Global Botanical Ingredients Market by Application (Cosmetic & Personal Care, Dietary Supplements, Food & Beverages) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global botanical ingredients market was valued at USD 131.5 billion in 2019. It is projected to grow at a compound annual rate (CAGR of 7.0%) between 2020 and 2027. The market for botanical ingredients is expected to benefit from the growing popularity of clean labels in the pharmaceutical and food and drink industries, as well as increasing consumer awareness about safety and health.

Consumers continue to push for clean label products. This is based on the ongoing health and wellness trend. They also want authenticity in food products. It has pushed buyers' purchasing behavior to a higher level and authentic consumption has become a key food and beverage trend. The demand for non-artificial, natural ingredients is driving the market for botanical ingredient's strength.

Ginkgo Biloba, Ginkgo Biloba and ginseng are the most popular botanical products in the U.S. Ginseng is a broad-based product and is well-known for its high content of phenolic substances, ginsenosides and saponins as well as carotenoids and carbs.

The ongoing pandemic COVID-19 that has continuously impacted global trade and production, is likely to hinder the growth of the botanical ingredient market. Producers have had to struggle to sell their products in prestigious countries like the U.S., Canada and India.

Due to the pandemic, people are becoming more aware of the dangers of using synthetic chemicals in their skincare and food products. They have started to shift towards natural colorant-based plant juice products as they offer better protection against bacteria and viruses. The market for botanical ingredients will see significant growth during the forecast period.

Source Insights

The largest market share was held by the spice segment at 28.5% in 2019. It is expected that the spice segment will see significant growth over the forecast period due to changing lifestyles and a rise in interest in new foods. Spice extract producers are able to create a new range of flavors by changing consumer preferences. These spices are the most widely used of all botanical ingredients.

Solvent extraction is the method by which botanical ingredients are extracted from these raw materials. These ingredients are herbaceous and can be found in liquid, semi-solid, or solid forms. These ingredients drive high demand for cosmetics that enhance their quality. The elements are also being used in the food and beverage industry to increase their nutritional value.

The market for botanical ingredients is expected to grow significantly in the flower form segment. This can be attributed to a shift in lifestyles that favor a more luxurious and healthy lifestyle. It has also boosted the growth of the botanical flower industry. Not only are fresh flowers used for beauty, but many other purposes, such as aromatherapy, cosmetics, essential oils and potpourris, have increased in demand.

Due to their extensive use in traditional medicine, herbs are expected to dominate the market for botanical ingredients. Herb-based medicines are becoming more popular due to their health benefits. They help in strengthening the immune system and stabilize hormones.

Form Insights

In 2019, the powder form segment held the largest market share at 61.4% and is expected to see significant growth over the forecast period. It is widely used in many applications, including bakery and confectionery, sauces, dressings, and meat, dietary supplement, as well as medicines.

There is an increasing demand for new ways to control plant diseases. Ancient civilizations used powdered extracts of botanical plants to improve the taste and preservation of food and drinks. This segment will likely have a positive impact on the market for primary skincare and personal care products because of its convenience and long shelf life.

HUM Nutrition's and ESI Beauty collagen raw beauty powder, which include American ginseng, Eleuthera roots powder, and ashwagandha roots powder in the U.S. markets, are boosting the industry for botanical ingredients due to their consistency in texture, intervening at root cause of problems, and restoring skin cells.

The liquid form segment of the market for botanical components is expected to see a steady increase over the forecast period. This is due to the use liquid forms of botanical ingredients in herbal medicine and functional beverage preparations, where the exact amount of liquid can easily be mixed to achieve the desired solution. The liquid herbal form must preserve the flavor, aroma, and bioactivity of the plant it was made from. Vanilla extract is often known as a liquid herb extract.

Application Insights

In 2019, the food and beverage segment held 34.7% of the market. This segment is expected to see significant growth due to a surge in demand for ready-to-eat foods, particularly in emerging countries like India, China and Brazil.

Functional foods can be used in a variety of applications, including bakery, cereals, milk products, eggs, and fats & oils. These products will also be used in a variety of niche applications, thanks to the technological advances.

Consumers who have problems with weight management, digestion, gut health (gut issues), immunity and cardio fitness often use these products. These food products are used by consumers to maintain their diets and prevent potential chronic diseases.

As people age, the incidence of chronic diseases that are associated with excessive calorie intake and healthcare costs is increasing. These days, consumers are looking for ways to reduce the risk of developing such conditions. Changes in lifestyle have resulted in an increase of diseases like diabetes and cardiovascular disease.

Treatments for heart disease and diabetes are generally expensive. The rising healthcare and pharmaceutical costs have prompted consumers to adopt healthy eating habits and self-management. This has in turn boosted the demand for botanical products.

In the next few years, the cosmetic and personal care market will see a significant increase in demand for botanical ingredients. Botanical skincare ingredient producers are supplying high-quality ingredients and safe ingredients to consumers. As buyers shift to natural ingredients-based products, cosmetic and personal care companies continue to discover new herbal ingredients.

Regional Insights

North America was the most important market with 35.8% of the revenue in 2019. It is expected that there will be increased demand due to products with lower calorie counts and higher nutritional content. The forecast period will also see an increase in demand for dietary products in Mexico due to new product launches.

Over the next eight years, dietary supplements will be more popular due to rising awareness among U.S. and Canadian working professionals about nutritional enrichment. The market will grow due to high adoption rates of herbal medicines by people living in the U.S.A. and Canada, as well as rising concerns about the potential dangers associated with traditional pharma drugs.

Asia Pacific is expected to experience the fastest growth during the forecast period. The region has a lot of potential for growth thanks to favorable government policies in agriculture trade to increase food production and attract investment in the market for botanical ingredient. Due to agriculture being a major contributor to their GDPs, countries like China, India and South Korea, Japan, Taiwan, and Taiwan, depend to some degree on it for economic growth.

Europe is a major pharmaceutical region worldwide due to the presence of giant pharma companies like Bayer AG or Novartis. Research-based pharmaceutical industries in the region have resulted in product launches and new product development, which is a key driver for the regional pharmaceutical industry.

Market Share Insights & Key Companies

There is a lot of competition in the market for botanical ingredients. Companies have less differentiation between their products. There are many market players in Canada and the U.S. The market leaders in botanical ingredients are focused on increasing their revenue share and achieving profitability through product innovation.

Major brands are investing heavily in adaptogens, and botanicals to position conventional soft drinks as functional beverages. This further blurs the lines between Energy drinks and other drinks including juices. New product development is gaining momentum from both established and new brands that use botanical ingredients in carbonated beverages. The market for botanical ingredients includes:

• PT. INDESSO AROMA

• New Directions Aromatics Inc.

• The Herbarie at Stoney Hill Farm, Inc.

• Lipoid Kosmetik AG

• Bell Flavors & Fragrances

• Frutarom Ltd

• Rutland BIODYNAMICS Ltd

• Ambe Phytoextracts Pvt Ltd

• Prakruti Products Pvt. Ltd.

• Umalaxmi Organics Pvt. Ltd

• The Green Labs LLC

• BERJE INC.

• Saba Botanical

Up Market Research published a new report titled “Botanical Ingredients Market research report which is segmented by Application (Cosmetic & Personal Care, Dietary Supplements, Food & Beverages), By Players/Companies Rutland Biodynamics Ltd, Umalaxmi Organics Pvt Ltd, Bell Flavors & Fragrances, PT INDESSO AROMA, New Directions Aromatics Inc, Frutarom Ltd, BERJ‰ INC, Saba Botanical, The Herbarie at Stoney Hill Farm Inc, Lipoid Kosmetik AG, Ambe Phytoextracts Pvt Ltd, The Green Labs LLC, Prakruti Products Pvt Ltd”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Botanical Ingredients Market Report Segments:

The market is segmented by Application (Cosmetic & Personal Care, Dietary Supplements, Food & Beverages).

Botanical Ingredients Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Botanical Ingredients Market

Overview of the regional outlook of the Botanical Ingredients Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Botanical Ingredients Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Botanical Ingredients Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Cosmetic & Personal Care

                2. Dietary Supplements

                3. Food & Beverages

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Botanical Ingredients Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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• Correctly Positioning New Products
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Reasons to Purchase the Botanical Ingredients Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.