Natural Extracts Market: Agricultural Development Is Likely To Provide Opportunities Throughout The Forecast Period

 Natural Extracts Industry Overview

The global natural extracts market size is expected to reach 18.95 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 8.9% from 2021 to 2028. The increasing consumer awareness regarding the benefits of natural products, coupled with the changing lifestyles and the growing consumer disposal income, is fueling the market growth.

 

The COVID-19 spread across geographies impacted the market by causing supply chain disruptions and industrial shutdowns in 2020. However, it created a significant demand for nutraceutical and pharmaceutical supplements and functional food and beverage products that supported the market growth.

 

The pharmaceuticals and nutraceuticals application segments are likely to offer prominent opportunities as the demand for naturally healthy and nutritional supplements is increasing. Immunity-boosting supplements are expected to favor the market growth, especially post the COVID-19 impact. Essential oils are expected to witness considerable growth in the forecast period owing to their demand in the flavors and fragrances application. Global adoption of aromatherapy as a stress-releasing and relaxing activity is likely to boost product sales in the near future. Europe accounted for the largest revenue share in 2020.

 

The market is likely to witness lucrative opportunities from other applications, such as cleaning formulations, disinfectants, and mosquito repellents. Lemon, clove, peppermint, bergamot, cinnamon, cilantro, orange, lavender, lime, and melaleuca are some of the popularly used essential oils in cleaning and home applications. These oils help break down toxins, clean and purify the air, support healthy respiratory function, and relieve seasonal discomfort. Tea tree and eucalyptus essential oils are widely used for bathroom cleaning applications owing to their antifungal and antibacterial properties, which are effective in controlling the spread of staph germs, influenza, and pneumonia. Thyme oil is used in kitchen cleaners owing to its antiseptic and antibacterial properties, thus enabling the control of bacteria.

The highest natural extracts demand has been witnessed in Europe and North America from the food and beverage and personal care and cosmetics application segments, mainly in the form of flavors and fragrances. The expanding markets of India and China in the Asia Pacific region are likely to promote market growth in terms of raw material availability, economical manufacturing, and emerging application markets in the countries.


Natural Extracts Market Segmentation

Grand View Research has segmented the global natural extracts market on the basis of product, application, and region:

Based on the Product Insights, the market is segmented into Essential Oils, Oleoresins, Herbal Extracts, Natural Colors, and Dried Crops.

  • The dried crops segment dominated the market with a revenue share of almost 40.0% in 2020 and is expected to dominate the market over the forecast period. The growing demand for dried crops in the end-use industries, such as food and beverage, is expected to fuel up the demand for dried crops over the forecast period.
  • Ginger oil is an essential oil extracted from ginger rhizome at high concentrations after distillation. It has a distinct aroma described as warm and spicy and is often used in aromatherapy. Ginger oil finds wide applications in hair care and skin care products. 


Based on the Application Insights, the market is segmented into Personal Care & Cosmetics, Food & Beverage, Animal Feed, Pharmaceuticals, Nutraceuticals, and Others.

  • The food and beverage application segment dominated the market with a revenue share of about 46.0% in 2020 and is anticipated to maintain its lead over the forecast period. The increasing demand for natural, safe, and minimally processed food products across the globe has emerged as the major factor expanding the application scope of natural extracts in the food and beverage industry. 

 

  • Rising consumer preference for natural products over synthetic ones and the ascending demand for superior quality food products are prompting food and beverage manufacturers to include healthy and nutritional natural extracts in their product offerings. However, certain essential oils are not considered safe for internal use owing to their inappropriate chemical composition.

 

Natural Extracts Regional Outlook

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa (MEA)

 

Key Companies Profile & Market Share Insights

Manufacturers of natural extracts such as essential oils, oleoresins, herbal extracts, natural colors, and dried crops focus on R&D initiatives to offer new and better products to the customers. Companies develop partnerships with other manufacturers to manufacture potential products to meet the specific demands of the customers.

Manufacturers are also investing in new and advanced manufacturing technologies that improve process efficiency and reduce the cost and time of manufacturing. Companies in the market are also trying to acquire raw material manufacturers through backward integration. For instance, Synthite Industries Ltd. has integrated backward with raw material sustainability initiative, namely Farmtech, to work closely with farmers and control the quality of raw ingredients.

Storing essential oils is of utmost concern to maintain the shelf life of the product and avoid any harmful effects, and therefore the manufacturers follow safe and standard practices in handling and storage of the product. For instance, in a developed region such as Europe, one can export its essential oil to other countries only if the product complies with the mandatory European Union legal requirements for cosmetics and natural ingredients.

Recent Developments

  • 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
  • In March 2022, Symrise collaborated with CRIEPPAM for a bio-regeneration project for White Lavender. Symrise's partnership with CRIEPPAM will lead to the next generation of Symrise's White Lavender plants
  • 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

Some prominent players in the global natural extracts market include:

  • Symrise
  • Kancor
  • Synthite Industries Ltd.
  • Ransom Naturals Ltd.
  • India Essential Oils
  • G. Industries
  • Flavex Naturextrakte GmbH
  • Arjuna Natural Pvt. Ltd.
  • Firmenich SA
  • Robertet Group
  • Sami Spices
  • doTERRA

 

Order a free sample PDF of the Natural Extracts Market Intelligence Study, published by Grand View Research.

 

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

 

Contact:

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Grand View Research, Inc.

Phone: 1-415-349-0058

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Email: sales@grandviewresearch.com

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