Global Botanical Extracts Market is expected to reach USD 5,833.4 million by 2022, supported by a CAGR of 8.8% during the forecast period of 2017 to 2022.
The botanical extracts market is mainly driven by the growing awareness of health and wellness and trend towards the natural health products, strict regulations regarding inclusion of synthetic flavours, growing population in developing countries discovering the health benefits of botanicals, increase in demand for convenience food, and growing demand of botanical extracts in herbal medicinal products.
Moreover, increasing investments in emerging economies, and the emergence of new application areas with changing consumption trends provides significant opportunities within the food and beverage markets. However, the availability of substitutes such as synthetic flavour is expected to hinder the growth of this market to some extent.
The global botanical extracts market is mainly segmented by source (spices, herbs, flowers, and tea leaves), by form (powder and liquid), and by the application (food, beverages, cosmetics, and pharmaceuticals). With their versatile functional properties, the application areas of botanical extracts have been increased significantly in cosmetics and personal care products.
North America accounted for the major share in the global botanical extracts market in 2016, followed by Europe, and Asia-Pacific. The major share of the North American region is mainly attributed to the increasing functional food consumption, growing health consciousness, and changing diseases pattern in the region.
On the other hand, Asia-Pacific region is projected to grow at the fastest CAGR during the forecast period, mainly due to increasing disposable income, growing urbanization, increasing prevalence of various chronic diseases such as diabetes, and rising demand for healthy & natural products.
Growing Awareness of Health and Wellness and Trend Towards The Natural Health Products
Strict Regulations Regarding Inclusion of Synthetic Flavours
Growing Population in Developing Countries Discovering the Health Benefits of Botanicals
Increase in Demand For Convenience Food
Increase in Demand of Botanical Extracts In Herbal Medicinal and Cosmetics Products
Availability of Substitutes
Emergence of New Application Areas Accordance With Changing Consumption Trends