Global Plant Extracts Market Set at $34.4B Projected to Expand to $61.5B by 2027

The global plant extracts market, estimated at $34 4 billion in 2022, is projected to reach $61 5 billion by 2027, growing at a compound annual growth rate of 12 3 percent in terms of value, according to a Markets and Markets report

The use of plant extracts is growing as consumers seek out natural and healthy products as extraction methods are developed and new plant species are discovered with beneficial properties The demand for plant extracts is increasing due to their various health benefits, natural origin and versatility in various applications

Domestic and international demand are contributing to the growth of the plant extracts market in Asia Pacific, according to

Plant-Based

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– the prized cohort – to try the meat alternatives And then buy them again ”

In early February, AFN suggested the industry “Keep calm and carry on: Navigating the trough of disillusionment for plant-based meat ”

“Setting aside the sinister photo on the recent cover story of Bloomberg Businessweek (a cheap stunt: U S plant-based meat sales may not be red hot, but Beyond Meat patties were not grey, last time I checked), that article has attracted astonishing levels of praise – and vitriol – for simply stating what ever yone following this space has known for months now: U S retail sales of meat alternatives have slowed down and Beyond Meat has had a lousy year, ” Elaine Watson wrote in the Feb 8 article

“But scan the media today and plantbased meat is right up there with Meghan Markle (first they loved her, then they hated her), while proponents of cultivated meat are being likened to Theranos,” she wrote

Meantime, a recent report from The NPD Group addressed the confusion about the status of plant-based food – and its future

“The recent buzz about plant-based foods at retail and foodser vice has many questioning if interest in plant-based foods is a fad or a long-term trend,” the report states “Plant-based is a small but expanding category, and as more innovations and products become available and accessible, consumer interest broadens ”

About 25 million consumers eat plantbased beverages and foods occasionally or regularly, according to NPD, consuming these foods as part of a meal or as an ingredient About 1 in 5 consumers says that they want more plant-based foods in their diet ”

Consumers differentiate between the plant-based foods they want at home or from a restaurant or other foodservice outlet, according to the report Dairy milk is largely consumed at home, but meals or snacks that include milk alternatives are preferred by 93 percent of those surveyed, only 7 percent from outside the home

“Consumers eat more plant-based meat, the report

In 2021, Asia Pacific dominated the market and is expected to continue doing so during the forecast period As a result of strong local and international demand, the plant extracts market in the region is thriving There are several small and medium-sized manufacturers of plant extracts in the region who have extensive experience processing plant extracts, as well as being aware of their benefits Examples include Alchemy Chemicals, Vital Herbs, Sydler, Plantnat Indonesia, India, and Thailand manufacturers continue to invest in the market and focus on innovation to expand their product range This is due to the rise in the trade of plant extracts between Asia and international poultry and seafood analogues from restaurants because these foods are prepared in the same way animal protein menu items are, which means the consumer isn’t sacrificing taste for what they believe to be a healthier option,” the report states

“At retail, the total volume sales of milk alternatives were down 3 percent in the 52 weeks ending Jan 1, 2023, compared to a year ago, ” according to IRI data cited by NPD “Almond and coconut milk alternatives were among the top declining products Oat milk alternatives offset steeper declines for the total categor y, with volume sales up 22 percent versus a year ago “Volume sales of meat alternatives in the frozen aisle were down 3 percent from a year ago, with lunchmeat, meatball and breakfast sausage alternatives the top decliners,” according to the report “Frozen meat alternative formats growing were wings, ingredient cuts, and nuggets

“Fresh meat alternatives were down 15 percent compared to the prior year; breakfast sausage, meatball, and patty alternatives were the top declining categories The growth formats in the fresh retail case during the period were wings, ingredient cuts, and nugget alternatives ”

“Retail is likely in a transition period, following fast expansion before and during the pandemic,” said Chris Dubois, executive vice president, Americas Protein Practice Leader, IRI “As consumers are returning to their pre-pandemic habits and living with high inflationary prices, we are seeing slower velocity rates and a higher number of lost buyers than new buyers

“As long as the big plant-based companies continue to deliver taste, texture and innovations while working toward price parity with other protein options, the category can thrive, especially in the frozen case where the strength and base are consistent ”

Foodservice plant-based foods represent less than 1 percent of all foods shipped through broadline foodservice distribution

Manufacturers Of Spices And Essential Oils

Recent developments in the global plant extracts market include rising demand for plant-based and natural products, driven by the growing trend of wellness and health consciousness among consumers and increasing focus on research and development to develop new plant extract-based products with improved functionalities and benefits

Also, growing demand for plant extracts in the cosmetic and personal care industry, due to their use as natural ingredients in beauty and skincare products and expansion of the food and beverage industry in emerging markets, driving the demand for plant extracts as natural colorants and flavors

In addition, growing trend of sustainability to commercial and non-commercial foodservice outlets, with many categories growing, according to NPD Plant-based meat analogues have expanded from primarily beef alternatives to poultr y, seafood and pork Pound sales of chicken and fish analogues shipped from broadline foodservice distributors increased by 38 percent and 5 percent, respectively, in the 12 months ending December compared to a year ago

Grain alternative pizza crusts, such as cauliflower crust, grew broadline foodser vice pound sales by 35 percent in 2022 compared to a year ago, the report states

“Chefs and foodservice operators see the plant-based protein category as a versatile option to ser ve a greater diversity of guests,” said Darren Seifer, NPD food and beverage industr y analyst “Plant-based provides the options to create center-of-plate recipes that delight guests and bring them back for more ”

The NPD report forecasts dairy and meat alternatives to grow through 2024, driven almost entirely by Millennials and Gen Zs, who choose these products because of their interest in sustainability, animal welfare and better health The deep-rooted values of Gen Zs and Millennials behind their choice of plant-based foods enabled the category to continue to grow throughout the pandemic These plant-based consumers look for various meat, poultry or seafood analogues, flavor profiles and formats

“Plant-based beverages and foods are growing and gaining loyalty,” Seifer said “These products still represent a small share in the categories in which they compete but give consumers and foodser vice operators more options to consider ”

In its state of the industr y report, the Plant Based Foods Association echoed NPD’s analysis that reports of plant-based’s death were exaggerated

“Compared to last year, menu sizes generally stayed the same and still have yet to and eco-friendliness, leading to the increased demand for biodegradable and compostable plant extract-based products and growing emphasis on production processes that are environmentally friendly and use renewable resources, driving the development of new technologies for plant extract production Asia-Pacific is expected to be the largest market for plant extracts, driven by the increasing demand for natural ingredients in the food and beverage industr y and the growing cosmetics and personal care market in the region North America and Europe are also expected to show significant growth in the market, driven by the increasing demand for plant-based and natural products in the region GN recover from their pre-pandemic levels,” the PBFA wrote “In terms of innovation, the number of limited-time introductions are nearly reaching pre-COVID heights and the foods and flavors that did see gains on permanent menus span all stages of the trend cycle, bringing recovery closer into view

“Plant based descriptors across the board skew to the West and are trending on menus with further growth predicted in the future,” the association wrote “Specifically, ‘ vegan ’ and ‘plant-based’ are growing the fastest while the term ‘vegetarian’ still has the strongest presence, appearing on over 40 percent of menus

“Plant-based callouts, plant-based meats and plant-based dairy all skew toward fast casual operators, though midscale offers similar penetration of dairy alternatives and isn’t far behind for plant-based meat analogs Casual dining follows these segments in terms of plant-based meats and plant-based dairy ”

The most popular plant-based food choices are entrees and appetizers, such as burgers and salads, commonly found on most menus nationwide

“Dishes that are naturally vegetarian (avocado toast, chips and guac, garden salad, etc ) capture many of the fastest growing plant-based dishes as operators try to make their menu easy to navigate by adding callouts for consumers following those diets,” the PBFA stated

“While most consumers still are eating meat, nearly one-third limit their consumption in some way and the majority are open to tr ying dishes that have a mix of plant protein with some meat Currently, the biggest barriers for consumers eating plantbased are taste and cost ”

Almond milk and coconut milk lead dair y alternatives on menus and in consumers ’ minds, with oat milk gaining ground, according to the report

“Despite strong consumer affinity for milk alternatives and one-third of consumers preferring them to traditional dairy, menu presence is still lacking which may create an opportunity area for operators to provide for this unmet demand,” the PBFA wrote

Not surprisingly, the PBFA sees growth for plant-based foods in the coming year GN