The global natural extracts market was valued at USD 11.94 billion in 2021 and it is expected to hit around USD 25 billion by 2030, poised to grow at a CAGR of 8.9% from 2022 to 2030.
Natural extracts are the ingredients that are derived from natural sources like vegetables, fruits, plants, grains, meat, or even seafood. These natural products provide an additional benefits to the consumers for better health, beauty etc. The natural extracts are used in many applications like flavors, edible oils colorants etc. It is the most demanding ingredient for essential oils, fragrances, flavors and spices. It has great application in food and beverage industry and the pharmaceutical industry. These ingredients do not just provide flavor, but are also healthy as they serve many vitamins, carbohydrates and minerals. The unavailability of various raw materials and increased prices of these raw materials shall hinder the growth of the market.
Due to an increase in the trend of vegetarianism or veganism the natural extracts market is expected to boost. The increased consumer awareness, increased adoption of natural ingredient based products, change in the lifestyle and bio technological advancements are driving the market. The increase in the consumer's disposable income, research and development, growth of the agricultural industry, aging population, imports and exports and the growth in the population are all positively affecting the growth of the natural extracts market. Natural extracts are very popular among the consumers as they do not have any detrimental side effects like those that are chemical based. They see applications in personal care and cosmetics, food and beverage products and pharmaceuticals. The overall health benefits that are provided by the natural extracts are expected to create a demand for this product. In various industries due to increasing application in terms of flavors and fragrances. The North American region is the second highest market for the essential oils. The increased use of natural ingredients based product by all the consumers is expected to escalate the growth of this market.
Report Scope of the Natural Extracts Market
|Market Size by 2030||USD 25 Billion|
|Growth Rate from 2022 to 2030||
CAGR of 8.9%
|Europe Market Share in 2021||31%|
|Food and Beverage Segment Market Share in 2021||47%|
|Forecast Period||2022 to 2030|
|Segments Covered||Products, Application, Source, Techniques, End User, Type, Geography|
|Companies Mentioned||Flavex Naturextrakte GmbH, Arjuna Natural Pvt. Ltd., Firmenich SA, Robertet Group, Sami Spices, Synthite Industries Ltd., Ransom Naturals Ltd., India Essential Oils, A.G. Industries, Symrise, Kancor|
On the basis of the product, the natural extracts market has various segments like organic extracts, natural colors, dried crops, essential oils and oleo-resins. The dried crop segment accounted largest revenue share 41% in 2021 and it is expected to dominate the market during the forecast. The demand for dried crops is expected to grow during the forecast. As there is an increased application in food and beverages industry. Dried Chilli is used in the food and beverages industry, and it is widely accepted in the Asia Pacific region.
Turmeric oil is also widely accepted in the Asia Pacific region as it has many qualities that are antiparasitic antifungal, antibacterial, anti allergic, anti viral, anti microbial and anti worm. It has anti cancer effects when it is primarily used in food. Turmeric has wide application in the production of medicines. Oil has a distinct aroma which is distilled. It is usually used in aromatherapy. It has wide applications for skin and hair care. It is also used as a flavoring agent for confectionery, bakery products, beverages, cookies, cakes and biscuits. The various essential oils which are made with the help of natural extracts are ginger, oil, turmeric oil, davana oil, peppermint oil, cedar wood, Patchouli oil and tea tree oil. The Oleoresins are black pepper, capsicum, paprika, turmeric, garlic, onion, ginger.
On the basis of application of these natural extracts, the food and beverage industry is expected to have the largest share 47% in 2021. As the natural extracts are safe and minimally processed food, they are widely accepted across the globe. In order to preserve food and beverages, the anti microbial properties of the natural extracts are useful in order to increase the shelf life of the products.
The use of the natural extracts by the manufacturer is expected to help in the growth of the market. The use of the natural extracts in the storage of the food or in extending the shelf life of the food, there is no compromising on the quality involved. Natural extracts also have an application in spas for aromatherapy which helps in rejuvenating physically, emotionally, spiritually and mentally. The spa industry is also driven by the natural extracts in the form of essential oils.
About 31% of the global revenue for natural extracts was in the European region in 2021. The use of essential oils in cosmetics and fragrances are widely used in the European countries by the manufacturers in the European region. They use essential oils in the production. The global demand for the natural extracts is currently driven by two industries, which is the food and beverages and the personal care. In the developed economies, the demand for the floral extracts or the essential oil is more as the people have high standards of living.
Aromatherapy has a major application of the essential oils and the aromatherapy sector is growing in the European nations. Germany, Austria, France and Switzerland are the major markets for aromatherapy. Other significant markets for aromatherapy are Netherlands and UK. Europe is an exporter and a manufacturer of pharmaceutical products that use natural extracts. An increase in this areas aging population is also expected to drive the demand for pharmaceuticals and neutraceuticals in this region. Constant research and developmental activities to produce natural products are expected to drive the market and awareness about the concept of healthy aging and an increasing health conscious diet is also driving the market. The deficiency of essential micronutrients, or the inclusion of synthetic products in the US has led to an increase in the cases of obesity, cardiovascular diseases, Osteoporosis. Therefore, there is a great demand for plant extracts in food and beverages.
Key Market Players
Key developments in the natural extracts market
Segments covered in the natural extracts market.
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