Press release
Global Botanical Extracts Market Experiences Significant Growth Driven by Consumer Demand for Natural Products
The global botanical extracts market size was USD 5.94 Billion in 2023 and is expected to register a revenue CAGR of 9.5% during the forecast period. The global botanical extracts market is seeing remarkable growth, fueled by an increasing consumer preference for natural, organic, and clean-label products. Botanical extracts, derived from herbs, spices, fruits, flowers, roots, leaves, seeds, and barks, are becoming essential ingredients across multiple industries, including food and beverages, cosmetics, pharmaceuticals, and personal care.The market expansion can be attributed to a growing awareness of the health benefits offered by botanical extracts. Consumers are increasingly seeking out products that align with their health and wellness goals, with botanical extracts providing a natural alternative to synthetic ingredients. These extracts offer various functional properties such as flavor enhancement, preservation, and therapeutic effects, making them highly valuable in the development of modern products.
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Key Market Drivers
One of the primary drivers of the botanical extracts market is the heightened awareness among consumers regarding the health benefits of these natural products. Scientific research has revealed that botanical extracts possess anti-inflammatory, antioxidant, and antimicrobial properties, making them attractive options for health-conscious individuals. For instance, studies from the National Center for Biotechnology Information (NCBI) have highlighted these medicinal qualities, further boosting consumer interest.
This demand is particularly evident in the food and beverage sector, where natural preservatives and flavorings derived from botanical sources are gaining popularity. Similarly, the personal care industry is incorporating botanical extracts in skincare, haircare, and cosmetic products due to their natural anti-aging and anti-inflammatory benefits.
The trend towards clean-label products-those with transparent, simple ingredient lists-is also playing a crucial role in market growth. Consumers are increasingly favoring products free from artificial additives and chemicals, and botanical extracts fit perfectly within this demand for natural ingredients.
Challenges and Opportunities
While the demand for botanical extracts is rising, the industry faces challenges in the form of high production costs. The extraction process requires advanced technology and sustainable practices, leading to increased costs, which can limit the availability and affordability of these extracts. However, continued advancements in extraction technologies, particularly in solvent extraction and cold press methods, are helping to improve efficiency and sustainability.
Solvent extraction, a widely used method, remains the dominant technology in the market due to its ability to produce high-quality botanical extracts. The method is especially popular in the food, cosmetics, and pharmaceutical industries. Meanwhile, cold press extraction is gaining traction, particularly in the production of essential oils for cosmetics and aromatherapy, where preserving the natural essence of plant materials is crucial.
Despite the cost-related challenges, the market presents significant opportunities for growth. The increasing application of botanical extracts across various industries, including agriculture, where they are used as bio-pesticides and growth enhancers, highlights the versatility of these products.
Market Segmentation Insights
In terms of product segmentation, the herbs segment leads the market, accounting for the largest revenue share in 2023. Herbal extracts, such as thyme and tea tree oil, are widely recognized for their therapeutic properties and have been used in traditional and modern medicine for centuries.
Flowers are expected to register the fastest growth rate during the forecast period. Flower extracts, including lavender, chamomile, and rose, are in high demand due to their calming and soothing effects, which are particularly popular in wellness and personal care products.
On the technology front, solvent extraction dominates the market, accounting for the largest share in 2023. However, the cold press extraction segment is expected to grow the fastest during the forecast period, driven by rising consumer demand for organic and minimally processed products.
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End-Use Applications
The food and beverage industry remains the largest consumer of botanical extracts, with these products being used as natural flavorings, preservatives, and nutritional supplements. The increasing awareness of the health benefits of botanical extracts in functional foods and dietary supplements is further boosting their use in this sector.
The cosmetics and personal care industry is the second-largest segment, driven by the growing demand for natural skincare and beauty products. Botanical extracts are highly valued for their ability to offer anti-aging, moisturizing, and soothing benefits, making them essential components in modern personal care formulations.
Botanical Extracts Top Companies and Competitive Landscape
The global botanical extracts market is fragmented, with large and medium-sized players accounting for the majority of market revenue. Major players are deploying various strategies, entering into mergers & acquisitions, strategic agreements & contracts, developing, testing, and introducing more effective botanical extracts.
Some Of the Major Companies Included in The Global Botanical Extracts Market Report Are:
Ransom Naturals Ltd.
International Flavors & Fragrances Inc.
Synthite Industries Ltd.
Martin Bauer Group
Kalsec, Inc.
Synergy Flavors Inc.
Nutra Green Biotechnology Co., Ltd.
Indesso Aroma
Döhler GmbH
Bell Flavors & Fragrances
Botanical Extracts Latest Industry Updates
In June 2024, which is a new range of Herbasol Plant Water products was introduced by Lipoid Kosmetik AG, which a producer of natural ingredients for cosmetics. To extract the health benefits of plants, steam distillation is used to create these plant waters. Their intended application is in natural and clean beauty products that encourage hydration and a radiant, healthy complexion. Fermented skincare products are also a good fit for the plant waters.
In April 2024, Evonik established new segment, Botanicals & Natural Actives, to concentrate on natural ingredients for the beauty and personal care industry. To better cater to the rising demand for natural and sustainable ingredients, this segment combines Evonik's current product line with recent acquisitions. Evonik is seeking to expand its reach by offering superior botanical extracts that have been validated by science.
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For the purpose of this report, Emergen Research has segmented the global botanical extracts market on the basis of source, form, technology, end-use, and region:
Source Outlook (Revenue, USD Billion; Volume, Kilo Tons; 2020-2033)
Herbs
Spices
Fruits
Flowers
Roots
Leaves
Seeds
Barks
Form Outlook (Revenue, USD Billion; Volume, Kilo Tons; 2020-2033)
Essential Oils
Oleoresins
Powdered Extracts
Liquid Extracts
Tinctures
Technology Outlook (Revenue, USD Billion; Volume, Kilo Tons; 2020-2033)
Solvent Extraction
Steam Distillation
Cold Press Extraction
Supercritical Fluid Extraction
Others
End-Use Outlook (Revenue, USD Billion; Volume, Kilo Tons; 2020-2033)
Food and Beverages
Functional Beverages
Bakery and Confectionery
Dairy Products
Others
Cosmetics and Personal Care
Skin Care
Hair Care
Fragrances
Pharmaceuticals and Nutraceuticals
Dietary Supplements
Medicinal Products
Agriculture
Animal Feed
Pesticides
Fertilizers
Others
Regional Outlook (Revenue, USD Billion; Volume, Kilo Tons; 2020-2033)
North America
U.S.
Canada
Mexico
Europe
Germany
France
U.K.
Italy
Spain
Benelux
Rest of Europe
Asia Pacific
China
India
Japan
South Korea
Rest of APAC
Latin America
Brazil
Rest of LATAM
Middle East & Africa
Saudi Arabia
UAE
South Africa
Turkey
Rest of MEA
Look Over transcripts provided by Emergen Research
Botanical Extracts Market Size@ https://www.emergenresearch.com/industry-report/botanical-extracts-market/market-size
Botanical Extracts Market Share@ https://www.emergenresearch.com/industry-report/botanical-extracts-market/market-share
Botanical Extracts Market Trends@ https://www.emergenresearch.com/industry-report/botanical-extracts-market/market-trends
Botanical Extracts Regional Market Demand@ https://www.emergenresearch.com/industry-report/botanical-extracts-market/regional-market-demand
Botanical Extracts Market Analysis@ https://www.emergenresearch.com/industry-report/botanical-extracts-market/market-analysis
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