Botanical Ingredients Industry Overview
The global botanical ingredients market size is expected to reach USD 246.59 billion by 2028, according to a new report by Grand View Research, Inc., expanding at a CAGR of 6.9% over the forecast period. The market is expected to be driven by the increasing demand for convenience and functional food products coupled with the advent of clean and natural botanical supplements by key market participants. The food and beverages industry has been one of the biggest application areas for botanical ingredients. They are widely used in various foods & beverages, such as bakery&dairy products, energy drinks, and confectionery products, owing to their unique flavor and health benefits.
Health-conscious consumers prefer food products with high nutritive content. The outbreak of COVID-19 has also shifted customer focus towards preventive healthcare with an emphasis on natural and clean products. Thus, food & beverage manufacturers are focusing on fortifying food products with flavorful and nutritive plant-based ingredients, such as tea extracts. Botanical ingredients are sourced from herbs, leaves, spices, flowers, etc. Spices accounted for the highest revenue share in 2020. The increasing trend of experiencing novel food, high usage as a natural ingredient in cosmetic products, and increasing awareness about health benefits associated with it are major factors contributing towards the high market share.
Botanical Ingredients Market Segmentation
Grand View Research has segmented the global botanical ingredients market on the basis of source, form, application, and region:
Based on the Source Insights, the market is segmented into Herbs, Leaves, Spices, Flowers, and Others
- The spices segment led the market in 2020 accounting for a 28.3% share of the global revenue.
- The segment is expected to witness substantial gain over the forecast period due to changing lifestyles demanding healthy food that is convenient along with a popular trend of experiencing novel foods.
- The flower source segment is projected to have the fastest CAGR during the forecast period.
- This can be attributed to changing lifestyles and inclination towards leading a luxurious and healthy lifestyle, which has contributed to the growth of horticulture along with the botanical flower industry.
- The herbs segment is expected to witness a CAGR of 7.3% during the forecast period on account of their extensive utilization of traditional medicines.
Based on the Form Insights, the market is segmented into Powder and Liquid
- The powder segment accounted for the largest market share of 61.0%, in terms of revenue, in 2020.
- The growing popularity of RTD beverages, owing to their ease of consumption, strong nutritional profile, and easy availability, is expected to drive the demand for liquid form in the market.
Based on the Application Insights, the market is segmented into Food & Beverages, Dietary Supplements, Personal Care& Cosmetics, Pharmaceuticals, and Others
- The food and beverage application segment dominated the market in 2020 with over 34% share of global revenue.
- Beverages accounted for a significant share in the application segment in 2020 owing change in lifestyle of consumers, which have propelled the demand for RTD beverages.
- The growing demand for natural and clean label cosmetic products is expected to generate significant growth opportunities for market growth.
- Growing demand for plant-based medicines and rising awareness about the benefits of botanical ingredients are likely to be the major factors driving the market over the forecast period.
Botanical Ingredients Regional Outlook
- North America
- Europe
- Asia Pacific
- Central & South America
- Middle East & Africa
Key Companies Profile & Market Share Insights
The global market is highly fragmented and competitive owing to the presence of prominent and well-established players. The companies have a strong network of distributors and partnerships with farmers to achieve higher efficiencies across the value chain. Key companies are continuously involved in M&A and partnership activities to gain a competitive advantage over others. The M&A activities have enabled the market players to expand their product portfolios and geographical presence.
Some prominent players in the global Botanical Ingredients market include:
- Indesso
- Lipoid Kosmetic AG
- The Herbarie at Stoney Hill Farm, Inc.
- International Flavors& Fragrances, Inc.
- Bell Flavors& Fragrances
- Rutland Biodynamics Ltd.
- Prakruti Products Pvt. Ltd.
- Ltd.
- The Green Labs LLC
- Berje, Inc.
- Umalaxmi Organics Pvt. Ltd.
Order a free sample PDF of the Botanical Ingredients Market Intelligence Study, published by Grand View Research.
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