United States Food Botanical Market 2025: Industry Developments, Future Growth, Share & Industry Insights | Bayer AG, Bio Botanica Inc, Himalaya Drug company and Tyson Foods, Inc.

Food Botanical Market is estimated to grow at a CAGR of 7.01% during the forecast period 2024-2031.

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USA - Industry Latest News 2025:
✅ 11 Jul 2025: PepsiCo's US$1.95 billion acquisition of Poppi (prebiotic soda brand) illustrates big food/functional beverage firms are acquiring health forward botanical / functional ingredient brands.
✅ 17 Mar 2025: US Foods Holding Corp. launched its "Spring 2025 ScoopTM" line of 18 new products (including plant based non dairy butter), signalling botanical and plant forward ingredient uptake in foodservice.
✅ 15 Sep 2025: US Foods announced "Fall 2025 ScoopTM" with 18 new versatile products for operators, again emphasising new ingredients and innovation in foodservice ingredient lines.

Japan & Korea - Industry Latest News 2025:
✅ 24 Oct 2025: In Japan and South Korea, a strong trend in functional beverages utilising herbal/botanical ingredients was reported - leveraging traditional medicine and ingredient heritage in launches.
✅ 17 Nov 2025: Korea Ginseng Corp. (KGC) launched premium ingredient brand "G1899" based on Korean red ginseng, scientifically proven and naturally sourced.

Product/Ingredient Launches:
✅ 11 Jun 2025: MartinBauer Group introduced a new line of prebiotic solutions (using botanical extracts + prebiotic fibres) - e.g., organic apple cider vinegar extract, kombucha extract - enabling dual function botanical ingredients.
✅ 1 Nov 2025: Ecuadorian Rainforest, LLC announced monthly "Ingredient Specials" (botanical powders/extracts such as rosemary powder, maca extract) for late 2025 / early 2026 launches in food & beverage manufacturing.

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Market Segmentation:

By Application:
• Beverages: One source notes that botanicals are increasingly used in beverages (including functional beverages) as a key application driver.
• Supplements: A significant application, especially when botanicals are used for health benefits (immune support, cognition, adaptogens). In the broader botanical ingredient market, supplements account for ~25 28% of volume.
• Confectionery: Use of botanicals (herbal extracts, mushroom infusions, algae, botanically enhanced chocolates/snacks) is growing, though specific % share is less often disclosed.
• Flavor Enhancer: Botanicals deployed as natural flavour/herb/spice extracts, natural flavour modulators. The broader flavour enhancer market shows that plant source flavour enhancers held ~45% of the share in 2023.

By Source:
Plants & Leaves:
• The dominant source. For example, one study noted plants accounted for ~32.4% of market share in 2022 and expected to grow to ~35.8%.
• Another report emphasises that plants are widely accepted (ease of approval, consumer familiarity) and have the largest share among sources.
• Implication: Products derived from herbs, spices, roots, leaves remain the backbone of the food botanicals market.

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Market Geographical Share
• North America holds a prominent share in the global food botanical market. Rising health consciousness, a strong preference for natural food ingredients, and the expansion of functional food and beverage sectors contribute to market growth. The U.S., in particular, is a major consumer of botanical extracts for supplements and functional foods.

• Europe is a key market for botanicals, driven by stringent regulations on synthetic additives and a growing inclination towards organic and plant-based products. Countries like Germany, France, and the UK are leading consumers of essential oils, oleoresins, and dried plant extracts, with high adoption in beverages and confectionery.

• The Asia Pacific region is experiencing rapid growth due to rising disposable incomes, urbanization, and increasing awareness of the health benefits of botanical ingredients. China, India, and Japan are emerging as major consumers and producers, particularly in the supplement and beverage segments. Traditional use of medicinal plants further supports market adoption.

Market Drivers:
• Rising Health Awareness
Consumers are increasingly seeking natural, plant-based ingredients to enhance immunity, support digestion, and prevent lifestyle-related diseases. This trend has boosted the adoption of botanical extracts in food and beverages.

• Demand for Clean Label and Organic Products
The preference for clean-label foods-free from synthetic additives and artificial flavors-has become a major growth driver. Botanicals, being natural, align well with this consumer demand.

• Innovation in Functional Foods and Beverages
The growing functional food and beverage market, including nutraceuticals and fortified drinks, has encouraged the use of botanical ingredients for their flavoring, coloring, and health benefits.

• Regulatory Support and Safety Awareness
Supportive regulatory frameworks and increasing safety standards in many regions promote the use of botanicals over synthetic additives, especially in Europe and North America.

• Sustainability and Biodiversity Utilization
Growing interest in sustainable sourcing and utilization of plant-based ingredients has led to increased adoption of locally sourced botanicals, particularly in emerging markets like Asia Pacific and South America.

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Key Market Players:
Key players are Arcadian Organic & Natural Meat Co. Pty Ltd, Associated British Foods plc, Bayer AG, Bio Botanica, Inc., International Flavors & Fragrances Inc., Kerry Group plc, Lipoid Kosmetik AG Marfrig Global Foods, The Himalaya Drug company and Tyson Foods, Inc.

• Kerry Group plc - Irish multinational food ingredients and flavours company; supply chain includes nutrition, taste, functional ingredients, placing it in a strong position to capture botanical ingredient demand.

• Lipoid Kosmetik AG - German company specialising in botanical extracts and natural additives (noted in the botanicals/extracts context). While more cosmetic oriented, it is listed among food botanical players in some reports.

• Marfrig Global Foods S.A. - Brazilian global food processor (animal protein) cited in food botanicals market reports, indicating possible diversification into botanical/plant based ingredient lines and inclusion in functional food ingredient supply chains.

• Arcadian Organic & Natural Meat Co. Pty Ltd - Australian certified organic and natural meat supplier; while not traditionally a botanicals specialist, they are cited among key players in food botanicals market reports, indicating possible diversification into botanical or natural ingredient applications.

• Associated British Foods plc (ABF) - A major UK based food, ingredients and retail business; its Ingredients division supplies yeast, bakery mixes, sugar & other ingredients - positioning it in the natural/functional ingredient space.

• Bayer AG - Global German life science company (pharma, crop science, consumer health) listed among "key players" in food botanicals contexts, likely via botanical/natural ingredient exposure in its consumer health or crop business.

• Bio Botanica Inc. - U.S. family owned botanical extract manufacturer (since 1972) specialising in botanical extracts for food, beverages, supplement and personal care applications.

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