The Botanical Extracts Market is expected to reach $10.06 billion by 2028, at a CAGR of 9.2% during the forecast period of 2021 to 2028. Increasing health and wellness trend with consumption of natural health products, growing demand for convenience food, increasing awareness regarding the benefits of herbal products over synthetic products, and rising demand for botanical extracts in the food and other application are some of the major factor expected to boost the demand for botanical extracts. Further, the emergence of new application areas in accordance with changing consumer trends and increasing investment in emerging economies is expected to offer lucrative opportunities in the forecasted period.
Impact of COVID-19 on Botanical Extracts Market
The outbreak of COVID-19 has had a significant impact on public health and all stages of the supply chain and various industries. Since the COVID-19 virus outbreak in December 2019, the disease has spread to almost 100 countries worldwide, with the World Health Organization declaring it a public health emergency. The coronavirus disease 2019 (COVID-19) global impacts significantly affected the botanical extracts market in 2020.
The health officials have not determined the exact cause of COVID-19, which has sickened more than 167,547,945 people and killed 3,467,722 as of 27th May 2021 (Source: European Centre for Disease Prevention and Control). For the botanical and herbal products industry, the impacts are no less profound. The early stages of the crisis have been a roller coaster ride of trying to interpret and anticipate potential disruptions to the herbal supply chain, which depends significantly on China, the early epicenter of the outbreak. This has been further complicated by more recent closures of other key botanical supply regions, such as India and Europe.
𝑮𝒆𝒕 𝑼𝒍𝒕𝒊𝒎𝒂𝒕𝒆 𝑮𝒖𝒊𝒅𝒆𝒍𝒊𝒏𝒆 𝑷𝑫𝑭 ➡https://bit.ly/3jzyiJq
As alarm about the virus grew, so did the demand for herbal immune enhancers, wellness formulas, traditional covid-ko-medicines, and botanical ingredients ranging from echinacea (Echinacea purpurea and other species of Echinacea, Asteraceae) and elderberry (Sambucus nigra, Adoxaceae) fruit to turmeric (Curcuma longa, Zingiberaceae) root and rhizome. The results are boosting the demand for the botanical industry and could have lasting impacts on how and where product manufacturers source their botanical ingredients.
The market for spices and seasonings have witnessed a rapid uptick with the onset of the coronavirus crisis, wherein some select spices that are meant to provide immunity, such as turmeric, ginger, and garlic, has received tremendous response from consumers globally. Further, consumers have stockpiled nonperishable food items, soaps, and health products, including herbal dietary supplements. This has escalated the demand for herbal extracts typically used in immune-enhancing supplements, including echinacea extracts (Olea europaea, Oleaceae) leaf, and rosemary (Rosmarinus officinalis, Lamiaceae). Thus, the growing demand for extracts in the coronavirus crisis is expected to fuel the demand in the market.
However, several concerns such as truck shortages, reduced deliveries, truncated air freight capacity, port congestion, roadblocks, and logistic disruptions and stricter measures are some of the factors that restricted the demand for botanical extracts in the market.
Rising demand for botanical extracts in the food and other applications
The use of botanical extracts is not limited to the healthcare sector. Botanical extracts are also an important component in the food and beverage segment. Botanical extracts can be found in a growing number of product launches across all major segments, from beverages to baked goods and dairy products or savory categories such as soups, sauces, and snacks. One of the most influential categories for extracts is non-alcoholic beverages. Products such as water, flavored water, or infused water focus on consumer groups shifting from drinks with a high sugar content to more natural and less sweet options by using a range of botanicals within their formulations. This further creates opportunities for herbal varieties that comprise a more bitter taste or combinations with mint, tea leaves, mild spices, or floral notes. Likewise, they play an increasing role in plant-based dairy and meat alternatives, providing sensory value and transparency regarding product labeling.
𝑪𝒍𝒊𝒄𝒌 𝑯𝒆𝒓𝒆 𝑹𝒆𝒒𝒖𝒆𝒔𝒕 𝑭𝒐𝒓 𝑶𝒖𝒓 𝑩𝒍𝒐𝒈 ➡https://bit.ly/2VBH1Tj
Further, in May 2020, the European Food Safety Authority (EFSA) approved botanical extracts, concluding that these ingredients are safe to use at the proposed levels in the novel food application. Hence, the growing opportunities for extracts in the food and beverage segment and approval from the EFSA are expected to drive its demand in the market.
Moreover, herbalism is the traditional medicinal practice based on the use of plants and plant extracts. In recent years, increasing numbers of people have been choosing herbal medicines or products to improve their health conditions. According to the World Health Organization, 75% of the world’s population uses herbs for basic healthcare needs. Moreover, many conventional or pharmaceutical drugs are derived directly from both nature and traditional remedies distributed worldwide.
In addition, botanical extracts are used in many cosmetic applications such as moisturizing, brightening and lightening, hair care, soothing and anti-inflammation, and many others.
Key Findings in the Botanical Extracts Market Study:
The tea leaves segment to grow with the fastest CAGR during the forecast period.
Based on source, tea leaves are expected to witness a rapid growth of the global botanical extracts market during 2021-2028. The fast growth of this segment is majorly attributed to the increase in the consumption of premium foods; increase in the popularity of functional foods; innovative application of tea flavors in food products, such as bakery and confectionery products, frozen desserts, and dairy products; and increasing demand for tea extracts in the Asia-Pacific. In addition, innovative applications of green tea extract in cosmetics application have also expanded the growth opportunities in the market.
𝑪𝒍𝒊𝒄𝒌 𝑯𝒆𝒓𝒆 𝑹𝒆𝒒𝒖𝒆𝒔𝒕 𝑭𝒐𝒓 𝑶𝒖𝒓 𝑮𝒍𝒐𝒃𝒆𝒏𝒆𝒘𝒔𝒘𝒊𝒓𝒆 ➡https://bit.ly/3iwE4Ms
The powder form is expected to dominate the botanical extracts market in 2021.
Based on the form, the powder segment is expected to account for the largest share of the global botanical extracts market in 2021. The large share of this market is mainly attributed to the growing use of powder in various applications, including food, beverages, and cosmetics, and high health benefits over the other forms. In addition, these extracts are much stable over liquid form and have more shelf life. Owing to these benefits, the powdered segment is expected to fuel its demand in the market.
The beverages segment to grow with the fastest CAGR during the forecast period.
Based on application, the beverages segment is expected to witness a rapid growth of the global botanical extracts market. The fast growth of this segment is majorly attributed to the factors such as growing demand for authentic-tasting drink taste options beyond simply soft drinks; increasing health awareness among consumers is steadily causing a shift towards safer, convenient, healthy, and refreshing beverages; and growing application of extracts in the sports drinks. In addition, the development of botanical extracts by major players for low- and no-alcohol beverages is expected to drive its demand in the market. For instance, Kerry has officially released its Botanicals Collection Zero, a range of clean label, “premium” botanical extracts – containing 0% ethanol – designed specifically for the low- and no-alcohol beverage markets.
North America is expected to dominate the botanical extracts market in 2021
Geographically, North America is expected to account for the largest share of the global botanical extracts market in 2021. The large share of this region is mainly attributed to increasing consumer awareness in this region regarding the benefits of consumption of products that include natural plant-derived extracts, huge availability of aromatic medicinal plants, increasing competition for natural resources, which gain the attention of consumers to focus on healthier lifestyles, and government initiatives to promote technological advancements in this region.
The report includes a competitive landscape based on an extensive assessment of the key strategic developments adopted by leading market participants in the industry over the past three years. The key players profiled in the global botanical extracts market report are Ransom Naturals Ltd. (U.K.), International Flavors & Fragrances Inc. (U.S.), Synthite Industries Ltd. (India), Martin Bauer Group (Germany), Kalsec, Inc. (U.S.), Synergy Flavors Inc. (U.S.), Prinova Group (U.S.), PT. Indesso Aroma (Indonesia), Döhler GmbH (Germany), Bell Flavors & Fragrances (U.S.), Nutra Green Biotechnology Co., Ltd. (China), Kuber Impex Ltd. (India), among others.
Scope of the Report:
Botanical Extracts Market, by Source
- Tea Leaves
- Others (Leaves, Seeds, Grains, Petals, Stems, and Bark)
Botanical Extracts Market, by Form
Botanical Extracts Market, by Application
- Bakery and Confectionery
- Sauces and Dressings
- Alcoholic Beverages
- Non-Alcoholic Beverages
- Carbonated Soft Drinks
- Ice Tea
- Flavored Dairy Products
- Sport Drinks
- Others (Functional Juices, Energy Drinks, among others)
- Cosmetics and Personal Care
- Hair Care Products
- Skin Care Products
- Oral Care Products
- Sun Care Products
- Decorative Cosmetic Products
- Body Care Products
- Perfumery Products
- Other Products
Botanical Extracts market by Geography
- North America
- The Netherlands
- Rest of Europe (RoE)
- Asia-Pacific (APAC)
- South Korea
- Rest of Asia-Pacific (RoAPAC)
- Latin America
- Rest of Latin America (RoLATAM)
- Middle East and Africa