The global plant extracts market was valued at USD 29.96 billion in 2020 and is expected to grow at a CAGR of 6.1% during the forecast period. The key factors accountable for the market growth includes an increase in the number of health-conscious people and also the growing vegan trends.
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As of 2021, according to the United Nations, the global vegan population accounted for approximately 79 million. This large number is contributing to increase awareness about health benefits such as it reduces the risk of cancer and is associated with the consumption of plant-based food products among the target consumers.
Plants extracts are broadly used in the healthcare industry. These extracts have excellent therapeutic capabilities; hence they are severely used in numerous therapies. Based on these parameters, the market is expected to grow exponentially over the forecast period.
With the changing consumer perceptions related to plant-based food products, some of the major food & beverage manufacturers strategize on including plant ingredients into their marquee final products. This eventually triggers the demand for plant extracts among manufacturers. Essential oils, herbal extracts, and flavors are the key types of plant extracts that are gaining a higher level of traction in the global market.
In the current pandemic, it is essential to boost immunity to fight COVID-19. The guidelines introduced by WHO in its COVID-19 analysis propose the world to consume immunity-boosting food products. Hence, the rising demand for pharmaceutical plant extracts with the properties of boosting immunity is growing in pharmaceuticals & nutraceuticals industries.
The accessibility and advantages of synthetic products such as low costs compared to the cost of natural spices & herbs and their ease of use in contrast to natural products are projected to significantly restrain the growth of the market.
The market is primarily segmented on the basis of type, source, application, and region.
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In terms of type the market is segmented into phytomedicines and herbal extracts, spices, flavors and fragrance, essential oils, natural extracts, and others. The market for phytomedicines and herbal extracts section is expected to be the fastest-growing section during the projected period due to the factors, such as its health benefits and rising awareness regarding its side effects of using chemical-based products. These products are facing high demand from food & beverage industries which require ingredients for avoiding chronic diseases.
The Pharmaceuticals & dietary supplements section is expected to dominate the plant extracts market in the forecast period. This growth can be attributed to the increasing awareness of people related to bacterial resistance toward allopathic medicines.
The plant extracts are widely used in the pharmaceutical industry, followed by the cosmetics and food & beverage industries. The easy registration process for traditional herbal medicinal products in developed countries is projected to drive the demand for these in the pharmaceutical industry.
The rising trend of herbal and hygienic labeled products among the populations is going to upsurge the demand for plant extracts in the food & beverage industry. The demand for herbal drinks such as peppermint tea has increased significantly in recent years, which in turn is expected to offer growth opportunities for herbal beverage manufacturers.
The flower, fruits, and bulbs section are expected to hold the largest market share during the forecast period. All of these sources are used in diverse applications, including herbal extracts, aromatherapy, personal care, fragrances, and toiletries. Owing to multiple functionalities and the presence of several phytochemicals, these parts of the plants are majorly used for extraction and are in high demand from several industries such as healthcare and Pharmaceuticals.
In the food & beverages application, flowers and fruits are commonly used to offer flavors and aromas. Oils from different flowers when mixed provide benefits such as a pleasant aroma in perfumery and also helps in improving the elasticity of skin.
The global plant extract market is considered based on key geographies such as North America, Middle East & Africa, Asia Pacific, and Europe. The Asia Pacific is projected to dominate the market due to the rising demand for plant-derived products.
The growing awareness about better eating habits and increasing demand for herbal products especially among countries such as South Korea, Japan, India, and others is expected to drive the plant extract market in the Asia Pacific region. The usage of plant extracts in Europe and North America is increasing as it acts as a flavoring agent and helps to change the appearance and the taste of food.
The easy accessibility of the product due to the presence of leading players in this region such as Givaudan and Symrise AG is expected to increase the plant extract growth in this region. These companies are focused on acquisition and collaboration to strengthen their position in the global market.
The global plant extracts market is extremely fragmented with the presence of a large number of manufacturers globally. The key players present in this market are Symrise AG, Sensient Technologies, Givaudan, Native Extracts Pty. Ltd., Martin Bauer GmbH & Co. KG, Kangcare Bioindustry Co., Ltd., Pt. Indesso Aroma, Ltd., Synthite Industries Private Ltd., Tokiwa Phytochemical Co., International Flavours and Fragrances Inc., and others.