Botanicals are plant-derived ingredients which are extensively used in industries like pharmaceuticals, food & beverage processing, personal care & cosmetics, and others. Botanicals have properties which can help improve overall health and well-being, giving rise to their popularity as an effective alternative to synthetic products. Key botanicals in demand include spices, herbs, plant extracts, teas, essential oils, and seaweeds. The global botanicals market is driven by consumers' increasing preferences for natural ingredients due to rising health consciousness.
The Global Botanicals Market is estimated to be valued at USD 112.31 Billion in 2024 and is expected to reach USD 174.10 Billion by 2031, growing at a compound annual growth rate (CAGR) of 6.5% from 2024 to 2031.
Key Takeaways
Key players operating in the Botanicals market are Givaudan, Sensient Technologies Corporation, Symrise AG, International Flavors & Fragrances Inc., Kangcare Bioindustry Co., Ltd.
Growing health awareness among consumers has significantly boosted the demand for Botanicals Market. Plant-derived ingredients are believed to offer various health benefits naturally. In the coming years, demand is expected to continue rising as more consumers prefer natural alternatives to chemical-based products.
Globally, the botanicals market is expanding at a rapid pace. Key markets include North America, Europe, Asia Pacific, and South America. Many international players have set up production and R&D facilities in emerging nations to capitalize on the growing international demand. Countries like India and China are promising botanicals producers due to availability of raw materials and lower production costs.
Market Key Trends
Sustainable sourcing of botanicals has emerged as a key trend in the market. Companies producing botanicals are striving to ensure an ethical supply chain and promote fair trade practices. They are focusing on developing long-term partnerships with farmers to support biodiversity and protect traditional farming knowledge. Sustainability requirements are stronger among leading brands, giving a competitive edge to suppliers adhering to such practices. This trend is likely to further shape the botanicals industry landscape in the upcoming years.
Porter's Analysis
Threat of new entrants: Low capital requirements for firms to enter botanicals market posing threat.
Bargaining power of buyers: Large buyers such as cosmetic manufacturers have significant bargaining power to negotiate lower prices.
Bargaining power of suppliers: Suppliers such as farmers have moderate bargaining power due to availability of substitutes and differentiated nature of products.
Threat of new substitutes: Substitutes such as synthetic sources pose moderate threat depending upon end use and regulations.
Competitive rivalry: Intense competition exists among existing players to gain market share and develop new products.
Geographical Regions
North America accounts for the largest share in botanicals market in terms of value owing to increasing health consciousness and shifting consumer preference towards natural ingredients in food and personal care products.
Asia Pacific is expected to grow at the fastest pace during the forecast period. This is attributed to rising cosmetic industry, growing middle class population and their willingness to spend on premium products containing botanical extracts in countries such as China and India.
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Priya Pandey is a dynamic and passionate editor with over three years of expertise in content editing and proofreading. Holding a bachelor's degree in biotechnology, Priya has a knack for making the content engaging. Her diverse portfolio includes editing documents across different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. Priya's meticulous attention to detail and commitment to excellence make her an invaluable asset in the world of content creation and refinement.
