Botanical Ingredients Global Market

Botanical Ingredients Global Market

The global botanical ingredients industry has experienced considerable growth over recent years in all segments in terms of the total revenue. The total market size increased from USD 1.51 billion in 2020 to USD1.83 billion in 2023, representing a CAGR of 6.7% during the period.

The functional food industry serves as the primary driver of demand for botanical ingredients, propelled by the increasing consumer awareness of the health advantages associated with incorporating botanicals into their daily dietary regimen. This heightened consciousness among consumers is anticipated to fuel a sustained expansion in the demand for botanical ingredients within the functional food sector. Notably, certain key ingredients such as withania somnifera, curcumin, and CBD have garnered significant traction due to their diverse therapeutic benefits.

The botanical ingredients market can be divided into cosmetics and functional food. In today's global market, consumers are placing a growing emphasis on selecting products and ingredients that align with their general beliefs about health and well-being. This shift is evident in the increasing demand for specific health benefits across various consumer segments. Among the top health benefits desired by consumers worldwide are beauty support, immune health support, digestive health, weight management, and heart health.

The botanical ingredients in the cosmetics market can be categorized into two applications, namely hair grooming products and skin grooming products. The segment pertaining to skin grooming products has witnessed a substantial revenue of USD 355.0 million in 2022. Furthermore, it is anticipated to attain a remarkable growth rate of 8.6% over the forecast period from 2023 to 2028, ultimately reaching a revenue of USD 580.8 million by 2028.

In 2022, the skin grooming products segment emerged as the largest application segment for the botanical ingredients market. This trend is expected to persist, with skin grooming products projected to remain the largest revenue-generating segment throughout the forecast period. This sustained dominance underscores the enduring significance of botanical ingredients in the formulation of skincare products and reflects the enduring consumer demand for natural and plant-based solutions in the skincare industry.

The demand for botanical ingredients within the functional food and beverages segment experienced a notable surge during the pandemic, driven by heightened consumer awareness regarding the maintenance of immune health and overall well-being. Subsequently, the market for functional food and beverages has witnessed substantial expansion, with this trend anticipated to continue shaping the global functional food and beverages market throughout the forecast period. This sustained momentum underscores the enduring significance of botanical ingredients in meeting the evolving consumer preferences for health-conscious and immune-supporting products.

The global botanical ingredients market has witnessed substantial growth in terms of revenue, driven primarily by the Asia Pacific sectors. Demand for botanical ingredients in the Asia-Pacific region is poised for robust growth, with markets such as China, South Korea, and Southeast Asian countries like Singapore and Thailand emerging as high-growth markets driving the demand for botanical extracts. As the region's consumer base becomes increasingly discerning, sustainability is expected to become a crucial differentiator, with local brands gaining more traction. This shift reflects a growing emphasis on environmentally friendly and ethically sourced products, underscoring the evolving landscape of the beauty and personal care industry in the Asia-Pacific region.

Key participants in the global botanical ingredients market comprise notable entities such as Air Liquide S.A., Archer-Daniels-Midland Company, BASF SE, Clariant AG, Croda International plc, Döhler GmbH, Evonik Industries AG, Givaudan S.A., Groupe Berkem S.A., Ingredion Incorporated, Kemin Industries, Inc., Kerry Group plc, Koninklijke DSM N.V., Lonza Group AG, Lubrizol Corporation, Sensient Technologies Corporation, and Symrise AG, among others.