Market Overview
The Global
Plant-based API Market is expected to reach a value of
USD 31.3 billion in 2023, and it is further anticipated to reach a market value of
USD 53.9 billion by 2032 at a
CAGR of 6.2%.
Plant-based APIs, or Active
Pharmaceutical Ingredients, are natural compounds derived from plants and used in the production of medications. These substances play an essential role in pharmaceuticals, providing therapeutic effects. With a growing focus on health, environmental sustainability, and animal welfare, plant-based APIs are gaining popularity as alternatives to traditional pharmaceutical ingredients sourced from animals or synthesized via chemical processes.
The COVID-19 pandemic has spurred widespread interest in plant-based medicines, leading to an upsurge in popularity for plant-based medications. One notable achievement was Health Canada approving COVIFENZ developed by Medicago in partnership with GSK as part of Canada's response plan; marking this vaccine's approval as an indicator of plant-based platforms' potential in tackling global health challenges while simultaneously showing their viability for mass pharmaceutical production and opening doors to nonconventional treatments beyond conventional approaches.
Key Takeaways
- By Molecule Type, Alkaloids in 2023 & is anticipated to dominate throughout the forecasted period.
- In addition, Terpenoids is expected to have significant growth over the forecasted period.
- By End User, Pharmaceutical sector accounts for a major revenue share in 2023
- North America has a 35.2% share of revenue in the Global Plant-based API Market in 2023
Market Dynamic
A rising number of health-conscious individuals are looking for diets low in processed ingredients, cholesterol, & saturated fats. Plant-focused diets are perceived as healthier, and richer in nutrients, dietary fiber, & antioxidants.
Also, advancements in food technology, creating plant-based substitutes that replicate animal-based products, facilitate the switch to plant-based diets, which extends to pharmaceuticals, as consumers, driven by concerns about animal welfare, opt for plant-based alternatives. Also, environmental concerns associated with animal
agriculture, like deforestation and water pollution, further boost the need for plant-based APIs.
However, challenges come from limited access to specific plant species, leading to potential shortages in raw materials. Strict quality standards & regulatory measures, while ensuring safety, can restrain market entry. R&D efforts are essential to discovering new plant-based APIs, but seasonal variations & environmental factors create challenges to a consistent supply of raw materials.
Driver
The plant-based API market is driven by increasing consumer preferences for natural and sustainable pharmaceutical ingredients. Consumers and
healthcare providers increasingly favor plant-derived APIs due to their reduced environmental impact, biocompatibility, and reduced side effects when compared with synthetic alternatives.
An increase in holistic healthcare awareness, the therapeutic value of natural compounds and regulatory bodies' encouragement of their adoption are further fueling demand for plant-based products due to their eco-friendly production processes. Pharmaceutical companies prioritizing green chemistry and sustainable sourcing is driving integration of plant-based APIs into mainstream medicine at an increasing pace and contributing to market expansion.
Trend
The plant-based API market is seeing dramatic advances in plant biotechnology, specifically genetic engineering and tissue culture techniques. These innovations allow for consistent production of high yield APIs from plants with reduced variability and scalability issues.
Companies are exploring metabolic engineering techniques to increase alkaloids and terpenoids production within plants; CRISPR gene editing tools are increasingly being used to create genetically modified plants optimized for API production; such advancements reduce dependency on wild harvesting practices while creating sustainable supply chains ensuring commercial viability of plant-based APIs from plants.
Restraint
Compliance issues remain an immense obstacle in the plant-based API market. Production must meet stringent global standards of quality, safety, and efficacy while variations between plant sources, extraction methods and bioactive compound concentrations may create issues when standardizing for approval processes.
Longer and costlier
clinical trials may also be required of plant-derived drugs requiring smaller manufacturers. Furthermore, international market entry presents unique hurdles and can impede product launches while raising operational costs, ultimately hindering market expansion potential.
Opportunity
The plant-based API market represents tremendous promise in treating chronic illnesses such as diabetes, cancer and cardiovascular conditions. Taxanes, alkaloids, and flavonoids found in plants exhibit powerful therapeutic properties and are increasingly being integrated into drug formulations as a natural alternative to synthetic medications.
As
chronic diseases continue to spread globally, their prevalence highlights the necessity of effective non-synthetic medicines that offer relief. Researching underexplored plant species offers great promise for new drug discovery. Collaborative efforts between pharmaceutical companies and research institutions can accelerate innovation by creating plant-derived APIs with increased medicinal applications in modern medicine.
Research Scope and Analysis
By Molecule Type
The alkaloids segment claimed the largest share in the plant-based API market in 2023 and is expected to have the fastest growth throughout the forecast period. Further, known for their cardioprotective, anesthetic, and anti-inflammatory properties, alkaloids play a vital role in human medicine, constituting up to twenty percent of secondary metabolites. Also, the market's growth is driven by the rise in the need for effective therapeutics, with alkaloids demonstrating high efficiency in delivering therapeutic effects.
Further, the terpenoids segment is expected to experience significant growth over the forecast period, due to the chemotherapeutic & therapeutic properties associated with terpenoids. These compounds highlight a range of beneficial characteristics, like antibacterial, antifungal, antiparasitic, & anti-inflammatory properties. Also, the high efficiency of terpenoids, along with their large adoption in various medicinal products, is anticipated to drive market growth, mainly in the prevention & treatment of disorders like cancer.
By End User
Based on end users, the global market is dominated by the pharmaceutical segment in 2023 and is projected to persist throughout the forecast period, which comes from rising global demand for environmentally friendly products, mainly in the pharmaceutical industry. Further, plant-based APIs deliver a sustainable & ecologically favorable alternative to meet this demand.
Their appeal depends on the perception of being safer & more natural, making them attractive to both consumers & healthcare professionals who organize safety & efficacy in the pharmaceutical realm. Plant-based APIs also allow a more controlled & predictable supply of raw materials, aligning with strict regulatory requirements.
Further, the nutraceuticals segment is experiencing the fastest growth in the plant-based API market, driven by consumer preferences for natural & organic alternatives, nutraceuticals are perceived as a healthier option in comparison to synthetic chemicals.
Further, growing consumer education & access to information have driven the demand for plant-based nutraceuticals, aligning with an increasing interest in preventive health & overall wellness through dietary & lifestyle choices.
The Plant-based API Market Report is segmented on the basis of the following:
By Molecule Type
- Alkaloids
- Phenolic Acids
- Terpenoids
- Lignin & Stilbenes
- Anthocyanin
- Flavonoids
- Others
By End User
- Pharmaceuticals
- Nutraceuticals
- Herbal Based Industries
- Others
Regional Analysis
North America claimed the largest share, making up
35.2% in 2023, of the plant-based API market, and it's expected to maintain this lead. The region's growth is driven by a rising health consciousness & a growing elderly population. Mainly in the US, there's a notable adoption of nutraceuticals, driven by claims of preventing chronic diseases & promoting overall health, which emphasis on health has spurred a high consumption rate.
Further, the Asia Pacific region is expected to experience the most rapid growth in the plant-based API market, which is attributed to increasing opportunities in scientific research, positive economic development, & significant untapped potential in meeting medical needs. Public & private initiatives are highly promoting the production of plant-based APIs, contributing to the region's growing market presence.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The global plant-based API market is dynamic and consists of numerous players competing for market share. Companies are innovating to create sustainable alternatives, focusing on environmental consciousness and health benefits, which fosters continuous R&D, as well as strategic collaborations, to meet the rising demand for plant-based APIs driven by consumer preferences for natural, eco-friendly, and healthier alternatives.
In December 2022, Evonik introduced PhytoSquene, a plant-based squalene, delivering an alternative to the traditional source derived from shark liver oil., which will enhance vaccine effectiveness by providing a sustainable & ethical substitute for squalene, aligning with growing concerns about environmental impact and the conservation of marine life.
Some of the prominent players in the global Plant-based API Market are
- BASF SE
- Brains
- Centrolflora
- HimPharm
- Arboris
- Cargill Inc
- Roquette Freres SA
- Kothari Phytochemicals & Industries Ltd
- Sanofi SA
- EVONIK Industries
- Other Key Players
COVID-19 Pandemic & Recession: Impact on the Global Plant-based API Market:
The COVID-19 pandemic & the following global economic recession have significantly impacted the plant-based API market. While the pandemic increased awareness about health & wellness, increasing the demand for plant-based products, disruptions in the supply chain & economic uncertainties posed challenges. The pharmaceutical industry faced halts in production & distribution, impacting the demand for plant-based APIs. In addition, the economic recession led to budget constraints & altered consumer spending patterns, impacting the market dynamics.
However, the pandemic also prompted a renewed focus on sustainable practices & environmental consciousness, potentially driving interest in plant-based APIs. The market's recovery depends on adapting to new norms, addressing supply chain vulnerabilities, and leveraging the growing preference for plant-based solutions amid changing global health and economic landscapes.
Recent Development
- In June 2022, Antheia secured a USD 40 million funding injection from Oxford Finance LLC and Silicon Valley Bank to build a biomanufacturing facility for plant-based compounds, which is anticipated to enhance the company's product range, advancing manufacturing efficiency, & address scarcity concerns in the U.S., marking a significant step forward in Antheia's development and impact in the industry.
- In August 2023, Capitol Wellness Solutions & Southern University launched Louisiana's inaugural chewable THC product, featuring a 40-milligram THC dose, which introduced a high-dose medical marijuana candy, potentially providing an alternative for managing chronic pain, although it might result in longer waiting times for individuals seeking relief through this new form of treatment.
- In August 2023, Mankind Pharma launched 120 Drug Master File (DMF) Quality Medicines in the Indian market to ensure broad access to top-notch medications, focused on a commitment to deliver high-quality pharmaceuticals to the public, which also reflects a dedication to providing a diverse range of quality medicines for the benefit of the Indian population.
Report Details
| Report Characteristics |
| Market Size (2023) |
USD 31.3 Bn |
| Forecast Value (2032) |
USD 53.9 Bn |
| CAGR (2023-2032) |
6.2% |
| Historical Data |
2018 – 2023 |
| Forecast Data |
2024 – 2033 |
| Base Year |
2023 |
| Estimate Year |
2024 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Molecule Type (Alkaloids, Phenolic Acids, Terpenoids, Lignin & Stilbenes, Anthocyanin, Flavonoids, and Others), By End User (Pharmaceuticals, Nutraceuticals, Herbal Based Industries, and Others) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
BASF SE, Brains, Centrolflora, HimPharm, Arboris, Cargill Inc, Roquette Freres SA, Kothari Phytochemicals & Industries Ltd, Sanofi SA, EVONIK Industries, and Other Key Players |
| Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global Plant-based API Market size is estimated to have a value of USD 31.3 billion in 2023 and is
expected to reach USD 53.9 billion by the end of 2032.
North America has the largest market share for the Global Plant-based API Market with a share of about
35.2% in 2023.
Some of the major key players in the Global Plant-based API Market are BASF SE, Brains, Centrolflora,
and many others.
The market is growing at a CAGR of 6.2 percent over the forecasted period.