The rising global demand for natural and sustainable ingredients—driven by increasing consumer awareness, clean-label trends, and the shift away from synthetic additives—is putting pressure on manufacturers to reformulate products across food, cosmetic, pharmaceutical, and wellness sectors. To meet this demand, companies are accelerating investments in terpene extraction technologies and supply chain modernization to deliver high-purity, eco-friendly solutions at scale. These advancements are building smarter, more sustainable production ecosystems, much like how next-gen agriculture reduces inputs while maximizing output.
Additionally, the ongoing commitment from governments, research institutions, and private industry toward sustainable chemistry and natural product innovation is playing a pivotal role in shaping a greener global market. These initiatives are establishing natural terpenes as a cornerstone of the bio-based economy and a major growth driver in the transition toward safer, cleaner, and more consumer-aligned products.
Access Full Report @ https://www.databridgemarketresearch.com/reports/global-natural-terpenes-market
Data Bridge market research analyzes that the Global Natural Terpenes Market is expected to reach USD 720.32 million by 2032 from USD 477.18 million in 2024, growing with a substantial CAGR of 5.33% in the forecast period of 2025 to 2032.
Key Findings of the Study
Growth in Cannabis Legalization & Product Innovation
The wave of cannabis legalization is significantly fueling the demand for natural terpenes, especially in the health, wellness, and recreational markets. As more countries and U.S. states legalize medical and/or recreational cannabis, there is a growing emphasis on product differentiation through terpene profiles—key compounds responsible for cannabis' aroma, flavor, and therapeutic effects.
Terpenes such as myrcene, limonene, pinene, and linalool are being actively studied and used in cannabis formulations for their entourage effect—the synergistic interaction with cannabinoids like THC and CBD to enhance therapeutic benefits. This has led to a surge in terpene-based innovation in vape oils, tinctures, edibles, topicals, and beverages.
In parallel, R&D in the cannabis industry is driving formulation innovation, with brands offering terpene-enhanced products tailored for effects like relaxation, energy, or focus. Additionally, legalization is fostering standardized extraction, labeling, and quality assurance practices—creating more trust and demand for pure, natural terpenes
Report Scope and Market Segmentation
|
Report Metric
|
Details
|
|
Forecast Period
|
2025 to 2032
|
|
Base Year
|
2024
|
|
Historic Years
|
2023 (Customizable to 2018-2022)
|
|
Quantitative Units
|
Revenue in USD Million
|
|
Segments Covered
|
Type (Monoterpenes, Sesquiterpenes, Polyterpenes, Diterpenes, Triterpenes, Tetraterpenes, Norisoprenoids, and Others), Source (Citrus Fruits, Coniferous Plant, Eucalyptus, Herbs & Spices, Lavender, Tea Tree, Frankincense, Patchouli, Cannabis & Hemp, Ginger, and Others), Category (Essential Oils Containing Terpenes, Blended Terpenes, Pure/Isolated Terpenes, and Others), Form (Liquid, Emulsion, Powder, Solid, Crystalline, and Others), Purity Level (≥98%, ≥95% to <98%, and <95%), Method of Extraction (Steam Distillation, Hydrodistillation, Cold Pressing, Solvent Extraction, Supercritical CO2 Extraction, Enzyme-Assisted Extraction, Microwave-Assisted Extraction, and Others), Function (Antimicrobial, Anti-Inflammatory, Antioxidant, Flavoring Agent, Fragrance Agent, Solvent, Preservative, Insect Repellent, and Others), Packaging (Bottles, Containers, Sample Vials, Sachets, Blister Packs, Drums, and Others), Application (Food & Beverages, Cosmetic & Personal Care, Pharmaceuticals, Agriculture, Solvent & Industrial Cleaning, Cannabis Industry, and Others), Distributional Channel (Direct and Indirect)
|
|
Countries Covered
|
China, India, Japan, South Korea, Indonesia, Australia, Thailand, Malaysia, Singapore, Philippines, Taiwan, New Zealand, Hong Kong, Rest of Asia-Pacific, Brazil, Argentina, Colombia, Chile, Peru, Ecuador, Paraguay, Uruguay, Venezuela, Bolivia, Rest of South America, France, Germany, U.K., Spain, Italy, Netherlands, Switzerland, Belgium, Poland, Russia, Turkey, Denmark, Sweden, Norway, Finland, Rest of Europe, U.S., Canada, Mexico, South Africa, Saudi Arabia, UAE, Israel, Egypt, Qatar, Kuwait, Oman, Bahrain, and Rest of Middle East & Africa
|
|
Market Players Covered
|
Kraton Corporation (U.S.), Sensient Technologies Corporation (U.S.), Takasago International Corporation (Japan), International Flavors & Fragrances Inc. (U.S.), Privi Speciality Chemicals Limited (India), Arakawa Chemical Industries,Ltd. (Japan), Symrise (Germany), The Anthea Group (India), Mentha & Allied Products Private Limited (India), Mangalam Organics (India), Kelvin Natural Mint Pvt. Ltd. (India), Natural Fractions Pty Ltd (Australia), dsm-firmenich (Switzerland), Givaudan (Switzerland), AOS Products Pvt. Ltd. (India), YASUHARA CHEMICAL CO. LTD. (Japan), HTPPL (India), Goldensea Chemicals (China), Arora Aromatics Pvt. Ltd. (India), Jiangxi Global Natural Spice Co., Ltd. (China), Foreverest Resources Ltd. (China), Green Exchange Lab SAS (France), Suzhou Megawide Chemicals Co. Ltd. (China), BASF (Germany), Lesco Chemical Limited (China), Uttaranchal Terpene Products Pvt. Ltd. (India), ROBERTET SA (France), Foshan Baolin Chemical Industry Co., Ltd. (China), vizagchemical (India), and BOC Sciences (U.S.) among others
|
|
Data Points Covered in the Report
|
In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, pricing analysis, brand share analysis, consumer survey, demography analysis, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework.
|
Segment Analysis
The global natural terpenes market is segmented into ten notable segments based on type, source, category, form, purity level, method of extraction, function, packaging, application, and distribution channel.
- On the basis of type, the global natural terpenes market is segmented into monoterpenes, sesquiterpenes, polyterpenes, diterpenes, triterpenes, tetraterpenes, norisoprenoids, and others
In 2025, the monoterpenes segment is expected to dominate the global natural terpenes market
In 2025, the monoterpenes segment is expected to dominate the market with a 29.93% share due to by rising demand for natural & clean-label products, growth in cannabis legalization & product innovation and increasing adoption in pharmaceutical and therapeutic applications.
- On the basis of source, the global natural terpenes market is segmented into citrus fruits, coniferous plants, herbs & spices, cannabis & hemp, eucalyptus, lavender, tea tree, frankincense, patchouli, ginger, and others
In 2025, the citrus fruits segment is expected to dominate the global natural terpenes market
In 2025, the citrus fruits segment is expected to dominate the market with a 35.37% share due to by market is expected to innovations in personalized aromatherapy & wellness products, emerging markets for functional foods & natural flavors, development of advanced extraction & purification technologies.
- On the basis of category, the global natural terpenes market is segmented into commercial pure/isolated terpenes, blended terpenes, essential oils containing terpenes, and others. In 2025, the essential oils containing terpenes segment is expected to dominate the market with a 40.08% share
- On the basis of form, the global natural terpenes market is segmented into commercial liquid, solid, powder, emulsion, crystalline, and others. In 2025, the liquid segment is expected to dominate the market with a 47.83% share
- On the basis of purity level, the global natural terpenes market is segmented into ≥98%, ≥95% to <98%, and <95%. In 2025, the ≥98% segment is expected to dominate the market with a 47.25% share
- On the basis of method of extraction, the global natural terpenes market is segmented into steam distillation, hydrodistillation, cold pressing, solvent extraction, supercritical CO2 extraction, enzyme-assisted extraction, microwave-assisted extraction, and others. In 2025, the steam distillation segment is expected to dominate the market with a 33.25% share
- On the basis of function, the global natural terpenes market is segmented into antimicrobial, anti-inflammatory, antioxidant, flavoring agent, fragrance agent, solvent, preservative, insect repellent, and others. In 2025, the antimicrobial segment is expected to dominate the market with a 28.59% share rising demand for natural & clean-label products, growth in cannabis legalization & product innovation and increasing adoption in pharmaceutical and therapeutic applications
- On the basis of packaging, the global natural terpenes market is segmented into bottles, containers, drums, blister packs, sample vials, sachets, and others. In 2025, the bottles segment is expected to dominate the market with a 29.69% share
- On the basis of application, the global natural terpenes market is segmented into pharmaceuticals, food & beverages, cosmetics & personal care, agriculture, solvent and industrial cleaning, cannabis industry, and others. In 2025, the food & beverages segment is expected to dominate the market with a 31.37% share
- On the basis of distributional channel, the global natural terpenes market is segmented into direct and indirect. In 2025, the indirect segment is expected to dominate the market with a 56.65% share
Major Players
Data Bridge Market Research analyzes Kraton Corporation (U.S.), Sensient Technologies Corporation (U.S.), Takasago International Corporation (Japan), International Flavors & Fragrances Inc. (U.S.), and Privi Speciality Chemicals Limited (India) as the major market players of the global natural terpenes market.
Market Developments
- In June 2024, Privi Speciality Chemicals Limited announced the approval of a strategic acquisition to invest in Privi Fine Sciences Private Limited (PFSPL). This proposed acquisition involves subscribing to and/or acquiring equity shares of PFSPL amounting to 36 million USD, representing approximately 50.95% of PFSPL’s issued and paid-up share capital
- In December 2023, IFF's LMR Naturals won a prestigious award for its Neroli Essential Extract, recognized for its upcycled and 100% natural composition. This innovative ingredient leverages circular design by utilizing post-distillation water, creating a sustainable and unique fragrance material
- In May 2024, IFF celebrated the 40th anniversary of its LMR Naturals line, a testament to its long-standing commitment to natural fragrance ingredients. This milestone emphasizes LMR's legacy of sustainability, respect, and innovation in sourcing and producing natural raw materials for perfumery
- In February 2025, IFF launched ScentChat, an AI-powered instant messaging app designed to enhance fragrance creation through real-time consumer feedback. This tool leverages advanced AI and natural language processing to gather insights, streamlining the development of new scents
- In April 2025, BASF Aroma Ingredients has launched its first products with a reduced Product Carbon Footprint (PCF), starting with L-Menthol FCC rPCF. These products, part of a growing rPCF portfolio, achieve a 10-15% PCF reduction compared to conventional BASF offerings. This is enabled by a mass balance approach, replacing fossil-based feedstock with waste-based biomass while maintaining quality
As per Data Bridge Market Research analysis:
Asia-Pacific is expected to dominate the global natural terpenes market
Asia-Pacific is expected to dominate the global natural terpenes market, driven by increasing research advancements, improved extraction technologies, and expanding applications in flavor, fragrance, and wellness industries.
North America is the fastest growing region in the global natural terpenes market
North America is the fastest growing region in the global natural terpenes market, driven by increasing consumer preference for holistic wellness, expanding use in aromatherapy and personal care products, and advancements in sustainable extraction methods
For more detailed information about the Global Natural Terpenes Market report, click here – https://www.databridgemarketresearch.com/reports/global-natural-terpenes-market
