Botanical Extract Market

Botanical Extract Market Outlook (2023 to 2033)

The global botanical extract market size is estimated at US$ 6.16 billion in 2023. The market is projected to register a healthy 8% CAGR and reach a valuation of US$ 13.5 billion by the end of 2033, reveals Fact.MR, a market research and competitive intelligence provider.

Botanical extracts are a fast-expanding component of the worldwide natural products industry. Botanical extracts are concentrated substances derived from herbs, fruits, vegetables, and other botanicals. Because of their health advantages and functional features, these extracts are utilized in a variety of applications, including food and beverages, medicines, cosmetics, and dietary supplements. Growing demand for organic and clean-label components due to increased awareness of the benefits of natural products is driving sales of botanical extracts.

Key Market Growth Drivers

• Consumers are becoming health conscious and are seeking natural and plant-based solutions for their health and wellness needs.
• Botanical extracts are perceived as a healthier alternative to synthetic ingredients.
• Increased desire for products with clean-label ingredients has fueled the usage of plant extracts as natural flavoring agents, colorants, and preservatives in a variety of food and beverage products, contributing to the botanical extract market growth.
• Extraction technology advancements hav e increased the efficiency and quality of botanical extract production, making them more accessible to manufacturers.
• Botanical extracts are popular in the cosmetics and personal care industries due to their skin-friendly and anti-aging effects. Thus, they are increasingly being used in skincare and haircare products.
• Specific botanical extracts with proven health benefits, such as turmeric (curcumin), green tea (catechins), and ginseng (ginsenosides), are becoming increasingly popular.

Premium botanical extracts are obtained from rare and exotic plants. Demand for premium extracts is driven by a trend toward environmentally friendly and sustainable sourcing and production practices to meet consumers’ need for ethical and environmentally responsible organic products.

Report Attributes	Details
Botanical Extract Market Size (2022A)	US$ 5.7 Billion
Estimated Market Value (2023E)	US$ 6.16 Billion
Forecasted Market Value (2033F)	US$ 13.5 Billion
Global Market Growth Rate (2023 to 2033)	8% CAGR
Europe Market Share (2022)	44%
Asia Pacific Market Share (2033F)	39%
Food & Beverages Segment Market Share (2022)	49%
Powder Segment Growth Rate (2023 to 2033)	7.5% CAGR
Key Companies Profiled	Ransom Naturals Limited; International Flavors and Fragrances Inc.; Synthite Industries Limited; Martin Bauer Group; Kalsec Inc; Blue Sky Botanics Ltd.; Dohler GmbH; Frutarom Industries Ltd.; P.T. Haldin Pacific Semesta; Prinova Group LLC; PT Indesso Aroma; Synergy Flavors; Bell Flavors & Fragrances; Nutra Green Biotechnology Co. Ltd.; Kuber Impex Ltd.; Nexira; Haldin Natural; MB-Holding GmbH & Co. KG; Fytosan; BI Nutraceuticals

Why is There Growing Demand for Botanical Extracts Across the World?

“Increasing Awareness of Therapeutic Properties of Botanical Extracts”

Natural and holistic solutions to health and wellness challenges are gaining popularity among consumers. Botanical extracts have grown in popularity due to their perceived safety and efficacy in treating a variety of health concerns arising due to sedentary lifestyles. Ongoing scientific research and clinical trials have contributed to a better understanding of medicinal plant extracts. Specific plant molecules, such as antioxidants, polyphenols, and phytochemicals, have been discovered to have potential health advantages.

Many botanical extracts have been utilized for ages in traditional medicine systems such as Ayurveda and traditional Chinese medicine. As consumers grow interested in old therapeutic traditions, these practices gain credibility, boosting the usage of botanicals. Botanical extracts are rapidly being advocated and incorporated into conventional medicine by healthcare professionals.

“Significant Role of Botanical Extracts in Biofuel Production and Wastewater Treatment”

Botanical extracts are frequently employed in the food and beverages industry as natural flavor enhancers, colorants, and preservatives. They offer distinctive and exotic flavors to products, making them more enticing to consumers seeking to experience new flavors. Botanical extracts are increasingly being used in the pharmaceutical and nutraceutical industries. Because of their medicinal characteristics and health advantages, these extracts are employed in the development of herbal medications, dietary supplements, and functional foods.

Skincare, hair care, and cosmetic goods use botanical extracts for their anti-aging, moisturizing, and skin-soothing characteristics, which corresponds to the growing demand for natural and organic cosmetic products. Some botanical extracts are used in green technologies such as biofuel production and wastewater treatment, which contributes to sustainability and environmental friendliness.

What are the Barriers Preventing Botanical Extracts from Gaining Widespread Market Acceptance?

“Complex Nature of Botanical Matrices Hindering Analytical and Chemical Characterization”

The inherent heterogeneity in plant sources and growth conditions creates considerable hurdles for quality control and standardization of botanical extracts. Botanical extracts come from a vast variety of plant species, each with its own genetic makeup, soil composition, climate, and growing methods. Because of this natural variability, maintaining uniform product quality and potency between batches is extremely difficult.

When grown in different regions or under varying environmental conditions, the concentration of bioactive chemicals, which frequently determine the efficacy of botanical extracts, can vary dramatically even within the same plant species. This diversity challenges efforts to set consistent quality standards and can result in inconsistent product performance.

The complexity of botanical matrices makes the analytical and chemical characterization of these extracts difficult, necessitating the use of specialized procedures and equipment. These difficulties not only influence product reliability but also create safety and efficacy concerns, particularly in pharmaceutical and nutraceutical applications where accurate dosing is critical.

A combination of advanced analytical methods, stringent quality control systems, coordination among industry stakeholders, and knowledge of botanical extraction equipment is required to develop standardized protocols for botanical sourcing and processing to overcome these obstacles.

How Can Start-ups Capitalize on the Demand Growth for Botanical Extracts?

"Focus on Stringent Quality Control Measures for Efficient Production of Traditional Herbal Extracts"

Start-ups can leverage opportunities in the market by focusing on different botanical sources or extraction technologies to generate distinct products with special health advantages or functions. Start-ups must appeal to environmentally sensitive customers and emphasize sustainable sources and ethical practices. Invest in stringent quality control and certification procedures to assure the purity and efficacy of the botanical extracts. Through research and collaborations with academic institutions, start-ups should focus on discovering new applications and health benefits of plant extracts.

Keep up with changing rules and seek expert advice to manage the complicated regulatory landscape, especially in pharmaceutical and nutraceutical applications. Create an engaging brand story that emphasizes the natural and health-focused components of your products, aimed at consumers looking for clean and holistic solutions. Focusing on the aforementioned ideas, startups can make use of opportunities that currently exist while also attempting to offer distinctive health benefits made with natural ingredients.

Country-wise Insights

The global market is expanding rapidly due to rising consumer demand for natural and organic products in a variety of industries. Traditional herbal practices and legislation have a strong influence on the market in each country. Europe accounted for 44% share of the market in 2022 and Asia Pacific is projected to hold 39% of the botanical extract market share by 2033.

How is Demand for Botanical Extracts Shaping Up in China?

“Growing Emphasis on Modernization of Herbal Medicine Production to Meet Global Standards”

China is a key player in the market. China, with a long history of traditional herbal medicinal practices, has become a significant supplier of botanical extracts and herbs to markets all over the world, thereby contributing to the herbal extract market growth. Because of its plentiful plant resources, the country is an important supplier of raw materials for the plant extract market. Traditional Chinese medicine (TCM) has achieved international prominence, boosting the global demand for Chinese plant extracts.

Domestic use of botanical extracts is also expanding as consumers become more aware of the health advantages of traditional treatments and plant-based supplements. Furthermore, China's emphasis on modernizing its herbal medicine business and following international quality standards has increased trust in the safety and efficacy of Chinese botanical extracts.

• Blue Sky Biological Technology is a leading Chinese supplier of botanical extracts. The company has a wide range of products, including herbal extracts, fruit extracts, and vegetable extracts. Blue Sky Biological Technology exports its products to over 50 countries.

Which European Countries are Botanical Extract Manufacturers Targeting?

"High Demand for Clean-label Herbal Medicines in Germany, France, and United Kingdom"

European countries play an important role in the worldwide botanical extract market because of their stringent laws, long history of herbal traditions, and growing consumer desire for natural and organic products. The European Union has developed stringent standards and regulations governing botanical extracts, ensuring their safety and quality. The European market is a crucial driver of innovation due to its strong regulatory environment, which instills customer confidence.

European Union countries such as Germany, France, and the United Kingdom are at the forefront of the market. Germany is well-known for its high demand for natural and herbal medicines, and the country is home to a plethora of botanical extract manufacturers and botanical extract suppliers. Dietary supplements, herbal teas, and natural cosmetics using botanical extracts are all available in the German market. France, too, is a strong market for botanical extracts, with an emphasis on the beauty and personal care sectors, where customers value the natural and ecological features of these products.

Botanical extracts have become more popular in recent years, especially in the context of health and wellness, in the United Kingdom. As consumers seek alternatives to manufactured medications, demand for botanical extracts in nutritional supplements and herbal therapies has increased. Furthermore, usage of botanical extracts in natural food and beverage items has increased in the United Kingdom market as consumers prioritize clean-label components.

• United Kingdom-based companies are launching new products that feature botanical extracts as key ingredients. For example, in 2023, Neal's Yard Remedies launched a new line of skincare products called Rehydrating Rose, which features Bulgarian rose extract.

Category-wise Insights

The food and beverages segment accounted for 49% of the market in 2022. The powder segment is projected to expand at a CAGR of 7.5%, reaching a valuation of US$ 7.8 billion by the end of 2033.

Which Botanical Extract Applications are Projected to Exhibit Significant Revenue Growth?

“Demand for Holistic Healthcare Driving Botanical Extract Use in Pharmaceuticals”

Botanical extracts are gaining popularity in the pharmaceutical and nutraceutical industries due to their therapeutic potential. These extracts are used in pharmaceuticals to make herbal medicines and therapeutic drugs that provide natural compounds for pain relief, immune support, and chronic condition management. Preference for holistic healthcare among consumers drives the demand for botanical extracts.

Nutraceutical botanical extracts provide bioactive compounds, vitamins, and antioxidants, which align with the desires of the consumer for better health. Botanical extracts address a wide range of health issues, from targeted herbal supplements to natural energy boosters. This symbiotic relationship between botanical extracts and the pharmaceutical/nutraceutical sectors drives market growth and fosters innovation, providing natural health and wellness solutions.

• In 2021, the FDA approved a botanical extract derived from the curcumin plant to treat Alzheimer's disease, marking a series of new drug approvals in the category of botanical extract-based drugs.

Competitive Landscape

The competitive landscape of the botanical extract market is dynamic and varied. Established market leaders are competing for market share by emphasizing innovation, and sustainability, and addressing customer desire for natural and functional ingredients. Collaboration, regulatory compliance, and establishing a global presence are the key strategies for success in this dynamic business.

• International Flavours and Fragrances Inc. announced in January 2019 that its Frutarom Division had finalized the acquisition of 60% of The Mighty Co. Ltd.

International Flavours and Fragrances Inc., Martin Bauer Group, Kalsec Inc., Dohler GmbH, Ransome Naturals Limited, and Blue Sky Botanics Ltd., are some of the top companies in the botanical extract market.

Segmentation of Botanical Extract Market Research

• By Source :

  • Flowers
  • Herbs
  • Fruits
  • Spices
  • Tea Leaves
  • Others

• By Form :

  • Powder
  • Liquid
  • Leaf Extracts

• By Application :

  • Cosmetics & Skincare
  • Pharmaceuticals
  • Food & Beverages
  • Others

• By Type :

  • Organic
  • Conventional

• By Technology :

  • CO2 Extraction
  • Solvent Extraction
  • Steam Distillation
  • Enfleurage
  • Others

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa