USD 11.1 Billion
Natural Extracts Market Size, Share, Growth Analysis, By Source(Plants, Animals, and Minerals), By Type(Phytochemicals, Essential oils, Flavors and Fragrances, and Others), By Application(Food and Beverages, Pharmaceuticals, Personal Care and Cosmetics, and Nutraceuticals), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG15A2123 |
Region:
Global |
Published Date: April, 2024
Pages:
184
|Tables:
92
|Figures:
80
Natural Extracts Market Insights
Global Natural extracts Market was valued at USD 11.1 Billion in 2022 and is expected to grow from USD 12.09 Billion in 2023 to reach USD 23.91 Billion by 2031, at a CAGR of 8.9% during the forecast period (2024-2031)
Natural extracts refer to substances that are derived from plants, animals, or minerals and are used for various purposes, including food flavoring, medicinal purposes, and cosmetic products. Natural extracts are obtained by extracting the active compounds from the raw material using various methods such as steam distillation, solvent extraction, or cold pressing. Common examples of natural extracts include essential oils, herbal extracts, and fruit extracts. These extracts are often used for their beneficial properties, such as their antioxidant, anti-inflammatory, and antimicrobial effects. Additionally, natural extracts are considered safer and more environmentally friendly than synthetic alternatives, making them increasingly popular in various industries. According to our analysis report, the global natural extracts market size was valued at USD 6.03 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 8.5% from 2023 to 2030. The increasing demand for natural and clean-label products, coupled with the rising awareness of the health benefits of natural extracts, is expected to drive the growth of the market. The report further states that the food and beverage segment held the largest market share in 2023, accounting for over 40% of the global natural extracts market. This can be attributed to the growing demand for natural food additives and flavors in the food industry. Moreover, the report highlights the pharmaceutical and personal care segments as emerging markets for natural extracts, with increasing demand for natural ingredients in cosmetics and pharmaceuticals.
Based on our in-depth analysis report we found that, the Asia Pacific region is expected to witness significant growth in the natural extracts market due to the increasing demand for natural products and the growing population in the region. A report states that the Asia Pacific natural extracts market will grow at a CAGR of 8.2% from 2023 to 2030. The report attributes the growth of the market to the increasing disposable income of consumers and the rising demand for natural and organic products in the region. Furthermore, the report states that North America is expected to hold the largest market share in the global natural extracts market by 2030. The region's growing demand for natural food and beverage products, coupled with the increasing demand for natural personal care and pharmaceutical products, is expected to drive the growth of the market in the region. There are also certain factors that may reduce market growth. The high cost of natural extracts compared to synthetic alternatives. Additionally, the complex and time-consuming extraction process for natural extracts may pose a challenge for manufacturers. Another potential restraint is the limited availability of raw materials for natural extracts, which may lead to supply chain disruptions and increased prices. Finally, regulatory challenges and variations in regulations across different countries may also hinder market growth.
The global market for natural extracts is currently undergoing a significant transformation, driven by a complex interaction of factors including consumer preferences, sustainability requirements, and technological advancements. There is a noticeable trend towards the use of natural and plant-based ingredients across various sectors such as food and beverages, cosmetics, and pharmaceuticals, resulting in an increased demand for natural extracts. Botanicals, herbs, and fruits are becoming more prominent as consumers become more aware of the health benefits associated with these ingredients and show a preference for products with clean labels. The cosmetics and personal care industry is experiencing a notable increase in the demand for natural extracts due to their perceived effectiveness and the growing popularity of clean beauty. The pharmaceutical sector is also capitalizing on the therapeutic properties of natural extracts, driving significant research and development initiatives. Sustainability considerations play a critical role, with consumers actively seeking responsibly sourced and ethically produced extracts, prompting companies to adopt transparent supply chain practices. Technological advancements, including advanced extraction methods and the application of nanotechnology, are contributing to increased efficiency and versatility in the use of natural extracts. Market players are strategically diversifying their product portfolios and investing in research to maintain a competitive edge. As the natural extracts market continues to undergo changes, meeting consumer expectations for authenticity, sustainability, and innovation will be essential for sustained growth and achieving a dominant position in this dynamic global landscape.
US Natural Extracts Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Plants
Fastest Growth
Plants
Growth Rate
8.9% CAGR
Global Natural Extract Market 2022-2030 ($ Bn)
Country Share for North America Region- 2022 (%)
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Natural Extracts Market Segmental Analysis
Global Natural Extracts market is segmented by source, type, and application. Based on source, the market can be segmented into plants, animals, and minerals. Based on type, the market can be segmented into phytochemicals, essential oils, flavors and fragrances, and others. Based on application, the Natural Extracts Market can be segmented into food and beverages, pharmaceuticals, personal care and cosmetics, and nutraceuticals. Based on region, the Natural Extracts Market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Natural Extracts Market Analysis by Source
By source, the market can be segmented into plants, animals, and minerals. Plant-based natural extracts are the most common and dominant source of natural extracts in the market. The increasing demand for natural and organic products in the food and beverage, cosmetics, and pharmaceutical industries has fueled the growth of this segment. Plants provide a wide range of raw materials that can be used to extract various bioactive compounds such as polyphenols, flavonoids, and terpenes, which have a variety of health benefits.
Animal-based natural extracts are one of the fastest growing segment of market. They are obtained from various animal sources such as fish, shellfish, and insects. These extracts are mainly used in the pharmaceutical and nutraceutical industries due to their unique chemical composition and potential therapeutic properties. For example, fish oil is a rich source of omega-3 fatty acids that have been shown to have numerous health benefits, including reducing the risk of heart disease.
Mineral-based natural extracts are smaller segment which obtained from rocks, soil, and other geological sources. These extracts are used mainly in the cosmetic industry for their skin-nourishing and revitalizing properties. For example, clay extracts are commonly used in facial masks and skincare products to detoxify and exfoliate the skin.
Natural Extracts Market Analysis by Type
By type, the market can be segmented into pharmaceuticals, nutraceuticals, cosmetics, and food and beverage. Phytochemicals are naturally occurring plant-based compounds that dominates market by their medicinal properties. These compounds are found in fruits, vegetables, and grains, and they offer several health benefits, such as reducing inflammation, preventing cancer, and improving cardiovascular health. The phytochemicals segment is expected to witness significant growth in the coming years due to increasing demand for natural and organic products.
Essential oils are one of the fastest growing volatile aromatic compounds that are extracted from plants through various processes, such as steam distillation, solvent extraction, and cold pressing. These oils have a unique fragrance and are widely used in aromatherapy, perfumery, and personal care products. The essential oils segment is expected to witness steady growth due to increasing demand for natural fragrances and personal care products.
Global Natural Extract Market Size By Source, 2022 (%)
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Natural Extracts Market Regional Insights
North America is one of the dominating regions in the global natural extracts market. The region is witnessing increasing demand for natural extracts from the food and beverage, pharmaceutical, and cosmetic industries. The high demand for natural and organic products and the presence of major players in the region are driving the growth of the market. The United States is the largest market for natural extracts in North America. The country has a well-established food and beverage industry and is witnessing an increasing demand for natural extracts in this industry. The pharmaceutical industry in the US is also driving the growth of the natural extracts market. The country is home to many major pharmaceutical companies that use natural extracts in their products. Canada is also a significant market for natural extracts in North America. The country has a well-developed food and beverage industry and is witnessing increasing demand for natural extracts in this industry. The cosmetics industry in Canada is also driving the growth of the natural extracts market. The country has a large cosmetics industry, and many companies are shifting towards using natural and organic ingredients in their products. Mexico is another emerging market for natural extracts in North America. The country has a growing food and beverage industry, and there is an increasing demand for natural extracts in this industry. The cosmetics industry in Mexico is also driving the growth of the natural extracts market. The country has a large cosmetics industry, and many companies are shifting towards using natural and organic ingredients in their products. The natural extracts market in North America is dominated by major players such as Archer Daniels Midland Company, Cargill, Incorporated, and DuPont de Nemours, Inc. These companies are investing heavily in research and development activities to come up with new and innovative natural extracts that can cater to the growing demand from various industries.
On the other hand, the Asia-Pacific (APAC) region is one of the fastest-growing regions in the global natural extracts market. The region is witnessing significant growth due to the increasing demand for natural extracts from various industries such as food and beverage, pharmaceuticals, and cosmetics. The APAC region is also witnessing a growing trend of using natural and organic products, which is driving the growth of the natural extracts market in the region. One of the factors contributing to the growth of the natural extracts market in APAC is the increasing population and rising disposable income. The region has a large population that is becoming increasingly health-conscious and seeking natural and organic products. The growing disposable income in the region is also contributing to the demand for natural extracts as consumers are willing to pay more for natural and organic products. In addition to the growing demand from consumers, the APAC region is also witnessing increasing investments in the natural extracts market. Many major players in the natural extracts industry are investing in the region to expand their market presence and cater to the growing demand for natural extracts. The food and beverage industry is the largest consumer of natural extracts in the APAC region. The increasing demand for natural and organic food products is driving the growth of the natural extracts market in the region. The region is also witnessing an increasing demand for natural extracts in the pharmaceutical and cosmetic industries due to the growing awareness of the health benefits of natural and organic products. The APAC region is witnessing significant growth in the production and export of natural extracts. Countries such as India, China, and Thailand are major producers of natural extracts in the region. The favorable climate conditions and availability of raw materials in these countries make them ideal for natural extract production. The increasing demand for natural extracts in the global market is also driving the growth of the natural extracts industry in the APAC region.
Global Natural Extract Market By Geography, 2022-2030
- Largest
- Fastest
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Natural Extracts Market Dynamics
Natural Extracts Market Drivers
Growing consumer awareness
- Growing consumer awareness about the harmful effects of synthetic chemicals and the increasing preference for natural and organic products is a major driver of the natural extracts market. Consumers are becoming more health-conscious and are looking for products that are free from synthetic chemicals and additives. Natural extracts are perceived as safe and healthy alternatives to synthetic chemicals, which is driving their demand in various application segments such as food and beverages, pharmaceuticals, personal care and cosmetics, and nutraceuticals. The trend towards clean-label products and increasing demand for sustainable and environmentally friendly products is also contributing to the growth of the natural extracts market.
Natural Extracts Market Restraints
High cost of natural extract
- One major restraint for the global natural extract market is the high cost of natural extracts compared to synthetic alternatives. Natural extracts are often more expensive to produce and require more resources and processing time, which results in higher costs for consumers. This cost factor can be a barrier to entry for some consumers, who may opt for cheaper synthetic alternatives. In addition, the limited availability of some natural resources and the impact of weather conditions on crop yields can also affect the supply and price of natural extracts. These factors can limit the growth of the natural extract market and pose a challenge for companies operating in the industry.
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Natural Extracts Market Competitive Landscape
The global natural extracts market is highly competitive, with numerous players operating in the market. Some of the key players in the market include Archer Daniels Midland Company, Symrise AG, Givaudan SA, Kerry Group, and International Flavors & Fragrances Inc. These companies are engaged in various growth strategies, such as mergers and acquisitions, product launches, and partnerships, to gain a competitive edge in the market. Additionally, companies are investing in research and development to develop new and innovative natural extracts with enhanced functionality and improved properties. The increasing demand for natural and organic products is expected to further intensify competition in the global natural extracts market in the coming years.
Natural Extracts Market Top Player’s Company Profiles
- Symrise AG
- Givaudan SA
- International Flavors & Fragrances Inc.
- Firmenich SA
- Takasago International Corporation
- Kerry Group plc
- Sensient Technologies Corporation
- Archer Daniels Midland Company
- Robertet SA
- Döhler GmbH
- Nexira SAS
- Naturex SA
- Kalsec Inc.
- Frutarom Industries Ltd.
- Vidya Herbs Pvt. Ltd.
- Synthite Industries Ltd.
- Biolandes SAS
- PT Indesso Aroma
- Plant Extracts International Inc.
- Martin Bauer Group
Natural Extracts Market Recent Developments
- Kalsec, Inc. announced the introduction of a new range of natural extracts in June 2023. The new line, which is intended for use in a variety of food and beverage applications, contains extracts of ginger, turmeric, and black pepper.
- Naturex stated in May 2023 that it would be increasing its natural extract production capacity. It is anticipated that the expansion will cater to the increasing need for natural extracts in the beverage, food, and cosmetics sectors.
- In March 2023, Chr. Hansen, a global producer of natural ingredients, announced the launch of a new range of natural extracts called Fermentech™. These extracts are produced using a fermentation process and are intended for use in the food and beverage industry.
- In November 2023 L’Oréal Groupe announced an exclusive, industry-first partnership with Cosmo International Fragrances to bring a Green Sciences-based extraction process to revolutionize the art of fine fragrance creation.
Natural Extracts Key Market Trends
- One of the key market trends in the global natural extract market is the growing demand for plant-based extracts. Consumers are increasingly seeking natural and plant-based products, and this trend is driving the demand for plant-based extracts. Manufacturers are also focusing on producing plant-based extracts to cater to this growing demand. In addition, there is a growing trend of using natural extracts in functional food and beverage products, such as energy drinks and health supplements, which is driving the growth of the market. Furthermore, there is an increasing focus on sustainable and ethical sourcing of raw materials, which is driving innovation and growth in the natural extract market.
Natural Extracts Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global natural extract market analysis, The market growth is driven by the increasing demand for natural and organic products in various industries such as food and beverage, pharmaceuticals, and cosmetics. Natural extracts are derived from natural sources such as plants, fruits, and herbs and are used for their medicinal, flavoring, and coloring properties. The market includes various types of natural extracts such as flavors, fragrances, colors, and essential oils. The food and beverage industry is the largest consumer of natural extracts, followed by the pharmaceutical and cosmetic industries. The increasing demand for natural and organic products and growing consumer awareness of the health benefits of natural products are driving the growth of the market.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 11.1 Billion |
| Market size value in 2031 | USD 23.91 Billion |
| Growth Rate | 8.9% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
Natural Extracts Market Recent Developments
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Natural Extracts Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Natural Extracts Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Natural Extracts Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Natural Extracts Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Natural Extracts Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Natural Extracts Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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