Natural Extracts Market Size, Share & Trends Report

Natural Extracts Market Size, Share & Trends Analysis Report By Product (Essential Oils, Oleoresins, Herbal Extracts, Natural Colors, Dried Crops), By Application, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Apr, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68039-417-3
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 161

Report Overview

The global natural extracts market size was valued at USD 9.57 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 8.9% from 2021 to 2028. Factors such as consumer awareness, changing lifestyles, increasing adoption of natural ingredient-based products, and biotechnological advancements are driving the market. Moreover, macroeconomic factors such as growing consumer disposable incomes, R&D, imports and exports, growth of the agriculture industry, aging population, and population growth have positively influenced the demand for natural extracts over the past years. Natural extracts are gaining popularity in various industries, such as food and beverage, cosmetics, perfumery, pharmaceuticals, and nutraceuticals.

India natural extracts market size, by herbal extracts, 2017 - 2028 (USD Thousand)

Natural extracts have no detrimental side effects unlike most of the chemical-based ingredients used in personal care and cosmetics, pharmaceuticals, and food and beverage products. In addition, the matter of ecological and natural sourcing of ingredients has gained top priority among manufacturers, especially in North America and Europe. Numerous overall health benefits associated with natural extracts are anticipated to drive the product demand in pharmaceutical and nutraceutical applications. These factors are likely to significantly impact the demands for the product in the near future.

The North American region has the second-largest essential oils market, mainly driven by the increasing application in flavors and fragrances, which are used in food items, beverages, and medicinal products. The North American market is characterized by the presence of the food and beverage and pharmaceutical industries as well as other end users of flavors and fragrances. This has benefitted the growth of the essential oils market in the region.

The natural extracts industry faces challenges in terms of the lack of advanced biotechnologies for efficient extraction in low-income economies, supply chain inefficiencies, and price sensitivity. Additionally, awareness regarding organic cultivation and production without the addition of harmful agrochemicals is relatively low in many countries, such as India and China. This factor reduces the opportunities for cultivators and farmers that demand products under certain standards, such as organic-certified products in many European countries.

Product Insights

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.

Dried chili whole is a spice used in the food and beverage industry. It is widely accepted in Asia Pacific as spicy and hot diets are majorly preferred in the region. Turmeric oil is a well-known ingredient with antibacterial, anti-allergic, antimicrobial, antiparasitic, antifungal, anti-worm, and antiviral properties. It is gaining attention for its anticancer effects and thus is primarily used in food and beverage and healthcare applications. In addition, it is widely used in personal care and medicinal applications as it contains nearly 20 antibiotics, 14 cancer-preventive, 12 anti-tumor, and 12 anti-inflammatory molecules, along with 10 antioxidants.

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. For instance, in skincare, ginger oil inhibits cellular oxidation and helps soothe redness, reduce skin damage and aging, and restore skin color and radiance. Furthermore, it is widely used as a flavoring agent in beverages, confectionery, and bakery products, such as cookies, cakes, ginger snaps, and biscuits.

Application Insights

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. Antimicrobial properties of natural extracts help preserve food and beverage products for a longer duration, which is expected to propel the product demand from manufacturers that are focused on increasing the shelf life of products without compromising on the quality.

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. According to the Generally Recognized as Safe (GRAS) list by the FDA, eucalyptus is one of the major essential oils that is considered unsafe for food and beverage applications.

Global natural extracts market share, by application, 2020 (%)

Busy lifestyles, hectic schedules, work stress, an increasing number of single-person households, a growing aging population, and rising urban dwelling have emerged as some of the major factors boosting the demand for spa and relaxation services. An increasing number of consumers are visiting spa centers for aromatherapy and massage to rejuvenate physically, emotionally, mentally, and spiritually. This is driving the spa industry across the globe.

Regional Insights

The European region dominated the market and accounted for over 30.0% share of the global revenue in 2020.In European countries, the use of essential oils in cosmetics as fragrances offers numerous opportunities to the manufacturers of such essential oils. As per the CBI (Centre for the promotion of imports from developing countries), essential oil products account for more than 50% of the global demand currently in this region, which is mainly driven by the natural and personal care and food and beverages industries.

A developed economy and high standards of living are some of the major factors propelling the demand for essential oils and floral extracts, which, in turn, is anticipated to drive the regional market. In Europe, aromatherapy is a major application of essential oils. France, Austria, Germany, and Switzerland are the major markets for aromatherapy, which is used for therapeutic purposes. The Netherlands and the U.K. are other significant markets for aromatherapy.

Europe is also a prominent manufacturer, exporter, and consumer of pharmaceutical products. This makes it a key market for nutraceuticals, pharmaceuticals, and alternative medicines. The European market is forecasted to grow over the coming years due to the aging population that has driven the demand for pharmaceuticals and nutraceuticals in the region. In addition, consumers’ demand for natural and healthier products with more efficacies is encouraging manufacturers to invest in R&D activities to develop natural products, which is further expected to drive the market for natural extracts.

Key Companies & 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. Some prominent players in the global natural extracts market include:

  • 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

  • dōTERRA

Natural Extracts Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 10.29 billion

Revenue forecast in 2028

USD 18.95 billion

Growth Rate

CAGR of 8.9% from 2021 to 2028 (Revenue-based)

Market demand in 2021

1268.42 kilotons

Volume forecast in 2028

2239.55 kilotons

Growth Rate

CAGR of 8.1% from 2021 to 2028 (Volume-based)

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Volume in kilotons, revenue in USD million/billion, and CAGR from 2021 to 2028

Report coverage

Volume and revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; MEA

Country scope

U.S.; Mexico; Canada; Germany; U.K.; Spain; Italy; France; India; China; Japan; Vietnam; Malaysia; Brazil; Argentina; Saudi Arabia; South Africa

Key companies profiled

Symrise; PT. Indesso Aroma; Kancor; Synthite Industries Ltd.; VedaOils.com; Vidya Herbs; Plant Lipids; Ransom Naturals Ltd.; India Essential Oils; A.G. Industries; Flavex Naturextrakte GmbH; Arjuna Natural Pvt. Ltd.; Firmenich SA; Robertet Group; Sami Spices; Falcon; Blue Sky Botanics; dōTERRA; Naturex; OmniActive Health Technologies

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global natural extracts market report on the basis of product, application, and region:

  • Product Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

    • Essential Oils

      • Turmeric Oil

      • Ginger Oil

      • Peppermint Oil

      • Davana Oil

      • Cedarwood

      • Cornmint

      • Eucalyptus

      • Lemon

      • Lime

      • Orange

      • Vetiver

      • Tea Tree

      • Patchouli Oil

    • Oleoresins

      • Paprika

      • Black Pepper

      • Capsicum

      • Turmeric

      • Ginger

      • Garlic

      • Onion

      • Others

    • Herbal Extracts

      • Capsaicin

      • 95% Curcumin

      • Ashwagandha

      • Kale

    • Natural Colors

      • Paprika

      • Natural Yellow Color

      • Annatto Color

      • Anthocyanin Color

    • Dried Crops

      • Dried Chili Whole

      • Dried Ginger Whole

      • Dried Turmeric Whole

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

    • Personal Care & Cosmetics

    • Food & Beverage

    • Animal Feed

    • Pharmaceuticals

    • Nutraceuticals

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • France

      • U.K.

      • Italy

      • Spain

    • Asia Pacific

      • India

      • China

      • Japan

      • Malaysia

      • Vietnam

    • Central & South America

      • Brazil

      • Argentina

    • Middle East & Africa

      • Saudi Arabia

      • South Africa

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