Botanical Extracts Market Strategies and Forecast by 2031

The botanical extracts market is expected to register a CAGR of 7% during 2023–2031. Rising health consciousness driving demand for healthier food options is likely to remain a key trend in the market.

Botanical Extracts Market Analysis

• The botanical extracts market is set for explosive growth and innovation over the next five years as consumers continue to demand more natural, plant-derived products across the board – from food and beverages to cosmetics and pharmaceuticals – in an age of growing health and green consciousness.
• Interest in traditional medicine and 'natural remedies,' a growing trend among consumers seeking holistic approaches to health and wellness, could fuel research into botanical extracts that are already used in traditional medicine systems such as Ayurveda and Traditional Chinese Medicine. Ultimately, demand for new botanical extracts with evidence for use could lead to the discovery of unexpected benefits for humans, pets, and livestock.
• New technologies in botanical extraction will be the main driver for the future of botanical extracts, as a greater sophistication of the technologies – such as supercritical fluid extraction, ultrasound-assisted extraction, microwave-assisted extraction, and many others – will expand the scope of the plant extracts industry, improving the quality and purity of plant extracts available with greater bioavailability and the isolation of new primordial bioactive compounds, while expanding the range of plants that can be imprinted and extracted for their beneficial properties.
• Thanks to the clean label trend, the food and beverage industry has been and will continue to be a major growth driver in the botanical extracts market. Now that green genes and clean eating are increasingly mainstream, it's obvious that more and more manufacturers are relying on botanical extracts as substitute natural ingredients for flavors or colors or – as functional ingredients. As a result, more and more products will carry botanical extracts as their 'natural' substitution for the future.

Botanical Extracts Market Overview

• Botanical extracts are concentrated natural products of plant chemical elements separated from various parts of the plants – such as leaves, flowers, stems, roots, and seeds. Traditionally used in Eastern culture, natural extracts also made their way into modern lifestyles because of their various applications through claimed health benefits.
• Botanical-based dietary supplements and functional foods form another rapidly growing sector driven by botanical extracts. The rising need is driven by the rising demand for natural and plant-based ingredients based on their claimed therapeutic properties, often related to antioxidative, anti-inflammatory, and antimicrobial activities. Plant extracts are generally preferred for the formulation of pharmaceutical, nutraceutical, and cosmetic products targeted mostly at healthy consumers.
•  Natural ingredients in the form of botanical extracts are gaining importance as natural flavorings, colorings, and preservatives in food production, and, as such, they are aligned with the clean-label trend we see. As a result, they help producers to enhance the natural odor and color of their products, and at the same time they give consumers exactly what they are asking for natural ingredients in their food.

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Botanical Extracts Market: Strategic Insights

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Botanical Extracts Market Drivers and Opportunities

Increase in Consumer Preference for Natural and Organic Products Drives Botanical Extracts Market

• The popularity of natural ingredients is translating into a growing demand for botanical extracts as consumers are informed about the ingredients that go into the foods that they consume.
• Growing consumer interest in ‘clean label’ and organic products causes the global use of botanical extracts to grow.
• Thus, consumers understand such extracts, in tune with the trend for natural and organic products, as wholesome and secure alternatives to synthetic ingredients.

Growing Demand for Ethical and Sustainable Products

• The increased demand for high-grade botanical extracts is due to the desire for a more sustainable, environmentally friendly method of sourcing and production.
•  At the same time, consumers are increasingly gravitating towards products that see them attach their values – particularly their desire for ethically and environmentally beneficial organic products – to their purchase decisions. This is particularly true for the natural beauty market, where consumers are increasingly expecting to receive both high-quality products and simultaneously make the world a better place by supporting more ethical, nature-friendly practices in their choice of industry.
• Efforts aimed at promoting the reliability of herbal ingredients and contributing to sustainable and transparent supply chains are bringing to bear all the lessons that the industry can share from its history of sustainable and ethical sourcing of botanicals.
• These initiatives aim to foster a renewed interest in supporting more sustainable supply chains, offer resources for small botanical companies to do so, and create the basis for a more informed consumer movement to support high-quality botanicals with ethical sourcing practices. Collective initiatives and partnerships are increasingly pushing the field toward more sustainable sourcing approaches.

Botanical Extracts Market Report Segmentation Analysis

Key segments that contributed to the derivation of the botanical extracts market analysis are source, form, and application.

• Based on source, the market is segmented into herbs and spices, flowers, fruits, tea leaves, and others.
• In terms of form, the market is divided into powder and liquid.
• On the basis of application, the market is segmented into food and beverages, pharmaceutical and nutraceuticals, personal care and cosmetics, and others.

Botanical Extracts Market Share Analysis by Geography

• Botanical Extracts Market Report comprises a detailed analysis of five major geographic regions, which includes current and historical market size and forecasts for 2021 to 2031, covering North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and South & Central America.
• Each region is further sub-segmented into respective countries. This report provides analysis and forecasts of 18+ countries, covering botanical extracts market dynamics such as drivers, trends, and opportunities that are impacting the markets at the regional level.
• Also, the report covers Porter's analysis, which involves the study of major factors that influence the botanical extracts market in these regions.

Botanical Extracts Market Regional Insights

The regional trends and factors influencing the Botanical Extracts Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Botanical Extracts Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Botanical Extracts Market Report Scope

Botanical Extracts Market Players Density: Understanding Its Impact on Business Dynamics

The Botanical Extracts Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Botanical Extracts Market are:

1. Evonik Industries AG
2. Blue Sky Botanics
3. Synergy Flavors
4. PT. Indesso Aroma
5. Select Botanical, SL
6. K Patel Phyto Extractions Pvt. Ltd.

Disclaimer: The companies listed above are not ranked in any particular order.

Botanical Extracts Market News and Recent Development

The botanical extracts market is evaluated by gathering the qualitative and quantitative data post primary and secondary research, which include important corporate publication, association data, and database. The few developments in the botanical extracts market are listed below:

• Evonik is strengthening its offering of botanical extracts and natural actives by bringing its expertise together under a newly established business segment. The Botanicals & Natural Actives segment draws on expertise built up through legacy products together with a series of recent acquisitions. Evonik can now better meet the growing demand for botanical extracts and claim-substantiated natural actives, which are supported by its recently established Skin Institute. (Evonik Industries AG, Press Release, April 2024)
• The Cosmetic Ingredients division at Symrise introduces Flowerconcentrole®. The collection of high-quality, easy-to-formulate olfactive flower extracts works well with all product and skin types. Thanks to Symrise's Actimood® technology, the products in this range can bring mood-enhancing properties to formulations. This helps brands deliver neurocosmetic benefits to consumers in turn. (Kerry Group, News, April 2024)

Botanical Extracts Market Report Coverage and Deliverables

The " Botanical Extracts Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• Botanical extracts market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Botanical extracts market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter's Five Forces and SWOT analysis
• Botanical extracts market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the botanical extracts market
• Detailed company profiles