The global botanical extract market (식물 추출물 시장) is anticipated to reach a value of US$ 13.5 billion by the end of 2033, growing at a compound annual growth rate (CAGR) of 8% from 2023 to 2033. Botanical extracts have gained immense popularity due to their health benefits and diverse applications across industries, driving market growth. As consumer preferences evolve, the botanical extract market is expected to continue expanding, presenting opportunities for manufacturers, suppliers, and retailers to cater to the demand for natural and sustainable products. Asia Pacific and Europe are set to be key regional markets in this business.
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Key Takeaways from Market Study
The global botanical extract market was valued at US$ 5.7 billion in 2022, with worldwide demand expected to increase to US$ 6.16 billion by 2023. Projections indicate that the market will reach US$ 13.5 billion by the end of 2033, expanding at a compound annual growth rate (CAGR) of 8% from 2023 to 2033. The powder segment, in particular, is anticipated to grow at a CAGR of 7.5%, potentially reaching a market size of US$ 7.8 billion by the end of the forecast period. The food and beverages sector is a significant driver, having accounted for 49% of the market share in 2022.
Geographically, the Asia Pacific region is forecasted to hold a substantial portion of the market, with a projected share of 39% by 2033. Meanwhile, Europe maintained a significant presence in the global botanical extract market, capturing 44% of the market share in 2022. This robust growth across different segments and regions underscores the increasing demand and diverse applications of botanical extracts, driven by consumer preferences for natural and health-oriented products.
List of Key Companies Profiled in The Report
Ransom Naturals Limited
International Flavors and Fragrances Inc.
Synthite Industries Limited
Martin Bauer Group
Kalsec Inc
Blue Sky Botanics Ltd.
Dohler GmbH
Frutarom Industries Ltd.
T. Haldin Pacific Semesta
Others
Demand for Natural and Sustainable Beauty Products Growing
The cosmetics and skincare industry is undergoing significant transformation as consumer preferences shift towards natural and sustainable beauty solutions. Instead of focusing solely on appearance, the industry is now emphasizing skin health and overall well-being. Ingredients with calming and antioxidant properties, such as aloe vera, chamomile, and green tea, are popular creams and serums.
Consumers are increasingly seeking cruelty-free, vegan, and environmentally friendly options, prompting businesses to adopt environmentally friendly packaging and sustainable components. The clean-beauty movement also pushes manufacturers to prioritize skin safety by requiring products to be free of harmful chemicals, parabens, and synthetic fragrances.
AI-powered skin analysis technologies provide customized recommendations. Natural, eco-conscious, and personalized beauty solutions are reshaping the industry, and botanical extracts are a key component. In this changing landscape, brands that embrace these trends and align with consumer values are likely to thrive.
Notable Developments
The Botanical Extract market is marked by notable developments that underscore its adaptability and resilience. Innovations in extraction processes, such as cold pressing and enzymatic extraction, enhance the efficiency of obtaining bioactive compounds while preserving their integrity. The discovery of novel plant sources with unique therapeutic properties broadens the scope of botanical extracts in various applications. Furthermore, the market witnesses the emergence of personalized botanical formulations, catering to individualized health and wellness needs. These notable developments reflect a market that embraces innovation, sustainability, and the profound potential of botanical extracts beyond conventional applications.
Competitive Landscape
The botanical extract market's competitive scene is marked by dynamism and diversity. Seasoned market leaders engage in fierce competition, prioritizing innovation, sustainability, and meeting consumer demands for natural and functional ingredients to secure their market share. Success in this dynamic industry hinges on key strategies such as collaboration, regulatory compliance, and the establishment of a global presence.
An illustrative example of this competitive environment is evident in the move by International Flavours and Fragrances Inc. In January 2019, the company's Frutarom Division successfully concluded the acquisition of 60% of The Mighty Co. Ltd. This strategic initiative exemplifies the competitive landscape's focus on strategic alliances and acquisitions to bolster market positions. As companies navigate the evolving expectations of consumers and regulatory frameworks, such initiatives become pivotal in maintaining a competitive edge in the botanical extract market.