Global Natural Extracts Market by Product (Herbal Extracts, Dried Crops, Oleoresins, Essential Oils, Natural Colors) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global natural extracts market was valued at USD 9.57 Billion in 2020. It is expected to grow at an 8.9% compound annual growth rate (CAGR), between 2021 and 2028. The market is driven by factors such as increasing consumer awareness, changing lifestyles and increased adoption of natural ingredient-based product. The market has been positively impacted by macroeconomic factors like increasing consumer disposable incomes, R&D and increased imports and exports as well as the growth in the agricultural industry and the aging population. Natural extracts are becoming more popular in many industries such as food and beverages, cosmetics and perfumery, pharmaceuticals and nutraceuticals.

Natural extracts are free from side effects that can be harmful, unlike many chemical-based ingredients in cosmetics, pharmaceuticals and food and drink products. Manufacturers in North America and Europe have given top priority to the issue of natural and ecological sourcing of ingredients. The many health benefits of natural extracts will drive demand for pharmaceutical and nutraceutical products. These factors will likely have a significant impact on the demand for the product in near future.

North America has the second largest essential oils market. This is primarily due to the growing use of flavors and fragrances in foods, beverages, and medical products. The North American market is characterized in part by the presence of the pharmaceutical, food and beverage industries as well other end users of flavors or fragrances. This has contributed to the expansion of the essential oils industry in the region.

Natural extracts face challenges due to a lack of advanced biotechnologies, inefficient supply chains, price sensitivity, and a lack of efficient extraction in low-income countries. In many countries, like India and China, awareness about organic cultivation and the production of natural extracts without harmful agrochemicals remains low. This reduces the chances for farmers and cultivators who demand products that meet certain standards. For example, organic-certified products are available in many European countries.

Product Insights

With a market share of nearly 40.0% in 2020, the dried crops segment was the dominant market. It is expected to continue dominating the market for the remainder of the forecast period. Over the forecast period, dried crop demand is expected to rise due to the growing demand in the end-use sectors, such as food, beverage, and other industries.

Dried chili whole can be used in food and beverage industries. Asia Pacific is a big fan of dried chili whole, as hot and spicy diets are popular in the region. Turmeric oil is well-known for its antibacterial, anti-allergic and antimicrobial, as well as antiparasitic and antifungal, antifungal, worm-controlling, and antiviral properties. Turmeric oil is being increasingly used for its anticancer properties. It is also widely used in food, beverage, and healthcare applications. It is also widely used in personal and medical care because it contains almost 20 antibiotics, 14 anti-tumor and anti-cancer molecules, as well as 10 antioxidants.

Ginger oil is an essential oil that has been extracted from the ginger rhizome in high concentrations following distillation. It is used extensively in aromatherapy and has a distinctive aroma that can be described as spicy and warm. There are many uses for ginger oil in hair and skin care products. Ginger oil is used in skincare to reduce cellular oxidation, soothe redness, improve skin color, and restore skin radiance and color. It is also used in confectionery and bakery products such as cookies, cakes and ginger snaps.

Application Insights

With a 46.0% revenue share in 2020, the food and beverage segment was the dominant market. It is expected to continue its dominance over the forecast period. Natural extracts are being used more widely in the food and beverage sector due to the growing demand for safe, natural and minimally processed foods. Natural extracts have antimicrobial properties that help preserve food and beverages for longer periods of time. This will drive product demand from manufacturers who are committed to increasing shelf life without compromising quality.

Food and beverage companies are incorporating healthy and nutritious natural extracts into their product lines due to rising consumer preference for natural products rather than synthetic. Because of their chemical composition, some essential oils aren't considered safe for internal consumption. The FDA's Generally Recognized As Safe (GRAS), lists eucalyptus as one of the most dangerous essential oils for food and beverages.

The main factors driving the growth in spa and relaxation services demand are busy lifestyles, stressful schedules, work stress, increasing numbers of single-person households, growing urban dwellers, and a growing number of single-person families. Spas are becoming more popular for massage and aromatherapy. This helps to heal the body, mind, and soul. This is driving the spa sector around the world.

Regional Insights

The European market dominated and was responsible for more than 30.0% of global revenue in 2020. Essential oils used in cosmetics and fragrances in Europe offer many opportunities for manufacturers. According to the CBI (Centre for the promotion imports from developing nations), essential oils products make up more than half of the current global demand in this region. This is mainly due to the natural and personal care industries as well as the food and beverage industry.

The demand for essential oils is driven by a developed economy and high living standards. This will in turn drive the market. Aromatherapy is a popular application of essential oils in Europe. Aromatherapy is a therapeutic form of aromatherapy that is popular in Europe, Austria, Germany and Switzerland. The U.K. and the Netherlands are also important markets for aromatherapy.

Europe is a major producer, exporter, as well as consumer of pharmaceutical products. It is a major market for nutraceuticals and pharmaceuticals as well as alternative medicines. Due to the growing population, the European market is expected to expand in the next few years. This is due to the increasing demand for nutraceuticals and pharmaceuticals in Europe. Manufacturers are also encouraged to invest in R&D to create natural products. This will further drive the market for natural extracts.

Market Share Insights & Key Companies

Natural extract manufacturers such as essential oils and herbal extracts, natural colours, dried crops, and oleoresins focus on R&D to provide better products for customers. To meet customer demands, companies form partnerships with other manufacturers.

Manufacturers also invest in advanced manufacturing technologies to improve their process efficiency and decrease the manufacturing cost. Backward integration is also a strategy used by market players to acquire raw material producers. Synthite Industries Ltd., for example, has integrated backwards with Farmtech, a raw material sustainability initiative that allows farmers to control the quality and work closely with them.

Essential oils must be stored safely and properly in order to preserve their shelf life and prevent any adverse effects. In Europe, for example, essential oils can only be exported to countries that meet the EU's legal requirements regarding cosmetics and natural components. The following are some of the major players in global natural extracts markets:

• Symrise

• Kancor

• Synthite Industries Ltd.

• Ransom Naturals Ltd.

• India Essential Oils

• A.G. Industries

• Flavex Naturextrakte GmbH

• Arjuna Natural Pvt. Ltd.

• Firmenich SA

• Robertet Group

• Sami Spices

• d?TERRA

Up Market Research published a new report titled “Natural Extracts Market research report which is segmented by Product (Herbal Extracts, Dried Crops, Oleoresins, Essential Oils, Natural Colors), By Players/Companies India Essential Oils, Kancor, AG Industries, Firmenich SA, Ransom Naturals Ltd, d?TERRA, Sami Spices, Flavex Naturextrakte GmbH, Robertet Group, Arjuna Natural Pvt Ltd, Synthite Industries Ltd, Symrise”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Natural Extracts Market Report Segments:

The market is segmented by Product (Herbal Extracts, Dried Crops, Oleoresins, Essential Oils, Natural Colors).

Natural Extracts Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Natural Extracts Market

Overview of the regional outlook of the Natural Extracts Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Natural Extracts Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Natural Extracts Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Herbal Extracts

                2. Dried Crops

                3. Oleoresins

                4. Essential Oils

                5. Natural Colors

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Natural Extracts Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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• Correctly Positioning New Products
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Reasons to Purchase the Natural Extracts Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.