Download Sample, The Rise of Botanical Extracts as a Natural Solution for Health and Wellness
Numerous botanical extracts contain beneficial compounds like polyphenols, flavonoids, and phytonutrients, with ongoing studies confirming their effectiveness and safety. On the other hand, there is widespread worry regarding the potential risks and safety of synthetic or chemical supplements. Botanical extracts, when obtained and handled correctly, are typically seen as less harmful and milder on the body. The market for botanical extracts is being propelled by rising interest in health and wellness, the demand for healthier food products, awareness of the benefits of natural over synthetic products, and the push for transparency in sourcing and labeling. This growth is driven by consumer trust in the efficacy of natural extracts and herbal remedies for promoting well-being.
An essential oil is a type of botanical extract that offers a wide range of health-enhancing benefits. The ‘Norfolk Essential Oils’ producer of ‘Hemp Essential Oil’ offers health-enhancing benefits like stress-relieving, good for insomnia, anti-inflammatory, reduces swelling, alleviating skin irritations and allergic reactions, relieves asthma, hay fever, sinusitis, etc. For example, according to the study published in NIH 2024, the botanical extract has protective properties against 5G radiation that causes damage to human skin. However, when botanical extracts are used as active components in protective skincare products, they will protect the human skin against 5G radiation. Thus, the market for botanical extracts is being propelled by their rising health benefits.
An essential oil is a type of botanical extract that offers a wide range of health-enhancing benefits. The ‘Norfolk Essential Oils’ producer of ‘Hemp Essential Oil’ offers health-enhancing benefits like stress-relieving, good for insomnia, anti-inflammatory, reduces swelling, alleviating skin irritations and allergic reactions, relieves asthma, hay fever, sinusitis, etc. For example, according to the study published in NIH 2024, the botanical extract has protective properties against 5G radiation that causes damage to human skin. However, when botanical extracts are used as active components in protective skincare products, they will protect the human skin against 5G radiation. Thus, the market for botanical extracts is being propelled by their rising health benefits.
Botanical Extracts Market Driven by Pharmaceuticals, Nutraceuticals, and Regulatory Support
As consumers become more conscious of their health, they are looking for natural alternatives to prescription medications. The perception that botanical extracts are safe and effective alternatives drives the demand for pharmaceutical and nutraceutical products. Regulatory bodies are developing regulations for the utilization of botanical extracts in pharmaceutical and nutraceutical products as they recognize the potential benefits of these substances. Precise rules build confidence for both customers and manufacturers, leading to increased market expansion. However, the pharmaceuticals and nutraceuticals segment dominated the botanical extracts market in terms of market share.
‘Select Botanical, S.L.’ is a Spanish company that specialized in extracting botanical extracts and active ingredients, particularly licorice products, with a long history of research and extraction of this root. Its products are used in various industries, such as pharmaceuticals, nutraceuticals, food, beverages, veterinary care, and cosmetics. ‘Rhodiola dry extract’ is one of the products made by select botanicals that has applications in phytotherapy like enhanced recovery time, muscle power, stamina, cardiovascular fitness, and coordination. Rhodiola extracts can be seen included in formulations such as creams, lotions, facial serums, and post-sun products, including alternative functions like antioxidant, astringent, and skin conditioning. The broad-spectrum application of botanical extracts in pharmaceuticals and nutraceuticals is driving market growth.
‘Select Botanical, S.L.’ is a Spanish company that specialized in extracting botanical extracts and active ingredients, particularly licorice products, with a long history of research and extraction of this root. Its products are used in various industries, such as pharmaceuticals, nutraceuticals, food, beverages, veterinary care, and cosmetics. ‘Rhodiola dry extract’ is one of the products made by select botanicals that has applications in phytotherapy like enhanced recovery time, muscle power, stamina, cardiovascular fitness, and coordination. Rhodiola extracts can be seen included in formulations such as creams, lotions, facial serums, and post-sun products, including alternative functions like antioxidant, astringent, and skin conditioning. The broad-spectrum application of botanical extracts in pharmaceuticals and nutraceuticals is driving market growth.
Recent Trends in the Botanical Extracts Industry:
- Consumers are seeking out natural ingredients in health solutions attributed to rising trend for clean and green beauty that aid to growth of botanical extracts market.
- Botanical extracts focus on wellness and functionality by incorporating anti-inflammatory, antioxidant, and other therapeutic properties into their products.
- Natural components in dietary supplements, functional foods, and traditional medicines are on the rise, which has fueled the botanical extract market.
- Research and development in extraction methods are crucial for the growth of the growth of the botanical extract market.
- Consumers growing demand for botanical extracts sourced sustainably and ethically.
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Raw Material Shortages and Increased Prices of Raw Materials Threaten the Market Stability
Forest degradation and species extinction have resulted in the disappearance of certain plant species. Moreover, as these medicinal plants are cultivated only in a limited number of countries, their availability is limited. Furthermore, since these plants have only one annual production and limited availability, it creates a shortage in the supply-and-demand equilibrium. Besides, it affects the price of materials, and the additional cost of storing them raises the overall cost. Standardizing the price of the final product proves difficult ascribe to significant price variations. Supply bottlenecks, heightened demand in producing countries, and unpredictable weather contribute to occasional distress.
However, raw materials are agricultural products and are widely used in various industries such as food and beverages and animal feed, among others. As a consequence, due to weather conditions, diverse demand from different industries, economic factors, and trade relationships, the prices of raw materials often change. This leads to disturbances in the cost framework and profit margin of manufacturers of botanical extracts, posing hindrances to the market. In addition, the House of Commons Environmental Audit Committee in 2024 presents that the UK is dedicated to maintaining its international leadership in addressing global deforestation. The UK presented the strategic approach to addressing climate change, protecting nature, ensuring food security, development, and prosperity at the 28th United Nations Climate Change Conference in Dubai in 2023.
However, raw materials are agricultural products and are widely used in various industries such as food and beverages and animal feed, among others. As a consequence, due to weather conditions, diverse demand from different industries, economic factors, and trade relationships, the prices of raw materials often change. This leads to disturbances in the cost framework and profit margin of manufacturers of botanical extracts, posing hindrances to the market. In addition, the House of Commons Environmental Audit Committee in 2024 presents that the UK is dedicated to maintaining its international leadership in addressing global deforestation. The UK presented the strategic approach to addressing climate change, protecting nature, ensuring food security, development, and prosperity at the 28th United Nations Climate Change Conference in Dubai in 2023.
Innovation, Acquisitions, and Sustainability Key Strategies for the Botanical Extract Market
Key market leaders utilize marketing tactics aimed at launching new products, engaging in strategic mergers, and acquiring additional businesses to expand their consumer reach and diversify their product portfolio. In August 2023, Synergy Flavors Inc., one of the top providers of sweet and savory flavors, extracts, and essences for the worldwide food and beverage sector, marked the official opening of its new savory innovation centre at its headquarters in Wauconda, USA. Furthermore, in November 2023, MartinBauer announced the successful acquisition of Husarich GmbH, a well-known manufacturer of spices and herbs serving different parts of the food sector. The acquisition represents a significant development in the company's growth plan, enhancing its strengths in the food sector.
Moreover, in April 2024, Nexira, one of the global experts in natural ingredients and plant extracts, will have always prioritized sustainable development and protecting the environment. By taking a distinctive approach to sustainability, Nexira has concentrated on conserving natural resources, backing local communities, and aiding in the economic development of the regions where its ingredients come from. For more than ten years, Nexira has partnered with SOS SAHEL to safeguard the acacia resource, improve the livelihoods of indigenous communities, and advocate for sustainability.
Moreover, in April 2024, Nexira, one of the global experts in natural ingredients and plant extracts, will have always prioritized sustainable development and protecting the environment. By taking a distinctive approach to sustainability, Nexira has concentrated on conserving natural resources, backing local communities, and aiding in the economic development of the regions where its ingredients come from. For more than ten years, Nexira has partnered with SOS SAHEL to safeguard the acacia resource, improve the livelihoods of indigenous communities, and advocate for sustainability.
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Asia Pacific's Dominance and Europe's Rising Demand for the Botanical Extract Market
Asia Pacific remained the leading market and is expected to maintain its dominance in the upcoming forecast period. Strong local and international demand is driving the thriving botanical extracts market in the region. The region is home to various small and medium-sized market manufacturers who are knowledgeable about extracting processes and the advantages they provide, including Alchemy Chemicals, Vital Herbs, Sydler, and Plantnat. Companies in Indonesia, India, and Thailand are continuously investing into the market and concentrating on creativity to broaden their range of products. This is a result of the increase in the trading of botanical extracts between Asian manufacturers and international producers of spices and essential oils.
On the other hand, the Europe region is expected to grow at the fastest pace in the global botanical extracts market during the forecast period. This is a result of the growing need for beverages and the increasing popularity of ready-to-drink (RTD) beverages among the local population. Increasing demand for RTD beverages such as tea, kombucha, and matcha due to consumers' preference for healthier, plant-based ingredients is fueling the growth of the beverage industry. Additionally, the market for botanical extracts in Italy had the highest market share, while the market for botanical extracts in the UK experienced the most rapid growth in Europe.
On the other hand, the Europe region is expected to grow at the fastest pace in the global botanical extracts market during the forecast period. This is a result of the growing need for beverages and the increasing popularity of ready-to-drink (RTD) beverages among the local population. Increasing demand for RTD beverages such as tea, kombucha, and matcha due to consumers' preference for healthier, plant-based ingredients is fueling the growth of the beverage industry. Additionally, the market for botanical extracts in Italy had the highest market share, while the market for botanical extracts in the UK experienced the most rapid growth in Europe.
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The report provides a detailed overview of the botanical extracts market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for botanical extracts market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the botanical extracts market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the botanical extracts market. Some key country and region included in the botanical extracts market report as follows:
| Regions | Countries |
|---|---|
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Central America Countries, Caribbean Countries, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Poland, Netherlands, Switzerland, Belgium, Sweden, Austria, Norway, Denmark, Czech Republic, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Philippines, Vietnam, Thailand, Bangladesh, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Turkey, Morocco, Ethiopia, Algeria, Israel, Iran, Iraq, Kenya, Rest of MEA |
Botanical Extract Market Research Report Covers In-depth Analysis on:
- Botanical Extracts market detailed segments and segment-wise market breakdown
- Botanical Extracts market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in botanical extracts industry)
- Current, historical and forthcoming 10 years market valuation in terms of botanical extracts market size (US$ Mn), volume (Tons), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Botanical Extracts market demand analysis
- Botanical Extracts market pricing analysis over forecast period (by key segment and by region)
- Botanical Extracts market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in botanical extracts market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in botanical extracts market
- Botanical Extracts market sales and distribution strategies
- A comprehensive overview of parent market
- A detailed viewpoint on botanical extracts market forecast by countries
- Mergers and acquisitions in botanical extracts market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What are the key drivers of growth in the botanical extracts market?
Growing consumer demand for natural and plant-based products, along with the increasing application of botanical extracts in the food, cosmetics, and pharmaceuticals industries, are key growth drivers.
What are the major trends in the botanical extracts market?
Key trends include the rising popularity of organic botanical extracts, increasing consumer preference for natural beauty products, and a shift towards sustainable sourcing practices in the extraction process.
What are the challenges facing the botanical extracts market?
The primary challenges include supply chain issues, the high cost of sourcing raw plant materials, and the risk of adulteration or contamination in botanical extract products.
