The Botanicals Market is experiencing significant growth owing to rising customer preference for natural ingredients in cosmetics, personal care and food & beverage products. Botanical extracts offer various functional benefits and help manufacturers formulate natural products. They are sourced from plants and contain active pharmacological compounds along with antioxidants that protect cells from damage. The increasing consumer awareness about benefits of botanicals is a major factor prompting brands to expand their natural product lines.
The Botanicals Market is estimated to be valued at US$ 112.31 billion in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024-2031.
Botanical extracts are used across industries like cosmetics, personal care, food & beverage, pharmaceuticals and nutraceuticals. They provide anti-aging properties, enhance skin texture, treat acne and aid overall skincare. In the food sector, botanicals help fortify products with additional nutrients and herbal flavorings. The rising application scope across industries is fueling the market expansion.
Key Takeaways
Key players operating in the Botanicals Market are DSM, AmbePhytoextracts, Berje, Indesso, Lipoid Kosmetic. These companies are investing in new organic extraction technology and R&D activities to develop botanical formulations for product development across various end use industries.
The Botanicals Market offers substantial opportunities for players in the natural and organic personal care space. New product launches with customized ingredient formulations targeting specific consumer health goals will drive future growth. For example, botanical extracts with specialized anti-aging or sun damage protective properties.
Geographic expansion into emerging territories presents another key opportunity. Large players are strengthening distribution partnerships and strategic collaborations in high potential regions like Asia Pacific, Latin America, and Middle East & Africa to leverage the growing demand.
Market Drivers
Rising health awareness among global consumers regarding the benefits of botanicals is a major market driver. Customers prefer products containing natural extracts over synthetic or chemical ingredients due to perceived safety benefits. Moreover, the COVID-19 pandemic has prompted individuals to focus on preventive healthcare and immunity boosting lifestyle changes through natural means including botanicals.
Market Restraints
Stringent regulatory policies and scrutiny over new botanical ingredients is a key challenge for product development and commercialization. Not all plant extracts are considered safe due to potential side effects, toxicity or allergenic reactions. High research costs involved in clinically validating natural extracts before approval can also act as a market restraint.
Segment Analysis
The Botanicals Market is dominated by the herbs segment, which accounts for over 30% market share currently. Herbs are widely used across various applications such as pharmaceuticals, functional food and beverages, personal care and cosmetics products. The growth of this segment can be attributed to the rising popularity of herbal products for their natural formulation and fewer side effects. Following herbs, the spices segment holds around 25% share in the overall market. Turmeric, ginger, garlic, chili, mustard etc are some of the popular spices that are commonly used for flavoring, preservatives and coloring agents. New product launches with various spices infusion is boosting demand in this segment.
Global Analysis
The North America region holds the largest share in the Botanicals Market currently. The USA market alone accounts for over 40% of the total regional market revenue. This can be accredited to rising health conscious population and increasing launches of organic and plant-based personal care products in the region. Europe is placed as the second largest regional market assisted by stricter regulatory norms regarding usage of chemical ingredients. Asia Pacific region is expected to witness the fastest growth over the forecast period supported by growing middle class population and their shifting preference towards herbal alternatives. China, India, Japan and South Korea are anticipated to be the key revenue generators for the Asia Pacific botanicals industry.
Get more insights on this topic: https://www.dailyprbulletin.com/botanicals-market-are-powering-the-beauty-market-in-trends-of-sustainability/
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
What Are The Key Data Covered In This Botanicals Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the Botanicals Market's growth between 2024 and 2031.
:- Accurate calculation of the size of the Botanicals Market and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- Botanicals Market Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market's competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of Botanicals Market vendors
FAQ’s
Q.1 What are the main factors influencing the Botanicals Market?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top Botanicals Market companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the Botanicals Market’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it