South & Central America Plant Extracts Market Size, Share, and Analysis by 2031

The South & Central America plant extracts market size is projected to reach US$ 5.52 billion by 2031 from US$ 2.93 billion in 2023. The market is expected to register a CAGR of 8.2% during 2023–2031.

Consumers are seeking healthier alternatives in the food & beverages sector, with high demand for organic food & beverages. This has influenced the manufacturers to include organic plant extracts as flavorings, colorants, and preservatives in their products. For instance, organic green tea extract, derived from camellia sinensis, is rich in antioxidants. It is added to dietary supplements and functional foods for health-promoting benefits. This factor is likely to remain a key trend in the market.

South & Central America Plant Extracts Market Analysis

Consumers are becoming more conscious of the ingredients in their food and beverages, seeking products made with natural and authentic components. Natural extracts derived from sources such as fruits, herbs, spices, and botanicals fulfill consumer preferences for clean-label products. Due to growing concerns about ingredient safety and potential health consequences, consumers are focusing on the ingredients included in processed food. There is a rising awareness among people about the adverse effects of consuming food and beverages with artificial ingredients. Several health organizations, such as the World Health Organization and UNICEF, and food safety associations prohibit using artificial flavorings in food and beverages. Consumers are focusing on holistic and conscious consumption of food and prefer products with ethically sourced ingredients. As a result, consumers are including products that are free of synthetic ingredients in their diets and are willing to pay high prices for these ingredients. People are becoming more inclined toward natural ingredients and additives such as plant extracts. Plant extracts are widely used as an antioxidant, antimicrobial, flavoring, and shelf-life-extending agent in the food industry.

South & Central America Plant Extracts Market Overview

Plant extracts are substances that are extracted from various parts or sources of a plant such as fruit, flower, bark, leaves, stem, peel, root, and seed. They are available in powders, concentrates, distillates, concoctions, tinctures, infusions, paste, granules, and various other formats. Plant extracts play a significant role in preventive healthcare as they prevent new incidences of diseases by strengthening the immune system. Thus, rising awareness regarding preventive healthcare is expected to boost the demand for plant extracts during the forecast period.

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South & Central America Plant Extracts Market: Strategic Insights

South & Central America Plant Extracts Market Drivers and Opportunities

Rising Demand for Natural Ingredients in Food and Beverages

In South & Central America, extracts of acai berries, maqui berries, camu-camu, guarana, yerba mate, soursop, and maca are widely used in various applications, including functional beverages, RTD juices, jams and preserves, smoothies, and frozen desserts and ice creams, among others. These native plant extracts are known for their unique health benefits and are achieving immense recognition in domestic and international markets. For instance, leaf extracts of yerba mate plants are used to make mate tea, which is a popular beverage in South & Central America. Mate tea is known for its stimulating effect on the mind and body due to its high caffeine and phenolic content. Yerba mate extracts are witnessing significant demand across the region due to the rising interest of consumers in functional food and beverages infused with natural ingredients.

Growing Consumer Inclination toward Herbal Products

South & Central America are rich in biodiversity, with many plants known for their medicinal benefits. As consumers become more health-conscious and seek natural alternatives to synthetic ingredients, the demand for products derived from plant extracts known for their medicinal and therapeutic properties is rising. Consumers perceive them to be more authentic and effective than synthetic alternatives. Also, there is a growing mistrust among consumers regarding synthetic ingredients and conventional pharmaceuticals; this makes them prefer traditional herbal remedies over synthetic ingredients-based products. Plant extracts have been used in traditional medicine practices for centuries in the region, and there is a renewed interest in tapping into the potential of developing modern herbal products.

South & Central America Plant Extracts Market Report Segmentation Analysis

Key segments that contributed to the derivation of the South & Central America plant extracts market analysis are form, source, and application.

• Based on form, the South & Central America plant extracts market is segmented into powder, liquid, and paste. The liquid segment held the largest market share in 2023.
• By source, the market is segmented into fruits and vegetables, herbs and spices, flowers, and others. The herbs and spices segment held the largest share of the market in 2023.
• In terms of application, the market is categorized into food and beverages, pharmaceuticals and nutraceuticals, personal care, and others. The food & beverage segment held the largest share in 2023.

South & Central America Plant Extracts Market Share Analysis by Country

The geographic scope of the South & Central America plant extracts market report is mainly divided into the following countries: Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Costa Rica, and the Rest of South & Central America.

Brazil dominated the market in 2023. Due to increasing awareness about health concerns, consumers are adopting a clean, natural, and sustainable approach. This notable shift in consumers' attitudes and increasing demand for healthy food and beverages is resulting in a strong demand for plant extracts. Brazilian plant extracts such as jambu, mate, and guarana have high demand in the skincare, dietary supplements, and pharmaceutical industries. With the growing demand, the leading players are increasingly launching a wide range of products using these plant extracts. For instance, in 2019, Givaudan launched a range of Brazilian plant extracts under the “RitualEssenz” brand, consisting of jambu, mate, and guarana extracts. Such innovations by the manufacturers generate significant demand for plant extracts in different end-use industries, driving the plant extracts market in the country. Furthermore, the market in Argentina is anticipated to register the highest CAGR in the coming years.

South & Central America Plant Extracts

South & Central America Plant Extracts Market Report Scope

South & Central America Plant Extracts Market Players Density: Understanding Its Impact on Business Dynamics

The South & Central America 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.

South & Central America Plant Extracts Market News and Recent Developments

The South & Central America plant extracts market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the South & Central America plant extracts market are listed below:

• Kemin Food Technologies–EMEA introduced OLESSENCE to boost flavor and preserve freshness in dry bakery products. (Source: Kemin Food, Newsletter, February 2024)
• Ingredion Inc. signed a strategic distribution agreement with Batory Foods, expanding its distributor reach . (Source: Ingredion Inc, Press Release, September 2021)

South & Central America Plant Extracts Market Report Coverage and Deliverables

The "South & Central America Plant Extracts Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• South & Central America plant extracts market size and forecast at regional and country levels for all the key market segments covered under the scope
• South & Central America plant extracts market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter's Five Forces and SWOT analysis
• South & Central America plant extracts market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments in the South & Central America plant extracts market
• Detailed company profiles