Plant Extracts Market Segments and Growth by 2028

The plant extracts market is expected to grow from US$ 29,238.91 million in 2021 to US$ 47,421.44 million by 2028; it is expected to grow at a CAGR of 7.3% from 2022 to 2028.

Plant extracts are extracted from plant tissue, usually by treating them with a solvent, including alcohol or water. The extracts are used as ingredients in food and other consumer products for various functions, such as modifying flavor, aroma, and nutritive quality. Plant extracts play a significant role in preventive healthcare as they prevent the occurrence of diseases by strengthening the immune system.

Asia Pacific held the largest plant extracts market share in 2021. The market growth is attributed to the increasing demand for natural ingredients, especially spices and herbs extracts, and growing influence of ‘clean label products’ among the population in the region. The current trend of consumers seeking botanical ingredients in food and beverages is one of the significant factors driving the plant extracts market in Asia Pacific countries. Therefore, the manufacturers of plant extracts are expanding their operations across Asia Pacific. For instance, on November 17th, 2021, International Flavors & Fragrances, Inc. invested US$ 87 million to established flavor manufacturing plant in Karawang, Indonesia. Cargill Incorporated, ADM, and Kerry Group Plc, and International Flavors & Fragrances, Inc. are among the companies actively operating in the region. These factors are projected to fuel the Asia Pacific plant extracts market growth in the coming years.

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Plant Extracts Market: Strategic Insights

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Impact of COVID-19 Pandemic on Plant Extracts Market

The COVID-19 pandemic brought unprecedented challenges for many sectors in early 2020. Lockdowns, border restrictions, travel bans, manufacturing discontinuation, and other safety measures rolled out by governments as per the guidelines of the WHO and national health ministries hampered the manufacturing operations. However, the COVID-19 outbreak positively impacted the market as consumers are increasingly seeking natural and safer alternatives to keep themselves healthy and strengthen their immune systems. Moreover, the pandemic has increased research on plant extract applications for pharmaceuticals and immunity-building food or beverages. For instance, in February 2020, The Department of Thai Traditional Medicine and Government Pharmaceutical Organization signed a memorandum of understanding (MoU) to research on medicinal plant Andrographis paniculate extract with an eye to developing a drug to inhibit the COVID-19. Also, the rising number of manufacturers and preference of consumers for consuming herbal products and supplements drive the growth of the plant extracts market.

Market Insights

Rising Demand for Natural Ingredients in Food & Beverages Industry

Herbal and natural products are becoming increasingly popular due to their perceived health benefits. Also, consumers are ready to pay high prices for products free of synthetic ingredients. Moreover, they increasingly prefer food and beverage products free of synthetic flavors, colors, and other food additives. Further, consumers are focusing on holistic and conscious consumption and preferring products with ethically sourced ingredients. The increasing consumer awareness about the adverse health effects of consuming synthetic ingredients driving the demand for natural ingredients in the food & beverage industry. Also, plant extracts are increasingly used as an antioxidant, antimicrobial, and shelf life-extending agents in the industry. All these factors are expected to drive the growth of the plant extracts market during the forecast period.

Form-Based Insights

Based on form, the plant extracts market is segmented into powder, liquid, and paste. The liquid segment is projected to hold the largest share during the forecast period. Liquid extract is the majorly available form of plant extract as it requires less processing than other forms. A few other advantages of liquid extract include fast absorption, flexible blending features, and longer shelf life, which is expected to boost its demand in the coming years.

Source-Based Insights

Based on source, the plant extracts market is segmented into fruits & vegetables, herbs & spices, flowers, and others. The herbs and spices segment is projected to hold the largest share during the forecast period. Herbs and spices extracts, including turmeric, cilantro, holy basils, and lavenders, have been used extensively in Ayurveda since long time. Population is showing interest toward using Ayurveda practices for skin, hair, and nails health. Therefore, the rising use of herbs and spice extracts in the cosmetics industry is projected to bolster the market growth for the herbs & spices segment. Also, Kerry Group plc offers extensive product portfolio of vanilla, caffeine, and different teas like herbs & spices to the trending food, pharmaceuticals, and aromatherapy industries to meet consumer demand. This factor boosts the growth of the plant extracts market for the herbs & spices segment.

Application-Based Insights

Based on application, the plant extracts market is segmented into food & beverages, pharmaceuticals & nutraceuticals, personal care, and others. The personal care segment is projected to register the highest CAGR in the market during the forecast period. Plant extracts are widely used in treating dermatological diseases to promote the chronic wounds healing, hasten tissue regeneration, and treat acne vulgaris or plaque psoriasis. The rising utilization of botanical ingredients in the personal care industry is projected to drive the market growth for the segment during the forecast period. Further, in recent years, with increasing health concerns about synthetic fragrances, the preference is shifting toward natural perfumes as many consumers seek safe and natural ingredients in their perfumes.

Sensient Technologies Corporation; Givaudan S.A.; Symrise; Dohler; Indesso; Synergy Flavours; International Flavors and Fragrances Inc.; Kerry Group Plc; Ingredion Inc.; and Kemin Industries, Inc. are among the key players operating in the plant extracts market. These players are engaged in developing products with reduced health risks to meet emerging trends and abide by regulatory frameworks. They are involved in mergers and acquisitions, business expansions, and partnerships to expand their market share.

Plant Extracts Market Regional Insights

The regional trends and factors influencing the Plant Extracts Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Plant Extracts Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Plant Extracts Market Report Scope

Plant Extracts Market Players Density: Understanding Its Impact on Business Dynamics

The Plant Extracts Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Report Spotlights

• Progressive industry trends in the plant extracts market to help players develop effective long-term strategies
• Business growth strategies adopted to secure growth in developed and developing markets
• Quantitative analysis of the plant extracts market from 2022 to 2028
• Estimation of global demand for plant extracts
• Porter's Five Forces analysis to illustrate the efficacy of buyers and suppliers operating in the industry
• Recent developments to understand the competitive market scenario
• Market trends and outlook, and factors governing the growth of the plant extracts market
• Assistance in the decision-making process by highlighting market strategies that underpin commercial interest, leading to the market growth
• Size of the plant extracts market at various nodes
• Detailed overview and segmentation of the market and the plant extract industry dynamics
• Size of the growth in various regions with promising growth opportunities