Global plant extract market to reach $59.4 billion by 2025

The global botanical extracts market reached $23.7 billion in 2019 and is expected to reach $59.4 billion by 2025, growing at a CAGR of 16.5% from 2019 to 2025. The global plant extracts development over the past decade or so has been growing at an average rate of around 5%, and the demand for plant extracts in the food and beverage industry is growing with the concerns over the side effects of synthetic additives, growing awareness about the health benefits of plant medicines and herbal extracts, and the growth in research and development activities in the plant extracts market and the popularity of convenience foods. Thus, the plant extracts market is expected to grow at a high rate in the future.

It is understood that the export value of China's plant extract industry grew rapidly from only $0.5 billion in 1997 to more than $2.7 billion in 2019, and its share in the global market increased from less than 3% in 1997 to 20% in 2019. The global plant extract market has a compound growth rate of more than 10%, while the compound annual growth rate of China's extract products is as high as more than 15%.

The object of plant extraction is plants, and resource-rich regions are more conducive to the development of the industry. Shaanxi, Hunan and Sichuan are currently the three main production areas of plant extracts in China. These three provinces started early in the plant extract industry and are relatively rich in medicinal plant resources, and have now formed certain scale advantages. 

After more than 30 years of development, Shaanxi plant extract industry has nearly 600 related enterprises and more than 1,000 kinds of products, which has gradually become the vane of domestic industry development. 

At this time, China's plant extract industry is still in the formative stage, the concentration of the industry is not high, most of the enterprises are small in scale, lack of talent and technology, poor equipment technology, and weak competitiveness. 

With the sound supervision of the industry and the improvement of consumers' quality requirements, those enterprises with backward production equipment and poor product quality will be eliminated or integrated and reorganized in the future, and some enterprises with advanced technology, strong financial strength and good reputation will stand out and grow, and the concentration of the industry will gradually increase.

At present, there are more than 2,000 enterprises engaged in the import and export of plant extracts in China, with more than 50 exporting more than $10 million.

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