The India Extract market size was estimated at USD 5.93 billion in FY2023 and is projected to reach USD 16.19 billion in FY2031, growing at a CAGR of 13.38% from 2024 to 2031. The market is being driven by factors such as increasing consumer awareness, changing lifestyle, increasing consumption of products made from natural ingredients, and developments taking place in biotechnology sector.

The demand for natural extracts has also increased over the past few years as a result of macroeconomic variables such as increasing income of consumers, R&D, imports & exports, expansion of the agriculture sector, increasing number of geriatric consumers, and population growth. Natural extracts are becoming popular across different industries such as F&B, cosmetics, perfumes, medicines, and nutraceuticals.

With extracts being on a front seat, processed food manufacturers are continuously launching new products and expanding to new geographies. In December 2022, Sober and Co, an India based cocktail mixer manufacturer from West Bengal launches their products in Bengaluru. Also, The Ordinary, a Canada based beauty and cosmetics company entered India in June 2022, and started providing skincare treatment products and serum. The expansion is based on the company long-term strategic plan of expansion in various geographies.

Increasing Demand for Herbal Extracts-Based Healthcare Products

Numerous health disorders and medical conditions are now more common than ever before due to increasing geriatric population and widespread pollution. Due to the growing number of ailments such as cancer, digestive disorders, obesity, diabetes, premature hair ageing, hair loss, and skin issues, there is a greater demand for effective and safe therapy. Herbal extracts are rich in carotenoids and polyphenols; hence they are effective in treating aforementioned conditions.

Indian companies are trying to utilize India’s rich traditional herbal extracts knowledge to create & launch new products in the country. In September 2022, Diabliss Consumer Products Pvt Ltd, an India based food and herbal water supplements provider, announced 10 new herbal water products to be launched by December 2023 in the country; all the 10 products are getting designed to combat cholesterol, diabetes and other health related issues.

Increasing Demand for Neem Based Extract for Bio-Based Pesticides and Fertilizers

The market for organic pesticides and fertilizers has significantly grown as a result of growing public awareness pertaining to usage of neem extracts in pesticides and fertilizers. Neem is a key component in majority of bio-based goods; hence the demand for neem extract is also increasing. Neem extract is also used in plant-based foods for animals.

Government Scheme

Consumers are becoming more aware about the benefits of natural components and extracts. Governments and many organizations around the globe have started prioritizing R&D in this segment. India has a natural abundance of therapeutic and medicinal plants and is actively encouraging production of herbal-based products. Government of India initiated Ministry of AYUSH in 2014, to assist market-driven production of selective medicinal plants in specified clusters/zones.

Impact of COVID-19 on India Extracts Market

India is a major producer and exporter of extracts, including spices, herbs, and essential oils, but the pandemic has disrupted supply chains and led to a decline in demand from both domestic and international markets. The nationwide lockdowns and restrictions on travel and trade have led to logistical challenges and supply chain disruptions, affecting the sourcing and distribution of raw materials and finished products. The closure of hotels, restaurants, and food service industries has also significantly impacted demand for extracts, particularly in the hospitality sector. Moreover, the shift towards online shopping and e-commerce platforms has been a boon for some players in the extracts market, allowing them to reach consumers directly and bypass traditional distribution channels. 

Report Scope:

"India Extract Market Assessment, Opportunities and Forecast, FY2017-2031F,” is a comprehensive report by Markets and Data, providing in-depth analysis and assessment of extracts market in India, industry dynamics and challenges. The report includes market size, segmental shares, growth trends, COVID-19 impact, opportunities and forecast between FY2024 and FY2031. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc. 

In this report, India Extracts Market has been segmented into following categories:

1.       India Extracts Market, By Type

1.1.   Plant Extracts

1.1.1.Flavonoids

1.1.2.Essential Oils

1.1.3.Oleoresins

1.1.4.Natural Color

1.1.5.Alkaloids

1.1.6.Carotenoids

1.1.7.Others

1.2.   Synthetic Extracts

1.2.1.Synthetic Essence

1.2.2.Synthetic Dyes and Pigments

1.2.3.Synthetic Flavor

1.2.4.Synthetic Colorants

1.2.5.Others

2.       India Extracts Market, By Form

2.1.   Solid or Dry

2.2.   Liquid

3.       India Extracts Market, By End-user

3.1.   Pharmaceuticals & Nutraceuticals

3.2.   Animal Feed

3.3.   Food and Beverage

3.4.   Personal Care and Cosmetics

3.5.   Others

4.       India Extracts Market, By Region

4.1.   East

4.2.   West & Central

4.3.   North

4.4.   South

Key Player Landscape and Outlook

The market will witness growth in the near future as major market participants spend a significant amount of money on R&D to diversify their product lines. Market participants are engaging in a variety of strategic initiatives to strengthen their product portfolio. In March 2023, Nutricircle Limited launched a new plant protein isolate range including rajma, moong, jowar, quinoa, bajra, amaranth, etc. The company had spent thousands of dollars in R&D to establish these products  and showcased/launched them at AAHAR 2023 event held in New Delhi, India.

Markets and Data’s reports answer the following questions:

• What is the current and future market size of the product/service in question globally or specific to different countries?
• How are the markets divided into different product/service segments and the market size and growth of each segment?
• What is the market potential of different product segments and their invest case?
• How are the markets predicted to develop in the future and what factors will drive or inhibit growth?
• What is the business environment and regulatory landscape specific to the product/service?

Key Players Operating in India Extracts Market

• Mane Kancor Ingredients Private Ltd.
• Sydler India Pvt. Ltd.
• Arjuna Natural Pvt Ltd
• Vidya Herbs Pvt. Ltd.
• K. Patel Phyto Extractions Pvt. Ltd.
• Herbal Creations Ltd.
• Synthite Industries Ltd.
• Plant Lipids Private Limited
• VKL Seasoning Pvt Ltd.
• Akay Natural Ingredients Private Limited

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