Botanical Ingredients Market Size, Share & Trends Analysis Report By Source (Spices, Flowers), By Form (Powder, Liquid), By Application (Food & Beverage, Personal Care & Cosmetics), By Region, And Segment Forecasts, 2023 - 2030

Research Methodology

A three-pronged approach was followed for deducing the botanical ingredients market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for botanical ingredients market to gather the most reliable and current information possible.

• We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
• We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
• We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
• We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
• We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of botanical ingredients market data depending on the type of information we’re trying to uncover in our research.

• Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

• Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

• Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

• Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

• Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

• Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

• This step also entails the finalization of the report scope and data representation pattern.

• Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Botanical Ingredients Market Categorization:

The botanical ingredients market was categorized into four segments, namely form (Powder, Liquid), source (Herbs, Leaves, Spices, Flowers), application (Food & Beverages, Dietary Supplements, Personal Care & Cosmetics, Pharmaceuticals), and regions (North America, Europe, Asia Pacific, Central & South America, Middle East & Africa).

Segment Market Methodology:

The botanical ingredients market was segmented into form, source, application, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

• Demand estimation of each product across countries/regions summed up to from the total market.

• Variable analysis for demand forecast.

• Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

• Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

• Used extensively for new product forecasting or analyzing penetration levels.

• Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

• Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

• This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The botanical ingredients market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into seventeen countries, namely, U.S.; Canada; Mexico; Germany; France; UK.; Italy; China; India; Japan; Australia; South Korea; ASEAN; Brazil; Argentina; UAE; Saudi Arabia

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Botanical ingredients market companies & financials:

The botanical ingredients market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

• The Indesso company started as a clove leaf oil distiller and expanded its business activities to essential oils and aroma chemicals over the years. It expanded its manufacturing activities in food ingredients by starting the production of botanical extracts, thermal processed products, seasonings, and sweetener blends in 1974. In 2008, the company expanded to savory ingredients with the anticipation of increasing demand. Manufacturing facilities are located in Central and West Java, Indonesia. It majorly operates with two segments, namely food ingredients and aroma ingredients. The food ingredients segment includes seasonings, cheese powders, savory ingredients, spice oleoresins & oils, botanical extracts, fruit juice powders, and sweet premix. The aroma ingredients segment has aroma chemicals, essential oils, aroma essences, and absolutes.

• Lipoid Kosmetik AG is involved in the manufacturing of raw materials for the personal care and cosmetic industry. It produces botanical extracts & actives and pharmaceutical-grade lecithins and phospholipids. The company has three categories of products, namely actives, phospholipids, and botanicals. Actives include botanical actives derived from plants for cosmetic formulation. Phospholipids have product categories including emulsifier, functional, skin repairs & protection, skin texture modifier, skin rejuvenation, and delivery & encapsulation for cosmetic applications. Botanicals offer botanical extracts from 350 plants with different solvents and preservation systems. The Botanicals category has extracted in the following categories, namely liquid & dry extracts, substantiated extracts, honey, cosmetic milk, and peeling.

• The International Flavors & Fragrances Inc. company has the leadership in manufacturing innovations and technology-based products. The company majorly operates in the two business segments including flavor and fragrance solutions. The natural extract offerings of the company are high-quality, cost-effective ingredients that meet global regulatory standards, as well as its customers’ exacting application needs. The company serves various industries such as food and beverages, animal nutrition, cosmetics and personal care, nutraceuticals, and pharmaceuticals industry across the globe. International Flavors and Fragrances is a public company and it is listed and traded on the New York Stock Exchange. As of 2020, the company had 37 manufacturing locations serving 162 countries. The company has a strong regional presence in North America, Europe, the Middle East & Africa, South America, and Asia Pacific

• Bell Flavors & Fragrances It is  primarily involved in the business of fragrances, flavors, botanical extracts, and specialty ingredients. The company has manufacturing facilities in the U.S., Germany, Brazil, Canada, Mexico, Singapore, and China. Its international sales offices are present in countries including Argentina, Colombia, France, Ecuador, India, Indonesia, the Philippines, Poland, Russia, Thailand, Ukraine, the UAE, the UK, Venezuela, and Vietnam. The company operates with four departments, namely Flavors, Fragrances, Botanical Extracts, and Ingredient Specialties. The flavors department has flavor enhancers, masking agents, bitterness suppressors, salt reducers and replacers, and extenders for vanilla, honey, cocoa, and sweeteners used for beverages, bakery, confections, savory, dairy, and other applications. The fragrances department has products for air care, personal care, household care, pet & animal care, and fine fragrances. The botanical extracts department focuses on mainly botanical extracts, botanical infusions, essential oil blends, certified organic extract, and NOP-certified organic essential oil blends for personal care and food-grade products. The ingredient Specialties department includes ingredients for natural chemicals, Aroma Specialties, Aroma Chemicals, and Citrus Concentrates.

• The Rutland Biodynamics Ltd company is involved in the growing of herbs and developing and manufacturing of herbal tinctures and botanical extracts. Its farm follows standard biodynamic practices and has been certified by the Biodynamic Agricultural Association. The certification ensures complete sustainability and traceability of the products across the entire supply chain. It complies with the current Good Manufacturing Practice for Pharmaceuticals (cGMP) by the Medicine and Healthcare Products Regulatory Authority for its processing and distribution of products. The company manufactures medicinal products licensed under the 2004/24/EC by MHRA. Rutland Biodynamics Ltd. has an online portal for the sale of products. Its product portfolio has various categories of products, namely fluid extracts & tinctures, essential oils, dried herbs, infused & carrier oils, creams & cosmetics, pessaries & suppositories, herbalist sundries, and liquid sundries. Some of the best seller products of the company include Carduus marianus, Ecgunacea purpura, Scutellaria lateriflora, and Withania somnifera.

• Prakruti Products Pvt. Ltd. It is majorly involved in the manufacturing of standardized herbal extracts, organic ingredients, phytochemicals, and nutraceutical ingredients and is one of the largest producers of Garcunia Cambogia extracts. The company has various quality certifications including ISO-9001:2008, ISO-22000:2005, Kosher certification, organic certification by NPOP, NOP, and EU, Halal certification, and approval by FSSAI. It has product categories, namely herbal extracts, organic ingredients, and water-soluble ingredients. The company also offers contract manufacturing services. Its herbal extracts include Kalmegha, white kidney bean extract, Moringa leaf, Triphala, and others. Organic extracts include garcinia extract, turmeric extract, bacopa extract, and others. Water-soluble ingredients include Salacia extract, amla, and others. The company offers contract manufacturing and packaging services including formulation, planning, production, labeling, and packaging. It has manufacturing services capable of tableting, hard shell caps, powders, blends, granules, liquid orals, and hair oil. The company provides packaging in various forms such as bottles, unit doses, blister packs, pouches, and bulk packaging.

• Ambe Phytoextracts Pvt. Ltd. was founded in 2007 and is headquartered in Delhi, India. The company manufactures herbal extracts, oleoresins, nutraceuticals, fruit & veg powders, and healthcare products for the herbal, food supplements, and cosmeceutical industries. It has a manufacturing facility spread across 100,000 square feet and a raw material processing capacity of 1,000 tons per year. It has a wide range of product categories including botanical extracts, nutraceuticals, phytochemicals, oleoresin oil, natural color, and spray-dried powders.

• The Green Labs LLC was founded in 2009 and is headquartered in New Jersey, U.S. The company is involved in the production of organic powders, oils, extracts, herbs, and organic ingredients. It has manufacturing facilities in the U.S., Brazil, China, India, Peru, and Ecuador. The company operates majorly with five product categories, namely oil powders, Brazilian powder & extracts, vegetable protein powders, dietary fibers, and organic vegetable powders. It offers various services such as international logistic handling, third-party laboratory testing in the U.S. and South America, GMP-certified lab testing, project management services for dietary supplements in South America, and the U.S. and warehouse services.

• Berje Inc. was established in 1949 and is headquartered in New Jersey, U.S. The company has warehouses in California and Illinois and a large volume of ready-to-ship products at its main manufacturing facility in New Jersey. The manufacturing facility has 235,000 square feet area and 30,000 drums storage capacity. The company has a product portfolio of over 2,500 aromatic chemicals and 300 essential oils. It has a presence in over 75 countries around the globe.

Value chain-based sizing & forecasting

Supply Side Estimates

• Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

• Segment revenue determination via variable analysis and penetration modeling.

• Competitive benchmarking to identify market leaders and their collective revenue shares.

• Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

• Identifying parent markets and ancillary markets

• Segment penetration analysis to obtain pertinent

• revenue/volume

• Heuristic forecasting with the help of subject matter experts

• Forecasting via variable analysis

Botanical Ingredients Market Report Objectives:

• Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

• Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

• Understanding market estimates and forecasts (with the base year as 2022, historic information from 2018 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Botanical Ingredients Market Report Assumptions:

• The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

• The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

• We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

• All market estimates and forecasts have been validated through primary interviews with the key industry participants.

• Inflation has not been accounted for to estimate and forecast the market.

• Numbers may not add up due to rounding off.

• Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

• Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

• Latin America includes Central American countries and the South American continent

• Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

• Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

• Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.