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The botanical extracts market size is estimated to grow at a CAGR of 8.78% between 2022 and 2027. The botanical extracts market size is forecast to increase by USD 2,755.43 million. The growth of the market depends on several factors, including incidences of chronic diseases increasing demand for non-traditional drug sources, growing awareness of the benefits of natural cosmetics, and increasing demand for clean-label products.
This botanical extracts market report extensively covers market segmentation by application (F and B, nutraceuticals, and cosmetics), type (powder and liquid), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The incidences of chronic diseases and increasing demand for non-traditional drug sources are notably driving the market growth, although the high price of products may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The incidences of chronic diseases and increasing demand for non-traditional drug sources are notably driving the botanical extracts market growth. The prevalence of chronic diseases such as cancer, cardiovascular disease (CVD), diabetes, and autoimmune diseases is increasing due to increased environmental pollution and sedentary lifestyles, leading to rising annual mortality rates. The increasing incidence of chronic diseases has increased the need for new treatments. The CDC estimated that about 1.5 million new cancer cases are diagnosed and about 500,000 people die from the disease each year. Restrictions on the manufacture of synthetic drugs have increased the demand for herbal medicines. Due to the high cost of developing and manufacturing traditional medicines, pharmaceutical companies are looking for alternatives such as Chinese herbal medicines that are cheaper than synthetic drugs. Low capital investment and little technical expertise are also fueling the demand for herbal medicines. The manufacturing process is shorter than synthetic drugs.
Medicines from plant extracts are also called photo drugs. These products contain one or more herbal substances as active ingredients, as compared to synthetic drugs containing chemically active substances. They consist of abundant natural products that activate or modulate target systems in organisms. Therefore, the potential for chronic diseases will increase the demand for new treatments from non-chemical sources, contributing to the market growth during the forecast period.
The growing applications of botanical extracts in the beverage industry are a key trend influencing the botanical extracts market growth. The demand for plant extracts in the F and B industries is driven primarily by health and well-being awareness, a trend toward natural products, and recognition in developing countries of the benefits of plants as food ingredients. The global market for brewing enzymes is witnessing an increase in production capacity. The market for brewing enzymes in China and India is developing rapidly with a continuous increase in production capacity. The supply and consumption of brewing enzymes are expected to increase over the next decade. The growing demand for new beer flavors is also driving the use of plant extracts as functional beer additives. Botanical extracts are used in soft drinks of lavender and chamomile, rosehip, and lemon verbena, known for their relaxing properties. This product contains L-Theanine, an amino acid that aids in relaxation, along with chamomile, passion flower, Rhodiola, and lemon balm. Botanical extracts are widely found in green tea and their derivatives. This is because green tea extract is a great source of antioxidants and other health benefits. It is expected to drive the global botanical extract market during the period.
Along with all this, strong R&D allows us to tap into the essential oil market to meet the growing demand for high-quality, pure organic oils. For example, French manufacturer Biolandes has patented a technology for essential oil distillation and continuous extraction to expand its range of essential oils and active ingredients. The company offers over 300 of its products derived from 80 plants collected in 30 countries. This will spur the growth of natural solutions to relieve stress and encourage the use of plant extracts. Such factors are anticipated to drive the global plant extracts market during the forecast period.
The high price of products is challenging the botanical extracts market growth. The botanical extract market is characterized by the presence of a significant number of players. Only big companies such as BASF, Kerry, and DowDuPont can afford to use technology and sophistication to maintain the highest quality. These large companies secure discoveries by supporting research and development efforts and patenting their products. This will increase the cost of plant extracts for the F and B industries, thereby increasing the price of the product. In regions with high disposable income, this will not have a significant impact on the market. However, it impacts consumer behavior in developing countries where disposable income is low and cost-sensitive. As a result, consumers in developing regions often avoid using plant extracts. Instead, they use medium to low-quality products or substitute alternatives such as synthetic ingredients. Therefore, fluctuations in the prices of herbs and spices are likely to impede the growth of the focus market during the forecast period.
Along with this several industries, such as F&B and cosmetics, face the challenge of selling counterfeit goods in the form of merchandise. Complex supply chains and fragmented wholesale markets contribute to the sale of counterfeit medical devices in the global botanical extracts market. Therefore, sellers selling counterfeit herbal products can easily sell their products. However, established companies and users face problems. Providers face financial and /image loss. Dietary supplements made from inferior raw materials can have detrimental effects on those who consume them. Thus, counterfeit herbal extracts can damage a company's brand /image and affect the quality of patient care. Therefore, counterfeit products are also likely to pose a major challenge to the growth of the global botanical extract market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Botanical Extracts Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Arjuna Natural Pvt Ltd: The company offers different health and nutrition products such as curcumin, fish oil, sesame seed extract, ashwagandha extract, Brahmi extract, and others. Along with this, it also offers natural food protection solutions.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the F and B segment will be significant during the forecast period. Botanical extracts are used in the F and B industries to impart functional benefits to a wide variety of foods and beverages, including alcoholic and non-alcoholic beverages, dairy and meat products, baked goods, and confectionery. The high demand for fresh, minimally processed, clean, transparent, high-quality products has led F and B companies to use plant extracts as key ingredients in their products. These extracts are used for their health benefits such as anti-inflammatory, antioxidant, and antimicrobial properties.
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The F and B segment was valued at USD 1,946.08 million in 2017 and continued to grow until 2021. Botanical extracts have a variety of health benefits, including energizing, strengthening the immune system, improving skin health, and inducing relaxation. However, it is also used to improve the taste of beverages. Vendors use plant extracts as natural sweeteners. Demand for natural, healthy and organic products is a key factor driving the market during the forecast period as consumers are aware of clean labels and natural products.
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North America is estimated to contribute 35% to the growth of the global botanical extracts market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The North American botanical extracts market has grown due to the increasing impact of urbanization and the increasing preference for natural products. Concerns about a healthy lifestyle, the established F and B industries in North America, and the presence of major domestic players in the market such as BI Nutraceuticals, DowDuPont, International Flavors and Fragrance, Prinova Group, etc. are other drivers of this market. The United States, Canada, and Mexico are the largest contributors to the market.
The 2020 and 2021 COVID-19 outbreak has severely impacted the North American botanical extracts market, adversely affecting customer behavior, business revenue, and various aspects of business operations. Most customers preferred to buy groceries online, reducing demand for plant extract products in offline stores. Meanwhile, the vendors involved in the North American botanical extracts market continued to delay investments in their R&D activities. However, in 2021, the region began to recover from the effects of the crisis as a vaccine was introduced to combat the spread of COVID-19. However, lockdown restrictions in the region were lifted in 2021 with the start of a mass vaccination campaign. Post-pandemic lifestyle changes and rising demand from the personal care industry are boosting the growth of the regional botanical extract market.
The botanical extracts market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global botanical extracts market as part of the global personal products market within the global household and personal products market. The wider global personal care products market includes products and companies engaged in research and development (R&D) and manufacturing of personal and beauty care products such as cosmetics and perfumes. The scope of the global personal products market also includes personalized gifts, sleep masks, sex toys, hair wigs and extensions, and the polarized sunglasses market.
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Botanical Extracts Market Scope |
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Report Coverage |
Details |
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Page number |
161 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.78% |
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Market growth 2023-2027 |
USD 2755.43 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
7.87 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 35% |
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Key countries |
US, Canada, China, France, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
All Season Herbs Pvt. Ltd., Arjuna Natural Pvt Ltd., Bell Flavors and Fragrances GmbH, BI Nutraceuticals, Bio Botanica Inc., Botanical Extracts EPZ Ltd., Carrubba Inc., Dohler GmbH, Grupo Natac S.L.U., Indesso, International Flavors and Fragrances Inc., Jairamdass Khushiram, Kalsec Inc., Kerry Group Plc, MB Holding GmbH and Co. KG, NEXIRA, Prinova Group LLC, Ransom Naturals Ltd., Synergy Flavors Inc., and Synthite Industries Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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