The Global Natural Extracts Market is Growing at a CAGR of 9.5% during the forecast period 2021-27

The Global Natural Extracts Market was estimated at USD 9.92 Bn in 2020 and is expected to grow with a CAGR of 9.5% during the forecast period.

The natural extracts market is majorly growing owing to increasing end-use applications of natural extracts across the globe. This growth is majorly attributed to the multifunctional properties offered by diverse natural ingredients that include natural food flavors and colors. These colors and flavors are widely used in convenience foods, bakeries & confectionery, dairy & frozen desserts, and meat products in the food processing sector. Additionally, natural extracts have wide application in several personal care products such as fragrances, shampoos, body lotions, and many more owing to the natural fragrances offered by the product. Further, plant extracts have wide acceptance in manufacturing several pharmaceuticals and nutraceuticals owing to the presence of higher bioactive components such as phytochemicals that exist in edible fruits, seeds, leaves, and flowers. These phytochemicals offer various health-promoting properties such as antioxidants, anti-inflammatory, hypoglycaemic, anticancer, anti-obesity. Therefore, growing demand from these end-use applications is expected to boost the growth in the natural extracts market.

Moreover, another major factor driving the demand in the natural extracts market is increasing consumer awareness regarding the adverse effects of consuming food & beverages that contain synthetic ingredients. Also, numerous food safety associations and health organizations are prohibiting the use of several artificial flavorings in food and beverages. For instance, in October 2018, the Food and Drug Administration (FDA) in the U.S. has banned the use of seven synthetic flavorings that are associated with cancer. It stated the use of naturally extracted counterparts in place of banned flavors as they are safe for consumption. Hence, consumers across the globe are interested in buying clean label products which offer a wide range of naturally derived ingredients, which is, in turn, driving the demand in the natural extracts industry.

Global Natural Extracts Market by Region Outlook (Revenue, USD Million, 2021-2027)

  • Europe
  • North America
  • Asia Pacific
  • Middle East & Africa
  • Latin America

Based on region, the Asia-Pacific region is growing with the fastest CAGR in the natural extracts market and is projected to exhibit high growth during the forecast period. The major factor driving the growth of the natural extract market is the rapidly expanding food and beverage industry in this region. Natural extracts are widely utilized as a natural colorant and flavor in many authentic and ethnic cuisines in the region amidst a tight regulatory grip over synthetic additives. Additionally, strong product demand across several sectors, such as animal feed, nutraceuticals, and cosmetics among many others is also prominently driving the market in this region. Further, the growing standard of living along with rising health consciousness among people in this region is also positively influencing the demand market demand.

The Global Natural Extracts Industry Segmentation:

Global Natural Extracts Market by Application Outlook (Revenue, USD Million, 2021-2027)

  • Pharmaceuticals
  • Food & Beverage
  • Animal Feed
  • Personal Care & Cosmetics
  • Nutraceuticals
  • Others

Global Natural Extracts Market by Product Outlook (Revenue, USD Million, 2021-2027)

  • Oleoresins
    1. Capsicum
    2. Paprika
    3. Black Pepper
    4. Turmeric
    5. Ginger
    6. Garlic
    7. Onion
    8. Others
  • Essential Oils
    1. Peppermint Oil
    2. Turmeric Oil
    3. Ginger Oil
    4. Cornmint
    5. Davana Oil
    6. Cedarwood
    7. Lemon
    8. Eucalyptus
    9. Orange
    10. Vetiver
    11. Lime
    12. Patchouli Oil
    13. Tea Tree
  • Herbal Extracts
    1. Capsaicin
    2. 95% Curcumin
    3. Ashwagandha
    4. Kale
  • Dried Crops
    1. Dried Chili Whole
    2. Dried Ginger Whole
    3. Dried Turmeric Whole

Key Findings:

  • Based on the product, the dried crops product type is projected to grow with the fastest CaGR in the natural extracts industry
  • Based on application, the food & beverages segment led the natural extracts market across the globe and is expected to show similar trends in the forecast period
  • Based on region, Europe has dominated the natural extracts industry in 2020 and is expected to show similar growth in coming years
  • Based on region, the Asia-Pacific region is growing with the fastest CAGR and is expected to exhibit high growth in the Natural Extracts market during the forecast period

Company Profiles and Competitive Intelligence

The key market players in the Natural Extracts industry are:

  • Venkatesh Naturals Extract Pvt. Ltd.
  • Green Natural Extracts.
  • ADM
  • Symrise
  • Kancor
  • Bhoomi Naturals.
  • Pioneer Enterprise.
  • Asean Aromatics Private Limited
  • Panacea Phytoextracts Pvt. Ltd.
  • Shreedha Phyto Extracts
  • Bio Botanica, Inc.
  • Phyto Life Sciences P. Ltd
  • Star Hi Herbs Pvt Ltd.
  • Martin Bauer Group
  • Natural Extracts Industries Ltd
  • Xi'an Lanyor Biotech Co., Ltd.
  • Flavex Naturextrakte GmbH
  • Synthite Industries Ltd
  • Synthite Industries Ltd.
  • India Essential Oils
  • Ransom Naturals Ltd.
  • dōTERRA

Recent News:

  • In May 2021, Synergy Flavours, one of the leading suppliers of flavors, essences, and extracts headquartered in the U.S. have acquired Innova Flavors, a key supplier of savory flavors and ingredients. This acquisition is expected to expand the company's scope in new product development that is happening in meat alternatives, side dishes, sandwiches, and sauces to meet the rising demand for savory ingredients and natural flavorings.
  • In February 2021, Manipal Group, an ingredient supplier specialized in functional food & beverage ingredients and botanical extracts headquartered in India has announced to launch a new herbal extracts and nutraceutical manufacturing facility in Bangalore, India. The factory is expected to manufacture standardized phytochemicals, herbal extracts, organic herbal extracts, and nutraceutical ingredients for leading food/ dietary supplement manufacturers across the world.

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