Increasing Demand For Plant Extract In Food and Beverage Industry Is Anticipated To Drive Plant Extract Market During The Forecast Period 2021-2026. Plant Extract Market size in 2020 is estimated to be $14.162 billion, growing at a CAGR of 6.3% during the forecast period 2021-2026.
Growing Demand for plant extracts in food and beverage industry to enhance the color, flavor, and taste is a vital factor driving the plant extracts market in the upcoming years. Moreover, growing consumption of alcoholic beverages in U.S. is a vital factor contributing to its market growth. For instance, according to the Centers for Disease Control and Prevention water accounted for 51.2% of total non-alcoholic beverage consumption among adults on a given day in 2015-2018, followed by coffee (14.9%), sweetened beverage (10.2%), tea (8.7%), fruit beverages (5.6%), milk (5.5%) and diet beverages (3.8%). Furthermore, WildFlavours and Specialty Ingredients a leading supplier of natural ingredients for the food and beverage industry produces components such as natural flavors and extracts, natural colors, natural fruit sweetener as well as specialty ingredients in order to meet with the consumers requirements.
Plant extracts are active compounds which are derived from sources such as plants and herbs that are naturally available. They bear medicinal properties that the human body benefits from. There are a range of plant extracts present in nature, which are extracted and used in several applications such as food and functional food products, manufacturing aids, chemical replacements, pharmaceuticals for medicinal properties, and cosmetics for beauty and well-being functional properties. Plant extracts are obtained from different parts of a plant, such as fruit, leaf, stem, root, bark, and others. The ongoing covid-19 pandemic has increased research of plant extract applications for pharmaceuticals and immunity building food or beverages. For instance, in February 2020, The Department of Thai Traditional Medicine and Government Pharmaceutical Organisation has signed memorandum of understanding to research on medicinal plant Andrographis paniculate extract with an eye to developing a drug to inhibit the Covid-19 virus. Furthermore, in India on April 2020, The Jawaharlal Nehru Tropical Botanical Garden and Research Institute (JNTBGRI) in Thiruvananthapuram district’s Palode has received the approval of Indian Council of Medical Research (ICMR) to test whether extraction from plants could be effective in the treatment of the corona virus.
Asia-Pacific holds a major share of Plant Extract market owing to favorable factors in this region that are growing demand of herbal products across the countries such as India, Japan, South Korea, and others coupled with rising awareness about plant derived products. According to the report, plant derived products are gaining popularity in Asia as people look for to improve their health and avoid other sources. The increasing average disposable income of the population and rising government investments and funds on food and beverage industry in this region. The growing awareness regarding health owing to rise in the income of individuals and increase in investments on research that focus organic ingredients and plant based products in the region are other major factors that are likely to help in the growth of the market in the forecast period (2021-2026). Moreover, rising prevalence of chronic diseases such as diabetes, cancer, heart diseases in countries such as China, Japan, India and others so that people are moving towards healthy lifestyle are other major factors that are likely to help in the growth of the market in the forecast period (2021-2026). According to World Health Organization (WHO), around 8.5 million people die per year owing to chronic diseases such as diabetes, cancer in South-East Asia. Moreover, manufacturers in Asian countries are continuously investing in the market and focusing on innovation to expand their product range. This is owing to the rise in the trade of plant extracts between Asia and international manufacturers of plant extract-based products. With the high demand from various end-use industries, there is a lot of scope for growth in developing countries with respect to incorporation of natural extracts in cosmetics, dietary supplements and other applications which has driven new growth opportunities for Plant Extract Market during 2021-2026.
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Plant Extract Market Growth Drivers:
- Increasing Demand of Plant Extract in Cosmetics Industry:
Increasing demand of plant extracts in cosmetics industry owing to its antioxidant, anti-inflammatory, antiseptic and antimicrobial properties are driving the market growth. Moreover, increasing demand of herbal products for skin care is also driving the plant extract market. According to American Herbal Products Association (AHPA), the demand for herbal products is increasing across the globe.
- Mergers & Acquisitions in Plant Extracts Industry, with an aim to develop new product:
Manufacturers of plant extracts are adopting strategies like mergers, acquisitions and other strategic alliances to strengthen their foothold in the market. Manufacturers focused on expanding their business by focusing on research and development to develop new and cost effective products for various industries. Increasing acquisitions and mergers by key players to expand their product portfolio is a vital factor contributing to its market growth. For instance, in September 2020 Cannabis Global Inc., a cannabinoid and hemp extract science-forward company has acquired stake in in Natural Plant Extract in California Inc., which operates a licensed manufacturing and distribution business operation out of Lynwood, California.
BASF and Mazza has signed an agreement in which the Canadian botanical extractions company provides BASF with specific plant extracts to develop new solutions for cosmetic applications.
The Major Players in this Market Include
The major companies in Plant Extract market include Givaudan, Symrise AG, Dohler, Martin Bauer GmbH & Co. KG, Archer Daniel Midlands, Kemin Industries Inc., Frutarom Industries Ltd., Indena Spa, Synthite Industries Ltd., and CHR Hansen.
In March 2019, The Martin Bauer Group has acquired of BI Nutraceuticals, a leading full-service manufacturer and supplier of plant-based ingredients in the United States. This acquisition creates an extensive portfolio of botanical ingredients and a versatile manufacturing hub servicing the U.S. Tea, Beverage, Food and Dietary Supplements industries.
Over the years, companies have mainly focused on research and development and have been investing in developing various products. The advancements in ingredients of the products driving the Plant Extract market during 2021-2026.
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