Natural Extracts Market Size, Share, and Trends 2024 to 2034

Natural Extracts Market Size and Growth 2023 to 2032

The global natural extracts market was valued at USD 12.15 billion in 2023 and it is expected to hit around USD 28.08 billion by 2033, poised to grow at a CAGR of 8.67% from 2024 to 2033.

Natural Extracts Market Key Takeaways

• Asia Pacific held a market share of 31% in 2023.
• By material, the essential oils segment registered a maximum market share of 60% in 2023.
• By therapeutic area, the beauty & aging segment is expected to capture the biggest revenue share of 29% in 2023.
• By application, the food & beverages segment is expected to acquire the largest share of 45% in 2023.

Natural Extracts Market Size in the Asia Pacific 2024 to 2033

The Asia Pacific natural extracts market size was estimated at USD 3.80 billion in 2023 and is predicted to be worth around USD 9.51 billion by 2033, at a CAGR of 9.53% from 2024 to 2033.

Asia Pacific region dominates the natural extracts market. The region includes major emerging economies such as China, India, and Japan, which have a high consumer base for natural & healthy products due to population and income growth. The natural extracts market is driven by an increase in favorable government initiatives regarding awareness about healthy lifestyles. For instance, since 2016, China has been implementing the “Healthy China 2030” policy to promote people's all-round development in the country. Moreover, an increase in production and supply of spices & herbs in India is also driving the market growth in the region. For instance, according to the India Brand Equity Foundation, in 2020-21, ginger export witnessed growth of around 47% from 2019-20, accounting for a 10% year-on-year growth of the total spices export.

About 30.5% of the global revenue for natural extracts was in the European region in 2021. The use of essential oils in cosmetics and fragrances are widely used in the European countries by the manufacturers in the European region. They use essential oils in the production. The global demand for the natural extracts is currently driven by two industries, which is the food and beverages and the personal care. In the developed economies, the demand for the floral extracts or the essential oil is more as the people have high standards of living.

Aromatherapy has a major application of the essential oils and the aromatherapy sector is growing in the European nations. Germany, Austria, France and Switzerland are the major markets for aromatherapy. Other significant markets for aromatherapy are Netherlands and UK. Europe is an exporter and a manufacturer of pharmaceutical products that use natural extracts. An increase in this areas aging population is also expected to drive the demand for pharmaceuticals and neutraceuticals in this region. Constant research and developmental activities to produce natural products are expected to drive the market and awareness about the concept of healthy aging and an increasing health conscious diet is also driving the market. The deficiency of essential micronutrients, or the inclusion of synthetic products in the US has led to an increase in the cases of obesity, cardiovascular diseases, Osteoporosis. Therefore, there is a great demand for plant extracts in food and beverages.

Natural Extracts Market Size in the North America 2024 to 2033

The North America natural extracts market size was calculated at USD 3.42 billion in 2023 and is estimated to cross around USD 7.37 billion by 2033 with a significant CAGR of 7.89% from 2024 to 2033.

Natural Extracts Market Overview

Natural extracts are the ingredients that are derived from natural sources like vegetables, fruits, plants, grains, meat, or even seafood. These natural products provide an additional benefits to the consumers for better health, beauty etc. The natural extracts are used in many applications like flavors, edible oils colorants etc. It is the most demanding ingredient for essential oils, fragrances, flavors and spices. It has great application in food and beverage industry and the pharmaceutical industry. These ingredients do not just provide flavor, but are also healthy as they serve many vitamins, carbohydrates and minerals. The unavailability of various raw materials and increased prices of these raw materials shall hinder the growth of the market.

Natural Extracts Market Growth Factors

Due to an increase in the trend of vegetarianism or veganism the natural extracts market is expected to boost. The increased consumer awareness, increased adoption of natural ingredient based products, change in the lifestyle and bio technological advancements are driving the market. The increase in the consumer's disposable income, research and development, growth of the agricultural industry, aging population, imports and exports and the growth in the population are all positively affecting the growth of the natural extracts market. Natural extracts are very popular among the consumers as they do not have any detrimental side effects like those that are chemical based. They see applications in personal care and cosmetics, food and beverage products and pharmaceuticals. The overall health benefits that are provided by the natural extracts are expected to create a demand for this product. In various industries due to increasing application in terms of flavors and fragrances. The North American region is the second highest market for the essential oils. The increased use of natural ingredients based product by all the consumers is expected to escalate the growth of this market.

Natural Extracts Market Scope

Natural Extracts Market Dynamics

Market Drivers

Rising Personal Disposable Income

Products containing natural extracts are gaining popularity among the consumers due to a rise in their disposable income. These extracts require advanced biotechnologies for extraction and processing. They also require proper supply chain and logistics for transportation, as these extracts are void of preservatives and other artificial ingredients to keep them fresh.

Moreover, an increase in personal disposable income around the world is accelerating the market growth, as consumers have high purchasing power and awareness of these products. For instance, according to the World Bank data, global GDP per capita increased from US$ 10,936.1 in 2020 to US$ 12,262.9 in 2021. Likewise, according to the Organisation for Economic Co-operation and Development, Gross per capita, percentage change of household disposable income in the U.S. grew by 2.54% in 2021 and the same rose in the U.K. by 0.79% in 2021.

Furthermore, a rise in income enables consumers to spend more on innovative products. Natural extract products include food & beverages, cosmetics such as hair care & skin care products, pharmaceuticals and others.

Health Benefits Associated with Natural Extracts

Natural extracts are widely preferred for food & beverages, personal care, and medicinal applications. Consumers are preferring these products to improve their lifestyles. Due to hectic working hours, reduction in physical activities, and rising adulteration in the products, natural extract is gaining popularity among consumers.

Moreover, consumers are choosing natural extracts according to their requirement related to health, which is also boosting the market growth. Natural extracts such as essential oils and oleoresins carry various health benefits for treating diseases as well as preventive care. People adopt natural products for preventing respiratory, digestive diseases, and other diseases such as asthma, cancer, diabetes, blood pressure fluctuations, headaches, and others.

An increase in the prevalence of diseases such as cardiovascular, chronic, respiratory and others is driving the market growth to treat and manage health issues. According to the American Diabetes Association, in 2019, 11.3% of the U.S. population i.e., 37.3 million had diabetes. Also, according to the World Health Organization, in 2020, cancer caused around 10 million deaths around the world. Likewise, according to May 2022 data of the same source, food contamination makes 600 million people in the world fall ill and 420,000 die every year.

Thus, due to the rising number of diseases, consumers are becoming more aware about their food consumption and maintaining healthy lifestyle, which is in turn driving the market growth.

Market Restraints

Availability of Low-cost Alternatives

The global natural extracts industry is rapidly growing; however, some factors such as the availability of low-cost alternatives limit the market growth. Currently, natural extracts are price sensitive as they go through advanced production methods and their availability is limited. They are commonly available in urban cities; however, due to supply chain & cold storage complexities, these products are not extensively consumed in rural regions. This results in the consumption of low-cost synthetic substitutes.

Moreover, other factors which make natural extracts price sensitive are crop yield, climate, import/export, agriculture laws, and others. Natural extracts are more expensive than synthetic & chemical counterparts due to high cost related to extraction, purification, and concentration processes. The aforementioned factors contribute to the high prices of natural extracts, which is expected to be a major restraint for the natural extracts market growth.

Market Opportunity

Increasing Adoption of Natural Extracts in End-use Applications

The growth in personal care & cosmetics, pharmaceuticals, food & beverages, nutraceuticals applications is creating lucrative growth for natural extracts. These extracts have major benefits and uses in these applications which have various benefits such as improving skin care, mental illness, food intake and others. Thereby, many companies related to end-use applications are undertaking initiatives to expand the demand for organic and natural products.

Significant growth of the cosmetics market around the world is accelerating the market growth. For instance, according to France-based personal care company, L'ORÉAL’s annual report of 2021, the growth of the global cosmetics market witnessed an increase from 4.9% in 2017 to 8.2% in 2021. Likewise, according to the Food and Agriculture Organization 2021 data, in 2019, the global sales of organic food and drink reached over US$ 107 billion.

Hence, the rising demand for natural ingredients for end-use applications is expected to create a profitable opportunity for the market growth over the forecast period.

Material Insights

The essential oil segment held the largest share of 60% in the natural extracts market in 2023. In the natural extracts market, the essential oil segment has grown significantly in the last several years. Essential oils are concentrated plant extracts that preserve the aroma and spirit of the source plant. Growing consumer knowledge of wellness and health is driving a move toward natural and organic products. The demand for essential oils is driven by their perception as natural cures and substitutes for artificial scents and chemicals. The usage of essential oils in aromatherapy products has grown as a result of theories about its many health advantages, which include stress alleviation, relaxation, and mood enhancement. Because of their scent and possible skincare advantages, essential oils are frequently utilized in cosmetic and personal care products. They help the market expand by adding goods like shampoos, lotions, soaps, and perfumes.

Therapeutic Area Insights

The beauty & aging segment held the largest share of 29% in the natural extracts market in 2023. Many individuals have serious concerns about aging and beauty, and the market for natural extracts presents a possible solution for these problems. Because they are thought to be safer and more effective than synthetic compounds, natural extracts made from fruits, vegetables, herbs, and other natural sources are becoming more and more popular in the cosmetics business. Vitamins, antioxidants, and other health-promoting elements are frequently found in these extracts, which can support collagen synthesis, preserve skin health, and lessen the appearance of aging. Age-related declines in the body's naturally occurring levels of CoQ10. CoQ10, which is extracted from foods like soybeans, guards against UV damage and lessens the look of wrinkles and fine lines.

Application Insights

The food & beverages segment held the largest share of 45% in the natural extracts market in 2023. Soft drink flavors are derived from natural extracts such as fruit juices, herbal infusions, and botanical extracts. Teas and coffees are flavored with natural extracts including vanilla, cinnamon, mint, and various fruit extracts. Cocktails, flavored spirits, and liqueurs are made using natural extracts such as fruit juices, spices, and herbs. Natural extracts are frequently found in chocolates, candies, and chewing gum flavors such as vanilla, mint, citrus, and fruit. These are but a handful of the wide variety of food and drink items that include natural extracts. The market for natural extracts is anticipated to expand as food and beverage producers try to satisfy consumers' increased demands for natural ingredients and clean labels.

Natural Extracts Market, By Application, 2020-2023 (USD Million)

Natural Extracts Market Recent Developments

• In April 2024, Nektium says Vitafoods Europe 2024 (May 14–16, Geneva) will be the debut event for its brand-new Vanizem botanical extract, which is intended to support mood and reduce stress. According to Innova Market Insights research, consumers now rank taking care of their mental and emotional health as one of their top three priorities when it comes to leading healthy lives.[1] Nektium (booth E141) at Vitafoods will show how its patent-pending Vanizem ingredient can assist producers in meeting market demand.
• In October 2023, For the Indian market, Cadila Pharmaceuticals' Chezgreen business has unveiled an under eye care cream. L-glutathione, vitamin C, and other naturally occurring extracts rich in antioxidants are used in the formulation of the Cahaya Naturals Under Eye Cream to help repair damaged skin cells and maintain skin hydration. "There are no negative effects from the natural components used in the Cahaya Naturals Under Eye Cream. The product is genuinely unique and has the potential to significantly transform the field of undereye care, as stated by Vandana Modi, Vice President of Cadila Pharmaceuticals' Herbal Division.
• In May 2018, Synergy Flavors, recently announced its acquisition of Janousek (Italy), one of the world’s first suppliers of herbal extracts and natural flavoring and an expert in Italian flavor profiles.  The acquisition of Janousek will enable Synergy Flavors which is one of the leading suppliers of flavors, extracts, and essences for the global food & beverage industry, to expand into these European geographies and provide its expertise in areas such as nutrition and dairy.
• In September 2020, Symrise launched SymControl Scalp, to solve the issue of sebum overproduction at its source which uses Tetraselmis Suecica extract which normalizes the sebum production on the scalp and promotes healthy hair, combined with the naturally occurring algae which is Mannitol, this algae also protects the scalp and hair from environmental stress.
• In October 2020, Givaudan In line with the recently announced 2025 strategy – Committed to Growth, opened its newest state-of-the-art fragrance production facility in Changzhou, China. As China remains a key growth market for innovative and consumer-preferred fragranced products in the future.

Natural Extracts Market Companies

• Flavex Naturextrakte GmbH
• Arjuna Natural Pvt. Ltd.
• Firmenich SA
• Robertet Group
• Sami Spices
• Synthite Industries Ltd.
• Ransom Naturals Ltd.
• India Essential Oils
• A.G. Industries
• Symrise
• Kancor

Segments Covered in the Report

By Material

• Essential Oils
• Oleoresins
• Flavonoids
• Alkaloids
• Carotenoids
• Others

By Therapeutic Area

• Immunity
• Beauty & Aging
• Gastro & Digestive
• Weight & Wellness
• Mental Health
• Diabetes
• Woman Health
• Others

By Application

• Pharmaceuticals
• Personal Care & Cosmetics
• Food & Beverages
• Animal Feed
• Nutraceuticals 
• Others

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa