The herbal medicine market was valued at USD 93.6 billion in 2020, registering a CAGR of 6.63%, during the period 2021-2026. The growth of the botanical ingredients market is expected to be hampered by the ongoing COVID-19 pandemic, which relentlessly hits global trade and production activities.
New York, January 6, 2022 (GLOBE NEWSWIRE) – Reportlinker.com announces the publication of the report “Botanicals Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” – https: // www .reportlinker. com / p06195711 /? utm_source = GNW
The sharp reduction in trade has created difficulties for producers to sell their products in distinguished countries, such as the United States, Canada, India and Germany. India produces around 95 lakh bags (60 kg each) of turmeric each year, of which 70 lakh bags are consumed locally and around 20 lakh bags are exported. However, in 2020 both domestic demand and export demand were weak. This therefore impacts the market in the medium term.
Consumers who want clean, sustainable ingredients are drawn to products containing plants. This is especially true in beverages, where botanical flavors add a refreshing, natural ‘pop’ to aromatic formulations. However, the use of botanical ingredients, such as sage leaf and rose petal, is also growing in categories such as bakery, dairy, and confectionery.
In foods and beverages, consumers tend to consider “premium” botanical ingredients. Local palates and availability dictate the most popular plants. For example, Kerry’s new white paper ‘Blooming with Plants’, which focuses on the botanical trend of food and drink in Europe, revealed that consumers in the region prefer fruits, cocoa, vanilla, coffee, tea and floral plants. Botanical extracts can be found in a growing number of product launches in all major segments, from beverages to baked goods and dairy or savory categories, such as soups, sauces and snacks. Likewise, they play an increasing role in plant-based alternatives to dairy products and meat, providing both sensory value and transparency in terms of product labeling.
Key market trends
Wide application and functionality of botanicals
With the advent of new segments, such as functional foods, cosmeceuticals, and animal feed, the market for herbs and plants has changed significantly over the past decade. This has opened up new opportunities for manufacturers, allowing them to position plant extracts and other natural ingredients in products that no longer have to compete with only synthetic and medicinal ingredients. The cosmetics and personal care segment is expected to increase the substantial gains in the botanical ingredients market over the next few years. Producers of botanical skin care ingredients provide natural ingredients with consumer safety and high quality standards. Cosmetics and personal care companies are constantly discovering new herbal ingredients as buyers turn more to products made with natural ingredients. In response to continued demand from the cosmetics industry, ingredient companies are also stepping up research and development to provide the cosmetics and personal care industry with innovative botanical extracts. For example, in 2019, Givaudan launched its Adaptogenes botanical solution, a collection of 10 botanical extracts including moringa, turmeric, aloe vera, and acerola for skin and body care products.
Europe holds the largest market share
Germany has become the region’s leading market. The country is also one of the main importers of spices and herbs in the European market. Changing consumer taste preferences, healthy lifestyle habits and convenience are the major factors driving the botanical extracts market in the region. In addition, the growing trend of Asian cuisines like Chinese, Continental and Japanese cuisine among European consumers is also increasing the demand for organic spices and herbs. There is a demand for natural anti aging skin care products containing herbal and organic ingredients due to the prevalence of middle aged people who witness aging anxiety in the area. For example, in 2018, the Italian company Bema Cosmetics launched its Blue Defense face line and its Solar Tea Sun Protection cream. The products are made from natural organic ingredients like cranberry seed oil and licorice root extract, which help fight the signs of aging. In addition, due to the increasing aging population in the region, there is a need for natural food and nutrition supplements as well as anti-aging skin care products in the European market.
The Herbal Medicine market is highly fragmented, with many global and regional players operating in the market. However, global players, such as International Flavors & Fragrances Inc., Bell Flavors & Fragrances, Firmenich SA, Martin Bauer Group and Givaudan, have dominated the studied market with their extensive product offering, coupled with their growth strategies. The main players in the market have focused on developing new and innovative products by targeting new formulations. In addition, these companies have focused on increasing the production capacities of their existing factories or on the introduction of new production facilities while investing in R&D activities. Thus, the studied market is expected to experience significant growth in product innovation while keeping expansion as a business interest, to reach a diverse set of consumers in a short term time frame.
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