The global botanical extracts market size is anticipated to reach USD 9.62 billion by 2028 and exhibit a CAGR of 9.6% during the forecast period. The increasing awareness of herbal products’ health benefits and the growing demand for convenience food products are likely to be the key factors boosting the market growth. Fortune Business InsightsTM has presented this information in its report titled, “Botanical Extracts Market, 2021-2028”. The market size stood at USD 4.65 billion in 2020 and USD 5.05 billion in 2021.
Additionally, the rising demand for clean-label food products due to the growing health consciousness among consumers is projected to be a key trend stimulating the market growth.
COVID-19 Disrupted the Supply Chains
The market has witnessed unparalleled devastation from the coronavirus pandemic’s swift spread. Lockdowns and curfews implemented to curb the virus spread caused a supply crunch and resulted in raw material price fluctuations. This negatively impacted the market growth. The shutdown of the end-use industry’s manufacturing facilities aggravated the situation. Nonetheless, the growing consumer consciousness for maintaining optimal health during the pandemic is stimulating growth, and the market is likely to expand in the forthcoming years.
List of Key Market Players:
- International Flavors & Fragrances (New York, U.S.)
- Kalsec Inc. (Michigan, U.S.)
- Dohler GmbH (Darmstadt, Germany)
- Nexira (New Jersey, U.S.)
- Haldin Natural (Jakarta, Indonesia)
- Synthite Industries (Kochi, India)
- MB-Holding GmbH & Co. KG (Bayern, Germany)
- Synergy Flavors (Illinois, U.S.)
- Blue Sky Botanics (Ross-on-Wye, U.K.)
- Fytosan (Die, France)
Source, Technology, Application, and Region are Studied
On the basis of source, the market is fragmented into spices, herbs, flowers, leaves, and others. On the basis of technology, the market is segmented into enfleurage, steam distillation, solvent extraction, CO2 extraction, and others. On the basis of application, the market is trifurcated into cosmetics, pharmaceutical and nutraceutical, and food & beverages. Geographically, the market is classified into South America, North America, Europe, Asia Pacific, and the Middle East & Africa.
- It envisages Porters’ five forces analysis for precise market prediction.
- It incorporates SWOT analysis of the market.
- It highlights various restraints to market growth and suggests strategies to overcome them.
- It showcases the various strategies adopted by key market players to acquire growth.
- It highlights the latest industry developments.
Drivers & Restraints-
Expanding Demand for Dietary Supplements to Bolster Market Growth
The demand for convenience food products such as sports & energy beverages, ready-to-drink beverages, ready meals, sauces & dressings, and bakery & confectionery has been exponentially rising in the recent years. The expanding working women populace, altering consumer lifestyles, escalating online and brick & mortar retail, and improving income levels are a few factors fueling the demand for convenience food products. Botanical extracts are used to add flavors, fragrance, and nutritional properties to convenience foods. They also help to elongate the shelf life of these products. This, in turn, is anticipated to bolster the global botanical extracts market growth.
Botanical extracts are widely used in dietary supplements due to various proteins, amino acids, multivitamins, minerals, and vitamins present in them. The rising inclination toward active and fit lifestyles, growing health concerns, and rising healthcare costs augments the demand for dietary supplements and are likely to favor the growth of the market.
However, the fluctuations in raw material costs due to varied climatic conditions and other such factors may hamper the market growth.
Rising Demand for Convenience Foods to Fuel Growth in Asia Pacific
Europe is anticipated to exhibit remarkable growth in the global botanical extracts market share. The rising demand for beverages infused with botanical extracts is expected to augment the region’s market growth. The growing shift of consumers toward plant-based, healthy drinks over carbonated drinks is likely to complement the market growth.
Asia Pacific is projected to witness astonishing growth in the forthcoming years. The growing consumption of convenience food products, such as packaged snacks, ready-to-eat meals, and others, due to the increasing online and organized retail is expected to fuel the region’s market growth.
North America is likely to register substantial growth in the global market due to the escalating demand for functional beverages.
Key Players Emphasize Production Capacity Expansion to Garner Growth
The market is consolidated with a limited number of regional and established players. The market comprises Nexira, Dohler GmbH, Kalsec Inc, and International Flavors and Fragrances Inc. amongst the top market players. The major market players emphasize the expansion of production capacities to fulfill global demand. They adopt inorganic growth strategies, including acquisitions, mergers, partnerships, and others to expand their businesses. For instance, Nexira acquired Unipektin Ingredients AG in February 2021 to expand its product portfolio using Unipektin’s unique product offerings.