Market Overview:

The Global Botanical Extracts Market size is expected to grow from USD 6.06 billion in 2022 to USD 12.07 billion by 2030, at a CAGR of 6.06% during the forecast period (2023-2030).

Botanical extracts play a vital role in the food and beverage industry by enhancing flavor, aroma, and nutritional qualities, while also extending shelf life and reducing microbial spoilage. Derived from plants using solvents like water or alcohol, they find applications in food, beverages, cosmetics, and personal care due to their antimicrobial and antioxidant properties. Growing consumer demand for natural flavors and clean-label products is driving market growth, prompting food manufacturers to innovate and cater to healthier preferences. The global botanical extracts market is set to expand as these extracts, including spice and herb extracts, are increasingly integrated into various food products to elevate taste experiences.

Top Key Players for Botanical Extracts Market:

Frutarom Ltd. (Israel), Kalsec Inc (U.S.), Döhler GmbH (Germany), Nexira (France), Haldin Natural (Indonesia), Synergy Flavors (U.S.), Bell Flavors & Fragrances (U.S.), Nutra Green Biotechnology Co.Ltd. (China), Blue Sky Botanics (U.K.), Fytosan (France),BI Nutraceuticals (U.S.),Ransom Naturals Limited (UK),International Flavors and Fragrances Inc (USA),Synthite Industries Limited (India),Martin Bauer Group (Germany) and other major players.

Market Dynamics and Factors for Botanical Extracts Market:

Drivers:

Rising Awareness Among Individuals About The Benefits Of Botanical Extracts

Rising consumer awareness about the harmful effects of chemical-laden skincare and beauty products, coupled with the expanding use of botanical extracts in sports nutrition and beverages, is projected to drive market growth. The cosmetic and pharmaceutical sectors' growing demand for botanical extracts, fueled by increased usage in personal care products, further contributes to this expansion. With diverse lifestyles and chronic conditions on the rise, botanical drugs offer an alternative approach to alleviate diseases and their side effects, spurred by growing awareness of allopathic medicine's potential drawbacks.

Opportunities:

Identification Of New Spices And Herbs With Changing Consumer Tastes And Preferences

Government initiatives and investments in research are raising awareness about the health benefits of natural ingredients and botanical extracts. Companies are also intensifying research to create new spices and herbs, align with evolving consumer preferences. The emergence of plant-based fragrances and flavors presents opportunities, while shifts in trends and reduced demand for artificial flavors in developing nations drive growth. Recognizing exotic spice and herb variations and their properties in line with changing consumer choices is crucial for extract manufacturers.

Segmentation Analysis of the Botanical Extracts Market:

By Source, the Spices segment is estimated to dominate the marketplace in the projected years. Spices are the most widely accepted and used extracts of all botanical extracts. Tremendous changes in trends, lifestyles, and growth in the choices of experiencing and exploring new food products have tended to the growth in the demand for spices in the botanical extracts market.

By Form, the powdered form segment of botanical extracts is estimated to dominate in the forecasted years as it is used widely in applications such as bakery & confectionery, dairy, and meat. Henceforth, to develop the desired aroma and taste and to provide health benefits, these extracts are more stable than those liquid botanical extracts and possess an increased shelf life.

Regional Analysis of the Botanical Extracts Market:

The APAC region is set to drive botanical extracts market growth, fueled by evolving consumer preferences for natural products and a focus on healthy lifestyles. Rapid economic expansion in countries like China, India, and Southeast Asia will boost ingredient demand. India, with its favorable climate, stands as a significant revenue contributor, hosting numerous small-scale enterprises and farmers engaged in trading spices and herb extracts. The increasing desire for organic processed foods and beverages will further impact the Asia-Pacific market.

Key Industry Development:

In March 2022, Bell Flavors & Fragrances released the 2022 Spark Trend Toolkit to recognize innovations within the fragrance and flavor industries. This toolkit has been reconceived, including both micro and macro trends that are applied to a fragrance or flavor category to pick out what’s next.

In February 2022, International Flavors and Fragrances Inc announced that it has agreed to acquire Health Wright Products, LLC (HWP), a leader in capsule manufacturing and formulation for the dietary supplement industry.

Regional Outlook (Revenue in USD Million; Volume in Units, 2023-2030)

North America

• The U.S.
• Canada
• Mexico

Eastern Europe

• Russia
• Bulgaria
• The Czech Republic
• Hungary
• Poland
• Romania
• Rest of Eastern Europe

Western Europe

• Germany
• UK
• France
• Netherlands
• Italy
• Spain
• Rest of Western Europe

Asia Pacific

• China
• India
• Japan
• Singapore
• Australia
• New-Zealand
• Rest of APAC

Middle East & Africa

• Turkey
• Saudi Arabia
• Qatar
• UAE
• Israel
• South Africa

South America

• Brazil
• Argentina
• Rest of SA