The worldwide food botanicals market size is expected to be USD 219.4 billion in 2024. The sector’s progress is expected to happen at a CAGR of 2.2% from 2024 to 2034. By the end of the forecast period, the food botanicals industry value is slated to hit USD 272.8 billion.
Demand for botanicals in food is accelerating due to the rising number of vegetarian and vegan consumers. While adopting plant-based diets, these consumers want to ensure that health is not skimped on. Thus, there is greater demand for botanicals in food.
Beverages are being fortified with botanicals as the trend of functional beverages intensifies. As a result, botanicals are finding their way into a variety of ready-to-drink beverages, such as energy drinks and shakes. Alcoholic drinks, such as craft beer and cocktails, are also incorporating botanical elements. Through the use of plants, alcoholic drinks are being manufactured with a fresh taste, enticing consumers willing to experiment.
Global Food Botanicals Industry Assessment
| Attributes | Description |
|---|---|
| Historical Size, 2023 | USD 199.5 billion |
| Estimated Size, 2024 | USD 219.4 billion |
| Projected Size, 2034 | USD 272.8 billion |
| Value-based CAGR (2024 to 2034) | 2.2% |
In addition to the health benefits provided by botanicals, the ingredients also play a major part in influencing the color, taste, and fragrance of food products. As consumer tastes diversify, there is more appetite for diversity in food offerings. Thus, new species of plant life are being incorporated into food products, to the approval of consumers.
The prospects of the food botanicals industry are being bolstered by the increasing acceptance of herbal products. A significant number of consumers are opting for herbal food products and supplements as part of the health-consciousness trend. This tracks with the overall growth of the plant-based supplement sector. Thus, supplements are regarded to be an exciting avenue for progress by investors.
Demand for botanicals in food is surging due to consumer clamor for functional food. With increasing attention being paid to diets, foods that provide health benefits are preferred by a significant contingent of consumers. Parents are also investing in functional food to improve their children’s health.
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The below table presents the expected CAGR for the global food botanicals industry over several semi-annual periods spanning from 2024 to 2034. For the first half (H1) from 2023 to 2033, the sector is expected to grow at a CAGR of 2.1%. For the second half (H2), growth is poised to be 2.2%.
| Particular | Value CAGR |
|---|---|
| H1 | 2.1% (2023 to 2033) |
| H2 | 2.2% (2023 to 2033) |
| H1 | 2.3% (2024 to 2034) |
| H2 | 2.3% (2024 to 2034) |
Moving forward to the subsequent period, from H1 2024 to H2 2034, the CAGR is foreseen to be the same in the first and second half as well. Both for H1 and H2, the CAGR is predicted to be 2.3%, indicating not much change will take place between both periods.
Increasing Distaste Over Artificial Additives Brightens Prospects
As people get more knowledgeable about the food they eat, the presence of preservatives and additives in food products is being looked at with disdain. Social media influencers as well as health professionals are advocating for the deletion of additives and preservatives in diets for their adverse health benefits. Instead, the inclination of the health-obsessed crowd is towards the use of plants.
Botanicals are able to perform the function of additives and preservatives in food, enhancing taste and color while also contributing to increasing shelf life. As a result, food manufacturers are heeding the demands of the younger generations and utilizing botanicals instead of additives and preservatives.
Flourishing Culinary Culture Opening Up New Avenues for Stakeholders
Consumers have more variety than ever when it comes to food as thriving culinary culture is ensuring eateries with diverse cuisines have scope to operate. With food enthusiasts more eager to explore cuisines from far and wide, the introduction of new plant substances to a wider audience is being achieved.
The flourishing of Indian cuisine is helping the demand for plants like brinjal and okra to increase in the Western world. Similarly, the growing popularity of Japanese cuisine all over the world is ensuring increased demand for botanicals like shiso and kaiware. Thus, growing culinary application is set to drive the food botanicals industry.
Concerns Over Raw Material Supply and Allergy Risks Limit Industry Growth
Increasing global warming risks and deforestation are creating a dearth of botanical materials. Due to the inadequacy of raw materials, supply chains suffer and production is jeopardized. This problem is felt even more keenly when the plants being used as raw materials are obscure and are sourced from a specific area of the globe.
Even with the use of non-traditional botanicals in food flowers, there are concerns over the compatibility of some botanicals. A considerable number of people are allergic to several plants and are cut off from the consumer base. Thus, there are significant roadblocks in the path of the sector.
Principal Consultant
The food botanicals industry size was tipped to be USD 134.9 billion in 2019. Throughout the historical period, the industry grew at a CAGR of 2.2%, reaching a size of USD 199.5 billion in 2023.
The increased adoption of plant-based diets motivated the progress of the sector during the historical period. The pandemic aided in meat skepticism and a considerable number of people turned to vegan and vegetarian foodstuff. Thus, manufacturers were encouraged to use more botanicals in food.
The progress of the industry in the forecast period is adjudged to happen at the same rate as in the historical period. The number of people following the vegan and vegetarian trend is predicted to swell up even further during the upcoming decade, propelling the food botanicals industry further.
Consumers getting more knowledgeable about the products they eat is helping the progress of the sector. Not only does consumer consciousness encourage the purchase of healthy food but it also leads to greater demand for clean-label products.
Aside from food usage, botanicals are also becoming a part of dietary supplements in an enhanced way. As dependency on health supplements surges, due to factors like hectic lifestyles and a rising geriatric population, there is more scope for botanicals.
Tier 1 companies that have a notable presence in the landscape include Tyson Foods Inc., Arcadian Organic & Natural Meat Co., and Kerry Group Plc. Tier 1 companies are expected to account for 40% of the revenue generated in the sector. Tyson Foods concentrates on providing healthy versions of snack items. For example, in May 2021, it launched plant-based versions of Burger Patties, Bratwurst, and Italian Sausages. Kerry Group concentrates on both plant-based foods and beverages, offering functional options to consumers.
Some tier 2 companies prominent in the sector include Marfrig Group, Verde Farms LLC, and Associated British Foods Plc. Tier 2 companies are far behind both tier 1 and tier 3 companies when it comes to the revenue generated. The revenue share of tier 2 companies is estimated to be 8.7%.
Marfig Group has made collaboration a key part of its strategy. For example, the company teamed up with ADM to produce and sell vegetable protein-based products in Brazil. Associated British Foods grows its presence through various arms like Yumi, a vegetarian supplier of dips and snacks.
Some notable tier 3 companies include Pilgrim’s Pride Corporation, BRF S.A., and McCormick & Company. Tier 3 companies outperform tier 1 and tier 2 companies in the sector when it comes to revenue. Their share is expected to be 51.3%.
BRF focuses strongly on animal welfare. Thus, several production lines in the company incorporate botanicals instead of animal protein. McCormick & Company made clear its plans in the plant-based sector by acquiring the Australian brand Botanical Food Company, Pty Ltd.
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Advancing vegan trends in Europe and North America are creating a conducive environment for the product in the regions. The Asia Pacific has nations where plants are pivotal in cuisines, such as India and China, and thus demand is maintained in the region.
| Countries | CAGR (2024 to 2034) |
|---|---|
| United States | 2.1% |
| United Kingdom | 2.2% |
| France | 2.4% |
| Spain | 2.5% |
| Italy | 2.6% |
The industry is penned in to progress at a CAGR of 2.1% in the United States. The vegan inclination of the population in the United States has not been without growing pains. A considerable number of vegan converts in the nation still feel the craving for the taste of meat and fish products.
Vegan companies in the United States are satisfying these cravings by offering meat substitutes utilizing food botanicals. For example, in July 2024, Big Idea Ventures launched Bayou Best Foods, specializing in plant-based seafood. Thus, the scope of botanical use in food is wide in the United States.
The sector is set to register a CAGR of 2.6% over the forecast period in Italy, making it one of the most fertile countries in Europe. Italy is home to several famous cocktails. Botanicals are used both in the making and the garnish in famous Italian cocktails.
World-famous Italian cocktails like Negroni and Sanguinello make use of botanicals. As cocktail sales across the nation grow, both through the local population and the tourists who come to indulge in the popular food and beverage offerings in the country, the conditions are right for the food botanical space to grow.
The industry’s progress in the United Kingdom is put forth to happen at a CAGR of 2.2% over the forecast period. Witnessing the vegan inclination of the population, more restaurants are being opened with plant-based menus.
London is especially witnessing a boom in restaurants with vegan menus. Restaurants like Sky Garden and Mr Fogg’s House of Botanicals are leading to increased application of food botanicals in culinary spaces in the United Kingdom. Consumers in the nation being more open to trying out new cuisines, flavors, and tastes is also aiding in the opening of new restaurants with a plant-based focus.
Plants are the primary source of botanicals in food. Based on form, dried plants and leaves segment dominates the sector. A study of the segments shows the importance given to plants in the overall food and beverage sector.
| Segment | Plants (Source) |
|---|---|
| Value Share (2024) | 23.5% |
Plants are expected to take up 23.5% of the industry share in 2024. Plants as a resource are widely available and some varieties are extracted without much effort and cost. Compared to algae and fungus, the easy extraction of plants sees producers turn heavily to the plants.
There has been a trend of increased sales of clean-label products in the food and beverage sector. Thus, plant ingredients are accepted more widely in the food and beverage sector. Products made from algae or fungi sources may have to wait for regulatory approval for a prolonged period. Comparatively, plant-based products are likely to be approved in a short period of time comparatively as the ingredients are common.
| Segment | Dried Plants and Leaves (Form) |
|---|---|
| Value Share (2024) | 34.5% |
Dried plants and leaves are expected to take up 34.5% of the industry share in 2024. Manufacturers are listening to calls by end-users for a longer shelf life. Dried plants and leaves allow the advantage of a longer shelf life to producers.
Dried plants and leaves are easy to store because they have no or minimal expiry risk. Dried plants and leaves find application in diverse products like teas, seasonings, supplements, and functional foods. Another advantage is the year-round availability of dried leaves. Thus, the material is becoming increasingly common in food botanicals.
The food botanicals market is fairly fragmented. A few giants control a respectable portion of the landscape. However, there is plenty of space for small-scale players. As a result, the barrier to entry is also low.
Companies in the sector are competing on factors such as product innovation, quality, sustainability, and price. Many are investing heavily in research and development to discover new applications for botanical ingredients and improve extraction techniques.
The market is also seeing increased competition from smaller, specialized companies focusing on niche botanical ingredients or specific applications. These firms often differentiate themselves through unique ingredient sourcing, proprietary extraction methods, or by catering to specific dietary trends like organic, non-GMO, or plant-based products.
Mergers, acquisitions, and strategic partnerships are common as companies seek to expand their product portfolios, access new areas, or secure their supply chains. Sustainability and traceability are becoming increasingly important factors, with many companies implementing programs to ensure responsible sourcing of botanical ingredients.
Ensuring consistent quality and potency of botanical ingredients is a major competitive factor, with many players investing in advanced quality control measures. This follows the clean-label trend in the food and beverage sector, with players attempting to not run afoul of the regulatory authorities.
Industry Updates
Based on the source, the food botanicals market is divided into plants, algae, fungi or lichens.
Based on the end user, the food botanicals market is bifurcated into commercial and residential.
Based on the form, the food botanicals market can be divided into the following segments: dried plants and leaves, oleoresins, essential oils, and other forms.
Based on the application, the food botanicals market can be divided into the following segments: beverages, confectionery, supplements, flavor enhancers, and other applications.
The sector has been analyzed with the following regions covered: North America, Latin America, Europe, South Asia, East Asia, Oceania, and the Middle East and Africa.
The size of the food botanicals market is estimated to be USD 219.4 billion in 2024.
The food botanicals market is expected to increase at a CAGR of 2.2% over the forecast period.
The food botanicals market is forecasted to reach a size of USD 272.8 billion by 2034.
Kerry Group Plc and Cargill Inc. are prominent companies.
Sales are expected to register a CAGR of 2.1% in the United States over the forecast period.
1. Executive Summary
2. Industry Introduction, including Taxonomy and Market Definition
3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
5. Pricing Analysis
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034
6.1. Source
6.2. Form
6.3. Application
6.4. End User
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Source
7.1. Plants
7.2. Algae
7.3. Fungi or Lichens
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Form
8.1. Dried Plants and Leaves
8.2. Oleoresins
8.3. Essential Oils
8.4. Other Forms
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application
9.1. Beverages
9.2. Confectionery
9.3. Supplements
9.4. Flavor Enhancers
9.5. Other Applications
10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End User
10.1. Commercial
10.2. Residential
11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
11.1. North America
11.2. Latin America
11.3. Western Europe
11.4. South Asia and Pacific
11.5. East Asia
11.6. Middle East and Africa
12. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. South Asia and Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
16. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
17. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
18. Sales Forecast 2024 to 2034 by Source, Form, Application, and End User for 30 Countries
19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
20. Company Profile
20.1. Olam International
20.2. Frutarom Ltd.
20.3. Kalsec Inc.
20.4. Döhler GmbH
20.5. MB-Holding GmbH & Co. KG
20.6. Synergy Flavors
20.7. Blue Sky Botanics
20.8. Bayer AG
20.9. Naturalife Asia Co.
20.10. Cargill Inc.
20.11. Kerry Group Plc
20.12. Naturex SA
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Food Botanicals Market
