Botanical Ingredient Market

Botanical Ingredient Market Outlook from 2024 to 2034

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%

Key Trends in the Botanical Ingredient Growth Landscape

• After the pandemic outbreak, consumers started to shift toward a healthy lifestyle. This trend will continue growing in the next decade, influencing the size of the botanical extract market.
• The demand for organic and eco-friendly products is rising. This market trend is influencing leading botanical ingredient manufacturers, as they are demanded to produce more plant-based goods, like fruits, herbs, or spices-based goods.
• The growing sustainability concerns influence consumer demand for such products. The rising inclination toward sustainability will create several prospects for the sector, fueling market growth.

Botanical Ingredient Market Growth will be Fueled by Changing Lifestyles

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.

Botanical Ingredient Market Growth Drivers

• Growth in industries like the cosmetic, food and beverage, and healthcare markets will increase the demand for organic compounds and plant-based products. Hence, this will drive the plant-based ingredient market growth.
• Technological infrastructure will assist efficient production of botanical ingredients, helping leading botanical ingredient manufacturers grow. As a result, they will contribute to the sector, fueling the natural food ingredient market size.
• The reach of botanical ingredient products will likely enhance due to the growth in the distribution channels. Brands can position themselves via various channels, gaining more consumer attention. Hence, this will also drive the botanical extract market growth.
• Regulatory policies for using herbal and botanical ingredients in food are in the favor of the market. Due to this, it will lift the natural food ingredient market size.

Key Impedients to Botanical Ingredient Sales Expansion

• Intercontinental and intracontinental supply chains and distribution networks are subjected to volatility, which might affect the botanical extract market growth.
• Artificial compounds might greatly threaten the natural food ingredient market size due to their easy procurement and maintenance.

Country-wise Analysis

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%

Sustainability Fuels the United Kingdom’s Botanical Ingredient Market Growth

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.

Skincare Products Fuel the Sales of Botanical Ingredients in Germany

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 Neutraceutical Industry Controls the United States Botanical Ingredient Market Size

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.

Biodiversity in China encourages the expansion of Botanical Ingredient Sales

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%.

Ayurvedic Medicines widen Prospects for Botanical Ingredients Sales in India

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-wise Insights

Category	Ingredient Type- Herbs & Spices
Market Share in 2024	23.6%
Market Segment Drivers	Vast medicinal and health benefits of herbs and spices elevate their demand. Also, it magnifies the botanical extracts requirement among consumers. The cultivation of the category is relatively cheaper, gaining more profit margins for producers. These natural ingredients enhance the shelf life of food products, driving the market segment demand.

Category	Form- Liquid Plant Extract
Market Share in 2024	26.5%
Market Segment Drivers	Liquid botanical extracts provide better skin treatment results, catering to consumer demands for elevated skincare standards. The growing cosmetic industry demands liquid botanical extracts to meet rising consumer trends for eco-friendly and organic products. Plant-based extracts are essential ingredients for drug discovery. These factors drive the market segment.

Competitive Landscape of the Botanical Ingredient Market

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

• In October 2022, International Flavors & Fragrances, Inc. invested USD 30 million in its Singapore Innovation Center. The investment helped the firm expand its presence in the global market, gaining more market space. The new center was established in an 11,000 square meters area.
• In March 2024, Archer Daniels Midland Company announced a strategic partnership with Water.org. This move was intended to serve community service projects and work on water sanitation. The organization aimed to deliver safe and potable water to the remote areas.

Key Coverage of Botanical Ingredient Market Report

• Growth projections for the botanical ingredients market.
• Factors driving demand for botanical ingredients.
• Venture capital investment in botanical ingredients companies and investment analysis of the botanical ingredients market.
• Emerging applications of botanical ingredients attracting investment and High-growth botanical ingredients for investment.
• Botanical ingredients market investment trends.
• Regional trends in the botanical ingredients market.
• Natural food ingredients market.

Report Scope

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.

Key Segments Profiled

By Ingredient:

• Herbs & Spices
• Vegetables & Fruits
• Flowers
• Leaves
• Seeds & Nuts
• Barks & berries
• Bulbs & Roots
• Others

By Form:

• Dried Plants
• Liquid Plant Extract
• Oleoresins
• Others

By End User:

• Commercial Chains
• Residential Uses

By Application:

• Food & Beverages
• Nutraceuticals & Dietary Supplements
• Pet Care Industry
• Pharmaceuticals
• Cosmetics and Personal Care
• Commercial Households
• Others

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• South Asia and Pacific
• East Asia
• The Middle East and Africa

Frequently Asked Questions

At what CAGR the botanical ingredient market will likely progress through 2034?

The market for botanical ingredients is estimated to progress at a CAGR of 7.3% through 2034.

As of 2034, what is the speculated valuation of botanic ingredient sales?

Sales of botanical ingredients will likely reach USD 374.84 billion by 2034.

What will the market size of the botanical or plant-based ingredient market be by 2024?

The natural food ingredients market will attain a market size of USD 185.91 billion in 2024.

Based on ingredient type, which segment will likely hold the largest plant-based ingredient market share in 2024?

The botanical extract market's herbs & spices segment will hold 23.6% of the market share in 2024.

Which form will hold the largest plant-based ingredient market share in 2024?

The natural food ingredients' liquid plant extract segment will likely secure 26.5% of the market in 2024.