Who does not like his food, clothes, or any other material having a pleasant aroma? And if this aroma arises from a completely organic compound, why will anyone have a problem? This drives the demand for botanical ingredients.
There will be a moderate leap in the market size from 2024 to 2034, changing the valuation from USD 185.91 billion to USD 374.84 billion. The botanical ingredient market growth will ensure it traverses a moderate yet impressive path, maintaining a CAGR of 7.3%.
| Attributes | Key Insights |
|---|---|
| Estimated Market Size in 2024 | USD 185.91 billion |
| Projected Market Value in 2034 | USD 374.84 billion |
| Value-based CAGR from 2024 to 2034 | 7.3% |
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The historical botanical ingredient market growth was hovering around a mere 6% CAGR, which started to lift the market from USD 130.56 billion in 2019.
The growing consumer inclination toward eco-friendly and plant-based products helped the botanical ingredient market size increase. The consumption of these products leveraged the growth of leading botanical ingredient manufacturers.
More customers found themselves allergic to synthetic and chemical products. Due to this, a spike in the demand for botanical ingredients was observed.
| Historical CAGR from 2019 to 2023 | 6% |
|---|---|
| Forecast CAGR from 2024 to 2034 | 7.3% |
The rising health and wellness trends assisted the enhancement of the plant-based ingredient market size. Consumers will adopt healthier lifestyles, driving the demand for botanical ingredients.
Leading botanical ingredient manufacturers will benefit due to the growth in the technological infrastructure. Procurement and distribution of goods will become easier, driving their supply in the market.
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Europe is an emerging market sector due to the growing cosmetic industry. The region will wholesomely contribute to the plant-based ingredient market growth.
The emergence of domestic markets and increasing exports will leverage better growth prospects for the Asia-Pacific region. It fuels the natural food ingredient market size.
North America provides a wider competitive landscape for leading botanical ingredient manufacturers. Technological infrastructure cuts production costs for them, levitating the profit margins. Hence, it also ensures satisfactory botanical extract market growth.
Forecast CAGRs from 2024 to 2034
| Countries | Forecasted CAGR |
|---|---|
| The United Kingdom | 2.9% |
| Germany | 3.8% |
| The United States of America | 4.4% |
| China | 5.4% |
| India | 7.1% |
The United Kingdom’s botanical ingredient landscape will increase sluggishly at a CAGR of 2.9% by 2034.The procurement of herbal supplements is on the rising demand.
Consumers will prefer plant-based ingredients. Due to this, botanical ingredients demand will spur, driving the market. Remedial properties and medicinal values of botanical ingredients products drive the market.
As the personal care and skincare segments grow in Germany, botanical extracts are required. Consumers prefer organic products for their skincare routine.
Also, the country's natural food ingredient market is governed due to the growing inclination towards including organic food products. Due to this, the German plant-based ingredient market growth will likely be paced at a 3.8% CAGR.
The United States will provide a broader competitive landscape, and the size of the botanical ingredient market will increase at a CAGR of 4.4%. Natural food ingredients' varying benefits enhance the health of the geriatric population in the country. Disease management becomes easier, which drives the demand for the market.
This also fuels the nutraceutical industry, and home remedies can be employed using these ingredients. Therefore, the growing nutraceutical industry drives the natural food ingredient market.
Due to the vast geographical area and rich biodiversity, the availability of botanical and plant-based ingredients is abundant.
Domestic production is growing along with the growing exports, which fuels the market opportunity for new entrants. Thus, these factors will accelerate the plant-based ingredient market growth in China at a CAGR of 5.4%.
The Indian botanical extract market growth will occur at the highest rate. It is predicted to occur at a CAGR of 7.1%.
The Indian government is supporting domestic production. Make-in-India projects are fueling local businesses. Due to this initiative, local Ayurvedic medicines are gaining popularity in the global landscape, fueling the demand for botanical extracts.
| Category | Ingredient Type- Herbs & Spices |
|---|---|
| Market Share in 2024 | 23.6% |
| Market Segment Drivers |
|
| Category | Form- Liquid Plant Extract |
|---|---|
| Market Share in 2024 | 26.5% |
| Market Segment Drivers |
|
With the high influencing power, leading botanical ingredient manufcturers will occupy a substantial market space, cluttering the competitive landscape.
Also, they tend to expand by partnering, collaborating, merging, and acquiring small-scale businesses. These strategies help them embark on their market positions, gaining a decisive competitive edge.
However, the negotiating power of new entrants increases with the increasing innovation. An augmented product portfolio might give them a better market position. This collective ecosystem will govern the competitive landscape, ensuring the botanical extract market growth.
Key Market Developments
| Attributes | Details |
|---|---|
| Estimated Market Size in 2024 | USD 185.91 billion |
| Projected Market Valuation in 2034 | USD 374.84 billion |
| Value-based CAGR 2024 to 2034 | 7.3% |
| Forecast Period | 2024 to 2034 |
| Historical Data Available for | 2019 to 2023 |
| Market Analysis | Value in USD billion |
| Key Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; The Middle East and Africa |
| Key Market Segments Covered | By Ingredient, By Form, By End User, By Application, By Region |
| Key Countries Profiled | The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, Poland, Russia, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC Countries, South Africa, Israel |
| Key Companies Profiled | Archer Daniels Midland Company; International Flavors& Fragrances Inc.; Koninklijke DSM NV; Martin Bauer Group; Bell Flavors & Fragrances; Givaudan; Döhler GmbH; Koninklijke Euroma BV; Botanical Ingredients Ltd.; Nutrasorb LLC. |
The market for botanical ingredients is estimated to progress at a CAGR of 7.3% through 2034.
Sales of botanical ingredients will likely reach USD 374.84 billion by 2034.
The natural food ingredients market will attain a market size of USD 185.91 billion in 2024.
The botanical extract market's herbs & spices segment will hold 23.6% of the market share in 2024.
The natural food ingredients' liquid plant extract segment will likely secure 26.5% of the market in 2024.
| Estimated Size, 2024 | USD 160.5 million |
|---|---|
| Projected Size, 2034 | USD 311.4 million |
| Value-based CAGR (2024 to 2034) | 6.9% |
| Estimated Market Size (2023E) | USD 108.5 million |
|---|---|
| Projected Market Value (2033F) | USD 245.3 million |
| Value-based Market CAGR (2023 to 2033) | 8.5% |
| Expected Market Value (2023) | USD 8233.6 million |
|---|---|
| Anticipated Forecast Value (2033) | USD 18,871 million |
| Projected CAGR (2023 to 2033) | 8.6% |
| Market Share (2023) | USD 71,693 million |
|---|---|
| Market Share (2033) | USD 95,703.2 million |
| Market CAGR (2023 to 2033) | 3% |
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