Phytochemical Market

2016-2020 Phytochemical Market Outlook in Comparison to 2021-2031 Growth Forecast

Over the past few years, phytochemicals are increasingly used as medications and have been recently discovered as an added nutrient value in food products. On the back of this, the market grew at a healthy 5.6% CAGR between 2016 and 2020.

Phytochemicals, unlike nutritional components such as vitamins and minerals, are not considered nutrients because they have no nutritional value and only serve to enhance the flavour or colour of the plant.

Consumers are seeking numerous ways to enhance their diets, manage health and wellbeing, and combat growing cases of obesity and complex diseases. Hence, the global food sector is undergoing major changes. Consumer preferences are rapidly changing, necessitating corporations' big pockets for innovation.

Food firms are taking the functional foods and nutrition space by storm with goods focusing on phytochemicals. As customers increasingly want non-GMO or natural ingredients and clean label products with medicinal properties, key players are increasingly finding new ways to address the growing demand for organic food.

Due to the possible dangers of artificial food additives, the natural food additives market has grown at an exponential rate over the years, increasing demand for phytochemical.

Research studies advocate that phytochemicals found in functional foods and nutraceuticals have anti-inflammatory, antioxidant, anti-allergic, and other pharmacological effects in human health.

The move in healthcare from treatment to prevention, which has given sales of nutraceuticals a boost. This is anticipated to create lucrative growth opportunities for phytochemical market players to boost their profits. Forecasts for growth will remain optimistic, with the market projected to grow at a CAGR of 7.0% between 2021 and 2031.

Download a Comprehensive Report Snapshot

Phytochemicals Gaining Traction as Vegan Food Ingredient Among Food Manufacturers

Consumers are looking for multi-component products, which are readily available in the market and also help compensating the fast-paced lifestyle. With growing demand for nutrient-rich health foods, need for the development of healthy foods with healthier ingredients has also surged.

New food ingredients have been sought by researchers in order to increase the product's functionality and nutritional worth. As a result, producers are opting for phytochemicals to produce a sufficient amount of vegan, nutrient-rich food for human consumption.

Rising Preference for Plant-Based Ingredients Pushing Phytochemicals Demand

Applications of ingredients sourced from plants are creating a relatively stable condition for the manufacturers in the food and beverage industry. Manufacturers are increasingly favoring chemicals obtained from plant extracts, as they can be used in different food products and are also associated with multiple health benefits.

Plants such as gooseberry, turmeric, ginger, beetroot, and ginseng are frequently utilized in the food industry to produce consumer-friendly health food products. All plants contain phytochemical, which are important in defending the plant from environmental stresses.

Risk of several chronic and lifestyle diseases can be reduced by including phytochemicals as an ingredient in the diet. Consumption of food products associated with diets rich in fruits, vegetables, legumes, and cereals have been attributed to these chemicals.

Will Demand for Dietary Supplements Augment Phytochemicals Sales?

The global demand for phytochemical is projected to rise as the demand for nutritional supplements increases. Changing lifestyles, stressful work schedules, and increasing unhealthy and unbalanced eating habits are contributing to an increase in the risk and prevalence of numerous health issues.

Another factor pushing the phytochemicals demand is growing consumption of natural supplements and components. Demand for phytochemicals is rising in response to the increased demand for natural products and rising intake of dietary supplements.

Phytochemical have recently acquired popularity due to their potential of reducing risk of diseases and anti-aging capabilities. Phytochemical possess the ability to lower LDL cholesterol, or bad cholesterol, lowering the risk of heart disease, cancer, and diabetes.

Demand for phytochemicals is on the rise, and is projected to continue to witness an upward trend, as health conditions such as cardiovascular disease, obesity, and others become more common.

How has COVID-19 Outbreak Boosted the Sales of Phytochemicals?

The COVID-19 crisis has had a positive impact on the phytochemicals market. It created scope for expansion in new applications within the pharmaceutical industry. As consumers increasingly became more conscious about their health, consumption of plant-based food products and dietary supplements increased. Thereby, spurring the demand for phytochemicals.

Meanwhile, in order to reduce COVID-19 transmission through food, international regulatory bodies developed rules for preserving food hygiene and food safety policies. These changes will aid the demand for clean-label phytochemicals.

Eventual recovery in global economy will lead to higher per capita income and adoption of healthier lifestyles, boosting the market in the forecast period.

Country-wise Insights

What is Driving the Demand for Phytochemical in US?

As per FMI, the U.S. is anticipated to hold the largest market share of more than 80% in the North America market. Growth in the country can be attributed to the high presence of key companies and strong value chain process in the region.

Driven by increasing consumption of dietary supplements across the country, the market is projected to a CAGR of 4.7% over the forecast period. The U.S. phytochemical market is expected to reach a value of US$ 1,988.1 Mn in 2031.

Also, consumers in U.S. are becoming aware of the use of genetically-modified ingredients in food products and inclining towards natural options for food consumption. Phytochemical is plant-sourced ingredients used as alternatives to GMO ingredients to further meet the consumers’ demand.

Ginseng extract is the prime example of non-GMO phytochemicals, which are widely used in dietary supplements and food products.

Will the COVID-19 Pandemic Continue Weighing Down Growth Prospects in China?

According to the latest report, the phytochemical market of China is estimated to be valued at US$ 870.9 Mn in the year 2021.

Despite recovering from the COVID-19 outbreak, manufacturers and producers of phytochemicals in China are cautious. As phytochemicals were not included in essential foods, the market was severely impacted.

With the prediction of COVID-19 future outbreak, China's strong business and medical structures have boosted the chances of a quick recovery.

With manufacturing facilities fully functional and operating at full capacity, phytochemicals market is expected to gain traction over the coming years. Global prevalence of COVID-19 could lead to an increase in import and export from the China market across the globe in the coming years.

Will Emergence of E-Commerce Platform and Marketing Strategies Increase Sales in Germany?

According to FMI, the phytochemical market of Germany is estimated to be valued at US$ 363.7 Mn in 2021. Key players in Germany are relying on strong promotional plans to increase the market stimulation.

Key manufacturers are aiming to expand their client base with the use of educational and eye-catching marketing, as buyers become more aware of the benefits of utilizing natural phytochemical-based products.

Adoption of digital media marketing and advertising among key players by using audiovisual and short videos are expected to boost the sales through penetrating social media. Players may take use of the large viewing base of notable influencers to boost sales of their items via social media, which has become the finest platform for advertising any product.

Advent of e-commerce has also simplified sales and marketing by allowing key companies to expand their international reach and conduct transactions online, saving time, increasing income, and improving efficiency.

Why are Phytochemical Manufacturers Eyeing India Market?

According to FMI’s analysis, India phytochemical market is projected to expand at a CAGR of 6.4% between 2021 and 2031. Key players are targeting emerging economies such as India as it holds the true potential for growth due to the developing industrial infrastructure and favorable government policies.

In addition to focusing on organic growth, phytochemical manufacturing companies are adopting go-to-market strategies such as collaborations, partnerships, M&A, and divestitures.

To expand their consumer base, key companies in the global phytochemical market are focused on strategic engagement with local distributors in India. Key players are also benefiting from rising demand for personal care products across India.

How is the Trend of Veganism Driving Demand for Phytochemical in UK?

According to FMI’s analysis, the UK is forecasted to grow at a CAGR of 2.8%. Demand is currently driven by the rising trend of ‘veganism' and ‘vegetarianism,' particularly among millennials.

Increasing emphasis on health and wellbeing while reducing meat and animal-based goods consumption is boosting the demand for phytochemicals across the U.K. Expansion of the phytochemical sector in also aided by rising preference for natural or plant-based products.

Phytochemicals, like a variety of other green compounds, are making inroads in cosmetics and personal care products. For the past few years, beauty industry has been on the rise, with customers on a quest to discover new goods with clean labels and discover new companies. Phytochemicals, in particular, have played a significant role in studies into the science of healthy ageing.  

Category-wise Insights

Which Molecule Type will be Highly Sought-After?

In terms of molecule, flavonoids are estimated to account for more than 35.0% of market share in 2021. Flavonoids are the most common type of phytochemical. Flavonoids possess properties that reduces the risk of chronic and lifestyle diseases through a variety of physiologic processes. Antiviral, anti-inflammatory, cytotoxic, antibacterial, and antioxidant properties are among them.

Improved endothelial function, lower blood pressure, and reductions in lipid and insulin resistance are among the mechanisms responsible for reduced heart disease risk. As a result, flavonoids are the most preferred among molecule type.

Which Phytochemical Form will Register Higher Demand and who is the Leading End User?

Powder phytochemical product type is estimated to account for more than 82% of market share in 2021, estimates Future Market Insights.

Based on application, food and beverages industry hold dominance with a market share of 34.4%. Over the past few years, consumers’ eating habits and buying behavior has evolved tremendously.

Consumers are actively seeking out more natural products and components as their awareness regarding health and wellness grow. Hence, adoption of food products with plant-base is increasing.

As consumers become more health conscious, they are using fewer traditional or chemical-based substances. Phytochemicals can be found in a variety of foods, including bread, dairy, and beverages.

Natural additives, such as phytochemicals, are mostly used to give finished goods different flavors and hues. Hence, manufacturers in food & beverage industry are actively adopting phytochemicals.

Competitive Landscape

Rising demand for nutritional supplements and emergence of new players in the phytochemical market have led to intense competition in the market. Presence of small-scale players concentrating more on innovation than on the sales of their products is creating growth opportunities for the market.

Leading manufacturers are focusing on mergers and acquisitions with these small-scale companies to include innovative products in their product portfolio and offer the products of smaller companies to a larger consumer base.

Leading players are also establishing and acquiring manufacturing plants to increase their production capacity.

• For instance, In July 2018, BASF and Mazza Innovation signed an exclusive and long-term supply agreement. Mazza Innovations is a Canadian botanical extractions company. The company supplies specific plant extracts to BASF for developing new solutions in cosmetic applications.

Scope of Report

Key Questions Answered in the Phytochemical Market Survey

• What is the current phytochemicals market value?

  The phytochemicals market is expected to total US$ 6.5 Bn in 2021.

• What is the phytochemicals market demand outlook?

  Demand for phytochemicals is expected to surge at a CAGR of 7% between 2021 and 2031.

• What are the key trends shaping the phytochemicals market?

  Increasing focus on product innovations by leading market players and growing consumption of plant-based food products will create opportunities for growth of the market and shape its future.

• At what rate did the demand for phytochemicals rise in the last five years?

  The demand for phytochemicals increased at 5.6% CAGR between 2016 and 2020.

• Who are the top players in the phytochemicals market and what is their market share?

  Döhler GmbH, Naturex SA, Linnea SA, Sabinsa Corporation, Indena, BASF, and CHS are the leading companies in the market.

• What is the North America phytochemicals market outlook?

  Demand for phytochemicals will rise at 5.4% CAGR in North America over the assessment period.

• At what rate will the demand for phytochemicals increase in Europe?

  The Europe’s phytochemicals market will expand at 4.1% CAGR between 2021 and 2031.

• What is the South Korea and Japan market outlook for sales of phytochemicals?

  The sales of phytochemicals will increase at 12.3% CAGR and 15.7% CAGR, respectively in Japan and South Korea.

Phytochemical Market by Category

By Molecule Type:

• Alkaloids
• Anthocyanins
• Carotenoids
• Coumestans
• Flavon-3-ols
• Flavonoids
• Hydroxycinnamic Acids
• Isoflavones
• Lignans
• Others

By Form:

• Powder
• Liquid

By Application:

• Food and Beverages
• Nutraceutical
• Pharmaceutical
• Personal Care and Cosmetics
• Animal Nutrition
• Others

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• MEA