|Fastest Growing Market:||South America|
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The botanicals market was valued at USD 93.6 billion in 2020, registering a CAGR of 6.63%, during the period, 2021-2026.
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 difficulty for producers to sell their products in distinguished countries, such as the United States, Canada, India, and Germany. India grows about 95 lakh bags (of 60 kg each) of turmeric annually, of which 70 lakh bags are consumed locally, and about 20 lakh bags are exported. However, in 2020, both domestic and export demand were weak. Thus, this is impacting the market over the medium term.
Consumers who want clean-label and sustainable ingredients are attracted to products that contain botanicals. This is especially true in beverages, where botanical flavors add a refreshing and natural “pop” to aromatic formulations. However, the use of botanical ingredients, such as sage leaf and rose petal, is also growing in categories, including bakery, dairy, and confectionery.
In foods and beverages, consumers tend to consider botanical “premium” ingredients. Local palates and availability dictate which botanicals are most popular. For example, Kerry’s new white paper “Flourishing with Botanicals,” which centers on the food and beverage botanical trend in Europe, found that fruit, cocoa, vanilla, coffee, tea, and floral botanicals are preferred by consumers in the region. Botanical extracts can be found in a growing number of product launches across all major segments, from beverages to baked goods and dairy products or savory categories, such as soups, sauces, and snacks. Likewise, they play an increasing role in plant-based dairy and meat alternatives, providing both sensory value and transparency in terms of product labeling.
Scope of the Report
Botanical ingredients include natural ingredients extracted or derived from herbs, spices, flowers, seeds, leaves, and fruits. The market studied is segmented by sources, application, and geography. By source, the market studied is segmented into herbs, spices, flowers, and other sources. By application, the market studied is segmented into functional food and beverage, food, dietary supplements, animal feed, and other applications. The food and beverage segment is further sub-segmented into bakery and confectionery, sauces and dressings, functional beverages, and other food and beverages. Similarly, the feed segment is also further sub-segmented into ruminant, poultry, swine, and other animal feed. By geography, the market studied has been segmented into North America, Europe, Asia-Pacific, South America, the Middle East, and Africa.
Key Market Trends
Wide Application and Functionality of Botanicals
With the advent of new segments, such as functional foods, cosmeceuticals, and animal feed, the market for herbs and botanicals has changed significantly over the past decade. This has opened new opportunities for manufacturers, allowing them to position botanicals and other natural ingredients in products that no longer have to compete with only synthetic and medicinal 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 toward natural ingredients-based products. In response to the ongoing demand from the cosmetic industry, the ingredient companies are also increasing their research and development to provide the cosmetic and personal care industry with innovative botanical extracts. For instance, in 2019, Givaudan launched its Adaptogenes botanical solution, a collection made of 10 botanical extracts, including moringa, turmeric, aloe vera, and acerola for the skin and body care products.
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Europe Holds the Largest Market Share
Germany has emerged to be the leading market in the region. The country is also one of the leading importers of spices and herbs in the European market. Evolving consumer taste preferences, healthy living habits, and convenience are the primary factors that are boosting the botanical extract market in the region. Additionally, the growing trend of Asian cuisines like Chinese, Continental, and Japanese among European consumers is also increasing the demand for organic spices and herbs. There is a demand for natural anti-aging skin care product which has herbal and organic ingredient due to prevalence of middle-aged people who are witnessing aging anxiety in the region. For instance, in 2018, Italian company Bema Cosmetics launched its Blue Defense face range and Solar Tea Sun Protection cream. The products are made using natural organic ingredients like cranberry seed oil and licorice root extract, which helps signs of aging. Moreover, due to an increase in the aging population in the region, there is a need for natural food supplements and nutrition together with anti-aging skin care products in the European market.
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The botanicals market is highly fragmented, with numerous global and regional players operating in the market. However, global players, such as International Flavors & Fragrances Inc., Bell Flavors & Fragrances, Firmenich SA, Martin Bauer Group, and Givaudan, dominated the market studied with their extensive product offering, coupled with their growth strategies. The prominent market players have been focusing on developing new and innovative products by targeting new formulations. Additionally, these companies have been focusing on increasing the production capacities of their existing plants or introducing new production facilities while investing in R&D activities. Thus, the market studied is expected to witness significant growth in product innovation while keeping expansion as a business interest, to reach a diverse set of consumers within a short-term period.
- In May 2020, Firmenich SA launched its third Fragrance Atelier in Grasse, Villa Botanica, with an aim to strengthen its leadership in the natural and sustainable product offering. It is a 40,000-square-meter site, complete with gardens, a creative workshop, a reception area, and views of the mountains and sea.
- In May 2020, Lipoid Kosmetik AG supplemented its range of dermal messenger peptides with the launch of PhytoCodine®. It is the world’s first anti-aging concentrate of natural matrikine-like peptides, which reprograms fibroblasts to accumulate extracellular matrix components characteristic of younger-looking skin.
- In October 2019, Bell Flavors & Fragrances expanded its reach to the United Kingdom by establishing a culinary center and an office in the country. The new establishment will support the researchers in introducing new flavors, botanical extracts, and other food ingredients that primarily focus on authenticity and clean labeling.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
3.1 Market Overview
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Source
5.1.4 Other Sources
5.2 By Application
5.2.1 Food and Beverage
188.8.131.52 Bakery and Confectionery
184.108.40.206 Sauces and Dressings
220.127.116.11 Functional Beverages
18.104.22.168 Other Food and Beverages
5.2.2 Dietary Supplements
5.2.3 Animal Feed
5.2.4 Other Applications
5.3 By Geography
5.3.1 North America
22.214.171.124 United States
126.96.36.199 Rest of North America
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
220.127.116.11 Rest of Asia-Pacific
5.3.4 South America
18.104.22.168 Rest of South America
5.3.5 Middle-East and Africa
22.214.171.124 Saudi Arabia
126.96.36.199 South Africa
188.8.131.52 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Strategies Adopted by Key Players
6.2 Market Positioning Analysis
6.3 Company Profiles
6.3.1 Kalsec Inc.
6.3.2 Firmenich SA
6.3.3 Lipoid Kosmetik AG
6.3.4 Blue Sky Botanics Ltd
6.3.5 International Flavors & Fragrances Inc.
6.3.6 Ransom Naturals Ltd (OBG Pharmaceuticals Ltd)
6.3.7 Bell Flavors & Fragrances
6.3.8 NAGASE & CO. LTD (Prinova)
6.3.9 Martin Bauer Group
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Botanicals Market market is studied from 2016 - 2026.
What is the growth rate of Botanicals Market?
The Botanicals Market is growing at a CAGR of 6.63% over the next 5 years.
Which region has highest growth rate in Botanicals Market?
South America is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Botanicals Market?
Europe holds highest share in 2020.
Who are the key players in Botanicals Market?
Firmenich SA, International Flavors & Fragrances Inc., Bell Flavors & Fragrances , Givaudan, Martin Bauer Group are the major companies operating in Botanicals Market.