Market Definition
Botanical ingredients are obtained from plants and are treasured mainly for their applications like flavor & aroma, healing, & other natural properties. These ingredients are procured from spices, herbs, vegetables, & fruits, among others, where they offer a comprehensive product range.
Due to their high enrichment in terms of nutrients like bioactive compounds, these ingredients are popularly used for their biological effects. Today, the application of these ingredients is backed by advancements & experimentation within the Food & Beverage industry & paving way for expanding use worldwide.
Market Insights
The Global Botanical Ingredients Market is projected to grow at a CAGR of around 7.2% during the forecast period, i.e., 2022-27. The market is driven by the growing health consciousness among people and their swift inclination toward functional foods, demonstrating a mounting demand for botanical ingredients.
In addition, as the trends of eating clean label products & sustainable ingredients is upscaling rapidly, consumers to hiking up the demand for these ingredients. The same aspect is instigating several prominent players to increase their production & distribution capacities and cater to the rising requirements worldwide. It is particularly seen across the food & beverages industry owing to these ingredients offering a refreshing & premium touch to the existing formulations & cuisines.
Such shift in food preferences is demonstrating a frequent usage of botanical ingredients in various applications like bakery & dairy products, energy drinks, beverages, cereals, etc. Such rise in the utilization of botanical ingredients is set to make peccable effects on the industry across locations.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 7.2% |
| Regions Covered | North America: The US, Canada, Mexico, Rest of North America |
| Europe: Germany, The UK, France, Italy, Spain, Russia, Rest of Europe | |
| Asia-Pacific: India, China, Japan, Australia, Rest of Asia-Pacific | |
| South America: Brazil, Argentina, Rest of South America | |
| Middle East & Africa: UAE, South Africa, Rest of Middle East & Africa | |
| Key Companies Profiled | Aura Cacia, doTERRA, DuPont, Givaudan, NOW Essential Oils, Plant Therapy, Rocky Mountain Oils, LLC, Sydney Essential Oil Co., The Lebermuth Company, Young Living, Others |
| Unit Denominations | USD Million/Billion |
Moreover, especially after the Covid-19 pandemic, the health consciousness among people have elevated. This explosion in interest in health-beneficial products is making positive influences on the overall market growth. The Covid-19 projected opportunities for botanical ingredients, demonstrating a surge in demand. During the initial phase of the crisis, hospitals like Traditional Chinese Medicine (TCM) augmented the need for traditional medicines and recommended the use of herbs to address the coronavirus.
In fact, these ingredients were used in various dietary supplements associated with joint health, anxiety, obesity, & vascular system. Hence, the pandemic and the consumer preference for an active & healthy lifestyle boosted the demand for botanical ingredients and might prevail in the coming years.
Furthermore, the expansive utilization of these ingredients extends across the cosmetic solutions too, and exemplify a much more potent, advanced, & quality oriented utilization in different skin & hair products. Backed by their excellent properties like antioxidant, antifungal, antimicrobial, oral care, skin conditioning, and humectant properties, their usage is quite evident in a wide range of products like collagen, hyaluronic acid, etc.
Market Segmentation
By Form
Powered/Raw form acquired the largest share of the Global Botanical Ingredients Market in recent years and is anticipated to prevail in the same trend during the forecast period. This dominance attributes to its expansive applicability in food & beverages like bakery, confectionery, sauces, seasonings, meat, and dairy products.
Besides, the powdered ingredients also project comprehensive relevance in producing dietary supplements & formulating active ingredients. In addition, since powdered botanical ingredients have a relatively long shelf life owing to their concentrated nature, more people prefer using these products and stimulate the demand.
Moreover, increasing health consciousness among people and their inclination toward powdered/raw ingredients is instigating the leading players to introduce novel food products and strategically expand their product portfolios to cater to the massive consumer base. Additionally, the raw forms of the ingredients also cater to enhancing the palatability of food, beverage, and preservatives, owing to which, different industries are preferring powders/raw forms. For instance,
On the other hand, Liquid forms are projected to witness significant demand and contribute to the expansion of the Global Botanical Ingredients Market during the forecast period. It owes principally to the convenience of this form to prepare Ready-to-Drink (RTD) beverages, cold beverages, and beverage mixes. Backed by the growing popularity of RTD beverages due to their easy consumption, strong nutritional profile, & availability at local stores, the demand for liquid form is set to upscale in the coming years.
