The global plant extracts market is projected to grow from USD 30.8 billion in 2021 to USD 55.3 billion by 2026, at a CAGR of 6.0% from 2021 to 2026. With the growing health awareness, the increasing prevalence of chronic diseases, and the need for nutrition enhancements among consumers, plant extracts find applications in various end-user industrial applications. The demand for cosmetics products made of plant-derived ingredients also remains high as these ingredients enhance the product value due to their health benefits for the skin. Various types of plant extracts are also used as key ingredients in food & beverage products and dietary supplements due to their health and nutritional benefits, which cater to nutritional deficiencies, provide required nutrients in the body and boost the immunity and overall well-being of consumers.
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The Asia Pacific market accounted for the largest share in 2020. This dominance is attributed to factors such as a surge in the consumption rate of vegan food & beverage products, the rise in the demand for functional food products, and the increase in awareness related to the health benefits associated with the consumption of clean-label food products among consumers. Furthermore, the region has several small and medium-sized manufacturers of plant extracts that are well-versed with the processing of plant extracts and aware of the benefits offered by them. Manufacturers in Indonesia, India, and Thailand are continuously investing in the market and focusing on innovation to expand their product range. This is due to the rise in the trade of plant extracts between Asia and international manufacturers of plant extract-based products.
This report includes a study on the marketing and development strategies, along with a study on the product portfolios of the leading companies operating in the plant extracts market. It consists of the profiles of leading companies such as the major plant extract manufacturers include Givaudan (Switzerland), Sensient Technologies Corporation (US), International Flavors & Fragrances, Inc (US), Kangcare Bioindustry Co., Ltd. (China), Synthite Industries Private Ltd. (India), and PT. Indesso Aroma (Indonesia).
Food flavorings do not add nutritional value to food products and may sometimes be harmful in nature. Nowadays, increasing attention is being paid to food additives used, with the growing concerns related to their safety and potential health risks. Consumers are becoming increasingly aware of the adverse effects of consuming food & beverages containing synthetic ingredients. Several health organizations and food safety associations are prohibiting the usage of various artificial flavorings in food & beverages. For instance, on October 5th, 2018, the US Food and Drug Administration (FDA) banned seven synthetic flavorings that are associated with cancer. FDA stated to use the naturally extracted counterparts of the banned flavors as they are a safer option. Previously, FDA banned eight synthetic flavorings, which were found in ice creams, baked goods, candy, and beverages. These substances used in flavorings had been known to cause cancer in humans.
To create awareness among consumers related to the benefits offered by natural ingredients and extracts, governments of various countries have started taking initiatives and are investing in R&D. Several companies are also investing in R&D to innovate and 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. Also, changes in lifestyles and the increase in the demand for natural flavors from consumers are observed in developing economies, leading to the growth in the demand for plant extracts. Globalization has also led to greater exposure to flavors and fragrances of various cultures. Hence, identifying new & exotic spices and herbs and their properties in accordance with the changing consumer preferences is vital for plant extract manufacturers.
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The Pharmaceuticals & dietary supplements segment is projected to dominate the market by application. This growth can be attributed to the increasing awareness of people related to bacterial resistance toward allopathic medicines. As a result of the increasing incidents of illnesses due to stressful and busy lifestyles, consumers are demanding functional food and supplements for regular consumption. Some of these supplements include phytomedicines and herbal extracts, which are composed of naturally occurring components; they are scientifically demonstrated to promote positive effects on the target functions beyond basic nutrition.