Botanical Ingredients Market: Current Analysis and Forecast (2023-2030)

Botanical ingredients are derived from plants and are valued mainly for its flavor and aroma, therapeutic and natural properties. Botanical ingredients are vast and diverse in range, and commonly include herbs and spices, fruits and vegetables. The products derived are available in solid, semi-solid and liquid forms because they are extracted through the solvent extraction process of these raw materials.

The botanical ingredients market is expected to grow at a steady rate of around 7%. The respective market is gaining popularity due to the natural flavors, sustainable credentials, and health benefits. The derived product was only reserved for gin distilleries or herbal teas before, but as time passed by, new and innovative usage throughout the drink sector, along with the food industry, is boosting botanical ingredients sales over the time. Growing desire for convenience foods, increased awareness of the advantages of herbal goods versus synthetic products, and rising demand from food and other uses are all expected to improve botanical ingredients sales for the forecasted period.

On the basis of source, the market is segmented into herbs, leaves, spices, flowers and others. Spices category held the largest market share primarily due to changing lifestyles demanding healthy food that is convenient along with a popular trend of experiencing novel foods. They are gaining importance globally on account of their health benefits, such as improved metabolism & immune system, and stabilization of hormones.

On the basis of form, the market is categorized into powder and liquid. Powder segment is expected to account for the largest share of the global botanical ingredient market mainly due to surge in powder among various applications, including food, beverages, and cosmetics, and high health benefits over the other forms. Moreover, it can be easily mixed with any end products in the food and beverages industry, as well as in cosmetics and pharmaceuticals which will heavily assist the market to grow.

Based on application, the botanical ingredients is categorized into food and beverages, dietary supplements, cosmetics and personal care, pharmaceuticals and others. The food and beverage application segment dominates the market share as botanical ingredients are increasingly being incorporated into various food & beverage applications owing to their unique flavor and health benefits. Food manufacturers are increasingly fortifying their products with nutritive ingredients, such as vitamins, minerals, and prebiotics, to improve their nutritional value which helps in expansion for the market.

For a better understanding of the market adoption of the botanical ingredients industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America is expected to hold a significant share in the market. Factors, such as the penetration of organized and e-commerce retail, are driving the consumption of convenience food products incorporated with botanical ingredients in the respective region.

Some of the major players operating in the market include: GrainCorp, Malteurop, Rahr Corporation, Boortmalt, Lipoid-Kosmetik, The Herbarie at Stoney Hill Farm, Inc., International Flavors& Fragrances, Inc., Bell Flavors& Fragrances, Rutland Biodynamics Ltd., Prakruti Products Pvt. Ltd.