Natural Extracts Market size was over USD 8.8 Billion in 2023 and is anticipated to exceed USD 20.2 Billion by the end of 2036, growing at over 9% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of natural extracts is assessed at USD 9.1 Billion.
The growth driving factor for the market is the rising adoption of products that do not contain added preservatives and are fully nature–based and the growing disposable income. As per the Bureau of Economic Analysis (BEA), the disposable personal income in the US increased up to USD 40.2 billion in April.
Growth Drivers
Challenges
Base Year |
2023 |
Forecast Year |
2024–2036 |
CAGR |
9% |
Base Year Market Size (2023) |
USD 8.8 Billion |
Forecast Year Market Size (2036) |
USD 20.2 Billion |
Regional Scope |
|
Product (Essential Oils, Oleoresins, Herbal Extracts, Natural Colors, Dried crops)
Dried crops segment is likely to dominate over 39% natural extracts market share by 2036. The segment growth can be attributed to the flourishing food & beverage sector and the benefits dried crops offer. The dried crop segment incorporates dried turmeric which has various beneficial properties such as anti–inflammatory and antioxidant.
Additionally, turmeric also helps in delaying the genesis of type 2 diabetes. Doctors recommend consuming a pinch of turmeric in warm milk every day to protect your body from flu and infections since turmeric has anti–fungal, antibacterial, and anti–viral properties. India is one of the leading producers of turmeric accounting for a share of 80% of the total worldwide production.
Application (Personal Care & Cosmetics, Food & Beverage, Animal Feed, Pharmaceuticals, Nutraceuticals)
By 2036, food & beverage segment is set to dominate over 44% natural extracts market share. The segment growth can be accredited to the demand for safe and organic food and beverages. As per research nester’s recent analysis, the organic food sector is anticipated to generate a value of more than USD 70 billion by 2025.
Food products that incorporate natural extracts help elevate the shelf life of the product and that’s why consumers are attracted towards natural ingredients–based food products. Additionally, the rise in demand for products that are nutritious and prepared with organic materials is stimulating growth in the market.
Our in–depth analysis of the global market includes the following segments:
Product Outlook |
|
Application |
|
APAC Market Statistics
Asia Pacific natural extracts market is projected to dominate revenue share of over 30% y 2036. The region is growing due to the high consumer demand for healthy products, urbanization, and income growth. The urban population is poised to grow by 1.2 billion people worldwide and over 2.2 billion people live in Asia.
The market is flourishing in India due to increasing consumer awareness and disposable income. The personal care and hygiene industry in India is estimated to garner a market volume of USD 17.34 billion by 2026.
The market is growing in China due to the rising demand for natural extracts from the pharmaceutical and cosmetic industries. As per Euromonitor International’s latest insights, china accounted for USD 88 billion in terms of sales of beauty and personal care in the year 2021.
North American Market Analysis
Natural Extracts Market size for North American region is expected to exceed USD 7 Billion by 2036, owing to the increasing popularity of natural extracts and the presence of top key players in this region.
Finlays is one of the industry–leading suppliers of healthy beverages and aims to grow sustainably by manufacturing and supplying tea, coffee, and natural extracts to beverage brand owners present worldwide for building a healthy world.
The market is growing in the United States due to the flourishing pharmaceutical sector and various pharmaceutical companies are present in the US that manufacture products using natural extracts. Data obtained from research nester’s recent survey shows that the pharmaceutical sector is expected to generate a market volume of USD 636 billion in 2024.
Food & Beverage industry’s significant growth in Canada is responsible for the expansion of the market. Canada has nearly 8,500 food and beverage processing business of which most of them are small businesses.
The natural extracts market is dominated by key market players that are flourishing due to the increased disposable income and high demand for natural products.
Author Credits: Parul Atri
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?