The plant based API market is estimated to reach USD 30,084.8 million in 2024. It is estimated that revenue will increase at a CAGR of 5.6% between 2024 and 2034. The industry is anticipated to reach USD 52,085.9 million by 2034.
The plant-based active pharmaceutical ingredients (API) market involves sourcing medicinal compounds from plants to create therapeutic agents. Unlike synthetic APIs, which are chemically manufactured, plant-based APIs are extracted from medicinal plants and herbs, relying on natural bioactive compounds for pharmaceutical use. This segment is increasingly valued for its potential in sustainable and natural medicine, addressing consumer demand for less synthetically derived drugs.
The scope of various therapeutic applications is quite wide, with pain and anti-inflammatory management, anticancer therapy, and respiratory and cardiovascular care. Important plants used for API production including cannabis, ginseng, turmeric, and cinchona, which contain bioactive compounds increasingly integrated into modern pharmacology.
Plant Based API Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 28,551.9 million |
| Estimated Size, 2024 | USD 30,084.8 million |
| Projected Size, 2034 | USD 52,085.9 million |
| Value-based CAGR (2024 to 2034) | 5.6% |
The market for plant-based APIs is on the rise due to growing consumer demand for natural and sustainable pharmaceutical options, which align with a broader trend toward health-conscious living. This has coincided with the historical concern regarding the potential side effects arising from the use of synthetic medications and the interest from patients in seeking out herbal options especially when proven therapeutic benefits and natural compound-safety are combined.
Alongside, rise of chronic diseases such as cancer, osteoarthritis, chronic rhinitis, asthma, and cardiovascular has instilled confidence in alternative medicines that have long been regarded as more acceptable and tolerable for long-term use.
For manufacturers, this rising market offers multiple avenues of opportunity. Pharmaceutical companies are widening their portfolios by developing plant-based APIs that cater to distinct therapeutic areas including, pain management, anti-inflammatory therapies, and cancer support. Manufacturers will thus provide a means of differentiation in the competitive industry with unique, naturally derived drugs for those health-oriented consumers.
Moreover, the increasing guidelines by regulatory authorities like the FDA and EMA towards botanical drug development is opening a clearer gateway for manufacturers to bring plant-based medicines to market with a degree of compliance and safety.
With more advanced technologies like HPLC and supercritical fluid extraction, manufacturers are now exploiting more efficient and precise extraction processes, guaranteeing a constant and potent supply of plant-derived APIs.
This increased reliability does not only enhance product quality but also establishes possibilities for large production-all-important factors in the scenario where demand keeps on intensifying.
In addition, with sustainability now at the forefront of the pharmaceutical industry, the search for plant-based APIs is also contributing toward making such products appear as the more eco-friendly alternative to synthetic molecules. This therefore offers manufacturers compelling market opportunities for meeting the current needs of the consumers and for establishing themselves in a presently expanding and evolving market.
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The below table presents the expected CAGR for the global veterinary vaccine market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 6.3% followed by a slight decline in the growth rate which will grow at 6.0% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1 | 6.3% (2023 to 2033) |
| H2 | 6.0% (2023 to 2033) |
| H1 | 5.6% (2024 to 2034) |
| H2 | 5.1% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to decrease slightly to 5.6% in the first half and remain relatively moderate at 5.1% in the second half. In the first half (H1) the market witnessed a decrease of 70 BPS similar with the second half (H2), the market witnessed a decrease of 90 BPS.
Increasing demand for natural and plant-based pharmaceuticals
Plant-based APIs in many cases start gaining recognition as viable alternatives, offering therapeutic benefits with the promise of lower toxicity than synthetic drugs. The global health burden of chronic diseases is staggering.
Almost 71% of deaths globally, as estimated by the World Health Organization, are a result of non-communicable diseases. In many of these disorders, lifelong dependency grows, leading patients to alternative, holistic treatment paradigms based on lifestyle changes, better diet, and exercise.
Plant-based APIs employ a natural approach arising from the properties of many plants, which show activities such as anti-inflammatory, antioxidant, and immunomodulatory activity targeting those diseases. For instance, curcumin obtained from turmeric has been found to have beneficial effects on managing heart health, while resveratrol from grapes has been found to have beneficial effects on metabolic disorders.
Plant-derived compounds are increasingly supported by evidence from modern research and are being developed into more standardized and effective formulations for chronic disease management.
This integration comes with more clinical trials emphasizing plant-based treatment candidates' efficacy, and this trend is likely to accelerate with the advancement of our understanding of integrating natural remedies into therapeutic strategies for managing well-being and alleviating chronic illnesses.
Growth of Cannabis-Based APIs
Cannabis-based active pharmaceutical ingredients (APIs) are taking a noticeable turn in this plant-based API market. As cannabis is legalized and decriminalized for government-approved medical usage around the globe, more pharmaceutical companies have begun their creative engagement in producing cannabis-derived APIs, with a greater focus on cannabinoids such as cannabidiol and tetrahydrocannabinol.
These compounds have thus far demonstrated the therapeutic out-turn for conditions like chronic pain, epilepsy, multiple sclerosis, and mental disorders, including anxiety and depression. In itself, this offers fertile growth opportunities and innovation within the pharmaceutical industry.
Cannabis-based APIs are supposed to be a growing area of interest, as they are perceived to deliver efficacy alongside a reduced side effect profile in comparison to traditional pharmaceuticals.
Continuous research of the endocannabinoid system proves the biological potency of cannabinoids, giving cannabis duck products targeting drug discovery immense development potential. Research arms focus not merely on CBD and THC but also engage in the more extended inventory of cannabinoids that develop as special formulations with the goal of attacking a particular disease.
A rich nutritional profile associated with antioxidants and anti-inflammatory compounds and neuroprotective agents makes CBG a health benefit. It helps boost immune function and promote gut health.
It also may reduce inflammation and anxiety. These benefits have been the reason for growing CBG's supportive role in the nutraceutical market. The demand for CBG-based nutraceuticals steadily continues to give strong, soaring impetus to market growth in the wellness industry.
Expansion into Emerging Markets with High Demand for Natural Medicines
Emerging markets in Asia, Africa, and Latin America are witnessing an increasing demand for natural and plant-based medicines, driven by cultural preferences for traditional remedies and growing awareness of herbal alternatives.
These regions already have rich histories of their own plant-based therapies, with established systems like Ayurveda, Traditional Chinese Medicine (TCM), and African herbalism embedded into their health systems.
Rising populations in these regions with increased health equity aspirations for good, accessible, and affordable healthcare solutions further enhance the reliance on natural medicines as viable therapeutic options. This is likely to enhance the plant-based API market development also in the regions above.
Emerging markets provide huge growth opportunities to pharmaceutical and nutraceutical companies. Urbanization and rising per capita incomes in these countries further drive access to healthcare in the way of plant-based APIs.
Moreover, government support toward traditional medicines-pushing it to policy decisions, particularly as in China and India-create the requisite milieu for industrial expansion. By leveraging local intelligence and resources, opportunities abound for companies to place themselves strategically by entering into partnerships with indigenous suppliers and manufacturers for the creation of region-specific products catering directly to the consumer.
While emerging markets present phenomenal growth potential, companies must interact with a plethora of other problems including regulatory frameworks, disintegration of the market, and unevenly developed infrastructure.
Success in overcoming these obstacles is an essential aspect for those businesses that covet development in such markets. Those who get these issues right stand a good chance of strengthening their market position and success among a growing consumer base that is gradually embracing natural and plant-based alternatives for health and wellness.
Regulatory Hurdles and Standardization Challenges
The challenges that the plant-based market for APIs poses on its side in quite a number of instances vary according to the region since the definition of natural and plant-derived products can be inconsistent. Unlike their synthetic counterparts that rest on well-established regulatory guidelines, plant-based APIs face a host of regulatory requirements that can often create confusion.
One scheme made in the USA, for notice, is whereby the FDA requires a mode of trial and testing for approval in natural drug matters. This long and cumbersome pathway demands separate evaluations for each constituent agent. The enormous task of product approval for the manufacture of natural drugs is facing its challenges in the form of enormous regulatory complications that significantly prolong the time and, consequently, increase costs at the disposal of the concerned companies.
Standardization brings its own challenges in developing the plant-based API market primarily due to the variability of the composition of active ingredients in the product. Growing conditions, soil quality, climatic conditions, and harvesting aspects can significantly affect the way in which desired compounds are concentrated in plants.
This complicates the assurance of consistency between batches. The absence of standard protocols to maintain efficacy and safety across production runs can be very problematic. Regulatory bodies mandate the strict implementation of quality control standards, and failure to continuously reassure the compliance could mean delays or outright rejection of product approval.
Therefore, standardization and regulatory challenges act as significant impediments in the growth of the market for plant-based APIs.
Principal Consultant
The plant based API industry recorded a CAGR of 4.6% between 2019 and 2023. According to the industry, plant based API generated USD 28,551.9 million in 2023, up from USD 23,825.6 million in 2019.
In recent years, a shift from synthetic to plant-based active pharmaceutical ingredients (APIs) has gained traction under the consumer demands for natural products, environmental concerns, and technological advancement in extraction processes.
Historically, APIs have been largely synthetic preparations, due to their precision, scalability, and cost-efficiency of chemical synthesis. As of the last decade, the major focus has been on plant-based APIs owing to the acknowledgment of the potential of naturally derived compounds in therapeutics, allied with the global trend of sustainability.
Big pharma companies have poured in enormous sums toward the research and development arena devoted to discovering, isolating, and optimizing compounds from botanical sources- terpenoids, alkaloids, flavonoids, etc-that are well-known for their medicinal uses.
One of the factors for increased interest in plant-derived APIs stems from the antagonistic rise in antibiotic resistance, the associated side effects of synthetic drugs, and the requirement of growing consumers preferring natural alternatives. They often have less environmental footprint and biodegradability than synthetic counterparts.
The sustainable cultivation of medicinal plants and the application of green chemistry in API extraction contributes to this appeal, along with a general move towards “clean label” pharmaceuticals. Demand for plant-based analgesics, anti-inflammatories, and anticancer drugs has surged, with some treatments now preferring herbal extracts and bioactive compounds over synthetic molecules.
The future of plant-based APIs seems bright, with many factors favoring their use, emerging trends in biotechnology, and better agricultural practices. Overcoming innovative hurdles in plant cell culture and synthetic biology for large-scale cultivation and extraction of bioactive compounds could allow for plant-based APIs that are considerably more attractive and affordable.
Tier 1 includes companies cumulatively hold around 29.6% share of the total market revenue due to its strong innovations and research & development. This allows them to constantly innovate, creating unique and differentiated products that meet evolving market demands. The companies that comprises tier I are Kerry Group plc., Teva Pharmaceutical Industries Ltd, dsm-firmenich, Indena S.p.Ad and others.
Tier 2 includes companies cumulatively hold around 24.0% share of the total market revenue. The companies that comprises tier II are Roquette Frères, Mallinckrodt, Alchem International Pvt. Ltd., Afriplex, Shaanxi Jiahe Phytochem Co., Ltd, Sami-Sabinsa Group and others. These players concentrate on its reputation for quality, regulatory compliance, and continuous innovation, combined with comprehensive support services and strategic partnerships.
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An analysis of the plant based API industry is provided in various countries. Several regions throughout the world are examined, including Asia Pacific, North America, Europe and Middle East. India is forecast to remain the leader of Asia Pacific with an 8.8% CAGR through 2034. The United States is predicted to exhibit a 4.2% CAGR by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| India | 8.8% |
| China | 8.7% |
| South Korea | 8.6% |
| Japan | 5.7% |
| United States | 4.2% |
| Germany | 4.0% |
The United States is leading the plant based API market around the globe with CAGR of 4.2% to the forecasted period driven by a powerful fusion of advanced biotechnology and agricultural technology (agri-tech). The country’s robust biotech ecosystem, which includes CRISPR gene-editing and synthetic biology startups, accelerates the discovery and scaling of plant-derived compounds.
Major research institutions and universities further engage big pharmaceutical processes to establish flexible innovations between the laboratory and the market. The rise of agri-tech firms from the United States comes with making plant cultivation easier through precision agriculture, optimal yields, and, at this rate, increased quality in medicinal plants.
This allows for the efficient and fast scaling to produce plant-based APIs to meet high demands in oncology and pain management. Consumer preference leaning toward natural products drives companies to further research plant-based solutions, letting United States companies continue serving as the undisputed leaders in that realm.
Germany is expected to increase with CAGR of 4.0% due to its long-standing expertise in phytopharmaceuticals significantly boosting its plant-based API market. Germany has, extremely stringent protocols governing herbal medicine-the country has grown into a center for phytopharmaceutical research and development, supported by well-known establishments in the formulation of plant-based pharmaceuticals.
German companies exercise high skill in the techniques for the extraction of bioactive compounds, rendering potency and stability to plant-based APIs. Another factor is Germany's trained workforce in botany, pharmacognosy, and biochemistry allowing quicker innovations in plant-based pharmaceutical development.
Consumer preference leaning on natural products-a framework of culture and traditionalism-has seen into such demand, finally converting the country into an epicenter for European plant-based pharmaceuticals with quality standards impacting other markets.
China’s leadership in plant-based APIs is largely driven by its integration of Traditional Chinese Medicine (TCM) with modern pharmaceutical practices. The rich history of employing medicinal plants is backed by exquisite treatises that form the basis of the development of plant-based APIs.
Traditional Chinese pharmaceutical firms delve into traditional means combined with modern extraction and standardization methods to produce quality plant-based APIs. The magnitude of biological diversity in China offers an unmatched resource base for gaining access to novel medicinal plants.
In combination with its natural advantages, high-level academic research in botany and pharmacology allows quick identification and development of new plant materials. China's strong manufacturing base provides further assurances of successful large-volume commercial scaling of these APIs, establishing itself on the world map in terms of leadership in the plant-based API market.
A description of the leading segments in the industry is provided in this section. Alkaloids held 37.6% of the value share in 2023 by product type category whereas, powders & granules are the leading API forms with high share of 34.1% in the market. Based on the botanicals, Opium Poppy (Papaver somniferum) held 25.3% of the industry in 2023.
| Product | Alkaloids |
|---|---|
| Value Share (2024) | 38.0% |
Alkaloids reign supreme as plant-based APIs due to their potent bioactivity and versatility in therapeutic applications. Alkaloids are potent drugs acting in small doses and are widely used in analgesics, anti-inflammatories, and antimicrobial treatments.
Containing nitrogen in their structures, they are highly efficacious against several targets covering hospitals from oncology to treating infectious diseases. Continuous research on alkaloids’ unique properties and novel uses further boosts their demand, ensuring their top position among plant-based APIs.
| API Form | Powders & Granules |
|---|---|
| Value Share (2024) | 34.2% |
Among preferably used forms of plant-based APIs, powders or granules are becoming the priority due to their stability, easy incorporation, and palatability to the patients. The powders or granule form gives them a long shelf-life with active ingredients intact and adaptable into capsules, tablets, or sachets.
This dosage also allows controlled or sustained release for optimum therapeutic effects and better bioavailability. Granules, in particular, dissolve easily in water, thus enhancing absorption; thus, plant-based APIs are made efficaciously and made to suit patients.
The competition landscape for plant-based APIs is becoming increasingly dynamic, with recent partnerships and regulatory approvals highlighting market growth in cannabis-derived compounds and psychedelics. These developments reflect a broader industry trend toward securing compliance and expanding production capacities to meet rising global demand for plant-based, pharmaceutical-grade ingredients.
Recent Industry Developments in the Plant Based API Market
In terms of product type, the industry is segregated into alkaloids [opium alkaloids (morphine, codeine], tropane alkaloids, vinca alkaloids, other alkaloids], glycosides [cardiac glycosides, flavonoid glycosides, anthraquinone, glycosides, other glycosides], cannabinoids [cbd, thc], flavonoid [isoflavones, quercetin, other flavonoids], terpenes and terpenoids [diterpenes, monoterpenes, other terpenes and terpenoids], polyphenols [stilbenes, curcuminoids, other polyphenols], saponins [steroidal saponins, triterpenoid saponins, other saponins], others.
In terms of API form, the industry is segregated into liquid (extracts, suspensions, tinctures), powders & granules, crystalline form, paste, resins and oleoresins.
In terms of botanicals, the industry is segregated into Opium Poppy (Papaver somniferum), Madagascar Periwinkle (Catharanthus roseus), Pacific Yew Tree (Taxus brevifolia), Foxglove (Digitalis purpurea), Turmeric (Curcuma longa), Ginseng (Panax ginseng), Cannabis (Cannabis sativa), Willow Bark (Salix spp.), Senna (Senna alexandrina), other botanicals
In terms of source, the industry is segregated into into leaves, roots, bark, flowers, seeds, fruits, resin & gums, other sources
In terms of disease indication, the industry is segregated into Foot & Mouth Disease (FMD), Newcastle Disease, Porcine Reproductive & Respiratory Syndrome (PRRS), Canine Parvovirus, Brucellosis, Avian Influenza, and others
In terms of application, the industry is segregated into pharmaceutical companies, nutraceutical companies, traditional & herbal medicine manufacturers, cosmetic companies, CMOs and CDMOs.
In terms of end user, the industry is segmented into leaves, roots, bark, flowers, seeds, fruits, resin & gums, other sources.
Key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe, and Middle East & Africa have been covered in the report.
Plant based API are expected to increase at a CAGR of 5.6% between 2024 and 2034.
Alkaloid segment is expected to occupy a 38.0% market share in 2024.
The market for plant based API is expected to reach USD 52,085.9 million by 2034.
The United States is forecast to see a CAGR of 4.2% during the assessment period.
The key players in the plant based API industry include Abbott, Bright Green Corporation, Kerry Group plc., dsm-firmenich, Mallinckrodt, C2 Pharma, Sami-Sabinsa Group, Afriplex, Alkaloids Corporation, Phytotech Extracts Pvt. Ltd., Indena S.p.A, Alchem International Pvt. Ltd., Roquette Frères, Sichuan Xieli Pharmaceutical Co., Ltd., Shaanxi Jiahe Phytochem Co., Ltd, Xi'an Greena Biotech Co.,Ltd, Veranova, L.P., and Teva Pharmaceutical Industries Ltd.
Healthcare
June 2023
REP-GB-13025
273 pages
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Plant Based API Market
