The global botanical ingredients market is expected to witness significant growth on account of the rapid increase in demand for organic food and personal care products. Rising consumer acceptance of bio-based products over their synthetic counterpart is expected to have a positive impact on market growth. These products are non-poisonous, environment friendly and have high antioxidant content which is likely to boost its demand over the projected period.
Botanical ingredients are derived from sources, such as flowers, roots, and leaves of various plants containing bioactive compounds. These products are obtained by the process of solvent extraction of these raw materials. They are herbal in nature and can exist in semi-solid, solid, and liquid state. These ingredients are witnessing high demand for the manufacturing of cosmetics to improve their quality. Furthermore, they are also gaining traction from the processed food manufacturing industry to increase their nutritional value. Growing clean label trend in the food and beverage, and pharmaceutical industry, coupled with rising consumer awareness towards health and safety is expected to have a positive impact on the market growth.
Consumers' preference towards the usage of plant-based ingredients has urged the manufactures to invest in R&D of botanical ingredients-based products to achieve high levels of product quality standards and variations. The product demand is also be driven by the presence of many Medium and Small-scale enterprises (MSMEs) manufacturing herbal skincare products. The rapid development of e-commerce portals, and online delivery channels, which support these companies to reach a wider customer base, is likely to have a positive impact on botanical ingredients market growth.
Rising air pollution, high rate of food adulteration, chemically enhanced vegetables, eggs, meat, and pulses, are causing various health problems to the consumers. As a result, consumers across various countries are moving towards the usage of natural products. The International Federation of Organic Agriculture Movements (IFOAM) was formed in 1972, to guide over the agriculture of organic products, and their usage in the industry worldwide in over 112 countries. This body has set various guidelines for the usage of flavoring and coloring agents in food and skincare products. Besides, they run various campaigns around the world for the promotion of botanical ingredients. Such initiatives taken by the governing bodies is expected to support the industry growth.
The growth of the botanical ingredients market is expected to be restrained by the ongoing pandemic COVID-19, which has severely hit the world trade and manufacturing business. The heavy decline in trade has created a problem for manufacturers to sell their products in different countries. However, due to the spread of this pandemic, people have become much aware and careful, towards giving up the usage of synthetic chemical-based skincare and food products and moving towards plant juices, and natural colorant based products, as they offer better and long-lasting protection from bacteria and virus. Thus, the market is expected to foresee a significant growth over the coming years.
Based on product type, the global market can be segmented to plant oils, fragrances, emulsifiers, resin extracts, plant colorants, and plant extracts. These products are expected to gain significant growth as they are used in different applications in personal care, pharmaceuticals, and food industries, such as fragrances to moisturizers, creams, plant oils and extracts to make soaps, shampoos, plant extracts to make juices, and ketchup. Natural colorants are used as food coloring, and natural emulsifiers to make the proper texture of these products.
Based on applications, the market can be segmented to food and beverage, personal care, and pharmaceutical industries. Conventionally, the majority of products such as creams, shampoos, facewashes, beverages, juices, ketchup, tablets, and syrups contain chemicals and synthetic substances. However, growing consumer preferences toward herbal products are expected to open new avenues for market growth.
Based on the primary ingredient, the market can be segmented to grain extracts, tea extracts, fruits & vegetable extracts, herbal extracts, and floral extracts. Fruits & vegetables, herbal, and floral extracts are expected to draw a major market share, owing to their widespread usage in the food and beverage and personal care product manufacturing industry. These extracts are used to give a natural quality to the end products, which increases their nutritional value, consumer safety & satisfaction.
The major players in this market are New Directions Aromatics Inc., PT. INDESSO AROMA, Lipoid Kosmetik AG, The Herbarie at Stoney Hill Farm, Inc., Frutarom Ltd, Bell Flavors & Fragrances, Rutland Biodynamics Ltd, Prakruti Products Pvt. Ltd., Ambe Phytoextracts Pvt Ltd, The Green Labs LLC, BERJÉ INC., Umalaxmi Organics Pvt. Ltd, and Saba Botanical.
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