Botanicals Market

The global Botanicals Market is valued at USD 105.2 Billion in 2022 and is projected to reach a value of USD 178.3 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 6.8% between 2023 and 2030.

Premium Insights

According to sources, many consumers are interested in innovative beverage choices. This includes 34% interested in enhanced water, 30% in functional tea, and 29% each in sparkling fruit juices and sparkling fruit waters. There is also enthusiasm for fruit water-tea blends, with 28% showing interest. This developing trend is typically pushed using Millennials, who are reshaping the alcoholic and non-alcoholic beverage markets. As a result, there has been an increase in "0% alcohol" options, with a projected 31% growth in this category by 2024, according to the IWSR Drinks Market Analysis.

Botanicals ingredients play a crucial role in this transformation, often replacing alcohol to provide a flavor experience similar to traditional alcoholic beverages. Various elements such as chili peppers, herbs, root and bark decoctions, oak extracts, and bitters are attracting consumer attention. Experiential Botanicals like CBD, adaptogens such as ginseng and ashwagandha, and green tea are also gaining popularity.

• There is a strong focus on "better-for-you" alcohol alternatives, with sales increasing by over 20% from 2022 to 2022. Ingredients like reishi, hibiscus, tart cherry, and ashwagandha are gaining prominence in these beverages.
• The European region generated more than 32.5% of revenue share in 2022.
• The Asia Pacific region is expected to grow at the quickest rate from 2023 to 2030.
• The Spices segment accounted for the most significant market growth and contributed over 26.4% of the total revenue share in 2022.
• The Food and Beverages segment revealed the most significant market growth, contributing more than 33.1% of the total revenue share in 2022.

Economic Insights

Botanicals have grown to play important roles in a variety of industries, including food, drink, pharmaceuticals, and cosmetics. They have diverse applications in health and wellness, including preparations, drugs, and essential oils, and align with a preventive health approach, potentially reducing healthcare costs. In the beverage sector, there is a shift in demand towards functional products with Botanicals ingredients, seen in the rise of "0% alcohol" options, driven by consumer expectations and the preferences of millennials. The Botanicals market is growing economically, with herbal supplement sales surpassing $8 billion, highlighting popular ingredients like turmeric and exploring new Botanicals worldwide. The pharmaceutical industry is also changing, as Botanicals extracts are emerging as a new class of drugs, requiring innovation and adherence to modern toxicity testing and the reassessment of traditional medicines.

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Top Market Trends

• Botanicals, which have a long history in traditional medicine, are now used for various health and wellness purposes. This includes boosting the immune system, providing antioxidants, and treating psychological and digestive issues.
• In the beverage industry, there is a noticeable trend towards functional products that contain Botanicals ingredients. This is driven by consumer demand for healthier options, with "0% alcohol" beverages becoming more popular. Botanicals like CBD, adaptogens, and green tea are used to create tasty non-alcoholic drinks.
• There is a notable change in the pharmaceutical industry, as Botanicals extracts are being developed into a new class of drugs. This transition is accompanied by challenges in testing for toxicity and re-evaluating traditional medicines through clinical studies. FDA-approved drugs like Veregen® and Fulyzaq® are examples of this shift towards Botanicals-based pharmaceuticals.
• Start-ups like Novella, Ltd. and established players like Leaven Essentials use technology to cultivate Botanicals ingredients. They employ proprietary methods to address climate resilience and ensure product authenticity through DNA fingerprinting and geo-tagging.
• Botanicals market companies focus on innovation and product development to meet consumer demands. For example, Lipoid Kosmetik has developed Amaretine® for sensitive skin, Bell Flavors & Fragrances is exploring natural remedies, and Indena and DSM-Firmenich have partnered to create science-backed Botanicals solutions for dietary supplements.

Market Segmentation

The Global Botanicals Market is segregated into the below-mentioned segments as:

The global Botanicals market can be categorized into Source, Application, Region. The Botanicals market can be categorized into Herbs, Leaves, Spices, Flowers, Other Sources based on Source. The Botanicals market can be categorized into Food & Beverages, Dietary Supplements, Personal Care & Cosmetics, Pharmaceuticals, Other Applications based on Application. The Botanicals market can be categorized into North America, Europe, Asia Pacific, Latin America, Middle East & Africa based on Region.

Based on Source

The Spices Expected to Hold the Largest Market Share in the Projected Period

In 2022, the Spices segment holds most of the market share. Consumers are increasingly seeking natural and healthy ingredients due to their diet awareness and the possible health risks associated with processed foods. As a result, people opt for natural alternatives, and spices are a popular choice. Spices can enhance the flavors of dishes without the need for excessive salt, sugar, or unhealthy additives. Moreover, numerous spices provide a range of health advantages, such, as reducing inflammation exhibiting properties and bolstering the system. The rise in the popularity of international cuisines is also driving the growth of the spice segment. As people become greater adventurous with their food alternatives, there is a growing requirement for individual flavors and ingredients. Spices play an important role in enriching the taste and authenticity of various cuisines, together with Indian, Thai, Mexican, and Middle Eastern. This has raised the consumption of spices inclusive of turmeric, cumin, paprika, cardamom, and cinnamon.

Based on Application

Food & Beverages Segment Estimated to Dominate the Market in Forecast Timeline

In 2022, the food and beverages industry had the largest market share. This is attributed to the growing usage of ingredients because of their distinct flavors and numerous health advantages in a variety of food and beverage products. Due to changes in consumer lifestyle that have driven demand for RTD goods, beverages accounted for a sizable portion of the application sector in 2022. The manufacturer's increased efforts to create RTD goods with various flavors and enhanced Botanicals elements are also helping the market flourish. Since Botanicals compounds include antifungal, antibacterial, antioxidant, skin conditioning, oral care, and humectant qualities, cosmetics makers frequently use them to create natural skincare formulations. Furthermore, the market is anticipated to see substantial development prospects due to the increasing demand for natural and clean-label cosmetic supplies.

Based on Region

Europe Expected to Account for the Maximum Market Share in the Near Future

The European Botanicals market has increased in recent years due to various factors. These encompass a greater consciousness of the health benefits of natural products, an accelerated demand for organic & plant-based totally alternatives, and a move towards sustainable and eco-friendly lifestyles. In addition, the implementation of various legislation in recent years within the European Union has had a significant impact on the Botanicals market in Europe. Moreover, one particular area of growth in the European Botanicals market is the increasing demand for herbal supplements and remedies. People are turning to Botanicals as a natural way to support their health and well-being, resulting in a notable increase in the use of herbal supplements across the region. For instance, in the United Kingdom, sales of herbal supplements reached £461 million in 2019, marking a 6% increase compared to the previous year. The rise is likely associated to the growing popularity of natural and conventional treatments, the move toward preventative care and self-care, and the expansion of the market for Botanicals products.

Competitive Landscape

Key Botanicals market players, including Lipoid Kosmetik, Bell Flavors & Fragrances, Indena, DSM-Firmenich, Novella, Ltd., and Leaven Essentials, are actively involved and contribute to the competitive landscape. These companies demonstrate various strategic initiatives, such as Lipoid Kosmetik's development of Amaretine® for sensitive skin and Bell Flavors & Fragrances' focus on identifying and capitalizing on consumer trends in essential oils and Botanicals extracts. Collaborative efforts, like the partnership between Indena and DSM-Firmenich for science-backed Botanicals solutions, are essential for advancing the industry. Technological advancements are significant, with start-ups like Novella, Ltd. revolutionizing Botanicals ingredient cultivation using climate-resilient approaches. Leaven Essentials showcases sustainability practices through DNA fingerprinting and geo-tagging in herb collection.

The players in the global Botanicals market include Archer-Daniels-Midland Company (U.S.), Firmenich SA (Switzerland), Synergy Flavors Inc. (U.S.), Blue Sky Botanics Ltd. (UK), International Flavors & Fragrances Inc. (U.S.), Ransom Naturals Ltd. (UK), Bell Flavors & Fragrances (U.S.), Martin Bauer Group (Germany), Givaudan S.A. (Switzerland), Blossom Botanicals (U.S.), GreenLife Pharmaceuticals (Nigeria), Herb Essentials (U.S.), Lipoid Kosmetik (U.S.), Indena (Italy), Novella Ltd. (U.S.), Leaven Essentials (India) among others.

Recent Market Developments

• In February 2023, Blossom Botanicals, a well-known Botanicalss company, has recently launched a fresh collection of organic herbal teas utilizing distinct blends of Botanicals ingredients aimed at enhancing general wellbeing and inducing a sense of relaxation. The company responsibly sources the teas from sustainable plants and subjects them to rigorous quality testing to maintain their purity and effectiveness.
• In April 2023, GreenLife Pharmaceuticals, a renowned company in the Botanicals industry, has introduced an innovative skin care solution derived from Botanicals extracts. Utilizing advanced techniques in formulation, this product effectively tackles multiple skin issues such as aging, hydration, and rejuvenation. With its nourishing and protective properties, the natural ingredients of this product promote a youthful and glowing complexion.
• In June 2023, HerbEssentials, a prominent Botanicals company, partnered with a renowned celebrity chef to develop a unique line of gourmet foods infused with Botanicals extracts. The collaboration aims to combine the exquisite flavors and advantageous properties of thoughtfully chosen Botanicals with culinary expertise, resulting in a satisfying and health-conscious dining experience for consumers. The product range includes infused oils, dressings, and specialty sauces, introducing a fresh and exciting dimension of taste to gourmet cuisine.

Segmentation of the Global Botanicals Market