Plant Extracts Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[224+ Pages Report] According to the report published by Facts & Factors, the global plant extracts market size was valued at USD 44.32 billion in 2022 and is likely to reach USD 67.48 billion between 2023-2030. The market is expected to grow with an annual CAGR of 5.33% during the forecast period. The global plant extracts market is a comprehensive study of market definitions, growth drivers, opportunities, and challenges. It covers the geographical and competitive dynamics of the plant extracts industry.

Market Overview

Plant extracts refer to the concentrated powders or solutions extracted from the different parts of the plants like fruit, root, flower, stem, or leaves. They are derived from a deep process where active compounds are isolated and concentrated separately. However, there are different techniques of extraction adopted to derive plant extracts. A few of them include cold pressing, steam distillation, and solvent extraction.

Plant extracts are widely used in different end-users like traditional medicine, food & beverages, cosmetics, pharmaceuticals, and others. They are much in demand because of their medicinal properties, natural colors, fragrance component, and flavoring agent. Some of the most commonly used plant extracts are chamomile, lavender essential oil, ginseng, green tea, and aloe vera extracts.

Key Insights

• As per the analysis shared by our research analyst, the global plant extracts market size is estimated to grow annually at a CAGR of around 5.33% over the forecast period (2023-2030).
• In terms of revenue, the global plant extracts market size was valued at around USD 44.32 billion in 2022 and is projected to reach USD 67.48 billion by 2030.
• The high consumer demand for organic and natural products is likely to drive the growth of the global plant extracts market.
• Based on the source, the herb and spices segment accounts for the largest share of the global market.
• Based on the form, the dry plant extract segment dominates the global market.
• Based on the applications, the food and beverage segment is the fastest-growing segment in the global market.
• Based on the product type, essential oil is the fastest-growing segment in the global market.
• Based on region, Asia Pacific is expected to dominate the market during the forecast period.      

Growth Drivers

• High consumer demand for organic and natural products is likely to boost the growth of the global market.

There is a significant rise in the preference of people for organic and natural ingredients in different end-user sectors like pharmaceuticals, cosmetics, and food & beverages. Plant extracts are known to offer a valuable source of natural compounds. Therefore, it is of high use in numerous end-user sectors. Also, the surging awareness among people regarding their health and wellness is encouraging people to look forward to organic and natural products. These ingredients hold abundant potential to maintain the health of human beings. These extracts are widely known for their bioactive compound, which owns health-promoting properties. There is an increasing drive for nutritional and functional ingredients in food items among people, which in turn is likely to significantly boost the growth of the global plant extracts market in the forthcoming years.

Restraints

• High cost is expected to hamper the growth of the global market.

One of the major reasons for the high cost is forest degradation and species extinction. Therefore, medicinal plants are found in only certain countries in the world, thereby limiting their supply and raising their price. Also, these plants can only be produced once a year. Therefore, there is a huge imbalance in the supply and demand cycle which is another reason contributing to the high price of plant extracts.

Opportunities

• Technology advancements in the production process are expected to offer lucrative growth opportunities in the global market.

Technology advancements are helping to balance the gap between the supply and demand cycle, which is expected to widen the scope of the global plant extracts industry. The emergence of green technology is expected to offer incredible results in the future. For instance, the Polar Nonpolar Sandwich (PNS) technology is widely used for deriving bioactive extracts like essential oils, fiber, proteins, and polyphenols from turmeric root extracts. Therefore, such a landscape is expected to offer lucrative growth opportunities in the global market in the forthcoming years.

Challenges

• Adulteration is a big challenge in the global market.

Adulteration of plant extract refers to the intentional addition of unauthorized or low-quality substances to plant extract, which degrades its efficacy, safety, and qualities. However, it poses a high risk to the health of consumers as well as the goodwill of the sector. Also, unscrupulous suppliers dilute plant extracts with synthetic compounds to maximize profit. However, this degrades the quality of the authentic plant extract.

Segmentation Analysis

The global plant extracts market can be segmented into source, form, applications, product type, and region.

On the basis of source, the market can be segmented into herbs & spices, fruits & vegetables, and flowers. The herb and spices segment accounts for the largest share of the global plant extracts market due to their broad usage in a variety of applications in different end-users sectors.

Additionally, the growing awareness among people regarding the side effects of synthetic products is further likely to forge developments in the segment in the forthcoming years. The surging interest of people in essential oils will also boost the growth of the segment. Essential oils are widely being used as antimicrobial agents, antioxidants, and shelf-life-extending agents, which in turn is expected to support the growth of the segment in the global plant extracts market.

On the basis of form, the market can be segmented into dry and liquid. The dry plant extract segment dominates the global plant extracts industry owing to numerous advantages like versatility in formulation, easy transformation, easy storage, and longer shelf life. Dry plant extract works by eliminating the moisture content from the plant materials, thereby resulting in a concentrated solid or powder form. However, these extracts are widely used in the production of dry mix formulations, powder beverages, encapsulated powders, dietary supplements, and several others.

However, the liquid plant extracts segment is also expected to grow significantly in the forthcoming years due to its wide-scale applications in pharmaceuticals, cosmetics, and herbal medicines. These can easily be incorporated into tonics, syrups, herbal extracts, tinctures, and other topical products like creams & lotions.

On the basis of applications, the market can be segmented into dietary supplements, pharmaceuticals, cosmetics, food & beverages, and others. The food and beverage segment is the fastest-growing segment in the global plant extracts industry.

The segment is swiping the largest share because of its association with various health properties, like relaxation, boosting focus, improving skin health, maintaining the immune system, and energizing the body. These plant extracts serve myriad functions in the food sector, including packaging additives, nutrients, enhancers, enzymes, coloring, flavoring, antimicrobial agents, and several others, which further result in the segment’s expansion.

On the basis of product type, the market can be segmented into carotenoids, alkaloids, flavonoids, essential oils, oleoresins, and others. Essential oil is the fastest-growing segment in the global plant extracts market due to its wide usage as an antioxidant in the food sector.

Report Scope

Regional Analysis

• Asia Pacific accounts for the largest share of the global market.

Asia Pacific is expected to dominate the global plant extracts market in the forthcoming years due to the high demand from both the local and international markets in the region. The region has sheltered numerous small and medium business manufacturers, which are very well-versed in deriving plant extracts efficiently without losing much potential. Countries like Thailand and India are increasing their investments in the market to expand the product range with innovation and experiments.

North America is also expected to grow steadily in the global plant extracts industry in the forthcoming years due to the rising demand for natural ingredients in the region. Product innovation is another major factor boosting the growth of the regional market.

Consumers are increasingly adopting natural and organic skincare products with plant extracts offering anticellulite and radiance benefits. Also, there is a surging demand for herbal supplements and medicinal products which is expected to widen the scope of the regional market in the forthcoming years.

Competitive Analysis

• PT. Haldin Pacific Semesta 
• KangcareBioindustry Co Ltd. 
• Vidya Herbs Private Limited 
• PT. Indesso Aroma 
• Givaudan 
• Symrise AG 
• Shaanxi JiahePhytochem Co. Ltd. 
• Synthite Industries Private Ltd. 
• Döhler 
• Sensient Technologies

The global plant extracts market is segmented as follows:

By Source Segment Analysis

• Herbs & Spices
• Fruits & Vegetables
• Flowers

By Form Segment Analysis

• Dry
• Liquid

By Applications Segment Analysis

• Dietary Supplements
• Pharmaceuticals
• Cosmetics
• Food & Beverages
• Others

By Product Type Segment Analysis

• Carotenoids
• Alkaloids
• Flavonoids
• Essential Oils
• Oleoresins
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America