Botanical Extracts Market Size was valued at USD 5.50 billion in 2022. The Botanical Extracts market industry is projected to grow from USD 6.02 Billion in 2023 to USD 10.38 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 9.50% during the forecast period (2023 - 2030). Growing demand for natural and plant-based products, the preference for clean label and organic products, the popularity of herbal medicines and dietary supplements, increasing research and development activities, the rising demand for functional foods and beverages, the growing demand for natural colorants and flavors, and increased use in personal care products are the key market drivers enhancing the market growth.
Form: Secondary Research, Primary Research, MRFR Database and Analyst Review
Botanical Extracts Market Trends
The demand for natural and plant-based products is on the rise due to increasing awareness of their health benefits. Botanical extracts are perceived as healthy and safe alternatives to synthetic ingredients, which has led to their increased use in various industries.
Moreover, growing preference for clean label and organic products: Consumers are becoming more aware of the ingredients present in the products they consume and are seeking out products with natural and organic ingredients. This trend has driven the demand for botanical extracts as they are seen as natural and safe ingredients that can be used in a variety of applications.
The use of botanical extracts in the production of herbal medicines and dietary supplements has increased significantly. Many people are turning to natural remedies for their health concerns, which has boosted the demand for botanical extracts in these products.
In addition, the growing research and development activities in the field of botanical extracts have led to the discovery of new and innovative products. This has led to the development of new applications for botanical extracts, which is driving the growth of the market.
Botanical Extracts Market Segment Insights
Botanical Extracts Form Insights
The Botanical Extracts market segmentation, based on form includes powder, and liquid. The powder segment held the majority share in 2022 contribution to the Botanical Extracts market revenue. This is due to its ease of handling and longer shelf life. They also have a longer shelf life, making them more cost-effective for manufacturers. Powdered extracts are often used in dietary supplements, functional foods, and nutritional products due to their convenience and versatility.
Botanical Extracts Source Insights
The Botanical Extracts market segmentation, based on source, includes herbs & spices, and fruits. The herbs & spices segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is primarily due to the Herbs are the most common source of botanical extracts due to their versatile nature and wide range of therapeutic properties. Commonly used herbs in botanical extracts include ginger, garlic, turmeric, ginseng, and echinacea. These extracts are widely used in the pharmaceutical, cosmetic, and food industries for their various health benefits.
January 2021: Gencor Pacific, a leading supplier of botanical ingredients, announced a partnership with Pharmactive Biotech Products, a Spanish biotech company. The partnership aimed to launch a new ingredient called Genkiro, which is a combination of Gencor's extracts from ginger and fenugreek and Pharmactive's standardized saffron extract.
Figure 1: Botanical Extracts Market, by Source, 2022 & 2030 (USD Billion)
Form: Secondary Research, Primary Research, MRFR Database and Analyst Review
Botanical Extracts Application Insights
The botanical extracts market segmentation, based on application, includes food & beverages, personal care, and pharmaceuticals & nutraceuticals. The gluten-free segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is primarily due to the increasing demand for natural and healthy ingredients driving the demand for botanical extracts. Botanical extracts are used in various food and beverage products, including functional beverages, snacks, baked goods, and dietary supplements, to enhance their nutritional and sensory properties.
December 2020: ADM (Archer Daniels Midland), a leader in nutrition and agricultural processing, acquired the Ziegler Group, a leading provider of natural citrus flavor ingredients. The acquisition aimed to expand ADM's natural ingredient portfolio for the food and beverage industry.
Botanical Extracts Regional Insights
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America Botanical Extracts market accounted for USD 2.51 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. The market in North America is driven by the increasing demand for natural and healthy ingredients in food and beverages, pharmaceuticals, and cosmetics. The United States is the largest market in this region, followed by Canada and Mexico.
Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: BOTANICAL EXTRACTS MARKET SHARE BY REGION 2022 (%)
Form: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Botanical Extracts market accounts for the second-largest market share this is due to the driven by increasing demand for natural and organic products. The United Kingdom, Germany, France, and Italy are the major markets in this region. Further, the Italy Botanical Extracts market held the largest market share, and the UK Botanical Extracts market was the fastest growing market in the European region.
The Asia-Pacific Botanical Extracts Market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to the increasing population, rising disposable income, and growing awareness about natural and healthy ingredients. China, India, Japan, and Australia are the major markets in this region. Further, the China Botanical Extracts market held the largest market share, and the India Botanical Extracts market was the fastest growing market in the region.
Botanical Extracts Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Botanical Extracts market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Botanical Extracts industry must offer healthier products to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the Botanical Extracts industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, Botanical Extracts industry has provided innovative products with some of the most significant benefits. The Botanical Extracts market major player such as Ransom Naturals Limited (UK), International Flavors and Fragrances Inc (USA), Synthite Industries Limited (India), Martin Bauer Group (Germany), Prinova Group LLC (USA), Synergy Flavors Inc (USA), Kalsec Inc (USA) and others are working to expand the market demand by investing in research and development activities.
Ransom Naturals Limited is a US-based company that specializes in the production and distribution of natural ingredients, including botanical extracts, for the food, beverage, and cosmetic industries. The company was founded in 1997 and has since grown to become one of the leading supplier of high-quality plant-based ingredients. The company offers a wide range of botanical extracts, including fruit and vegetable extracts, herb extracts, and spice extracts, among others. In November 2021, Ransom Naturals Limited partnered with Blue California, a leading supplier of natural ingredients, two companies announced a strategic partnership to produce and market a new line of water-soluble botanical extracts for use in functional beverages and supplements.
International Flavors and Fragrances Inc (IFF) is a leading US-based company that specializes in the development, production, and distribution of flavors, fragrances, and other natural ingredients for the food, beverage, personal care, and household industries. The company was founded in 1958. IFF's portfolio of natural ingredients includes botanical extracts, essential oils, and aroma chemicals sourced from around the world. In June 2021, IFF's botanical extract acquired Fragrance Resources. This acquisition expands IFF's natural fragrance capabilities, particularly in the area of botanical ingredients. Fragrance Resources has a strong reputation in the industry for its natural fragrance ingredients, and this acquisition positions IFF to meet growing demand for sustainable, natural fragrance solutions.
Key Companies in the Botanical Extracts market includes
Botanical Extracts Industry Developments
August 2019: Naturex, a leader in specialty plant-based natural ingredients, announced a strategic partnership with Milne Fruit Products, a US-based fruit juice concentrate and puree supplier. The partnership aimed to expand Naturex's portfolio of natural and organic fruit ingredients for the food and beverage industry.
September 2020: Frutarom Health BU (a subsidiary of IFF), announced the launch of its new phytonutrient ingredient called Phyto-Shield, which is extracted from the leaves of the olive tree. The ingredient is said to have antioxidant, anti-inflammatory, and immune-supportive properties.
June 2021: Sabinsa Corporation, a leading supplier of herbal extracts and nutritional supplements, announced the launch of a new ingredient called C3 Reduct. The ingredient is a curcumin metabolite that is said to have better bioavailability and efficacy than traditional curcumin extracts.
October 2021: BGG World, a leading supplier of natural ingredients, announced the acquisition of Algae Health Sciences, a US-based producer of high-quality astaxanthin extracts. The acquisition aimed to expand BGG's portfolio of natural ingredients for the dietary supplement and functional food markets.
Botanical Extracts Market Segmentation
Botanical Extracts Form Outlook
Botanical Extracts Source Outlook
Botanical Extracts application Outlook
Botanical Extracts Regional Outlook
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 5.50 billion |
| Market Size 2023 | USD 6.02 billion |
| Market Size 2030 | USD 10.38 billion |
| Compound Annual Growth Rate (CAGR) | 9.50% (2023-2030) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2030 |
| Historical Data | 2019 - 2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Form, Source, Size, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Ransom Naturals Limited (UK), International Flavors and Fragrances Inc (USA), Synthite Industries Limited (India), Martin Bauer Group (Germany), Prinova Group LLC (USA), Synergy Flavors Inc (USA), and Kalsec Inc (USA) |
| Key Market Opportunities | Growing popularity of herbal medicines and dietary supplements |
| Key Market Dynamics | Increasing demand for natural and plant-based ingredients |
Botanical Extracts Market Highlights:
Frequently Asked Questions (FAQ) :
The Botanical Extracts market size was valued at USD 5.50 Billion in 2022.
The market is projected to grow at a CAGR of 9.50% during the forecast period, 2022-2030.
North America had the largest share in the market
The key players in the market are Ransom Naturals Limited (UK), International Flavors and Fragrances Inc (USA), Synthite Industries Limited (India), Martin Bauer Group (Germany), Prinova Group LLC (USA), Synergy Flavors Inc (USA), and Kalsec Inc (USA).
The powder Botanical Extracts sources dominated the market in 2022.
The herbs & spices had the largest share in the market.
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