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The botanicals market size is forecast to increase by USD 7.85 billion is estimated to grow at a CAGR of 15.22% between 2023 and 2028. In today's health-conscious world, there is a growing demand for food and beverages infused with natural botanical ingredients. Consumers are increasingly aware of the potential side effects of synthetic additives and are seeking out more natural alternatives. Herbal medicines, with their immunity-boosting properties, have gained significant popularity. Botanical ingredients, such as ginger, turmeric, and echinacea, are commonly used in herbal remedies to support overall health and wellness. These natural ingredients offer numerous health benefits without the risk of synthetic additives. As a result, the market for botanical food and beverages, as well as herbal medicines, is expected to continue growing. Companies that can effectively meet this demand with high-quality, natural products will thrive in this burgeoning industry.
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The market encompasses a wide range of plant-derived products used for their health benefits in the wellness field. These botanical preparations include medicinal plants, botanical drugs, and essential oils, among others. The popularity of botanicals is driven by their natural origins and the belief that they offer unique health benefits. Botanicals are used in various forms, such as dietary supplements, herbal teas, and food and beverage ingredients. Essential oils, for instance, are commonly used in aromatherapy and as flavorings in food and beverages. The safety and cost of botanicals are important considerations for consumers, as are potential adverse effects. Label-reading consumers and beverage makers are increasingly turning to botanicals as natural ingredients for nutrition and wellness trends. Adults, in particular, are a significant market for botanicals, with the International Food Information Council (IFIC) reporting that 76% of adults use dietary supplements. The market is expected to continue growing due to the increasing demand for premium, natural products in the health and wellness industry. However, the use of botanicals in food and beverages may be limited by the perception of chemical-sounding names or the lack of clear labeling regulations. Overall, the market offers a rich diversity of natural ingredients with potential health benefits. Our researchers analyzed the data with 2023 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.
Growing demand for food and beverages with botanical ingredients is notably driving market growth. The market is witnessing significant growth due to the increasing demand for natural ingredients in the health and wellness field. Consumers are increasingly seeking out botanical preparations and botanical drugs for their medicinal value and health benefits. Essential oils derived from plants are gaining popularity in various industries, including food and beverages, bakery, dairy, confectionery, and functional beverages. Moreover, the trend towards clean label and sustainable ingredients is driving business interest in the market. Key players in the industry are investing in research and development to create innovative formulations using botanical ingredients. Regulations promoting the use of natural ingredients and prohibiting synthetic chemicals in food and beverages are further fueling this growth. Thus, such factors are driving the growth of the market during the forecast period.
Growing demand for organic herbal cosmetics is the key trend in the market. The market is witnessing significant growth due to the increasing demand for natural and organic health solutions in the wellness field. Botanical preparations and botanical drugs derived from plants are gaining popularity for their medicinal value and health benefits. Essential oils, derived from various plants, are widely used in the food and beverage industry, as well as in cosmetics and aromatherapy.
Moreover, in the health and wellness sector, consumers are increasingly seeking cleanlabel and sustainable ingredients. Botanical ingredients, such as sage leaf and rose petal, are being used in various applications, including bakery, dairy, confectionery, functional beverages, and clean eating. Thus, such trends will shape the growth of the market during the forecast period.
Stringent quality standards and regulations is the major challenge that affects the growth of the market. The market encompasses a wide range of plant-derived products used in the health and wellness field for their medicinal value and health benefits. Botanical preparations and botanical drugs include essential oils, herbs, spices, and flowers, which are utilized in various industries such as food and beverage, cosmetics, and pharmaceuticals.
Moreover, in the health and wellness sector, botanicals are increasingly gaining popularity as consumers seek cleanlabel, sustainable ingredients for preventive healthcare. However, vendors in this market face challenges in ensuring safety and quality due to the complexities involved in the cultivation and processing of botanical ingredients. The conditions under which these ingredients are grown and harvested can vary significantly, increasing the risk of contamination with toxic materials. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting 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 market growth analysis strategies.
Customer Landscape
Companies 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.
Blue Sky Botanics Ltd: The company offers botanicals such as hibiscus, juniper, burdock, cacao nib, cacao husk.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The herbs segment is estimated to witness significant growth during the forecast period. The market encompasses a wide range of plants used for their medical properties and health benefits in the wellness field. These botanical preparations and botanical drugs offer medicinal value, making them popular in various industries such as bakery, dairy, confectionery, and functional beverages. Essential oils derived from these plants are also gaining popularity for their cleanlabel appeal and natural ingredients. Safety and cost are crucial factors in the market.
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The herbs segment was the largest segment and valued at USD 2.20 billion in 2018. While the health benefits are significant, it is essential to consider potential adverse effects and ensure their safe use. Popular botanicals include sage leaf and rose petal, which offer numerous health benefits and are used in various product formulations. International Flavors, Bell Flavors, Fragrances, Givaudan, and other leading companies are expanding their product innovation in the market. Hence, such factors are fuelling the growth of thsi segment during the forecast period.
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Europe is estimated to contribute 35% to the growth of the global 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 market encompasses a wide range of plants used for their medical properties and health benefits in the wellness field. These botanical preparations and botanical drugs offer medicinal value, making them essential components in various industries such as food and beverage, cosmetics, and pharmaceuticals. Essential oils derived from plants are increasingly popular for their health benefits and are used in bakeries, dairy, confectionery, and functional beverages. Hence, such factors are driving the market in Europe during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Botanicals, derived from plants, have gained significant popularity in the health and wellness field due to their medicinal value and health benefits. Botanical preparations, including botanical drugs and essential oils, are increasingly used in various industries such as food and beverage, cosmetics, and pharmaceuticals. The demand for botanicals is driven by their natural origins and the perception of safety compared to chemical-sounding ingredients. In the food industry, botanicals are used in bakery, dairy, confectionery, and functional beverages. Sage leaf and rose petal are popular botanicals used in food and beverage applications. In the health and wellness sector, botanicals are used for preventive healthcare and clean eating. The popularity of botanicals is also driven by the trend towards natural ingredients and sustainable ingredients. However, the cost and potential adverse effects are factors that may limit their usage.
The market for botanicals is expected to expand as business interests continue to innovate and formulate new products. International Flavors, Bell Flavors, Fragrances, Givaudan, and other key players are investing in product innovation and expansion to meet the growing demand for botanical ingredients. The market landscape depends on the Conventional pharmaceutical, Botanical health, Premium product, Functional food brands, Sustainability-minded consumers, Healthier food products, Synthetic products, Rising health consciousness. The IFIC states that consumers prefer clean label and natural ingredients, which is further fueling the growth of the market. Despite the fragmentation of the market, the demand for botanicals is expected to remain strong as consumers continue to seek out natural and sustainable ingredients for their health and wellness needs.
Market Scope |
|
Report Coverage |
Details |
Page number |
133 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.22% |
Market growth 2024-2028 |
USD 7.85 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
11.97 |
Regional analysis |
Europe, North America, Asia, and Rest of World (ROW) |
Performing market contribution |
Europe at 35% |
Key countries |
US, China, UK, Canada, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AmbePhytoextracts Pvt. Ltd., Bell Flavors and Fragrances GmbH, Berje Inc., BI Nutraceuticals, Blue Sky Botanics Ltd., Dohler GmbH, Indesso, International Flavors and Fragrances Inc., Kalsec Inc., Kuber Impex Ltd., Lipoid Kosmetic AG, Nutra Green Biotechnology Co. Ltd., Prakruti Products Pvt. Ltd., Prinova Group LLC, Ransom Naturals Ltd., Rutland Biodynamics Ltd., Synergy Flavors Inc., Synthite Industries Pvt. Ltd., The Herbarie at Stoney Hill Farm Inc., and Umalaxmi Organics Pvt. Ltd. |
Market dynamics |
Parent market analysis, market report, market forecast, 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 |
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. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Source
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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