Increase in Demand for Natural Products is Leading to the Increased Demand for Various Plant Extracts

The global plant
extracts market is estimated to value USD 30.8 billion in 2021 and is
projected to reach USD 55.3 billion by 2026, at a CAGR of 6.0% during the
forecast period. The growth of the plant extracts market is driven by the
rising consumption of nutritive convenience food and fortified food and the
growth in health awareness among consumers are leading to the increased
consumption of healthier diets. Plant extracts as functional ingredients have
been gaining popularity among target customers—the food & beverages
industry. As a result, the rise in the demand for functional food products
among health-conscious consumers eventually triggers the demand for plant
extract products in the global market.

Download PDF brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=942

The phytomedicines and herbal extracts
segment hold the largest share in the plant extracts market. With the surge in
demand for natural ingredients and natural products due to the rise in
awareness related to better dietary choices, the growth of the aging
population, the increase in the trend of a healthy lifestyle, and the growth in
incidences of chronic diseases, resulted in a large number of manufacturers
investing in R&D and producing various innovative extracts, which
contribute to the nutritional health of consumers. With the growing vegan
population preferring only plant-based products, natural plant extracts are
gaining immense popularity among consumers that are further expected to propel
the market growth. However, consumer skepticism associated with the adoption of
several plant extracts in different applications and inadequate supply of raw
materials, and price fluctuation could hinder the market growth to a certain
extent during the forecast period.

Furthermore, among the various
application of plants extracts, the cosmetics segment is expected to rise at
the fastest rate during the forecast period. Demand for chemical free cosmetics
are decreasing due to its adverse side effects. The importance of essential
oils is increasing day by day because they are mostly used in cosmetics
industries for adding fragrances and medicinal properties in various
products.  The growth markets for uses of
Essential Oils are expected to be gaining higher demand in the rapidly
developing countries (dominated by China and India), Eastern Europe, and Russia
and less developed countries such as Cambodia, Bangladesh, and Myanmar. For the
long-term, the amount of Essential Oils consumed in these growing markets is
predicted to exceed the current consumption of industrialized countries. The
demand is predicted to be greatest for low-value fragrance oils used in soaps,
creams, perfumes and related products.

In the fastest-growing North American
region, Mexico is expected to grow at the fastest rate during the forecast period
due to the growing economic development in Mexico because of which it is
experiencing various socio-economic transitions, which is driving the demand
for plant extracts. The health market in Mexico is rapidly developing due to
the increased Foreign Direct Investments (FDI) and consumer awareness of the
benefits of a healthy diet. The growing health and wellness trend in this
country is driving the market for nutraceutical ingredients, such as
phytomedicines & herbal extracts. A growing number of chronic lifestyle
diseases have also urged several consumers to adopt healthy food products.
Hence, Mexican consumers tend to look for products to reduce the effects of
obesity and help them maintain the required fitness levels. These trends are
leading to an increased demand for organic products for food, beverage, and
dietary supplement industries in the country.

Make an Inquiry: https://www.marketsandmarkets.com/Enquiry_Before_BuyingNew.asp?id=942

However, Synthetic substitutes for
plant extracts are easily available and are used in the majority of synthetic
cosmetics as cheaper substitutes. Several synthetic drugs are available in the
market, which majorly include antibiotics and anti-inflammatory drugs. Such
drugs tend to cause various side effects in comparison to herbal drugs, which
act gently. Hence, several synthetic and substandard products available in the
market act as substitutes to natural plant extracts and pose a challenge for
the plant extract manufacturers.