Botanical Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 113.48 Billion |
| Market Size (2029) | USD 156.43 Billion |
| CAGR (2024 - 2029) | 6.63 % |
| Fastest Growing Market | Europe |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Botanical Market Analysis
The Botanicals Market size is estimated at USD 113.48 billion in 2024, and is expected to reach USD 156.43 billion by 2029, growing at a CAGR of 6.63% during the forecast period (2024-2029).
Botanicals have very efficient medical properties. Botanicals are derived from plants. Specifically, in the health and wellness field, this term refers to plants or parts of plants with medicinal value or health benefits. Botanicals are modified into botanical preparations, botanical drugs, and essential oils. With rising concerns about the safety, cost, and adverse effects of conventional pharmaceutical drugs, these are gaining popularity. Botanical health products are now widely available Botanicals are derived from plants. Specifically, in the health and wellness field, this term refers to plants or parts of plants with medicinal value or health benefits. Botanicals are modified into botanical preparations, botanical drugs, and essential oils. With rising concerns about the safety, cost, and adverse effects of conventional pharmaceutical drugs, these are gaining popularity. Botanical health products are now widely available. Rising health consciousness has increased concerns over diet, and enhanced care towards preventive healthcare has made consumers use botanicals. After the COVID-19 pandemic, people have become very health conscious, and they are more keen on using products that have medical properties. Furthermore, the emergence of new application areas, such as functional beverages, in accordance with the evolution of consumer needs opens doors for new product development opportunities. Consumers who want clean-label and sustainable ingredients are attracted to products that contain botanicals. However, the use of botanical ingredients, such as sage leaf and rose petal, is also growing in categories including bakery, dairy, and confectionery. Among foods and beverages, consumers tend to consider botanical "premium" ingredients. Local palates and availability dictate which botanicals are most popular. Botanical extracts can be found in a growing number of product launches across all major segments, from beverages to baked goods and dairy products to savory categories such as soups, sauces, and snacks. Likewise, they are set to play a bigger role in plant-based dairy and meat alternatives since they provide both sensory value and transparency in terms of product labeling.
Botanical Market Trends
Increasing awareness regarding clean label products
The concept of clean eating is most closely associated with natural ingredients. As a result of the global pandemic, consumers have begun to look after themselves more. And there is an increased understanding that their health begins with nutrition. For this reason, botanical ingredients have broken through the trend barrier. They are becoming more commonplace in premium product development projects for functional food brands that are looking to further enhance the benefits of their products. As the number of label-reading consumers grows exponentially, beverage makers that are looking to appeal to these consumers are launching botanical-based beverages in increasing numbers across various categories. The source and origin stories carried by botanicals appeal to increasingly sustainability-minded consumers. Thus, botanical ingredients bring cleaner labels. Increasing health and wellness trends are driving demand for healthier food products. In addition, the increasing awareness regarding the benefits of natural products over synthetic products and the rising demand for transparency in sourcing and labeling are some of the other major factors driving the botanicals market.
For instance, in the United States, 63% of adults have said the ingredients in a food or beverage have at least a moderate influence on what they buy, and 64% said they try to choose foods made with clean ingredients, according to the International Food Information Council's (IFIC) June 2021 survey from "chemical-sounding" to "clean" consumer perspective on food ingredients. 22% of U.S. consumers also say they regularly buy foods and beverages because they are advertised on the label as having clean ingredients, according to IFIC's 2021 Food and Health Survey.
Europe is projected to be the fastest growing market.
Europe has a pretty big share of the market for different botanical extracts like essential oils, spices, and herbs. Spain is a major producer of paprika and saffron, which are traded globally. The majority of Spanish saffron is exported to the United States and other countries. Germany has emerged as the leading market in the region. The country is also one of the leading importers of spices and herbs in the European market. Evolving consumer taste preferences, healthy living habits, and convenience are the primary factors boosting the botanical extract market in the region. Extracts such as laurel, rosemary, oregano, cayenne pepper, and nori are widely used in Spanish dishes. The French cosmetics industry is also shifting toward natural and clean products, which is driving up demand for botanical extracts. Moreover, there is a growing trend of organic spice consumption in the region. Consumers are inclined toward herbal drinks, teas, and infusions. The consumer preference for organic food is on the rise owing to an increase in health consciousness among consumers. Further, the surge in disposable income and improvement in living standards have augmented market growth in the region. Therefore, to meet consumers' demands, various companies are innovating and introducing products.
Consumers in the area prefer fruit, cocoa, vanilla, coffee, tea, and floral botanicals, according to Kerry's latest white paper, "Flourishing with Botanicals," which focuses on the food and beverage botanical trend in Europe.
Nektium, a company based in Spain that makes botanical ingredients, expanded its product line in April 2022 to include the food and beverage market. This means that its products can be used for more than just supplements.
Botanical Industry Overview
The botanicals market is fragmented, with numerous global and regional players operating. However, global players such as International Flavors & Fragrances Inc., Bell Flavors & Fragrances, Firmenich SA, Martin Bauer Group, and Givaudan dominated the market with their extensive product offerings coupled with their growth strategies. The prominent market players have been focusing on developing new and innovative products by targeting new formulations. Additionally, these companies have been focusing on increasing the production capacities of their existing plants or introducing new production facilities while investing in R&D activities. Thus, the market studied is expected to witness significant growth in product innovation while keeping expansion as a business interest to reach a diverse set of consumers within a short-term period.
Botanical Market Leaders
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Bell Flavors & Fragrances
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Firmenich SA
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International Flavors & Fragrances Inc.
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Givaudan
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Martin Bauer Group
*Disclaimer: Major Players sorted in no particular order
Botanical Market News
March 2023 Nutri-tech start-up Novella leveraged proprietary technology to grow nutritious botanical ingredients while leaving the whole plant out of the equation. This novel platform in the plant world will help boost global accessibility to high-value nutraceuticals.
May 2022: India-based start-up Leaven Essentials launched branded botanical extracts on the global market. The company aimed to offer scientific and effective herbal solutions tailored to meet customer applications and needs.
November 2021: IFF announced the investment of USD 87 million in its newly extended flavor manufacturing facility in Karawang, Indonesia. The facility, located in Karawang International Industrial City, will address the region's fast-growing demand for flavor technology.
Botanical Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
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4.3 Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 By Source
- 5.1.1 Herbs
- 5.1.2 Spices
- 5.1.3 Flowers
- 5.1.4 Other Sources
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5.2 By Application
- 5.2.1 Food and Beverage
- 5.2.1.1 Bakery and Confectionery
- 5.2.1.2 Sauces and Dressings
- 5.2.1.3 Functional Beverages
- 5.2.1.4 Other Food and Beverages
- 5.2.2 Dietary Supplements
- 5.2.3 Animal Feed
- 5.2.4 Other Applications
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5.3 By Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Canada
- 5.3.1.3 Mexico
- 5.3.1.4 Rest of North America
- 5.3.2 Europe
- 5.3.2.1 Spain
- 5.3.2.2 United Kingdom
- 5.3.2.3 France
- 5.3.2.4 Germany
- 5.3.2.5 Italy
- 5.3.2.6 Russia
- 5.3.2.7 Rest of Europe
- 5.3.3 Asia-Pacific
- 5.3.3.1 China
- 5.3.3.2 India
- 5.3.3.3 Japan
- 5.3.3.4 Australia
- 5.3.3.5 Rest of Asia-Pacific
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Rest of South America
- 5.3.5 Middle-East and Africa
- 5.3.5.1 Saudi Arabia
- 5.3.5.2 South Africa
- 5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Strategies Adopted by Key Players
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Archer-Daniels-Midland Company
- 6.3.2 Firmenich SA
- 6.3.3 Synergy Flavors, Inc.
- 6.3.4 Blue Sky Botanics Ltd
- 6.3.5 International Flavors & Fragrances Inc.
- 6.3.6 Ransom Naturals Ltd
- 6.3.7 Bell Flavors & Fragrances
- 6.3.8 Blue Sky Botanics
- 6.3.9 Martin Bauer Group
- 6.3.10 Givaudan S.A.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityBotanical Industry Segmentation
Botanical ingredients include natural ingredients extracted from or derived from herbs, spices, flowers, seeds, leaves, and fruits. Many extracts and oils have incredible healing and rejuvenating properties that work wonders for a range of skin issues, from hyperpigmentation and acne to aging concerns. The market studied is segmented by sources, applications, and geography. By source, the market studied is segmented into herbs, spices, flowers, and other sources. By application, the market studied is segmented into food and beverage, dietary supplements, animal feed, and other applications. Bakery and confectionery, sauces and dressings, functional beverages, and other food and beverages are sub-segments of the food and beverage segment. By geography, the market studied has been segmented into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. For each segment, the market sizing and forecasting have been done in value terms (USD million).
| By Source | Herbs | |
| Spices | ||
| Flowers | ||
| Other Sources | ||
| By Application | Food and Beverage | Bakery and Confectionery |
| Sauces and Dressings | ||
| Functional Beverages | ||
| Other Food and Beverages | ||
| By Application | Dietary Supplements | |
| Animal Feed | ||
| Other Applications | ||
| By Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Rest of North America | ||
| By Geography | Europe | Spain |
| United Kingdom | ||
| France | ||
| Germany | ||
| Italy | ||
| Russia | ||
| Rest of Europe | ||
| By Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| Australia | ||
| Rest of Asia-Pacific | ||
| By Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| By Geography | Middle-East and Africa | Saudi Arabia |
| South Africa | ||
| Rest of Middle-East and Africa |
Botanical Market Research FAQs
How big is the Botanicals Market?
The Botanicals Market size is expected to reach USD 113.48 billion in 2024 and grow at a CAGR of 6.63% to reach USD 156.43 billion by 2029.
What is the current Botanicals Market size?
In 2024, the Botanicals Market size is expected to reach USD 113.48 billion.
Who are the key players in Botanicals Market?
Bell Flavors & Fragrances , Firmenich SA, International Flavors & Fragrances Inc., Givaudan and Martin Bauer Group are the major companies operating in the Botanicals Market.
Which is the fastest growing region in Botanicals Market?
Europe is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Botanicals Market?
In 2024, the North America accounts for the largest market share in Botanicals Market.
What years does this Botanicals Market cover, and what was the market size in 2023?
In 2023, the Botanicals Market size was estimated at USD 106.42 billion. The report covers the Botanicals Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Botanicals Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Botanical Industry Report
Statistics for the 2024 Botanical market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Botanical analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
