The global plant extracts market revenue is growing at USD 12.14 billion in 2023 and is expected to touch around USD 22.49 billion by 2030, poised to grow at a remarkable CAGR of 9.2% during the forecast period 2022 to 2030.
Market Overview:
Plants extracts are considered one of the most natural sources used to produce drugs, cosmetics, food items, beverages and numerous other products. The global plant extract market is flourishing with rising awareness about the side effects of chemically produced synthetic products. Along with this, unique flavors and additional health benefits offered by plant-extract products fuel the market's growth. Moreover, the global plant extract market has noticed the deployment of advanced technology. Machine learning, artificial intelligence, blockchain management, digital training, cloud computing and extensive data analysis are a few technological ways that are helping the need to grow faster yet more efficiently.
Plant extracts are composed of antioxidants and anti-microbial properties, which make them a perfect additive for the food and beverages industry. Phytochemical properties in plant extracts allow extended shelf life for food items. Rising demand for packed and functional food is expected to boost the demand for plant-extract raw materials from the food & beverage industry. Plant extracts act as an excellent flavouring agent. Dried crops such as spices, pumpkin beans and nuts are prominently used in the food industry.
Furthermore, rising demand for essential oils to treat fungal infections, organic fragrances, vegan cosmetics, and plant-based personal care products are fueling the growth of the plant-extract market via the cosmetics and personal care segment. Consumers are concerned about the ingredients in cosmetics and personal care products they buy. The rising awareness of organic and clean skincare products has boosted the plant-extract market's growth in recent years.
Plant extracts have immense importance in the medical field. According to the World Health Organization, approximately 21,000 plant species across the globe carry the potential to be used as medicinal plants. Plant extracts are applied for drug discovery, skin and hair treatment, anti-depressant treatment and many other medicinal purposes. For example, herbs such as Moringa Oleifera, Mallotus philippinensis and Nigella Sativa are used in anti-cancer drug discovery. Considering the high efficacy of plant extracts and rising public acceptance, the global market is expected to maintain growth during the forecast period.
Report Highlights:
Plant Extracts Market Report Scope:
| Report Coverage | Details |
| Market Revenue in 2023 | USD 12.14 Billion |
| Projected Forecast Revenue in 2030 | USD 22.49 Billion |
| Growth Rate from 2022 to 2030 | CAGR of 9.2% |
| Largest Market | North America |
| Base Year | 2022 |
| Forecast Period | 2022 to 2030 |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Regional Snapshot:
Europe acquires the highest revenue share in the global plant-extract market and holds the potential to maintain growth during the forecast period. The rising demand for plant-extract materials as an additive for drug discovery from the pharmaceutical industry has fueled market growth in Europe. According to the Center for the Promotion of Imports, approximately 700 plant-based medicines are currently available in Germany. Besides, researchers focus on developing plant-based medication owing to the rising awareness of the medicinal benefits offered by plant-based products. Germany, Italy and France dominate the market in Europe. Standardization and purity of plant-based products from European manufacturers have boosted the overseas sales of cosmetics and personal care products. Europe carries the majority of prominent critical players in the global plant-extract market. Major players involved in research, innovation, sales and other businesses associated with plant-based products, such as Givaudan, Symrise AG, Dohler, Kerry Group Plc., Martin Bauer Group, Berkem, Naturex, DSM and Carbery Group, are headquartered in Europe.
Asia Pacific is the fastest-growing region in the global plant-extract market. In countries such as China and India, medicinal plants constitute as much as 80% of total drug discovery. Along with this, the immense importance of Ayurveda (a traditional medicine system) in India has given rise to the plant-extract market in the country with rapid public acceptance. Owing to conventional food habits and culture, Asian countries are more prone to use herbs and spices in food items as compared to other regions. This factor maintains the demand for dry spices, herbs, and tea extracted from various plants in the area.
Moreover, rising product research and discovery with companies launching new products with plant extracts are driving the market's growth in the Asia Pacific. For instance, in October 2022, Taipei-based Vitality Plus International launched a new herbal medicine and fermented foods series that help in preserving long-term health. In recent years, few other plant-based products found by Vitality are well known for their excellent nutritious values. The presence of major key players such as Kangcare Bioindustry Co Ltd., Nantong Sihai Plant Extracts Co Ltd., PT Indesso Aroma, Arjuna Natural Pvt Ltd., Vidya Herbs Pvt Ltd., Shaanxi JiahePhytochem Co Ltd. and Synthite Industries Pvt Ltd has contributed to the growth of the plant-extract market in Asia Pacific.
North America is the second largest marketplace for global plant-extract products. The growing adoption of organic and vegan cosmetics has boosted the plant-extract market in North America. The population prefers safer and milder therapies compared to conventional methods in the region; this has increased the demand for essential oils in the market. Rising demand for clean-label products and environmentally concerned populations are driving the growth of the plant-extract market in North America. Sensient Technologies, International Flavors & Fragrances Inc., ADM and many other prominent vital players have helped expand the plant-extract market in North America.
Market Dynamics:
Driver:
Rising veganism across the globe
The rising concept of veganism globally has provided evident growth for plant-based products (food & beverage, cosmetics and medications). The increasing demand for clear-food options has forced many brands/companies to discover vegan or plant-based products to fulfil consumer demands. For instance, in July 2022, McDonald's ramped up its vegan menu in the United Kingdom, including plant-based patties, vegan burgers and vegan wraps. The fast acceptance of vegan food options is increasing the development of more sustainable and ethical food products. Moreover, as many celebrities across the globe are endorsing themselves as vegan, rising celebrity endorsement is propelling the growth of the plant-extract market. Thus, rising veganism worldwide is a major driving factor for growing the plant-extract market.
Restraint:
Lack of process standardization
Proper process standardization is necessary for maintaining consistency in production. Improper government regulations, lack of formal scientific study, low interest in cultivation, patent issues and disappearance of biodiversity are a few factors that collectively affect standardization. Lack of process standardization results in product quality variation and shows changed consumer behaviour. Thus, the need for more process standardization is considered a significant challenge to the growth of the plant extract market. Along with this, restraining synthetic products' availability at low cost and lack of government support to produce plant-based products hamper the growth of the plant-extract market.
Opportunity:
Deployment of machine learning technology in product development
Deployment of machine learning and artificial intelligence in plant-extract product development boosts the process's speed, offering lucrative opportunities for researchers and manufacturers to fulfil the rising demand for plant-based products globally. Machine learning technology offers proper data analysis by processing a large amount of information to help manufacturers work more accurately during product development. With the help of such technology, creators are likely to maintain the standards and quality of products with improved efficiency. A well-maintained standardization of plant-based products is projected to boost consumer acceptance, which drives the growth of the overall market. Moreover, deploying any form of advanced technology in production offers proper analytics, an innovative approach, higher transparency, and automated administration.
For instance, in November 2022, Germany-based Dr Pierre Debs announced the launch of Chain Pharmaceuticals GmbH, a unique platform for leveraging machine learning and real-world medical data to develop clinically proven plant-based medicines.
Challenge:
Lack of global directives or regulatory policies for product approval
Every country has different directives or regulations to approve plant-based products. This process is costly and time-consuming, which is an obstacle to the growth of the plant-extract market. The global plant-extract market needs a global/universal directive to approve a product, and this complicates receiving product approval for players while expanding business internationally. Considering these cons, global/universal directions or regulatory policies are necessary for the global plant-extract market as they help generate better business expansion and revenue for companies.
Recent Developments:
Major Key Players:
The global plant extract market consists of multiple key players. Major key players in the market are focused on research, production, sales, trading, and business strategies for expansion. A few of the prominent key players that contribute to the growth of the market globally are-
Market Segmentation:
By Product
By Application
By Sources
By Form
By Method
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