also gaining wider acceptance, further spurring demand. In the personal care space, essential oils are prominent ingredients in many natural cosmetic products for their skin and hair benefits. Food and beverage producers also incorporate essential oils to impart distinctive flavors in a natural way. Overall, the diverse applications and natural positioning of essential oils have enabled this segment to outperform others in the plant extracts market. Looking ahead, as consumers increasingly prioritize wellness and sustainability, essential oils are poised to retain their top status.

Insights by Form: Dry form caters to stability needs in diverse industries

In terms of form, the dry segment is expected to hold 67.8% of the market share in 2024, driven by its stability advantages. Being concentrated makes dry plant extracts more shelf-stable than liquids, enabling easier storage and transportation. This durability is highly valued across different industries where plant extracts are utilized. Pharmaceutical companies prefer dry formulations as they maintain consistent potency over extended periods. Likewise, food producers favor dry plant extracts for their ability to withstand packaging, distribution and storage without degradation. In personal care, dry extracts also offer formulation benefits as their concentration allows for precise inclusion in small volume products like serums and creams. Their non-perishable nature further ensures minimal wastage. Overall, as industries require plant-based compounds to retain quality and efficacy over time, the superior stability of dry extracts has made them the preferred format in the plant extracts marketplace.

Insights by Application: Personal Care Emerges as the Top Application Area

In terms of application, personal care is expected to emerge as the leading segment in the plant extracts market with 37.6% of the market share in 2024. Growing consumer emphasis on natural ingredients is a key factor driving the use of plant extracts in personal care products. People are increasingly seeking natural alternatives to synthetic chemicals in their skin, hair, and oral care regimes. Plant extracts deliver multiple bioactive compounds that contribute various benefits. For instance, phytochemicals from fruits and herbs are popular anti-aging actives. Essential oils provide therapeutic scalp and skincare effects. Natural extracts also allow formulation of products aligned with clean beauty trends. Manufacturers utilize plant extracts to market premium natural positioning and better ingredient labels. Additionally, continuous new product launches incorporating plant-based compounds have augmented their application in personal care. The dynamic nature of the personal care industry strategizing on trending consumer interests makes it a fertile ground for plant extracts. Overall, personal care emerges as the top application driving the overall plant extracts marketplace.

Regional Insights

To learn more about this report, request sample copy

orth America has emerged as the dominant region in the global plant extracts market. The region is expected to account for 35.6% of the market share in 2024. The large size and robust growth of the nutraceuticals industry in the U.S. and Canada has propelled the demand for various plant extracts. Rising health consciousness among consumers has increased the consumption of dietary supplements, which is the major end-use segment for plant extracts. Furthermore, the presence of leading players such as Frutarom, Naturex, Sensient Technologies, and numerous small and mid-sized firms has made North America a major innovation hub in this industry. These companies cater to the demands of various healthcare products and food & beverage brands. Given the strong production capabilities and distribution networks of extract manufacturers across the region, North American brands can source high quality plant extracts with ease and reliability.

The Asia Pacific region displays the fastest growth prospects for the plant extracts market over the forecast period. Rapid economic development, rising disposable incomes, and growing health awareness are some key macroeconomic factors driving the market growth. Countries like India and China consist of nearly 40% of the world's population and their collective GDP is expected to surpass major developed economies in the coming years. This indicates the immense commercial potential of catering to their domestic needs. Local companies in Asia Pacific are investing in R&D facilities to develop innovative extraction technologies and novel plant-based products. They also increasingly partner or acquire foreign extract manufacturers to gain access to advanced methods and new plant varieties. Various trade agreements have further eased the import of plant extracts within the region. Such favorable market environment and demand drivers are assisting the rise of Asia Pacific as the fastest expanding regional market for plant extracts.

Market Report Scope

Plant Extracts Industry News

• In April 2024, Nektium launch a new stress-relieving botanical extract
• In 2023, Evonik launched its first plant-based premix
• In 2022, Arbro Pharmaceuticals launched its plant-based cosmetics and nutraceutical line of products in India
• In 2022, Leaven Essential to launched branded botanical extracts in global markets
• In 2021, Layn Natural Ingredients launched polyphenol-rich extracts, thus expanding its portfolio in the botanicals segment

*Definition: The plant extracts market involves companies that develop, produce, and sell concentrates extracted from various plants and plant parts. Common plant extracts in this market include oils extracted from plants like lavender, eucalyptus, and thyme. Other extracts include herbal extracts for supplements and medicines, vegetable extracts used in foods and beverages, seed extracts containing high concentrations of nutrients, and bark extracts containing compounds used in pharmaceuticals and cosmetics. Companies in this market sell plant extracts to various industries like pharmaceuticals, food and beverage, personal care and cosmetics, aromatherapy, and others.

Market Segmentation

• Product Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Spices
  • Essential Oils
  • Phytochemicals
  • Others
•  Form Insights (Revenue, USD Bn, 2019 - 2031)
  • Dry
  • Liquid
•  Application Insights (Revenue, USD Bn, 2019 - 2031)
  • Pharmaceuticals
  • Food and Beverages
  • Personal Care
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Sensient Technologies Corporation
  • International Flavors & Fragrance Inc.
  • Givaudan
  • Synergy Flavors
  • Synthite Industries Private LTD
  • PT Indesso Aroma
  • Vidya Herbs Private Ltd.
  • Nutra Green Biotechnology Co. Ltd
  • Kalsec Inc.
  • Indena S.p.A.
  • Naturex Inc.
  • Mane Fils SA
  • Kalsec Inc.
  • Döhler GmbH
  • Vidya Herbs
  • Indesso
  • Kangcare Bioindustry Co., Ltd
  • Martin Bauer GmbH & Co. KG
  • Native Extracts Pty. Ltd.