Food Botanicals Market size is $5.36 Billion in 2020, growing at a CAGR of 8.7% during the forecast period 2021-2026. Botanicals are dried or fresh plants, parts of plants or plants which are isolated or mixed ingredients of chemical substances, derived from ethanol, water, other organic solvents, essential oils, oleoresins and other extracts for fragrance, flavoring, health benefits and medicinal products. As it is extracted directly from plants, usually from leaves, flowers or fruits, it gives a genuine taste. By using frozen raw materials, some botanical are made, while others use dried materials, the original state is set to alter the concentration of flavor. These are used in fats, oils, food emulsions and others as flavoring agents which, when combined with other natural food preservatives, produce a synergizing impact. Also, technical developments in the food industry are also driving the use of different botanical ingredients and the discovery of new ingredients.
Global Food Botanicals Market Segment Analysis – By Source
In 2020, Herbs & Spices segment dominated the Food Botanicals Market in terms of revenue. The increase in demand for spices has resulted in changes in lifestyles and growth in the trend of discovering & experiencing new foods. It is important for spice extract manufacturers to create new and diverse flavors in line with changing customer tastes. Among the other sources of botanical extracts, spices are the most commonly used extracts abetting towards the growth of the market. Growing a new range of flavors by changing customer tastes is essential for producers of spice extracts. Flowers is estimated to grow with the fastest CAGR of 9.2% during the forecast period 2021-2026. This is owing to evolving lifestyles and a tendency towards a luxurious and healthier pattern of life that, along with the botanical flower industry which drive the market growth.
Global Food Botanicals Market Segment Analysis – By Application
In 2020, Bakery & Confectionery segment dominated the Food Botanicals Market in terms of revenue. With the emergence of the on-the-go consumption pattern, the demand for bakery products is growing. The market for food botanical in this industry is important owing of the high growth in demand for bakery and confectionery products, along with the rise in preferences for natural flavoring agents. Since botanical extracts are entirely natural, their “clean label” allow consumers who are increasingly turning towards natural, safe, and organic products to have greater choice. Carbonated Soft Drinks is estimated to record the fastest CAGR of 9.5% during the forecast period 2021-2026. Natural ingredient carbonated drinks, designed to offer a greater variety of tastes while providing functional properties, guarantee top line and creative development. Clean labels and goods sourced sustainably are favored by customers. The market for spice botanicals in carbonated soft drinks is fairly well known, but with their blends, brands are becoming more innovative, as customers become more acquainted with spices in their drinks and demand greater variety which in turn drives growth.
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Global Food Botanicals Market Segment Analysis – By Geography
In 2020, the North-America dominated Food Botanicals Market in terms of revenue with a market share of 38% owing towards rising public & private funding for R&D in this region. In addition, growing understanding of the consumption of dietary products in Mexico is expected to help the scope of application over the forecast period owing to new product launches. The growth is expected to encourage growing understanding of nutritional enrichment among working professionals in the U.S. and Canada to preserve healthy nutrition in the human body. Government has taken initiatives to promote technological advancements in this region are key factors in the growth of the Food Botanical market. Asia-Pacific is forecasted to record the fastest growth rate during the forecast period 2021-2026. Favorable government agricultural trade policies aimed at boosting food and attracting investment in the botanical ingredients market have provided full scope for growth in the region.
Global Food Botanicals Market Drivers
Increasing Transparency On Product Labels
Growth in the markets is driven by increased customer demand for natural, authentic products, reassuring lists of ingredients on the product label, and a greater understanding of what they eat. Clean label products are now becoming compulsory worldwide, pushing food producers to develop products including botanical extracts and new formulations to meet the increasing demand for healthy food products from consumers. In response to consumers opting for healthy alternatives to traditional drinks, an increase in unsweetened, organic and diet variants has been reported. By adding herbal enhancements such as ginseng, matcha, and hibiscus to the ‘good’ picture of their products, and bringing the antioxidant and cleansing properties of tea to the forefront of their brand imagery and marketing, producers further drive growth.
Global Food Botanicals Market Challenges
High Cost Of Raw Ingredients
The limited or insufficient availability of herbs and spices and their varying prices in various countries restrain the market growth. In particular seasons, many spices and herbs are available and are harvested annually. One of the major problems facing the demand for botanical extracts is the lack of consistency in the availability of raw materials. Moreover, the prices of herbs and spices can vary according to availability and season hampers the market growth.
Global Food Botanicals Industry Outlook
Product Launches, Merger & Acquisition, joint ventures and R&D activities are key strategies adopted by the players in the Food Botanicals Industry. Food Botanicals top 10 companies include BI Nutraceuticals, Blue Sky Botanics Ltd., Dohler GmbH, Frutarom Industries Ltd., Marfrig Group, Bio-Botanica Inc., Arcadian Organic, Natural Meat, Indesso Aroma and Kerry Group.
In July 2020, Kerry Group launched Collection Zero. It was produced with the low- and no-alcohol beverage markets in mind. For discerning clients who don’t want to compromise on taste, 15 regular items and 35 others, including juniper, rosebud, elderflower, cocoa, turmeric and cinnamon, are available.
In December 2015, Indesso Aroma entered into a partnership with Chr. Hansen, a global bio-science company based in Horslom, Denmark. The partnership is anticipated for the growing demand of the products within Indonesian market.
For many varieties of food products such as baked, canned, and meat to improve flavor, coloring drives the market growth. Increasing demand for food botanicals in the food industry as a natural ingredient additive over the forecast years 2021-2026 will further fuel the product demand.
The rising occurrence of chronic diseases is driving the market for food products and botanical drugs that are considered safer and more economical.
Asia-Pacific region is projected to record the fastest growth rate during the forecast period 2021-2026.
Related Reports :
A. Botanical Extracts Market
B. Nutraceutical Ingredients Market
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