Global Natural Botanical Extract Market Poised for 6.6% CAGR Growth | Demand Surges in Food & Personal Care | Valuates Reports

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Feb 24, 2025, 10:01 ET

Natural Botanical Extract Market is Segmented by Type (Water-based Extracts, Alcohol Tinctures, CO₂Extracts, Glycerites, Powdered Extracts), by Application (Food, Beverages, Personal Care, Household Chemicals).

BANGALORE, India, Feb. 24, 2025 /PRNewswire/ -- The global market for Natural Botanical Extract was valued at USD 1567 Million in the year 2024 and is projected to reach a revised size of USD 2385 Million by 2031, growing at a CAGR of 6.6% during the forecast period.

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Major Factors Driving the Growth of Natural Botanical Extract Market:

The Natural Botanical Extract Market is poised for robust growth as consumer demand for natural, sustainable ingredients continues to rise across food, nutraceutical, and cosmetic sectors. Manufacturers are investing in advanced extraction and quality control processes to produce high-purity extracts that deliver proven health benefits. The market is driven by a convergence of trends including health and wellness, clean labeling, and sustainable production practices, which together enhance consumer trust and product appeal. Strategic partnerships, expanding distribution networks, and evolving consumer lifestyles further support market expansion. As more consumers seek out products that are both effective and environmentally responsible, the Natural Botanical Extract Market is set to experience significant global growth and innovation, positioning itself as a key segment in the broader natural ingredients industry.

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TRENDS INFLUENCING THE GROWTH OF THE NATURAL BOTANICAL EXTRACT MARKET:

Powdered extracts drive the Natural Botanical Extract Market by offering concentrated and versatile ingredients that seamlessly integrate into a wide range of products. These extracts are produced by drying and milling plant materials, preserving their active compounds while yielding a stable, easy-to-handle powder. The powdered form allows manufacturers to achieve precise dosing, simplify logistics with longer shelf life, and maintain consistent potency across batches. This versatility makes powdered extracts ideal for use in dietary supplements, functional foods, and cosmetic formulations. Additionally, the efficiency of powder processing reduces production costs and minimizes waste, which is especially attractive for companies targeting health-conscious consumers. As demand for natural, plant-based ingredients grows, the ability of powdered extracts to deliver robust bioactive benefits at competitive costs plays a critical role in market expansion and supports innovation in natural product development.

Water-based extracts contribute significantly to the Natural Botanical Extract Market by employing an eco-friendly extraction process that preserves the purity of active compounds. Using water as the solvent, manufacturers obtain extracts that retain the full spectrum of beneficial phytochemicals without the use of harsh chemicals, ensuring a cleaner product for applications in food, beverages, and personal care. This method is highly valued for its simplicity, safety, and minimal environmental impact, meeting the increasing consumer demand for organic and sustainably produced ingredients. Water-based extraction processes also facilitate easier regulatory compliance and provide a natural alternative for consumers wary of synthetic additives. As the market for clean, natural ingredients expands, water-based extracts enhance product quality and consumer trust, thereby playing a pivotal role in driving overall market growth.

The food and beverages sector drives the Natural Botanical Extract Market by incorporating botanical extracts as natural flavour enhancers, colourants, and functional additives. Manufacturers are increasingly replacing synthetic chemicals with natural extracts to meet consumer demand for clean-label products that promote health and wellness. Botanical extracts add depth and authenticity to products such as beverages, snacks, and nutritional supplements while delivering antioxidant and nutrient-rich benefits. This trend towards natural ingredients is spurred by rising health consciousness and growing consumer preference for organic foods. Additionally, food processors benefit from the improved shelf life and enhanced sensory properties provided by botanical extracts. As a result, the adoption of natural botanical extracts in the food and beverages industry continues to grow, significantly contributing to overall market expansion and innovation in product development.

A significant driver of the Natural Botanical Extract Market is the growing consumer focus on health and wellness. Modern consumers are increasingly seeking products that offer tangible health benefits and nutritional advantages, prompting a shift toward natural ingredients. Botanical extracts, rich in antioxidants, vitamins, and bioactive compounds, are widely regarded for their therapeutic properties. This trend is evident across dietary supplements, functional foods, and personal care products, where natural extracts are marketed as safer, more effective alternatives to synthetic additives. As awareness of natural remedies and holistic wellness increases, manufacturers are compelled to invest in high-quality botanical extracts. The demand for products that support overall well-being has led to heightened market growth, reinforcing the importance of natural botanical ingredients in promoting healthier lifestyles.

Clean label and transparency initiatives are key factors driving market expansion in the Natural Botanical Extract sector. Consumers are increasingly scrutinizing product ingredients, seeking formulations with recognizable, natural components free from artificial additives. This demand for transparency has encouraged brands to reformulate products using botanical extracts that are both effective and ethically sourced. Clear labelling practices and third-party certifications further build trust and drive consumer preference for products with clean labels. As regulatory bodies and consumer advocacy groups push for greater ingredient disclosure, manufacturers are motivated to adopt natural extracts to maintain competitiveness. The resulting trend toward visibly natural and simple ingredient lists has boosted market demand, as products that meet clean label criteria appeal to a growing segment of health-conscious buyers.

Quality and purity assurance is a vital factor in driving the Natural Botanical Extract Market. Consumers demand products that are not only effective but also safe and free from contaminants. Manufacturers invest in advanced extraction techniques and rigorous quality control processes to ensure that their botanical extracts maintain high levels of bioactive compounds and meet strict purity standards. Third-party certifications and transparent labelling practices play a crucial role in building consumer confidence. As quality standards become increasingly important in a competitive market, companies that consistently deliver premium extracts are better positioned to capture market share. The emphasis on high-quality, pure botanical extracts encourages continued innovation and supports robust market expansion, as consumer trust and product reliability remain paramount.

The expanding use of botanical extracts in nutraceuticals and functional foods is a key driver of market growth. With a growing focus on preventive health and well-being, consumers are turning to supplements and functional products that incorporate natural ingredients for their nutritional benefits. Botanical extracts provide an excellent source of antioxidants, vitamins, and other bioactive compounds that enhance the health profile of these products. As research continues to validate the efficacy of various extracts, manufacturers are developing innovative formulations to meet the rising demand in this sector. The broad application of natural extracts in nutraceuticals and functional foods not only increases market penetration but also encourages ongoing investment in high-quality extraction methods, further fueling market expansion.

The personal care and cosmetics sector is a significant driver of the Natural Botanical Extract Market. Consumers are increasingly seeking natural, organic ingredients in skincare and beauty products due to concerns over synthetic chemicals and environmental impact. Botanical extracts are highly valued for their soothing, anti-aging, and rejuvenating properties, which are incorporated into creams, serums, and lotions. This trend toward natural cosmetics has led brands to reformulate products with botanical extracts that promise both efficacy and safety. As consumer preferences shift toward clean beauty and eco-friendly formulations, the demand for high-quality botanical extracts rises, driving innovation and expanding the market in the personal care and cosmetics segment.

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NATURAL BOTANICAL EXTRACT MARKET SHARE

In North America and Europe, high consumer awareness and stringent quality standards support strong demand for natural and organic ingredients. These regions benefit from advanced research, robust distribution channels, and a mature market for health and wellness products.

Meanwhile, the Asia-Pacific region is experiencing rapid growth due to its large population, rising disposable incomes, and a long-standing tradition of herbal medicine.

Key Companies:

Frutarom Ltd
Kalsec
Martin Bauer Group
Synergy Flavors
Blue Sky Botanics
Bell Flavors＆Fragrances
Nexira
Botanical Extracts EPZ Ltd
Natural Sourcing
LLC
NATAC
Croda International Plc
EUROMED SA
Lipotec/Lubrizol
Bio Botanica

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DISCOVER MORE INSIGHTS: EXPLORE SIMILAR REPORTS!

- The global market for Botanical and Herbal Extracts was estimated to be worth USD 6598 Million in 2023 and is forecast to a readjusted size of USD 10660 Million by 2030 with a CAGR of 7.1% during the forecast period 2024-2030.

- Plant Extracts market was valued at USD 14380 Million in 2023 and is anticipated to reach USD 26300 Million by 2030, witnessing a CAGR of 9.1% during the forecast period 2024-2030.

- The global market for Botanical Extracts was estimated to be worth USD 15630 Million in 2023 and is forecast to a readjusted size of USD 28590 Million by 2030 with a CAGR of 9.1% during the forecast period 2024-2030.

- Herbal Extracts Market revenue was USD 6061 Million in 2022 and is forecast to a readjusted size of USD 7472.7 Million by 2029 with a CAGR of 3.0% during the forecast period (2023-2029).

- Liquid Botanical Extract

- The global market for Herbal Botanical Extract Supplements was estimated to be worth USD 2384 Million in 2023 and is forecast to a readjusted size of USD 3454.9 Million by 2030 with a CAGR of 5.6% during the forecast period 2024-2030.

- The global market for Herbal Extracts in Nutraceuticals was estimated to be worth USD 3208.5 Million in 2023 and is forecast to a readjusted size of USD 4733.4 Million by 2030 with a CAGR of 6.2% during the forecast period 2024-2030.

- The global market for Herbal Botanical Extracts Health Products was estimated to be worth USD 2384 Million in 2023 and is forecast to a readjusted size of USD 3316.1 Million by 2030 with a CAGR of 5.6% during the forecast period 2024-2030.

- The global market for Vegetable Extracts was estimated to be worth USD 23910 Million in 2023 and is forecast to a readjusted size of USD 47560 Million by 2030 with a CAGR of 10.1% during the forecast period 2024-2030.

- The liquid kratom extract market size will reach about 183.6 Million USD in 2031 from 101.5 Million USD in 2024 all around the world, with the CAGR of 8.7%.

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