According to MarketsandMarkets analysis, the plant extracts market is estimated to be valued at USD 23.7 billion in 2019 and is projected to reach USD 59.4 billion by 2025, at a CAGR of 16.5% from 2019 to 2025. The demand for plant extracts is significantly increasing due to factors such as rising awareness regarding the side-effects of synthetic products and health benefits offered by phytomedicines and herbal extracts. Inadequate supply of raw materials and price fluctuations inhibit the growth of plant extracts market. New revenue-generating pockets emerging through natural sweeteners category and identification of unique herbs and spices in line with changing consumer preferences and tastes prove to be some of the opportunities in this market.
The Asia Pacific region is projected to hold the largest market owing to the factors such as increasing awareness about better dietary choices, growing demand for herbal cosmetic products, rising awareness about the ill-effects of synthetic products, and increasing incidences of chronic diseases and stress levels due to busy lifestyles. Also, the availability of raw materials and required environmental conditions for the growth of plant extracts is the leading promoter of this trend in the Asia Pacific.
The plant extracts market, based on type, constitutes of four segments, namely phytomedicines & herbal extracts, essential oils, spices, and flavors & fragrances. The phytomedicines & herbal extracts segment is projected to grow at the highest CAGR as they offer multiple health benefits without any adverse effects when compared to synthetic drugs. Phytomedicines & herbal extracts are majorly used in pharmaceuticals and dietary supplements in the form of capsules and tablets and also in cosmetic products. Due to rising awareness, consumers are demanding phytomedicines & herbal extracts that utilize plant-derived ingredients. Furthermore, the growing participation of international bodies and local plant extract manufacturers in R&D are some of the significant factors influencing the growth of this segment.
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The plant extracts market, based on application, is segmented into pharmaceuticals & dietary supplements, food & beverages, cosmetics, and other which includes personal care products and toiletries. The cosmetics segment is estimated to grow at the highest CAGR as the growing consumer interest in self-care is driving the increasing use of plant extracts in the cosmetics segment. The changing consumer lifestyles and economic factors such as the rise in per capita income, particularly in developing regions, have encouraged the consumers to spend on personal grooming. Also, the rising awareness and trends of using cosmetics with natural ingredients and free-from cosmetics are driving the plant extracts market in cosmetics application.
The plant extracts market, by source, is segmented into leaves, fruits, flowers, and bulbs, rhizomes & roots, barks & stems, and others which includes seeds, pods, and berries. The leaves segment is estimated to grow at the highest CAGR because leaves of many plants, including rosemary, aloe vera, basil, thyme, clove leaves are highly rich in antioxidants and also offer anti-microbial properties. This has led to their extensive usage in the cosmetics, pharmaceutical, and personal care industries. Due to high Vitamin A, Vitamin K, Vitamin C, magnesium, iron, potassium, and calcium content, leaves extracts are also highly used in food & beverage applications.
The major players such as Givaudan (Switzerland), Sensient Technologies (US), Symrise AG (Germany), Kangcare Bioindustry Co., Ltd. (China), PT. Indesso Aroma (Indonesia), PT. Haldin Pacific Semesta (Indonesia), Vidya Herbs Private Limited (India), Shaanxi Jiahe Phytochem Co., Ltd. (Jiaherb, Inc.) (China), Synthite Industries Private Ltd. (India), Döhler (Germany), International Flavors & Fragrances, Inc. (US), in the industry are focusing on new product launches, expansions & investments, acquisitions, and agreements & partnerships to increase the global footprint in the area of plant extracts.