Global Food Botanical Market - 2022-2029

Global Food Botanical Market - 2022-2029:

Market Overview

Food Botanical Market was valued at USD YY million in 2021. It is forecasted to reach USD YY million by 2029, growing at a CAGR of 7.01% during the forecast period (2022-2029).

Food botanicals are concentrated plant extracts or herbs that are used in the food industry to add flavor, color, or fragrance. Plants and plant parts, whether fresh or dried, may be among them. Additionally, they are used to increase the product's shelf life and give it therapeutic properties. Herbs are a component of dietary supplements that boost the quality and potency of food items as well as offer immunity to specific diseases. The majority of food botanicals used in the food, cosmetic, and pharmaceutical industries are derived from plants and algae and extracted using various organic solvents or water. Additionally, there has been an increase in the production of food botanicals recently as a result of some botanicals' therapeutic properties.

Market Dynamics: Increasing use of food botanicals in supplements drives the market

Due to their properties that can aid in enhancing and maintaining health, botanicals are widely used in food and nutritional supplements. One of the key factors propelling the growth of the food botanicals market is the key players' extensive use of botanicals to create novel supplements with improved health benefits. On the other hand, Due to health advantages, such as improving skin quality, lowering the risk of cancer, and supporting the health of the heart, liver, and brain, green tea extracts are being used more frequently all over the world. The growth of the food botanicals market is being further fueled by the fact that green tea extracts are a fantastic source of antioxidants that aid in lowering oxidative stress in the body by preventing cell damage brought on by free radicals. These are the two major factors which is fueling the market growth.

However, one of the main things that is thought to be limiting the growth of the market for food botanicals is the inconsistent availability of raw materials.

Market Segmentation: Plants and leaves segment accounted for the highest share in global botanical food market

During the forecast period, plants and leaves are likely to become the most popular source in the market for food botanicals. According to American Botanical Council, Plants and Leaves are predicted to generate more than $1 billion in revenue by the end of 2032. Various foods and medications use plant parts, fresh or dried plant material, or the entire plant, on a large scale. Furthermore, a lot of aromatic plants are used as food additives and supplements. For instance, on 1st April 2022, Kerry, the world’s leading taste and nutrition company, has acquired U.S.-based Natreon, Inc., a leading supplier of branded Ayurvedic botanical ingredients to expand the business. ""Consumers are increasingly looking for nutritional benefits when purchasing food and drink,"" said Gerry Behan, President and CEO of Taste & Nutrition at Kerry Group, in response to a question about the acquisition. ""Recent proprietary consumer research from Kerry states that 42% of U.S. consumers are more likely to purchase a product which is backed by research or scientific data.""

On the other hand, due to factors like the rise in demand for plant-based ingredients in bakery and confectionery products and the expanding popularity of natural flavoring agents in bakery and confectionery products, the bakery and confectionery segment held the largest share in the market. The market for food botanicals is expanding as black cohosh usage in baked goods and confectionery products rises.

Geographical Penetration: North America is the dominating region during the forecast period

North America is projected to be the dominating region due to the increasing demand food botanicals from major countries such as the United States and Canada. As vegan population is rapidly growing, the US has introduced vegan supplements in the market. Some of the major companies like Kerry Group, Martin Bauer Group, Blue Sky Botanics Ltd, Frutarom Industries Ltd, Arcadian Organic & Natural Meat Co, Indesso Aroma and Verde Farms started launching products with vegan supplements. According to the U.S. Department of Agriculture, a cup of fortified soy milk has more than 85% of the recommended daily allowance of vitamin B12. So, companies launched Plant-based milks and expanded their business. According to World Economic Forum sales of plant-based foods increased by 6.2% from record levels in 2020 to reach $7.4 billion. Milk was the most widely consumed plant-based product in 2021, purchased by 42% of American households. To satisfy consumer demands, manufacturers concentrated on integrating cutting-edge technologies and unique solutions. Manufacturers of food and beverage packaging are working to lighten their products in order to cut costs on raw materials and transportation in the region of North America.

Competitive Landscape:

There are several established participants in the industry and local manufacturers; hence, the market is fragmented. Some major key players Arcadian Organic & Natural Meat Co. Pty Ltd, Associated British Foods plc, Bayer AG, Bio Botanica, Inc., International Flavors & Fragrances Inc., Kerry Group plc, Lipoid Kosmetik AG Marfrig Global Foods, The Himalaya Drug company and Tyson Foods, Inc. invested in expanding their business. For instance, on 3rd February 2021, A majority ownership stake in Power Brands, a Los Angeles-based provider of beverage development, formulation, production, and marketing services, was acquired by The Martin Bauer Group, a producer of teas and botanicals. The major market players have been concentrating on creating novel and cutting-edge products by aiming for new formulations. These businesses have also been investing in R&D activities while concentrating on expanding the production capabilities of their current plants or establishing new production facilities. For instance, in November 2021, in its newly expanded flavor manufacturing facility in Karawang, Indonesia, IFF announced an investment of USD 87 million. The facility in Karawang International Industrial City will meet the rapidly expanding demand for flavor technology in the area. On the other hand, Ransom Naturals Ltd. announced in September 2021 that it had partnered strategically with SK Chemtrade to provide South Africa with exclusive access to its pharmaceutical, nutraceutical, and food and beverage botanical extracts.

COVID-19 Impact:

Positive impact on the global food botanicals market

According to the National Business Journal (NBJ) By reaching an estimated $11.261 billion in 2020, sales of herbal dietary supplements in the United States surpassed $10 billion for the first time. Some studies have proved that vegan population have been increased by 42.6% due to the pandemic. The use of natural products and herbal remedies to combat COVID-19 is promising so the sales for natural plant products drastically increased. The FDA has stated that the taking dietary supplements will keep the body immune. To increase the immunity power people started taking dietary supplements, as a result the demand for food botanical increased. Because of the covid 19 outbreak 45% of the consumers started taking plant supplements as a result the food botanicals market has grown throughout the globe. When a hospital practicing Traditional Chinese Medicine (TCM) suggested using herbs to combat COVID-19 in March 2020, there was a noticeable increase in demand for conventional medicine. Botanical ingredients are used in the formulation of numerous dietary supplements products linked to joint health, obesity, anxiety, and the vascular system.

The global food botanical market report would provide an access to approximately 61 market data tables, 57 figures and 170 pages