Global Botanical Extracts Market - 2024-2031

Overview

Global botanical extracts market reached US$ 6,550.0 million in 2023 and is expected to reach US$ 12,052.6 million by 2031, growing with a CAGR of 7.9% during the forecast period 2024-2031.

The demand for botanical extracts has surged significantly, driven by recognized health benefits, particularly in combating oxidative stress, reducing free radicals and lowering the risk of various degenerative diseases including cardiovascular conditions, certain cancers, obesity and type 2 diabetes. Additionally, botanical extracts in the personal care industry, particularly in anti-aging products, have seen a significant increase, with a clear preference for ingredients with DNA-protecting properties.

Key botanical species such as Vitis vinifera (grape), Butyrospermum parkii (shea butter) and Glycine soja (soybean) have remained top choices due to their strong scientific backing for efficacy. Flavonoids, including flavan-3-ols, proanthocyanidins and anthocyanins, are particularly prominent for their antioxidant and anti-inflammatory benefits.

For instance, in August 2022, ANGUS Chemical Company expanded its personal care portfolio with natural botanical extracts, including green tea, white tea and chamomile, produced using sustainable, traceable methods. The move aligns with the growing consumer demand for naturally derived ingredients in personal care. Additional extracts including hibiscus, rosemary and licorice are in development. ANGUS also offers multifunctional ULTRA PC-grade amino alcohols for broad application in personal care products.

Dynamics

Demand for Natural and Organic Products

According to the article published on Nutraceuticals World in April 2024, the natural and organic products market reached over US$ 300 billion in 2023, driven by strong consumer demand for health-conscious, sustainable options. Organic categories including sodas, sauces and meats notably outperform conventional products, with e-commerce experiencing a resurgence despite mass-market dominance.

Rising demand for natural and organic products is poised to drive growth in the botanical extracts market. Consumers' preference for plant-based, minimally processed ingredients aligns well with botanical extracts, which are increasingly used in wellness-focused foods, beverages and supplements to meet clean-label demands.

Additionally, the demand for organic and natural cosmetics is surging, with Europe alone seeing 7% annual growth, expected to reach around US$ 5.5 billion by 2023. In France, sales jumped 18.7% year-over-year from 2017 to 2018, while Germany and US led global sales at approximately US$ 1.47 billion and US$ 4.75 billion, respectively. The growth reflects consumer preference for botanical extracts, valued for anti-aging and antioxidant benefits and underscores the importance of certifications including COSMOS and Fairtrade in driving consumer trust and sustainable sourcing.

Expanding Applications in the Food & Beverage Industry

Botanical extracts are transforming the food and beverage industry by meeting the demand for natural, clean-label products with unique flavors and functional health benefits. These plant-derived ingredients support wellness goals, offering alternatives to artificial additives while enhancing taste. With the global natural extracts market projected to grow significantly, companies can leverage botanical extracts to innovate and capture the health-conscious consumer segment.

For example, with 79% of Generation X Brazilians prioritizing health and 31% seeking natural ingredients, the demand for functional beverages is on the rise. Duas Rodas is tapping into this shift by offering botanical extracts including Yuzu and Guayusa in their product range, aligning with consumer preferences for natural, reduced-sugar options. The company innovations at Softdrinks Tech 2024, such as Jabuticaba energy drinks, cater to this health-driven trend.

High Production Costs

The high production costs of botanical extracts pose a key challenge in sectors such as natural supplements and cosmetics. Sourcing raw materials, often through specialized cultivation or wild harvesting, drives up input costs. Additionally, extraction processes require advanced technology and energy, further escalating production expenses. Rigorous quality control and regulatory compliance add to the overall cost structure.

The rising demand for sustainable, organic and ethically sourced botanicals adds to the financial burden. Certification processes, such as organic or fair trade, increase production time and costs, limiting accessibility for price-sensitive consumers. As competition for rare botanicals intensifies, these elevated costs could constrain market growth in cost-conscious regions.

Segment Analysis

The global antioxidant market is segmented based on source, form, technology, application and region.

The Surging Demand for Herb Sourced Botanical Extracts

The herbs segment is expected to be the dominant segment in source holding an approximate market share of more than 30% during the forecast period. The demand for herb-sourced botanical extracts has surged significantly in recent years, driven by increasing consumer interest in natural products, heightened awareness of health and wellness and the rise of clean-label and sustainable ingredient trends across various industries, particularly in food, beverages, dietary supplements and cosmetics.

For instance, in May 2024, Mibelle Biochemistry launched MonaJuventa Nu, a herbal extract derived from scarlet beebalm (Monarda didyma), designed to slow epigenetic aging. The extract, rich in bioflavonoids like didymium and isosakuranetin, targets key aging processes, including telomere shortening and mitochondrial ATP production. Lemon balm (Melissa officinalis) is used as a stabilizer in the formulation. The herbal solution represents a significant advancement in the anti-aging sector for nutraceutical applications.

Geographical Penetration

Rising Demand for Botanical Extracts in Asia-Pacific

Asia-Pacific is expected to be the dominant region in the global botanical extracts market holding an approximate market share of 36% during the forecast period. The region is witnessing a strong surge in demand for botanical extracts, driven by increased consumer interest in natural health products, clean-label transparency and plant-based wellness solutions.

With an expanding middle class and rising disposable incomes, there is a clear shift toward premium, health-focused products, where botanical ingredients like ginseng, turmeric and green tea are in high demand across nutraceuticals, functional foods and personal care sectors. For instance, in June 2022, Natac established a new office in Singapore, marking a strategic expansion to enhance its sales, logistics and commercial operations in Asia-Pacific. The company is leveraging its global reach to meet the growing demand for botanical extracts in the market, which contributed a third of its 2021 revenue.

Competitive Landscape

The major global players in the market include International Flavors & Fragrances Inc., Dohler GmbH, Synergy, Kalsec Inc., Synthite Industries Ltd., Ransom Naturals Ltd, Alchemy Chemicals, Blue Sky Botanics, MartinBauer, Indesso and ADM.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine conflict has significantly disrupted the global botanical extracts market, leading to potential shortages in key ingredients such as Rhodiola and Eleuthero, which are primarily sourced from Russian and North Asian regions. Supply chain challenges are exacerbated by restricted trade routes and rapidly rising prices, notably in essential inputs like maltodextrin, a corn-derived polymer, as Ukraine, a major supplier, faces ongoing supply issues.

To adapt, companies are prioritizing supply chain resilience by diversifying suppliers and exploring ethical, local sourcing. The shift toward onshoring and "friend-shoring" enables firms to reduce dependency on high-risk suppliers, boosting business continuity. However, as the crisis persists, access to critical raw materials may still face hurdles, demanding agile supply strategies and fostering a broader movement toward sustainable, ethically sourced supply chains.

By Source

• Spices
• Herbs
• Flowers
• Tea Leaves
• Others

By Form

• Powder
• Liquid
• Others

By Technology

• CO2 Extraction
• Solvent Extraction
• Steam Distillation
• Enfleurage
• Others

By Application

• Food & Beverages
  • Bakery and Confectionery
  • Sauces and Dressings
  • Dairy Products
  • Beverages
  • Others
• Pharmaceuticals & Nutraceuticals
• Animal Feed
• Cosmetics & Personal Care
• Others

By Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In April 2024, Nektium launched a botanical extract sourced from Aframomum melegueta. The extract targets stress and mood support by modulating the endocannabinoid system. Nektium's proprietary technology ensures the stability of its key bioactive compound, total vanilloid, throughout extraction and encapsulation.
• In May 2024, Mibelle Biochemistry launched MonaJuventa Nu, a botanical extract aimed at combating epigenetic aging. Sourced from Monarda didyma (scarlet beebalm), it is rich in bioflavonoids such as didymium and isosakuranetin. Lemon balm (Melissa officinalis) is incorporated as a stabilizer. Innovation aligns with the increasing demand for advanced anti-aging solutions in wellness and personal care markets.
• In July 2023, Mayaa Veda Herbal launched a new direct-to-consumer (D2C) skincare and haircare brand, offering seven Ayurvedic products free from parabens and sulfates. The range, including botanical shampoos and serums, is designed for individuals with an active lifestyle, promoting simplicity and self-care. The products are cruelty-free, vegan and suitable for all skin and hair types.

Why Purchase the Report?

• To visualize the global botanical extracts market segmentation based on source, form, technology, application and region as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of the botanical extracts market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global botanical extracts market report would provide approximately 73 tables, 69 figures and 211 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies