Botanical Ingredients Market Size, Share & Trends Analysis Report By Source (Spices, Flowers), By Form (Powder, Liquid), By Application (Food & Beverage, Personal Care & Cosmetics), By Region, And Segment Forecasts, 2023 - 2030

Botanical Ingredients Market Size, Share & Trends Analysis Report By Source (Spices, Flowers), By Form (Powder, Liquid), By Application (Food & Beverage, Personal Care & Cosmetics), By Region, And Segment Forecasts, 2023 - 2030

Botanical Ingredients Market Growth & Trends

The global botanical ingredients market size is expected to reach USD 281.41 billion by 2030, according to a new report by Grand View Research, Inc., expanding at a CAGR of 6.9% over the forecast period. The market is expected to be driven by the increasing demand for convenience and functional food products coupled with the advent of clean and natural botanical supplements by key market participants. The food and beverages industry has been one of the biggest application areas for botanical ingredients. They are widely used in various foods & beverages, such as bakery & dairy products, energy drinks, and confectionery products, owing to their unique flavor and health benefits.

Health-conscious consumers prefer food products with high nutritive content. The COVID-19 pandemic has also shifted customer focus towards preventive healthcare with an emphasis on natural and clean products. Thus, food & beverage manufacturers are focusing on fortifying food products with flavorful and nutritive plant-based ingredients, such as tea extracts. Botanical ingredients are sourced from herbs, leaves, spices, flowers, etc. Spices accounted for the highest revenue share in 2022. The increasing trend of experiencing novel food, high usage as a natural ingredient in cosmetic products, and increasing awareness about health benefits associated with it are major factors contributing to the high market share of the spices segment.

The rising demand for health-beneficial products and the introduction of novel food products by processed food companies to expand their product range and differentiate from competitors are factors expected to boost the market growth. The powder form segment accounted for the largest share in 2022. This is due to its high amounts of active ingredients, longer shelf life compared to liquid form, and extensive utilization in various applications, such as bakery, confectionery, sauces, dressings, meat, soy, dairy, dietary supplements, and medicines. Moreover, the powder form is less likely to be contaminated owing to its concentrated nature. Asia Pacific has been experiencing high growth over the past few years.

This trend is expected to continue over the forecast period. In the Asia Pacific region, developing countries, such as China and India, have witnessed exponential growth in the consumption of functional foods and dietary supplements in the last 10 years. The nutraceuticals industry in developed economies, such as Japan and Australia, has shown an upward growth trajectory in the recent past. As a result, Asia Pacific has emerged as a budding market for botanical ingredients, supported by health and wellness trends across various countries.

Botanical Ingredients Market Report Highlights

• The Asia Pacific region is estimated to register the fastest growth rate during the forecast period
• Favorable economic policies for advancements in the healthcare industry and consistent demand for novel products are expected to drive the regional market
• The spice source segment accounted for the largest volume as well as the revenue share in 2022
• The food & beverage application segment held the largest share in 2022 and is expected to witness steady growth in the coming years
• This growth is mainly due to the high consumption of packaged foods as a result of rapid urbanization and changing lifestyles
• Key players are increasingly consolidating their position in the industry mainly by acquiring small-sized firms. Companies are also focusing on offering tailored products wherein the content or composition of extracts and concentrate is customized

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