Natural Extracts Market Trends

Growth Drivers

• Natural extracts being a healthy choice – Nowadays, life in urban areas is very hectic which incorporates no exercise, no healthy eating habits, and long sitting hours. However, with the emergence of products that contain natural extracts whether it be food, personal care ingredients, or medicine, consumers are preferring these products for enhancing the way of their life.
  
  The most potent cause for the growth of the market is the adoption of natural products due to the increasing number of diseases such as diabetes caused by chemicals and preservatives. According to the data from the Centers for Disease Control and Prevention, there are 38.4 million diabetes patients in the US.
• High demand from the end-use industry – Natural extracts offer various benefits for personal care, pharmaceuticals, food & beverages, and animal feed, and that is why the companies are continuously expanding their product line by underlining their focus on natural extracts. This expansion by companies is supporting the market growth.
• Increasing consumer awareness – Consumers nowadays are very well aware of the harmful effects synthetic additives cause on the body and as well as on the environment. That’s why the consumer is rapidly involved in the adoption of organic and natural alternatives.
  
  Therefore, the market is poised to grow in the forecast period due to the growing consumer awareness about the usefulness of natural extracts. According to a survey by the National Institutes of Health (NIH), 71.7% of Korean women buy organic products on a daily basis.

Challenges

• Sustainability concerns – The clearance of land for meeting the demand of large-scale commercial land to produce natural extracts has been adversely impacting the environment. Additionally, the use of various kind of fertilizers, agrochemicals, pesticide for enhancing the yield due to the limitation of land is creating sustainability concerns.
• High cost – The high cost associated with the natural extracts could be due to the weather changes that affect the yields, scarcity of natural resources, and consumers seeking synthetic alternatives since they are cheap in comparison to natural extracts. Thus, the market is expected to experience loss due to these factors.