Plant-based API Market Size, Share & Trends Analysis Report By Molecule Type (Alkaloids, Anthocyanins, Flavonoids, Terpenoids), By End-use, (Pharmaceuticals, Nutraceuticals), By Region, And Segment Forecasts, 2023 - 2030

Plant-based API Market Size & Trends

The global plant-based API market size was estimated at USD 27.97 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 6.0% from 2023 to 2030. The plant-based API market is witnessing growth due to factors such as the rising awareness and interest for plant-based medicines, increasing prevalence of chronic diseases, and growing advancements in genomics and biotechnology. Moreover, nearly half of all pharmaceuticals are derived from natural sources, which implies that the API we rely on are mainly derived primarily from plants, which are farmed as crops which further propels the overall plant-based API market growth.

The pandemic has sparked interest in developing drugs on platforms other than mammalian cells. Plant-based medications have acquired enormous popularity throughout the pandemic. For instance, in February 2022, Medicago in collaboration with GSK, received approval for a plant-based COVID-19 vaccine, COVIFENZ, from Health Canada. This approval has been observed as a significant milestone for the fight against the pandemic in Canada.

Over the years, the exploration, extraction, and screening of biological diversity such as herbs, spices, microorganisms, and other natural resources, has become a necessity worldwide. Phytochemicals that are naturally occurring bioactive molecules generated from various plant sections are primarily responsible for biological activities and have been extensively adopted in the pharmaceutical industry to develop a number of medications for the treatment of various diseases. Alkaloids, saponins, phenols, flavonoids, terpenoids, steroids, carbohydrates, and tannins are some of plants' most important chemical compounds. And today, over 100 active ingredients are found to be derived from plants and are used as medicines and drugs.

Moreover, FDA approval for drugs derived from plant sources is further propelling the market's growth. For instance, in June 2018, FDA announced the approval of Epidiolex, an oral cannabidiol solution derived from Cannabis sativa plant, for the treatment of seizures observed with two severe and rare forms of Dravet syndrome, epilepsy, and Lennox-Gastaut syndrome.This is the first FDA-approved medicine that contains a pure marijuana-derived drug ingredient. It is also the first FDA approval of a medication for the treatment of Dravet syndrome patients.

However, the uncertain regulatory framework associated with plant-based APIs is anticipated to restrain the growth of the overall market. The problem of herbal drug regulation is exacerbated by a large gap in meeting statutory criteria for herbal medication research. There is insufficient scientific evidence to determine the safety and efficacy of herbal drugs. The quality of the trial medicine must be evaluated for batch-to-batch consistency of the active components.

Molecule Type Insights

The alkaloids segment held the largest market share of 21.3% in 2022 in the plant-based API market and is anticipated to expand at the fastest growth rate over the forecast period. Alkaloids are well known for providing anesthetic, cardioprotective, and anti-inflammatory properties. They play an important role in human medicine, making up to 20% of the secondary metabolites. The increasing demand for effective therapeutics and the high efficiency associated with alkaloids in providing therapeutic effect is propelling the market's growth. Furthermore, during the pandemic when a number of researchers were focusing on developing novel therapeutics to combat the effect of virus, it was revealed that many alkaloids demonstrated high efficacy as anti-SARS-CoV-2 agents.

The terpenoids segment is expected to show significant growth rate over the forecast period.The segment's growth is attributed to the chemotherapeutic and therapeutic properties associated with terpenoids. Terpenoids have been shown to have antibacterial, antifungal, antiparasitic, anti-allergenic, antiviral, antispasmodic, anti-inflammatory, immunomodulatory, and antihyperglycemic characteristics, making them effective in the prevention and treatment of a variety of disorders, including cancer. The market is anticipated to grow due to the high efficacy associated with terpenoids and high adoption of terpenes in a wide variety of medicinal products.

End-use Insights

The pharmaceuticals segment held the largest share of 63.34% in plant-based API market in 2022, which can be attributed to the rising prevalence of chronic diseases and an increasing demand to provide advanced therapeutics in the market. Some of major advances include using genetically modified plants to produce vaccines and drugs, which helps offer medications at lower cost. Moreover, the potential of plant-based pharmaceuticals to provide patients with faster access to medications with an increasing focus of key players in supply and distribution of these pharmaceuticals is further anticipated to propel growth. For instance, in June 2020, InnoCan entered into a distribution agreement with Tamar Innovest Ltd to distribute CBD API for research projects manufactured by Brains Bioceutical Corporation and approved by MHRA.

Nutraceuticals segment is projected to grow at the fastest rate over the forecast period. The segment's growth is attributed to the rising awareness regarding the physiological benefits of nutraceuticals in providing protection against chronic diseases. The function of plant-based nutraceuticals in treating and preventing cardiovascular disease, obesity, diabetes, and cancer, as well as anti-aging and immune-boosting characteristics, is further fueling growth. Moreover, key players are focusing on product launches to meet the rising demand. For instance, in February 2023, Nutricia announced the launch of a nutrition drink derived from plant-based medicinal products further propelling its Fortimel range to provide same nutritional benefits for patients with specific dietary preferences.

Regional Insights

North America held the largest market share of 34.13% in the plant-based API market in 2022 and is expected to maintain a dominant share position throughout the forecast period. The market growth in the region is attributed to the rising awareness among the population regarding health and the growing geriatric population. The region shows high adoption and consumption of nutraceuticals in the U.S. due to the claims of preventing chronic diseases. This is done by delaying the aging process, which further helps prevent chronic diseases and improves health. For instance, in June 2022, Antheia received financing of USD 40 million from Oxford Finance LLC and Silicon Valley Bank for development of biomanufacturing facility for plant-based compounds. This initiative is expected to boost the company’s product’s portfolio significantly improving the efficiency of product manufacturing and increasing scarce in U.S.

Asia Pacific is estimated to show the fastest plant-based API market growth over the forecast period. The growth of the market in the region is due to the increasing avenues of scientific research, positive economic growth, and the presence of huge untapped opportunities in the form of unmet medical needs. Moreover, initiatives are being undertaken by public and private organizations to boost the production of plant-based API in the region. For instance, in March 2022, WHO announced its plan to establish the Global Centre for Traditional Medicine in India. It aims to maximize traditional medicine's true potential using modern technology and science.

Key Companies & Market Share Insights

The key players operating in plant-based API are continually concentrating on introducing and improving existing technologies that improve patient outcomes and considerably increase healthcare effectiveness and efficiency. For Instance, in December 2022, Evonik launched PhytoSquene, a plant-based squalene. The launch is expected to provide a suitable alternative for squalene derived from shark liver oil, further boosting vaccine efficacy. Some of the key players in the global plant-based API market include:

• Roquette Frères

• Arboris

• Centroflora

• BASF SE

• Kothari Phytochemicals & Industries Ltd.

• Evonik Industries AG

• Brains (Brains Bioceutical)

• Indo Phytochem Pharmaceuticals.

• HimPharm.com.

• Cargill, Incorporated

Plant-based API Market Report Scope

Global Plant-based API Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this report, Grand View Research has segmented the global plant-based API market report on the molecule type, end-use, and region:

• Molecule Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Alkaloids

  • Anthocyanin

  • Flavonoids

  • Phenolic Acids

  • Terpenoids

  • Lignin & Stilbenes

  • Others

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Pharmaceuticals

  • Nutraceuticals

  • Herbal Based Industries

  • Others

• Regional Outlook (Revenue, USD Billion, 2018- 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East and Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait