The Global Natural Extracts Market was valued at USD 9.92 Bn in 2020 and is expected to reach USD 17.63 Bn by 2027, with a growing CAGR of 9.5% during the forecast period.
Natural extracts can be defined as substances that are derived from natural sources such as fruits, vegetables, plants, grains, and others. Besides their naturalness, natural extracts consist of active components such as steroids, alkaloids, tannins, volatile oils, glycosides, phenols, therapeutic and flavonoids qualities.
The natural extracts market is majorly gaining traction owing to the growing health-conscious among people along with the increasing trend of veganism across the globe. As per the data released by United Nations (UN), the vegan population across the globe as of 2021 accounted for near 79 million. This high share of the vegan population is mainly attributed to the rising awareness regarding the health benefits associated with consuming plant-based products among consumers. Additionally, due to the changing consumer perception relating to plant-based food products, many foods & beverages manufacturers have strategized to include plant ingredients in their marquee final products. This has resulted in increasing food & beverage applications of the product that is leading to an exponential increase in the demand for natural extracts products.
Moreover, another major factor driving the growth in the natural extracts market is the identification of new spices and herbs as per the changing consumer tastes and preferences. Therefore, due to this changing lifestyle and increasing demand for natural flavors from consumers, many companies are investing in R&D activities for innovating and introducing new herbs and spices. For instance, in November 2021, Duncan Family Farms, an organic vegetable grower & shipper based out of the U.S. has launched a new line of packaged herbs under its eponymous brand. This new certified organic herb line is expected to be available throughout the year and will include Thai basil, basil, bay leaves, chives, chervil, dill, edible flowers, marjoram, lemongrass, mint, poultry bouquet, oregano, rosemary, savory, sage, sorrel, thyme, and tarragon. Hence, the introduction of such new herbs by key market players is expected to be instrumental in offering growth opportunities in the natural extracts industry.
The unique insights provided by this report also include the following:
Based on the product type, the dried crops product type is expected to be the fastest-growing segment in the natural extracts owing to rising product demand in several end-use industries
Based on product type, the natural extracts market is segmented into oleoresins, essential oils, herbal extracts, dried crops, and natural colors. Among these, the dried crop product type has shown the fastest growth in 2020 and is projected to exhibit similar growth during the forecast period. This growth is majorly owing to rising product demand in several end-use industries like food and beverage, personal care & cosmetics, and pharmaceuticals among others. For instance, dried chili whole is widely used as a spice in the Asia-Pacific region for preparing hot and spicy diets. Similarly, turmeric oil extracted from dried turmeric roots offers properties such as anti-allergic, antibacterial, antimicrobial, antifungal, antiparasitic, antiviral, and anti-worm properties. Hence, natural extracts have wide application in food & beverage, medicinal and personal care applications. Therefore, the growing demand for dried crops from these applications is expected to proliferate demand in the natural extracts market.
Based on application, the food & beverage segment is projected to dominate the natural extracts industry due to the growing demand for safe, minimally processed, and natural food products across the globe
Based on application, the natural extracts industry is fragmented into food & beverage, personal care & cosmetics, animal feed, nutraceuticals, pharmaceuticals, and others. Among these, the food & beverage application segment has dominated the natural extracts market in 2020 and is expected to show similar trends during the forecast period. This dominant share is majorly due to the growing demand for safe, minimally processed, and natural food products across the globe. Moreover, natural extracts provide additional value to the food such as authentic taste and colors, natural antioxidation or texture, and are a natural source of vitamins, minerals, and fibers. Thereby, the increasing product demand for bakery, confectionery, beverage, dairy, snacks, and many other applications is anticipated to propel growth in the natural extracts market.
Based on region, the European region is expected to lead the natural extracts industry across the globe
Based on region, the natural extracts market is divided into Asia-Pacific, North America, Latin America, the Middle East and Africa, and Europe. Among these, in 2020, the European region accounted for the largest share in the natural extracts industry across the globe and is anticipated to show a significant growth trend during the forecast period. This growth is majorly attributed to the extensive use of essential oils in cosmetics for manufacturing fragrances that are exported across the globe. According to the Centre for the promotion of imports from developing countries (CBI), essential oil products account for over 50% of the demand across the globe in Europe, which is majorly driven by the personal care, and food & beverages industries. Further, high demand for various functional and comfort foods is also driving the natural extracts market in this region.
The report also provides an in-depth analysis of the market dynamics such as drivers, restraints opportunities, and challenges
Note: Challenges along with in-depth Natural extracts market dynamics analysis are mentioned in the report.
The COVID-19 outbreak has severely affected almost all industries across the globe. The disease has left a variable impact in numerous countries depending on their mitigation efforts, health infrastructure, cultural norms. However, several research studies have stated the use of medicinal plant extracts against coronavirus. For instance, according to the research published by the National Center for Biotechnology Information (NCBI) in January 2021, over twenty compounds that were isolated from neem leaves extract exhibited high binding affinity in fighting COVID‐19 main protease protein that is the major protein for viral replication. Additionally, the guidelines released by World Health Organization (WHO) have also suggested consuming immunity-boosting foods in its COVID-19 analysis. Owing to this, the demand for medicinal plant extracts that carry immunity-boosting properties is expected to boost the nutraceuticals & pharmaceuticals industry, creating a positive impact on the natural extracts market growth.
The report also provides an in-depth analysis of key trends in the natural extracts market
The report also provides an in-depth analysis of recent news developments and investments in the natural extracts market
The key players operating in the natural extracts industry are:
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.