Plant Extracts Market is Estimated to Witness High Growth Owing to Rising Health Awareness & Alternative Medicine Opportunities
The plant extracts market is estimated to be valued at USD 42.54 billion in 2024, exhibiting a CAGR of 11.2% over the forecast period (2024-2031). Furthermore, the growing popularity of herbal medicines and natural remedies are anticipated to fuel the market growth during this period.
Rising health awareness amongst consumers and growing preference for natural and herbal products without any side effects are expected to drive the demand for plant extracts in the coming years. The population around the globe is becoming increasingly health conscious and focusing on preventive healthcare. This has raised the demand for dietary supplements and functional foods containing plant extracts. Plant extracts serve as excellent alternatives to synthetically produced chemicals and provide various health benefits.
Moreover, the commercialization and widespread adoption of alternative medicine practices such as ayurveda, homeopathy, acupuncture, etc. in developed markets will also aid the expansion of the plant extracts market. Many plant extracts have been used in alternative treatments for various ailments since ancient times. With growing reliance on traditional healing methods, their commercial applications continue to broaden.
Growing Demand for Natural Ingredients in the Food and Beverages Industry
The food and beverages industry is witnessing rising demand for natural ingredients from consumers. Plant extracts being natural sources are increasingly finding applications in various food products like flavors, colors, and preservatives. The demand for herbal extracts from fruits, vegetables, herbs and other plants in food and beverages is a major growth driver for the plant extracts market. Consumers today prefer food products with label claims of 'natural', 'organic' and 'herbal' due to growing health consciousness. This consumer trend is prompting food manufacturers to replace artificial ingredients with natural plant extracts in their formulations.
Increasing Applications in Nutraceuticals and Dietary Supplements
Plant extracts are extensively used in nutraceuticals and dietary supplements due to their therapeutic properties. Conditions like obesity, diabetes, cardiovascular diseases, and cognitive decline are driving growth in the dietary supplements market globally. Plant extracts containing phytochemicals, minerals and vitamins support various health conditions, providing wellness benefits. Increasing consumer preference for herbal alternatives to pharmaceuticals for preventive healthcare is driving demand for plant extracts from the supplements industry. Major extract types in demand include flavonoids, carotenoids, phytosterols and other polyphenolic compounds known for antioxidant and other medicinal properties.
Stringent Regulation on Safety and Quality of Extracts
While the functional ingredients market is growing exponentially, regulations surrounding safety, quality and efficacy of plant extracts have also become stricter worldwide. Regulatory authorities like FDA, FSSAI and EFSA now require extensive clinical research data, toxicology reports, and manufacturing compliance for the approval and usage of new plant extracts in foods, nutraceuticals, and cosmetics. This regulatory complexity increases the cost and compliance burden, especially for small businesses. It also delays the launch of new extract-based products despite emerging demand. Stringent safety norms can negatively impact growth strategies of players in the short term.
High Production and Processing Costs
Plant extracts often have low concentrations of active compounds requiring sophisticated extraction processes, sometimes multiple, to obtain useful quantities. Traditional extraction methods using organic solvents are being replaced with advanced techniques like supercritical fluid extraction, ultrasound-assisted extraction, etc. to improve yields, but these advanced technologies involve heavy capital investments escalating production costs. Post-harvest handling of source materials also increases costs. Fluctuating raw material prices further impacts costs. These factors increase the price point of certain niche, high-value extracts restricting their applications and large-scale commercialization.
Increasing Consumer Demand for Natural Personal Care Products
People are increasingly turning to botanical ingredients and herbal extracts for skin, hair and oral care due to perceptions of natural products being safer and more effective. Personal care product manufacturers are responding by introducing more natural ingredient-based formulations. Plant extracts offering anti-ageing, anti-inflammatory and moisturizing properties are in high demand. Sectors like natural color cosmetics and herbal oral care using plant-derived colors and flavors present lucrative opportunities. Emerging concepts like aromatherapy and photoprotection using essential oils and botanical extracts will boost future market potential for various plant-derived personal care ingredients.
Rising Popularity of Traditional Medicine Practices
Systems like Ayurveda, Chinese medicine, Korean traditional medicine, and other ethnomedicine practices are gaining global recognition due to their holistic healthcare approaches. This opens up avenues to commercialize high-value botanical extracts used extensively in formulations prescribed in traditional medicinal disciplines. Several herbs and plant parts used as crude drugs in these ancient medical systems hold potential for isolation and marketing of novel active compounds after extensive research. With growing interest in alternative remedies, investments into traditional medicine practices open up new opportunities to develop plant extracts into healthcare products backed by science as well as tradition.
Link: https://www.coherentmarketinsights.com/market-insight/plant-extracts-market-1450
Key Developments
- In April 2024, Nektium announced the upcoming launch of a new stress-relieving botanical extract. This innovative product is designed to support mental well-being and help individuals manage stress through the use of natural ingredients. Nektium, known for its expertise in botanical extracts, aims to provide consumers with a high-quality solution that promotes relaxation and balance in today’s fast-paced environment. The launch reflects a growing trend in the wellness industry, focusing on natural remedies for stress management and overall health.
- In 2023, Evonik introduced its first plant-based premix, marking a significant advancement in the field of animal nutrition. This innovative product is designed to provide a sustainable and nutritious alternative for livestock feed, aligning with the growing demand for plant-based solutions in the agricultural sector.
- In 2022, Arbro Pharmaceuticals launched a new line of plant-based cosmetics and nutraceutical products in India. This innovative range reflects the growing consumer preference for natural and sustainable beauty and wellness solutions. By harnessing the power of botanical ingredients, Arbro Pharmaceuticals aims to provide effective and environmentally friendly alternatives in the cosmetics and nutraceutical markets. The introduction of these products not only enhances Arbro's portfolio but also caters to the increasing demand for clean and ethical formulations among Indian consumers.
- In 2022, Leaven Essential announced its plans to launch a range of branded botanical extracts to global markets. This initiative aims to provide high-quality, natural ingredients sourced from various plants, catering to the growing demand for botanical solutions in industries such as cosmetics, food and beverage, and dietary supplements.
- In 2021, Layn Natural Ingredients announced its strategic expansion into the botanicals market with the launch of polyphenol-rich extracts. These extracts are derived from various plant sources known for their high antioxidant content and health benefits.
Key Players
Symrise AG, 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., V. Mane Fils SA, Kalsec Inc., Döhler GmbH, Vidya Herbs , Indesso , Kangcare Bioindustry Co., Ltd, Martin Bauer GmbH & Co. KG, Native Extracts Pty. Ltd.
