Food and Beverages

Plant Extracts Market is Expected to Reach USD 71.93 Billion by 2031

Jun 2024

Food and Beverages

As per the report published by Kings Research, the global Plant Extracts Market was valued at USD 30.87 billion in 2023 and is projected to reach USD 71.93 billion by 2031, growing at a CAGR of 11.34% from 2024 to 2031.

The plant extracts market is a dynamic sector witnessing steady growth globally. Key factors, including rising consumer awareness regarding natural products and their health benefits, offer lucrative growth opportunities in the market. This market encompasses a wide range of extracts derived from plants, including botanicals, herbs, and fruits. Growing demand for functional ingredients in various industries such as food and beverages, pharmaceuticals, and cosmetics fuels market expansion. Moreover, the progress of the market is propelled by technological advancements in extraction methods and increasing research and development activities.

Key Insights

  • Based on plant extracts type, the essential oils segment accounted for the largest market share of 34.56% in 2023
  • Based on form, the liquid segment is estimated to register a CAGR of 12.35% between 2024 and 2031
  • Based on application, the food and beverage industry segment garnered the highest revenue share of 39.78% in 2023
  • On the basis of region, Asia-Pacific held a market share of 22.45% in 2023

NovoNutrients Introduces a New Carbon Capture Process to Innovate its Carotenoid Production Process

March 2023: NovoNutrients introduced an advancement in carotenoid production, leveraging its carbon capture process that converts two tons of CO2 into one ton of protein-rich ingredients. This innovation, powered by gas fermentation and renewable energy, delivers cost-effective, scalable, and sustainable production compared to traditional methods. This breakthrough aligns with NovoNutrients' commitment to creating a more environmentally friendly future.

Increasing Demand for Organic Plant Extracts Among Consumers to Provide Opportunities for Market Growth

The increasing demand for organic plant extracts presents a significant opportunity in the market, as consumers seek products that are free from synthetic chemicals and pesticides, leading to an increased demand for organic plant extracts. This is particularly evident in the food and beverage industry, where consumers prioritize natural and clean label ingredients. Companies are capitalizing on this opportunity by expanding their offerings of organic plant extracts and obtaining organic certifications to meet evolving consumer preferences and capture a larger market share.

Expansion of Nutraceutical Applications to Enable Plant Extracts Market Growth in the Upcoming Years

The expansion of nutraceutical applications is another promising opportunity in the plant extracts market. This trend is facilitated by the growing awareness of the health benefits associated with plant-based ingredients, resulting in the rising demand for nutraceutical products formulated with plant extracts. These extracts are valued for their potential to support various health functions, including immune support, cognitive health, and stress management. Manufacturers are innovating new formulations and product lines to cater to this growing demand and capitalize on the lucrative growth opportunity.

Rising Interest Among Consumers for Plant-Based Cosmetics to Provide Opportunities for Market Expansion

The rising interest in plant-based cosmetics offers opportunities for growth in the plant extracts market. Consumers are increasingly drawn to natural and sustainable beauty products, leading to a surge in demand for plant-derived ingredients in cosmetics and personal care formulations. Plant extracts are valued for their skin-friendly properties and perceived benefits, such as hydration, anti-aging, and antioxidant protection. Beauty brands are responding to this trend by incorporating a diverse range of plant extracts into their products and promoting their natural origin to appeal to environmentally conscious consumers.

Asia-Pacific to Emerge as the Fastest-Growing Region, Projected to Hold a Share of 24.98% by 2031

Based on region, the global plant extracts market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America. Asia-Pacific is anticipated to experience the fastest growth in the market in the forecast duration (2024-2031). The region's burgeoning population, particularly in emerging economies such as China and India, results in a substantial consumer base for plant extracts across multiple industries.

Moreover, rapid urbanization and rising disposable incomes contribute to an increased demand for natural and sustainable products, thereby boosting regional market growth. Additionally, advancements in extraction technologies and a supportive regulatory environment bolster the Asia-Pacific's plant extracts market expansion.

Companies Focus on Launching Innovative Products to Expand Their Market Reach

The global plant extracts market reveals a fragmented landscape, featuring prominent companies including ADM, Carbery, Esperis S.p.a., Givaudan, International Flavors & Fragrances Inc., Kalsec Inc., Kerry Group plc., Symrise, Synthite Industries Ltd., NATIVE EXTRACTS Pty Ltd, and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their global business footprint and enhance their competitive position.

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