Global Botanical Extracts Market Drivers 2024, Forecast To 2033
25 Sep, 2024
The botanical extracts market has experienced robust growth, escalating from $6.51 billion in 2023 to $7.13 billion in 2024 at a compound annual growth rate (CAGR) of 9.5%. This growth in the historic period is attributed to the increasing popularity of traditional remedies, cultural and traditional use, exploration and trade routes, and favorable government regulations. Moving forward, the market is anticipated to continue its upward trajectory, reaching $10.48 billion in 2028 with a CAGR of 10.1%. Projected growth drivers include rising health awareness, a growing demand for functional foods and beverages, an increased appetite for plant-based products, a surge in popularity for herbal supplements, and rising disposable income. Key trends in the forecast period encompass heightened research and development, innovative product offerings, mergers and acquisitions, and government initiatives supporting the industry.
Major Driver In The Botanical Extracts Market
The growing demand for convenience food products propels the botanical extracts market going forward. Convenience food refers to tertiary processed food, which is ready-to-eat processed food. Plant extracts are used to enhance the color and flavor of high-fat and ready-to-eat foods, such as meat. Botanical extracts are plant materials with concentrated medicinal characteristics utilized in the food industry to give health advantages. Thus, due to the increased demand for convenience foods, the market for botanical extracts is expected to grow. For instance, in 2022, according to the Economic Research Service of U.S. Department Of Agriculture, a US-based government agency, the U.S. consumers spent an average of 11.3% of their total food expenditures on food away from home. Thus, the demand for convenience food products drives the botanical extracts market. The botanical extracts market size was $6.2 billion in 2023, and it is expected to reach $10.5 billion by 2028.
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International Flavors & Fragrances Inc., Himalaya Herbal Healthcare, Blue Sky Botanics Ltd., Naturex, Synthite Industries Ltd., Nexira, Layn Natural Ingredients Corp., Indesso, Dohler GmbH, Hunan Nutramax Inc., Haldin Natural, Nutra Green Biotechnology Co. Ltd., Kalsec Inc., Arjuna Natural Pvt. Ltd., Shaanxi Jiahe Phytochem Co. Ltd., Tianjin Jianfeng Natural Products Co. Ltd., Bio-Botanica Inc., Nature's Power Nutraceuticals Corp., Synergy Flavors, Martin Bauer Group, Lipoid-Kosmetik, Phytochem India, Plant Extracts International Inc., Kuber Impex Ltd., Ransom Naturals Ltd., MB-Holding GmbH & Co KG, Frutarom Industries Ltd., Biomax Life Sciences Ltd., Organic Herb Inc., Xi'an Sgonek Biological Technology Co. Ltd.
Key Botanical Extracts Market Trend
Product innovation is a growing trend in the botanical extracts market, with major companies developing extracts with increased bioavailability. For instance, in September 2022, Layn Natural Ingredients, a China-based manufacturer of natural and functional botanical extract ingredients, launched bio Quercitrin, a highly bioavailable form of Quercetin for nutraceutical use. Bio+Quercitrin is a potent antioxidant flavonoid that scavenges free radicals and reduces oxidative stress. Due to its ribose molecule, it is six times more absorbable and permeable in the small intestine than conventional Quercetin. Layn's bio+Quercitrin is a stable, soluble, and bioavailable form that can be used as a stand-alone supplement or in formulations for human and pet health.
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Botanical Extracts Market Segmentation
The botanical extracts market covered in this report is segmented –
1) By Technology: CO2 Extraction, Solvent Extraction, Steam Distillation, Enfleurage, Other Technologies
2) By Source: Spices, Herbs, Flowers, Leaves, Other Sources
3) By Form: Liquid, Powder, Semi-Solid
4) By Application: Food and Beverages, Pharmaceutical and Nutraceutical, Cosmetics
By Geography:The regions covered in the botanical extracts market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the botanical extracts market share in 2023.
The Botanical Extracts Global Market Report 2024 furnishes information about the global botanical extracts market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.