Global Natural Extracts Market Report, Industry Analysis and Forecast to 2029

The global natural extracts market was valued at USD 11.94 billion in 2021 and is projected to reach USD 25 billion in 2029, at a Compound Annual Growth Rate (CAGR) of 8.9% during the forecast period 2022-2029.

Natural extracts are extracts derived from natural sources such as vegetables, fruits, plants, grains or even seafood, usually by treating it with a solvent. They are prepared with natural ethyl alcohol and natural flavors. They are available both in liquid and powder form. It is the most demanding ingredient for essential oils, fragrances, flavors and spices. They are used as flavoring or coloring agents in baking recipes, clear beverages and all kinds of dairy-based applications.

There are different types of naural extracts such as teas, blossoms, spices and herbs derived from different sources such as leaves, fruits, seeds, berries among others. Additionally, there are several techniques of extraction and various application of natural extracts which include colorants, flavors & fragnences, preserving agents among others. This report emphasise the types, sources, techniques, application and end user of the natural extracts in different regions and countries over the forecast period.

Global Natural Extracts Market Overview

The global demand of natural extracts is driven by their application in various industries such as food & beverage, cosmetics and pharmaceuticals. Additionally, factors such as increasing consumer awareness, changing lifestyle and inclination towards veganism and vegetarianism and adoption of natural ingredient - based products is expected to prople the market growth during the forecast period. The natural extracts industry faces challenges in terms of the lack of advanced biotechnologies for efficient extraction at low cost, supply chain incompetency and pricing.

Natural Extracts Market Dynamics

The increasing use of natural ingredient-based items and rising customer awareness is propelling the growth of natural extracts market. Additionally, natural extracts are becoming more popular in the food and beverage, cosmetics, and fragrances sectors, since they have no negative side effects when used in pharmaceuticals or nutraceuticals, as a result of which the market is predicted to rise. Other factors including rising inclination towards veganism and vegetarianism along with biotechnological advancement is expected to create lucrative opportunities in the global market. Agricultural development is likely to provide opportunities for the natural extract market to grow throughout the forecast period.

Moreover factors such as growing consumer disposable incomes, R&D, imports and exports, aging population, and population growth have positively influenced the demand for natural extracts over the recent years.

However, awareness regarding organic cultivation without the addition of harmful agrochemicals is relatively low in many countries, such as India and China which restricts the growth of the market in these countries. Furthermore, the lack of advanced biotechnology and optimal extraction techniques from various sources have caused inefficiencies in the supply chain and volatility in prices is expected to hamper the market growth.

Natural Extracts Market Report Outlook

The natural extracts market report focuses on different aspects regarding type, different sources, technique, application and various end users of natural extracts. The research analyses the different types, technique, sources, application aross different end users of the product in order to obtain a better understanding regarding the growth and trends of the market since 2019 which also facilitates the estimation of the upcoming growth of the market in the next 7 years.

Natural Extracts Market Competitive Landscape

The report also holds competitive analysis which can be used to differentiate different types of products; technologies used in manufacturing the products; prices; innovation in R&D; organic and inorganic growth strategies; financial analysis to determine the revenue generation and other key aspects of the finance; new partnership, joint ventures, collaborations, and acquisitions; market share of the top competitors in the market; and understand the growth strategies being undertaken by these major players to analyse the future market trends.

For instance, in May 2022, Arjuna Natural launched a post-workout pain reliever. The main purpose of this is to provide customers with a safe and natural herbal remedy that provides instant pain relief. Additionally, in August 2020, Symrise announced the launch of SymControl Scalp to address the sebum overproduction issue on the scalp. This product utilizes the extract of Tetraselmis Suecica in order to normalize sebum production on the scalp to promote good hair health, as well as Mannitol, which safeguards the hair and scalp from environmental damages.

Other major players holding prominent share in the natural extract market include Venkatesh Naturals, Bioveda  Naturals, Green Natural Extracts, NPE, Pioneer Enterprise among the others. There are several regional and local players in this market across the globe which are contributing towards the revenue growth of the market and thus expected to flourish with new launches and expansion in the upcoming years.

Natural Extracts Market Regional Analysis

The market synopsis will also cover the regional dynamics and growth prospects which would include regions- North America, Asia Pacific, Europe, Latin America, Middle East and Africa. These regions will be analysed per countries on the basis of market drivers, restraints, opportunities, and trends to get a closer view of the market studied. Scrutinizing these factors for the countries are expected to enhance the value chain of the Automotive Lubricants market and aid us with better insights about the same.

Europe acquired the largest share in the natural extracts market during 2021 and is expected to follow the same trend during the forecast period. The use of essential oils in cosmetics and fragrances are widely used by the manufacturers in the European region. A developed economy and high standards of living are some of the major factors propelling the demand for essential oils and floral extracts, which, in turn, is anticipated to drive the regional market. Additionally, the aging population has driven the demand for pharmaceuticals and nutraceuticals in the region. In addition, increasing investment by manufacturers in R&D activities to develop natural products, will further create lucrative opportunities in the market.

The second largest natural extract market is in the North American region owing to varied applications in the flavor and fragrances in this region for various industries like the beverages, medicinal products or food items. Increasing number of end user segments which utilize the natural extracts is expected to drive the market growth across the region.

Aisa - Pacific is expected to provide lucrative opportunities in the natural extract market owing to the increasing demand of natural extracts in the food & beverage industry, pharmaceutical and personal care industry. Additonally, rising disposable income in emerging economies and increasing demand for clean label is anticipated to propel the market growth in the region during the forecast period.

Increasing demand for natural extracts in food and beverage, pharmaceutical, and cosmetics & personal care industries continue to rise across regions like Middle East & Africa and Latin America which will further increase the investment in the natural extracts market and thus, driving the market growth. Scrutinizing these factors for the countries are expected to enhance the value chain of the natural extract market and aid us with better insights about the same.

Natural Extracts Market In-depth Analysis Aspects

To mention certain other aspects which will include the Porter Five Forces, Pricing analysis, PESTEL Analysis, Export-Import data, and Industry Value Chain will also bind the analysis of the report.

Research Methodology

The study period of the market is considered to be 7 years (2022-2029) which will be analysed through the two major research techniques – Primary and Secondary Research methods. The primary research method includes the interviews of the key personnel in the industry considered as the industry experts, major distributors, suppliers, and consumer base sample survey to understand the direct perspective of the market. Additionally, these data are backed by the secondary research method which includes company overview through websites, annual reports, SEC filings, investor presentations, news, and databases. The growth trends are always measured on the basis of current and past scenarios considering any recent news which can drastically impact the growth rate of the market studied. Moreover, the consumption forecast depends on the company’s upcoming plans and revenue generation aspects.

Benefits of The Report

• The report is designed to understand the past, present and future market scenarios considering all the growth, restraining, and other factors influencing the market studied.
• The report is designed with the assistance of the industry experts for better understanding on the market studied
• The market is analysed with in-depth study of the company’s view on the market considering the present economical, political, social, geographical, and legal factors.
• To gain a clear insight for better future perspective of the market studied in 360 degree synopsis.
• Understand the competition in the market being a part of the market or a new entrant in the market.
• Analyse the different aspects in different geographies influencing the growth of the market through diverse consumer base.