Natural Extracts Market Size to Worth Around USD 25 Bn by 2030
Precedence Research
6 min read
Precedence Research
According to Precedence Research, the global natural extracts market size is projected to worth around USD 25 billion by 2030 and growing at a CAGR of 8.9% from 2022 to 2030.
TOkyo, May 21, 2022 (GLOBE NEWSWIRE) -- The global natural extracts market size was estimated at USD 11.94 billion in 2021. Natural extracts other substances which are gently derived by removing any part from the raw material. They usually obtained from fruits, plants and other parts. Natural extracts have a wide range of application in nutraceutical, coloring, flavors, edible oils, and other things. An increase in the agricultural industry is expected to provide good growth opportunities for the natural extract market in the coming years. Natural extracts are gaining great demand in industries like the perfumery, cosmetics, pharmaceuticals, nutraceutical, food and beverages, etc.
The dried crops product segment is expected to dominate the market during the forecast. It had the largest revenue share of about 40% till the year 2020. As many end user industries are using the dried crops in their products there is a rise in the demand for dried crops.
On the basis of the natural extract products, the essential oil segment is expected to witness a great growth during the forecast period as it has got many applications in aromatherapy, fragrances and different flavors.
Scope of the Report
Report Attributes
Details
Market Size in 2021
USD 11.94 Billion
Revenue Forecast by 2030
USD 25 Billion
CAGR
8.9% from 2022 to 2030
Base Year
2021
Forecast Data
2022 to 2030
Companies Covered
Flavex Naturextrakte GmbH, Arjuna Natural Pvt. Ltd., Firmenich SA, Robertet Group, Sami Spices, Synthite Industries Ltd., Ransom Naturals Ltd., India Essential Oils, A.G. Industries, Symrise, Kancor
The second largest natural extract market is in the North American region. As there are varied applications in the flavor and fragrances in this region for various industries like the beverages, medicinal products or food items, the North American market is expected to see a growth during the forecast. As there are many end user segments in the North American region which utilize the natural extracts there is a growth of the market in this region. European economy is a developed economy which has high standard of living. There is a great demand for essential oils and floral extracts which are used in aromatherapy. Countries like Switzerland, Germany, France and Austria are great markets for aromatherapy and therefore the natural extracts market is expected to grow in the European nations.
As many manufacturers of pharmaceuticals are based in Europe the market is expected to grow. A demand for pharmaceuticals and nutraceutical in the European region is expected to drive the market for the natural extracts. About 50% of the global demand for essential oils is in the European region. It is widely used in personal care and the food and beverages industry. Manufacturers in the European nations are encouraged to produce natural and healthier products with the use of these natural extracts.
Market Dynamics
Drivers
Increasing adoption of natural ingredient based products, changing lifestyles, consumer awareness and bio technological advancements are driving the market for natural extracts. Increased disposable income, research and development, growth of the agricultural industry and the aging population is also leading to a growth in this market. There is an increased popularity of natural extracts in the food and beverages industry, cosmetics and perfumery as there are no detrimental side effects of the natural extracts when used in the pharmaceuticals or the nutraceuticalthe market is expected to grow. The health benefits provided by the natural extracts have gained a lot of popularity. Increased awareness regarding the carcinogenic properties of various flavorings like the benzophenone, pyridine and styrene have led to a growth in the market.
Restraints
As there are price variations in the acquiring of raw materials. It happens to be a restraint in the growth of the market. The inefficient extraction of these products in the low income economies due to the lack of advanced biotechnologies, the market is expected to lag.
Opportunities
Development in the agricultural industry is expected to provide opportunities for the growth of the natural extract market during the forecast. In order to meet the growing demand for natural extracts the manufacturers are shifting from artificial flavorings to adding natural components to its products. The growing trend of fitness and well being is also expected to increase the demand for the natural extracts.
Challenges
Due to a lack of advance biotechnology and efficient extraction of the natural products has led to supply chain inefficiencies and price sensitivity. Efficient extractions from the natural products are a major challenge in the low income economies. Another challenge in this market is that the products that are used for extraction are not completely organic and there are uses of harmful agrochemicals in the production. As there is a demand for organic certified products in many nations the products that are cultivated using agrochemicals do not reach these markets.
Ransom naturals announced in January 2021 that it has entered into a commercial partnership with Barentz in order to distribute pharmaceutical and nutraceutical products.
In order to deliver a natural, authentic and mouthwatering cooking aroma for meat analogs across the various plant-based foods, Firmenich announced the launch of Dynarome TR in June 2021.
Layn Natural Ingredient Corp launched SustaNX in October 2021, which is the newest ingredient. In the plantae PRESERVATION series of clean label.
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