Plant Extracts Market by Type, Application, Sources and Region - Global Forecast to 2026 - ResearchAndMarkets.com - vegconomist

DUBLIN–(BUSINESS WIRE)–The “Plant Extracts Market by Type (Phytomedicines & Herbal Extracts, Spices, Essential Oils, Flavors & fragrances), Application (Pharmaceutical & Dietary Supplements, Food & beverages, cosmetics), Sources, and Region – Forecast to 2026” report has been added to ResearchAndMarkets.com’s offering.

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.

Increasing health and wellness trend is leading to a rise in demand for clean label products, which is one of the major driving factors for the plant extracts market.

Most consumers in the developed countries have been looking for food products, without any inclusion of artificial additives, due to the associated long-term adverse health effects. Manufacturers are inclined toward the usage of natural flavoring agents, preservatives, and sweeteners as they are the key ingredients used to make the food tasty and to extend the shelf-life of the product. With the growing awareness of health products, consumers are increasingly looking for less processed and more natural foods & beverages. This is being reflected in the clean label movement spreading across the packaged food industry across the globe. Consumers are paying close attention to and examining labels and nutritional ingredients more than ever. The sales of clean label products are not just limited to foods & beverages that consumers believe are healthful. On the contrary, the salty snack, frozen food, cookie, and candy categories are seeing marked growth with clean label products. Since plant extracts are clean label ingredients, so this is expected to fuel the overall plant extracts market.

The market for flavors and fragrances is projected to grow at the highest CAGR between 2021 and 2026.

The flavor and fragrances segment among the various plant extracts type to expected to grow at the highest rate during the forecast period. Flavorings are prepared from essential oils, such as almond and lemon, vanilla, fresh fruits by expression, and ginger by extraction. Younger consumers are driving the trend toward more natural and organic flavors because they read labels and want to know where their ingredients come from. This has triggered manufacturers to develop more natural formulations and brands that have realized consumers are willing to pay a premium if they know flavors are organic and sustainably sourced. With the increase in the trend of the vegan population globally, the demand for flavors extracted exclusively from plants is gaining more market share.

The cosmetic application segment of plant extracts is projected to grow at the highest CAGR between 2021 and 2026.

The market for cosmetic application is expected to grow the fastest in the plant extracts market. Plant extracts or herbal extracts are primarily added to cosmetic formulations due to several associated properties, such as antioxidants, anti-inflammatory, antiseptic, and antimicrobial properties. Even today, people in rural and urban areas depend upon herbs for traditional cosmetics. Plant extracts, as a whole or part, have been used for various ailments of the skin, hair, and dental care for overall appearance. Herbal cosmetics products claimed to have efficacy and intrinsic acceptability due to routine use in daily life and avoid the side effects, which are commonly seen in synthetic products. Owing to the awareness of the environmental damage caused by industrialization, a trend has developed to use products with natural ingredients.

North America market for plant extracts is projected to grow at the highest CAGR during the forecast period.

The market for plant extracts in North America is projected to witness the highest growth rate during the review period. The region is one of the major importers of various types of plant extracts due to the continued acceptance of exotic foods and flavors. Antibiotic- and hormone-free ingredients and local and organic consumer goods are expected to gain market share as consumers seek these green and ethical attributes in their nutraceuticals, cosmetics, and food & beverage products to fit the ‘wellness’ lifestyle trend. These trends are further projected to attract investments from plant extract-based product manufacturers across the globe, driving the plant extracts market.

Market Dynamics

Drivers

Adverse Side-Effects of Synthetic Flavors Led to An Increase in Demand for Natural Favors
Increasing Health and Wellness Trend Led to a Rise in Demand for Clean Label Products

Restraints

Stringent Regulations and International Quality Standards
Inadequate Supply of Raw Materials and Price Fluctuation

Opportunities

Growing Trend of Veganism and Vegetarianism Among Consumers
Identification of New Herbs and Spices in Accordance with Changing Consumer Preferences and Tastes

Challenges