PLANT EXTRACTS MARKET ANALYSIS

A plant extract is a substance that contains various chemical compositions such as resin alcohols, starches, hydrocarbon resins, gums, phlegmatics, carotenoids, and quinones. These extracts are tissues treated with solvents for various functionalities to serve as skin medicines, anti-irritants, anti-inflammatory, sterilizers, anti-infective, wetting, and skin protection among others. 

Global plant extracts market was valued at US$ 44,345.6 Million in 2021 in terms of revenue, exhibiting a CAGR of 5.9% during the forecast period (2022 to 2030).

Drivers

Growing demand for plant extracts in the food and beverages, pharmaceuticals, and cosmetics industries is expected to drive growth of the global plant extract market. For instance, plant extracts are widely used in the food and beverages industry as colorants and flavorants to enhance the overall nutritional content. Increasing demand for functional foods and beverages such as protein bars, dietary supplements, and flavored beverages is also expected to fuel growth of the plant extracts market.

Plant extracts are used in the cosmetic industry for application in perfumes, and skin care and hair care products. These extracts are used in skin care products for curing eczema, acne, dryness, free-radical scavenging, anti-inflammatory, and anti-aging. While, in hair care products, they are used as growth stimulants, colorants, and as anti-dandruff agents. Rising trend of using cosmetics with natural extracts is further expected to drive the demand for plant extracts.

Among regions, Europe holds the dominant market for in the global plant extracts market, followed by Asia Pacific. Increasing inclination of customers towards consumption of herbal medicines in Europe is driving growth of the plant extracts market in the region. According to the Centre for the Promotion of Imports, around 700 plant-based medicines are available in Germany, which are manufactured by companies such as Heinrich Klenk and Schaper & Brümmer among others and are prescribed by 70% of the physicians in the country. Other factors that are expected to drive growth of the market include the growing cosmetics and personal care industry. Demand for plant-based ingredients in the cosmetics and growing adoption of natural cosmetics is fuelling the growth of plant extracts market.

Figure 1. Global Plant Extracts Market Value Share (%), By Region, 2021

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Market Restraints

 Lack of universal directives pertaining to applications of plant extracts is expected to restrain market growth during the forecast period. Every country has different directives pertaining to use and applications of plant extracts. Therefore, key players find it difficult to cope with such country wise regulations, which in turn, is discouraging investment in the plant extracts industry, thereby restraining market growth.

Market Trends

Growing supporting initiatives by government and increasing R&D by companies is key trend in Natural Plant extracts market. Many companies operating in plant extracts market are investing are investing in R&D to come up with new herbs and spices to meet consumer preferences. The development of new plant-based flavors & fragrances favored by consumers poses new opportunity areas for plant extract manufacturers. Governments of various countries have started taking initiatives and are investing in R&D. Such initiatives are expected to boost the demand for plant extracts, which in turn is expected to drive the market growth.

Figure 2. Global Plant Extracts Market Value Share (%), By Product Type, 2021

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Among product type, the spices product type segment is expected to hold the largest market share throughout the forecast period. Essential oils segment is the fastest-growing segment, and is expected to exhibit a CAGR of 7.06% over the forecast period.

Recent Developments

• On 17 May 2022, Symrise launched a brand accelerator initiative called ‘Beauty Activations’ designed to partner with beauty brands in North America. The initiative will allow brands to activate their product innovation. By partnering with Symrise through the Beauty Activations platform, brands will gain access to in-depth marketing insights, custom formulations, and an award-winning portfolio of ingredients. Through this initiative, Symrise has elevated its product development approaches with market ready solutions.
• In April 2022, Symrise developed synthetic grade caprylyl glycol from 100% plant extracts. Symrise is producing it with its own proprietary technology.
• In May 2021, Synergy Flavors Inc. acquired Innova Flavors, a supplier of savory flavors and ingredients. The acquisition expands Synergy’s savory capabilities and will support upcoming new product development in meat alternatives, plants extracts sauces, side dishes and snacks.

Competitive Section

Major players operating in the global plant extracts market include Symrise AG, Sensient Technologies Corporation, International Flavors & Fragrance Inc., Givaudan, Synergy Flavors, Synthite Industries Private LTD, PT Indesso Aroma, Vidya Herbs Private Ltd., Nutra Green Biotechnology Co. Ltd, Kalsec Inc., Indena S.p.A., Naturex Inc., V. Mane Fils SA, Kalsec, Inc., Döhler GmbH.