The global Plant Extract Market is expected to cross-market value of USD 76.40 billion in 2027 from USD 26.88 billion in 2020. It is expected to grow at a CAGR of over 16.5% during the forecast period.
A plant extract is an ingredient or an active compound having specific properties. These ingredients are extracted from the tissue of a plant, typically by Applications with a solvent to be used for a particular purpose. These plant extracts can be used in several sectors, such as functional properties for foodstuffs as an antioxidant, texturizer, etc. It can also be used in Application aids, chemical replacers, additives, herbal medicine products for therapeutic purposes, cosmetics for functional properties for beauty and well-being, etc. These plant extracts used in different sectors may be common. However, extraction Applications may vary depending upon the stability requirement and end-use.
Key Market Drivers and Restraints
Factors that have a high impact on the market growth of plant extract will be covered here. Also, covers factors that may challenge or act as an opportunity for the market will be discussed to identify revenue generation.
Low Awareness Regarding Plant Extract Products in Low-Middle Income Countries May Affect the Market Growth
Products prepared with plant extracts sometimes cost more than synthetic products. The major factor hampering the adoption of plant extract in the medical sector is less in low-income countries. Moreover, a smaller number of research and development activities in these countries also affect the growth of the plant extract market. Most people in low-income countries still prefer synthetic products owing to cost differences, further hampering the market growth.
The Asia Pacific to Dominate the global market
On the geographic front, the global market comprises six regions with all key economies pertaining to it. Credence Research provides in-depth insight into prominent regions of the global market. The Asia Pacific dominated with over 56% share in 2020.
Essential oils lead Global Market.
Spices, essential oils, phytomedicines & herbal extracts, and flavors & fragrances are the four types of the global market. Due to ongoing research and development on herbal medicines and rising patent formation on plant medicinal ingredients phytomedicines & herbal extracts segment holds a large share of the overall market. The segment's growth is also supported by increasing awareness regarding the harmful effects of synthetic medicines among consumers.
Residential continues to dominate the global market in terms of Applications.
Pharmaceuticals & dietary supplements, food & beverages, cosmetics, and others are the application of this market. The pharmaceuticals & dietary supplements segment is anticipated to lead the market owing to the high demand for herbal medicines and increasing consumer preference for plant extract-based dietary supplements. Also, an increasing number of herbal medicinal products manufacturers support the segment's growth.
