Botanical Extracts Market

Increasing demand for natural and plant-based ingredients to boost market growth

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.

The Global Botanical Extracts Market Industry experiences a notable increase in demand for natural ingredients across various sectors, including food and beverages, cosmetics, and pharmaceuticals. Consumers are increasingly inclined towards products that are perceived as safe and environmentally friendly. This trend is reflected in the projected market value of 6.6 USD Billion in 2024, with expectations to reach 16.3 USD Billion by 2035. The shift towards clean label products and the growing awareness of the benefits of botanical extracts are driving this demand, suggesting a robust growth trajectory for the industry.

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.

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.