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Botanicals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

·4-min read

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.

New York, Jan. 06, 2022 (GLOBE NEWSWIRE) -- announces the release of the report "Botanicals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" -
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.

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.

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.

Competitive Landscape

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.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support
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