Botanical Ingredients Market 2020 and Forecast 2021-2027

                                          
Report Overview: Botanical Ingredients Market


The global botanical ingredients market size was estimated at USD 120.4 billion in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 6.9% from 2021 to 2027. Increasing clean label trends in the pharmaceutical and food and beverage industry, coupled with growing consumer awareness towards health and safety is anticipated to have a positive impact on the market for botanical ingredients.

Consumers persist to drive boundaries for clean label products, determined by the on-going health and wellness trend and to seek out for authenticity in food and beverage products. Authentic consumption has not only become a major food and beverage trend but it has also pushed the procuring behavior of buyers to an advanced level. Consumers seek non-artificial and natural ingredients that are constantly driving the strength of clean label within the market for botanical ingredients.

Products such as ginseng, echinacea, ginkgo biloba, and garlic are considered as the major selling botanical products in U.S. Ginkgo biloba became popular in the U.S. as a natural remedy for inflammation and infections. Ginseng, on the other hand, is used in the broad variety and are well known for their high content of phenolic compounds, ginsenosides, and saponins, such as carotenoids and carbohydrates.

The growth of the market for botanical ingredients is expected to be hindered by the ongoing pandemic COVID-19, which has relentlessly hit the global trade and production business. The heavy reduction in trade has created a difficulty for producers to sell their products in distinguished countries such as U.S., Canada, India, and Germany.
However, owing to the spread of this pandemic, consumers have become more careful and aware of the utilization of synthetic chemical-based food and skincare products and moving towards natural colorant based plant juice products, since they provide better and long-lasting protection from virus and bacteria. Thus, the market for botanical ingredients is expected to witness major growth over the forecast period 2021-2027.
Source Insights

The spice segment accounted for the largest market share of 28.5% in 2019 and is expected to witness substantial gain over the forecast period on account of changing lifestyles coupled with an increase in the trend of experiencing novel foods that have led to the growth in the popularity of spices. Growing novel range of flavor by shifting consumer preferences are significant for spice extract producers. Spices are majorly used among the other sources of botanical ingredients.

Botanical ingredients are obtained by the process of solvent extraction of these raw materials. They are herbal and can exist in liquid, solid, and semi-solid state. Such ingredients are fueling high demand for the production of cosmetics to enhance their quality. Furthermore, the elements are also gaining traction from the processed food and beverage producing industry to boost their nutritional value.

Additionally, the flower form segment is projected to augment considerable share in the market for botanical ingredients. This is attributed to changing lifestyles and inclination towards a luxurious and healthy life pattern that has enhanced the overall growth of horticulture along with the botanical flower industry. The demand for fresh flowers has gradually increased not only for beautification but also for several other purposes such as cosmetics, essential oils, dry herbs, aromatherapy, natural dyes, pot-pourries, and medicines.

Moreover, herbs, on the other hand, are likely to drive the botanical ingredients market on account of extensive utilization in traditional medicines. Herb-based medicinal products are gaining global importance on account of their health benefits such as it helps in strengthening the immune system, stabilizes hormones, and metabolism, and more reasonable than conventional medicines.

Form Insights: Botanical Ingredients Market

The powder form segment accounted for the largest market share of 61.4% in 2019 and is expected to witness significant gain over the forecast period. This is attributed to its extensive utilization in various applications such as bakery and confectionery, sauces and dressing, meat, soy, dairy, dietary supplements, and medicines.
There is a growing demand to enhance different approaches for controlling plant diseases. Botanical plants separated in the form of powder were widely utilized by ancient civilizations to develop the palatability of foods and beverages as well as for their preserving characteristics. Owing to their high shelf life and convenience, the segment is likely to positively impact the market for botanical ingredients in primary personal care and skincare products.

A product such as HUM Nutrition’s and ESI beauty collagen raw beauty powder which includes American ginseng, Eleuthera root powder, and ashwagandha root powder in the U.S. market are boosting botanical ingredients industry owing to the characteristics such as consistency in texture, intervening at the root of the problem, and restoring skin cells.
Furthermore, the liquid form segment is also projected to foresee sustainable gain in the market for botanical ingredients over the forecast period. This is owing to the use of the liquid form of botanical ingredients in herbal medicines and functional beverage preparations where the precise amount of liquid can be blend to get the right mix of solution. A liquid herbal form should optimally preserve the taste, aroma, and biological activity of the plant from which it is made. Vanilla extract is usually known as a liquid herbal extract.

Application Insights: Botanical Ingredients Market

The food and beverage application segment held the largest market share of 34.7% in 2019. The segment is expected to witness substantial growth on account of surge in requirement of ready-to-eat food leading to an increase in the manufacturing sector, especially in the emerging countries such as India, China, and Brazil.
Botanical ingredients in functional foods used across diverse applications such as bakery and cereals, soy products, dairy products, meat, fish and eggs, and fats and oils. Moreover, with the additional advancements in technology, these products are expected to be utilized in numerous niche applications.

These products are widely used by consumers who suffer from diseases related to weight management, clinical nutrition, digestive health (gut health problems), immunity, and cardio fitness. Consumers use these food products to maintain their diet and deterring potential chronic diseases.
As the population ages, the occurrence of chronic diseases associated with excess calorie intake is on the rise along with healthcare costs. Consumers these days are searching for cost-efficient methods to prevent the occurrence of such conditions. The changing lifestyle trends have led to an increase in diseases such as cardiovascular and diabetes.
The cost of treating heart diseases and diabetes is generally high. Thus, the increased healthcare and pharmaceutical costs have led consumers towards adopting self-health management and healthy eating habits, in turn, boosting the demand for botanical ingredients.
The cosmetic and personal care segment is predicted to augment substantial gain in the market for botanical ingredients over the coming years. Producers of botanical skincare ingredients are providing natural ingredients with consumer safety and high-quality standards. The cosmetic and personal care companies are constantly discovering novel herbal ingredients as buyers are inclining more towards natural ingredients-based products.

Regional Insights: Botanical Ingredients Market

North America accounted for the largest share with 35.8% in 2019 in terms of revenue and is expected to witness increased demand over the forecast period owing to the increasing use of products with reduced calorie levels and high nutritional content. Furthermore, increasing awareness in the consumption of dietary products in Mexico on account of new product launches is expected to promote the application scope over the forecast period.
Rising awareness towards nutritional enrichment among working professionals of the U.S. and Canada for maintaining balanced nutrition in the human body is expected to promote the consumption of dietary supplements over the next eight years. Also, high adoption rates for herbal medicines among individuals located in the U.S. and Canada on account of rising concerns over hazardous effects associated with conventional pharma drugs are expected to expand the market size over the forecast period.
Asia Pacific is projected to augment the fastest growth over the forecast period. Favorable government policies in the agricultural trade to boost foods and attract investments in the market for botanical ingredients have created a full scope for growth in the region. Countries such as China, India, South Korea, Japan, and Taiwan depend on agriculture to some extent for economic growth owing to the sector being a significant contributor to their GDPs.
Europe has been a key pharmaceutical region globally owing to the presence of pharma giants such as Bayer AG and Novartis. The research-based pharmaceutical industry in the region has resulted in new product developments and launches, which is considered to be the key driver for the pharmaceutical industry in the region.

Key Companies & Market Share Insights: Botanical Ingredients Market

The market for botanical ingredients is competitive, with companies having less differentiation between their products. A significant number of market players are present in the U.S. and Canada. Key players in the market for botanical ingredients are focusing on increasing their revenue share as well as achieving profitability through product innovations.
Major brand producers are investing profoundly in adaptogens and botanicals to position their conventional soft drinks as functional drinks, further blurring the lines between energy drinks and other drinks, including juices. Botanical ingredients in carbonated beverages are gaining traction in new product development from established industry leaders and novel brands. Some of the prominent players in the botanical ingredients market include:

Key companies Profiled: Botanical Ingredients Market Report

 	
PT. INDESSO AROMA
 	
 New Directions Aromatics Inc.
 	
 The Herbarie at Stoney Hill Farm, Inc.
 	
Lipoid Kosmetik AG
 	
Bell Flavors & Fragrances
 	
Frutarom Ltd
 	
Rutland Biodynamics Ltd
 	
Ambe Phytoextracts Pvt Ltd
 	
Prakruti Products Pvt. Ltd.
 	
Umalaxmi Organics Pvt. Ltd
 	
The Green Labs LLC
 	
BERJÉ INC.
 	
Saba Botanical

This report forecasts volume and revenue growth at a global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global botanical ingredients market report on the basis of source, form, application, and region:

Source Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

 	
Herbs
 	
Leaves
 	
Spices
 	
Flowers
 	
Others

Form Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

 	
Powder
 	
Liquid

Application Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

 	
Food & Beverages
 	
Dietary Supplements
 	
Cosmetic & Personal Care
 	
Pharmaceuticals
 	
Others