ID: MRFR/F-B & N/3397-CR | April 2020 | Region: Global | 110 pages
Global Botanical Extracts Market is projected to register a CAGR of 5.45% and reach USD 25,151.7 Million by 2025. Botanical extracts are concentrated plant materials that provide therapeutic properties. They are extracted from various methods such as cold pressing, steam distillation, solvent extraction, oil infusion, among others. The growth of the botanical extracts market is expected to be driven by the increasing consumption of dietary supplements across the globe. Botanical extracts are also used in the production of several food & beverage products, especially functional beverages. However, the limited supply of raw materials and price fluctuations may hamper the growth of the global botanical extracts market during the forecast period. The increasing consumer preference for organic food & beverages creates a lucrative opportunity for the key players in the global botanical extracts market.
The Global Botanical Extracts Market is expected to register significant growth during the forecast period. The demand for functional beverages has been increasing significantly across the globe over the last few years. Functional beverages are being marketed as products that have additional ingredients to provide a wide range of health benefits. Due to the presence of ingredients such as minerals, vitamins, herbs, amino acids, antioxidants, and bacteria. These products have beneficial effects on the body, such as improved immunity, heart rate, digestive health, hydration and electrolyte replenishment post-exercise, and intestinal flora and gut function. According to MRFR analysis, the global functional beverage market was valued at USD 170.12 billion in 2018 and is projected to register a substantial CAGR of 6.75% during the forecast period, 2019 to 2025. Botanical extracts also find widespread application in several food products, including baked goods, confectionery, dairy products, and meat products. Chamomile, honey, baobab, and berry extracts are used in the production of baked goods, while the extracts of ginger, saffron, sage, and peppermint are preferred by manufacturers of confectionery. However, limited availability and fluctuation in the raw material prices of botanical extracts are restricting the growth of the global market. The production of ginger is low in North America and Europe, making market players based in these regions dependent on imports.
On the other hand, the production of cinnamon is limited to Sri Lanka, Indonesia, China, Vietnam, the Netherlands, the US, Germany, and France. According to the United Nations Food and Agriculture Organization (FAO), Sri Lanka accounted for 28% of the total cinnamon exports in 2018. The prices of botanical extracts depend on availability and import and export tax rates, which vary from country to country. Thus, the prices of botanical extracts fluctuate due to limited availability and high tax rates across the globe, hindering the growth of the market.
Global Botanical Extracts Market Revenue, by Application, 2025 (USD Million)
Sources: MRFR Analysis
Based on application, the global botanical extracts market has been divided into food, beverages, personal care, pharmaceuticals & nutraceuticals, and others. The pharmaceuticals & nutraceuticals segment is expected to dominate the global market and be valued at USD 7,766.5 million by the end of 2025. The personal care segment is projected to grow at the fastest CAGR of 5.88% from 2019–2025. Botanical extracts can completely inhibit collagen degradation by collagenase enzyme inhibition and maintain protein levels in the skin. Owing to such properties, botanical extracts are increasingly being used in various natural anti-aging skincare products. They also help combat redness and irritation due to their antibacterial and anti-inflammatory properties. Thus, this segment is expected to grow at the fastest rate during the forecast period.
Global Botanical Extracts Market Share, by Region, 2018 (%)
Sources: MRFR Analysis
North America is expected to constitute a dominant share of the botanical extracts market during the forecast period. The region accounted for 32.64% share of the market in 2018. The US and Canada are among the major contributors to the growth of the regional market. The market in the region is projected to register a CAGR of 5.36% during the forecast period, 2019 to 2025. The increasing consumption of dietary supplements is one of the significant factors driving the growth of the market in the region. The escalating medical service costs have resulted in a shift of consumers toward the adoption of healthy alternatives in their daily routine, and the consumption and demand for dietary supplements have increased drastically. The increasing demand for natural ingredients in several food and beverages is anticipated to further propels the growth of the botanical extracts market in North America. Furthermore, the market in Europe holds a prominent share of the botanical extracts market due to the increasing consumption of functional beverages.
The Prominent Players in the Global Botanical Extracts Market include Ransom Naturals Ltd (UK), International Flavors & Fragrances Inc. (US), Synthite Industries Limited (India), Martin Bauer Group (Germany), Prinova Group LLC (US), Synergy Flavors Inc. (US), and Kalsec Inc. (US).
Players operating in the global botanical extracts market are focusing on strengthening their geographic footprints through expansion and by launching innovative products.
Global Botanical Extracts Market, by Form
Global Botanical Extracts Market, by Source
Herbs & Spices
Global Botanical Extracts Market, by Application
Pharmaceuticals & Nutraceuticals
Global Botanical Extracts Market, by Region
Rest of Europe
Australia & New Zealand
Rest of Asia-Pacific
Rest of the World (RoW)
Botanical Extracts Manufacturers
Food & Beverage Processors
Animal Feed Manufacturers
Flavor & Fragrance Manufactures
Traders, Wholesalers, and Distributors
Governments, Associations, and Industrial Bodies
Investors and Trade Experts
Frequently Asked Questions (FAQ) :
Botanical extracts are natural extracts prepared from plant sources such as herbs, fruits, flowers, leaves, spices, and others.
Botanical extracts are rich in essential oils and other natural ingredients such as phenols, terpenoids, and resins, which have various therapeutic properties.
The growing demand for natural medicine is the major driver for the botanical extracts market.
North America is the dominant force in the global botanical extracts market, followed by Europe.
Key players in the market include Blue Sky Botanics, Frutarom Industries, and Synergy Flavors, among others.