The global botanical extracts market size was valued at USD 7.09 billion in 2021 and it is projected to be worth around USD 12.6 billion by 2030, registering growth at a CAGR of 6.6% during the forecast period 2022 to 2030.
Key Takeaway
Growth Factors
The usage for plant extracts is expected to rise significantly during the projected period due to its various health advantages and capacity to function as a substitute to contemporary treatment. Growing appetite for ready meals, expanding knowledge about the benefits of organic goods versus synthetic products, and growing preference from food and other uses are all expected to drive growth of the market. For the previous few years, world consumption for fast food products such as bakery & confectionary, sauces & dressing, ready - to - eat, ready-to-drink (RTD) drinks and sports & energy drink has been quickly expanding. This growth is mainly attributed largely to shifting customer lifestyles, an increment in the population of working women, the introduction of food products in innovative packaging by producers and retailers, rapid expansion of brick and online retail channels, and a rise in spending power, particularly in emerging economies such as India, China, and Brazil.
Botanical components are often used in convenience foods to offer scent, taste, and nutritive quality. Botanical extracts provide enhanced flavour and a longer lifespan, thus convenience food and beverage makers choose botanical extracts or concentrated over fresh botanicals. Furthermore, botanical components have a more realistic flavour since they are taken directly from vegetation, generally from the fruits, leaves and flowers as well opposed to non-botanical extracts. As a result, rising intake of convenience foods is expected to drive growth for these extracts in future years.
With the increasing frequency of chronic and lifestyle diseases, rising medical issues necessitate a much more creative strategy that treats the illness while minimising detrimental effects. Botanical pharmaceuticals can be used in place of allopathic medications. These medications are derived from natural ingredients that have health-promoting or therapeutic properties. As a result, increased knowledge about the harmful effects of allopathic drugs is yet another contributing force in the industry. Unlike many other chemical-based substances used within personal care and cosmetics, medications, and food and beverage items, botanical extracts have no adverse side effects.
Furthermore, the issue of environmental and natural component sourcing has risen to the top of the priority list for producers, particularly in North America and Europe. Natural extracts' extensive overall health advantages are expected to stimulate product sales in pharmaceutical and nutraceutical industries. These variables are anticipated to have a substantial influence on product consumption in the coming years.
Report Scope of the Botanical Extracts Market
| Report Coverage | Details |
| Market Size by 2030 | USD 12.6 Billion |
| Growth Rate from 2022 to 2030 |
CAGR of 6.6% |
| Europe Market Share in 2021 | 43% |
| Food and Beverage Segment Market Share in 2021 | 47% |
| Base Year | 2021 |
| Forecast Period | 2022 to 2030 |
| Segments Covered | Source, Technology, Form, Product, Application, Geography |
| Companies Mentioned | Blue Sky Botanics Ltd, Dohler, Frutarom Industries Ltd., Kalsec Inc., P.T. Haldin Pacific Semesta, Prinova Group LLC., PT. INDESSO AROMA., Ransom Naturals Ltd, Synergy Flavors Inc, Synthite Industries Private Ltd. |
Source Insights
The spices segment dominated the market and garnered largest revenue share in 2021.
Leaves segment is expected to witness remarkable growth over the forecast period. Any flattening green sprout within the stems of vascular plants is referred to as a leaf. A leaf's principal job is to produce food for plants through photosynthesis. Chlorophyll, it is the chemical that imparts plants their green colour and helping them absorbs light. Botanically, leaves are an important component of the stems system. A continuous vascular system connects them to the entire plant, enabling unrestricted flow of water, nourishment, and photosynthetic end products like as carbohydrates and oxygen.
Herbs are leafy parts of plants that are utilised in a number of purposes including nutritional supplements cosmetics, food and beverage and medications. Because of their widespread use in traditional remedies, herbs are projected to fuel the expansion of this industry. Herb-based pharmaceutical solutions are gaining popularity across the world since it is their health advantages such as hormone stabilisation, metabolism, and immune system improvement, as well as the fact that they are less expensive than traditional drugs.
Technology Insights
Carbon Dioxide extracts, also known as cryogenic CO extracts, are very pure plant extracts derived from a novel and greater extraction method. Superior herbal extracts produced by the CO extraction technique are extensively used in botanical medicinal to flavour a variety of items as soft drinks, confectionery and dairy products. CO extract is utilised in medicinal, nutritional supplements, and oral care products, in addition to food and ayurvedic supplements. CO extracts are derived from a variety of plant components, including veggies, fruit, herbs and spices and numerous other plant parts as roots and leaves. CO extract consist of natural flavour extract that is gaining popularity among customers.
Application Insights
The food and beverage industry sector held the largest market share in 2021 and is expected to retain its dominance throughout the projected timeline. The growing global market for organic, healthy, and minimally processed food items has emerged as a prominent driver supporting the expansion of botanical extracts' application domains in the food and beverage sector. Botanical extracts' antimicrobial characteristics help conserve food and beverage items for a prolonged period of time, which is likely to drive market growth from producers that are keen on expanding product shelf life without sacrificing quality.
Food and beverage businesses are using healthy and nutritious organic ingredients in their product portfolio due to rising market demand for natural goods over synthetic ones and expanding demand for higher quality food items. However, due to their improper chemical makeup, many essential oils are not deemed safe for internal usage. As per the FDA's Generally Recognized as Safe (GRAS) list, eucalyptus is one of the most dangerous essential oils for food and beverage purposes.
Region Insights
The Europe region accounted largest market share in 2021. This is owing to rising beverages product growth and high consumption for ready-to-drink (RTD) drinks among some of the region's population. The beverage industry is expanding because to increased trend for RTD beverage as customers' preferences change away from carbonated drinks and toward ones containing healthful, organic components such as kombucha and matcha as well as tea.
From 2022 to 2030, Asia Pacific is projected to have the largest growth in revenues in the overall botanical ingredients market. Consumption of convenient food items, such as prepared foods, RTD drinks, packed snacks, and other goods using botanical components to contribute taste, scent, and useful characteristics, is being determined by factors such as the spread of organised and e-commerce retailing. Because of the continued growth for healthy drinks, beverages are a promising application category of botanical extracts in North America. This is owing to a rising awareness of the health advantages connected with the usage of bio-based substances for weight reduction and blood sugar management.
Market Key Players
Segments Covered in the Report
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By Source
By Technology
By Form
By Product
By Application
By Geography
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