Botanical Extracts Market size is $4.7Bn in 2019, growing at a CAGR of 9.6% during the forecast period 2020-2025. Botanicals are plants that contain extracts, which are isolated and extracted in ethanol, water, other organic solvents, essential oils, oleoresins and other extracts to be used for fragrance, flavoring, functional health benefits, and medicine. These are concentrated plant materials providing therapeutic properties, which have been extracted through a variety of methods, including steam distillation, solvent extraction and others. It brings an authentic taste as it is derived directly from plants, usually from the leaves, flowers or fruits. Some botanical extracts are made through the use of frozen raw materials while others use dried materials, the original state can change the flavor concentration. These are used as flavoring agent in fats, oils, food emulsions and others producing a synergizing effect when mixed with other natural food preservatives. The growing demand for healthy nutritional foods is driving the botanical extracts market.
By Application – Segment Analysis
In 2019, Beverages segment dominated the Botanical Extracts Market in terms of revenue is estimated to grow at a CAGR of 7.9%. Botanical extracts offers health benefits through plant extracts that are used in beverages to provide general health and wellness. Botanicals have a complex taste profile which can be astringent, sweet, or slightly bitter, with long-lasting effects. These flavors enable beverage producers and developers to lower sugar content to below 7g/100ml owing towards consumer preference of lesser sweet beverages. In beverages, the most popular botanical profiles include floral, herbs and spices as well as specific botanical ingredients including cinnamon, lemongrass, hibiscus, ginger and mint that improve the nutritive value of these products while not compromising or enhancing the flavor profile abetting towards the growth of the market.
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Geography – Segment Analysis
In 2019, the North America region dominated Botanical Extracts Market in terms of revenue with a market share of 41.6% owing towards the increasing use of botanical extracts in food and beverages sector. U.S. Department of Agriculture’s National Organic Program (USDA NOP) is the federal regulatory framework in North America governing organic food. Carrubba was the first U.S. botanical extract manufacturer to have been certified by this regulatory body and is a global leader in the personal care arena generating revenue of $19.2m. The increasing consumer awareness in this region regarding the benefits of consumption of products that includes naturel plant derived extracts, huge availability of aromatic medicinal plants aids to the market’s growth. Government has taken initiatives to promote technological advancements in this region are key factors in the growth of the Botanical Extracts market. Asia Pacific is estimated to record the fastest growth rate during the forecast period 2020-2025.
Drivers – Botanical Extracts Market
Increasing Transparency On Product Labels
The increasing consumer preference towards natural, authentic ingredients, reassuring lists of ingredients on the product label and a better understand of what they consume is driving the markets growth. Increase in the number of health-conscious consumers also drive the market owing towards clean label products, which are becoming mandatory across the globe and thus compelling food manufacturers to develop products including botanical extracts with new formulations to satisfy to the rising consumer demand for healthier food products.
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Challenges – Botanical Extracts Market
Measuring Chemical Stability In Pharmaceutical Industry
The quality control of drug preparations is the evaluation of the chemical stability of a finished product during the storage period and the accurate measurement of chemical stability is very challenging owing to the complexity of a plant extract, which is set to contain thousands of different compounds which is further providing negative impact towards the market growth. The high capital investments for equipment and strict regulations for the consumer safety also hamper the growth of the market. The lack of sufficient storage facilities and improper distribution and limited cold storage and transportation are also hindering the market’s growth.
Botanical Extracts Industry Outlook
Product Launches was the key strategy of the players in the Botanical Extracts Industry. Botanical Extracts top 10 companies include BI Nutraceuticals, Blue Sky Botanics Ltd., Dohler GmbH, Frutarom Industries Ltd., Haldin Natural, Kalsec Inc., Kuber Impex Ltd., Mb-Holding GmbH & Co. Kg, Prinova Group LLC. and Indesso Aroma.
In December 2015, Indesso Aroma entered into a partnership with Chr. Hansen, a global bio-science company based in Horslom, Denmark that develops natural solutions for the food, nutritional, pharmaceutical and agricultural industries. The partnership is anticipated for the growing demand of the products within Indonesian market.
In October 2018, Dohler GmbH acquired a majority stake in Italian firm Nutrafood. This acquisition helped in increasing consumer demands for organic and chemical free products.
Rising consumer awareness regarding the usage of cosmetics products containing botanical ingredient is set to propel the growth of the market.
Increasing health awareness among consumers is steadily causing a shift towards safer, convenient, healthy and refreshing beverages.
Asia-Pacific region is estimated to record the fastest growth rate during the forecast period 2020-2025.
Related Reports :
A. European Plant Extracts Market
B. Malt Ingredient Market
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