North America Botanical Extract Market By Type (Spice Extracts, Herb Extracts, Flower Extracts, Tea Extracts, Fruit Extracts, and Marine Plant Extracts), Form (Liquid, Powder, and Leaf Extract), Product Type (Organic and Conventional), Application (Nutraceutical, Food Products, Pharmaceutical, Personal Care & Cosmetics, Beverages, Aromatherapy, Sport Nutrition, Animal Feed, and Other) Industry Trends and Forecast to 2029.
North America Botanical Extract Market Analysis and Size
The increase in various botanical extracts such as spice & herb extracts and other ingredients in different food products to enhance the flavor is an important driver for the growth of the North America botanical extract market. The recent trend indicates increasing demand for botanical extracts as investments in public and private food and beverage, pharmaceutical, cosmetics & personal care industries continue to grow. The factors driving the market growth are increasing health awareness among the population and botanical extracts.
Data Bridge Market Research analyzes that the North America botanical extract market is expected to reach the value of USD 8,971.64 million by the year 2029, at a CAGR of 5.7% during the forecast period. "Nutraceutical" accounts for the most prominent application segment in the respective market owing to the rise in the botanical extract. The market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and climate chain scenario.
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Report Metric
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Details
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Forecast Period
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2022 to 2029
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Base Year
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2021
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Historic Years
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2020 (Customizable to 2019 - 2014)
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Quantitative Units
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Revenue in USD Million
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Segments Covered
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By Type (Spice Extracts, Herb Extracts, Flower Extracts, Tea Extracts, Fruit Extracts, and Marine Plant Extracts), Form (Liquid, Powder, and Leaf Extract), Product Type (Organic and Conventional), Application (Nutraceutical, Food Products, Pharmaceutical, Personal Care & Cosmetics, Beverages, Aromatherapy, Sport Nutrition, Animal Feed, and Other).
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Countries Covered
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U.S., Canada, and Mexico
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Market Players Covered
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Givaudan, Kerry Group plc, DSM, Sensient Technologies Corporation, Ingredion Incorporated, McCormick & Company, Inc., Provital, Martin Bauer Group, Organic Herb Inc, Kalsec Inc., Symrise, Synthite Industries Ltd., International Flavors & Fragrances Inc., Carrubba, Inc, Blue Sky Botanics, DÖHLER GmbH, Bio Botanica, Inc., Bio-gen Extracts Private Limited, Plantnat, and Native Extracts Pty Ltd.
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Market Definition
Botanical extracts are extracted from natural sources such as spices, herbs, flowers, fruits, tea, and others. Botanical extracts are used as ingredients in the food & beverage industry to modify flavor, Aroma, or nutritive quality. Botanical extracts also impart properties such as enhanced flavor and extended shelf life and also reduce microbial spoilage. They are extracted from the tissue of a plant, usually by treating it with a solvent such as alcohol or water.
Market Dynamics of the North America Botanical Extract Market
This section deals with understanding the market drivers, opportunities, restraints, and challenges. All of this is discussed in detail below:
Drivers/Opportunities
- Growing usage of botanical extract in food & beverages industries
An increase in awareness among consumers about the health benefits of the botanical extract that could build up immunity, which is much more required in COVID-19 will help to boost the market growth. The rise in the usage of botanical extract due to the demand for natural flavor-based food and beverages among consumers is likely to stimulate market growth. The botanical extract contains natural sugars, vitamins, and minerals and is added to food and beverages to substitute synthetic ingredients. Thus, the growing demand for botanical extract in the food and beverage industry is expected to drive market growth.
- Rising usage of botanical extract in pharmaceutical and personal care & cosmetics industries
The floral extracts are extensively applied in personal care products such as lotion, anti-aging creams, and lip balm enriched with natural vitamins responsible for healthy skin. There is an increasing awareness among consumers regarding the harmful effects of chemical-added beauty products. Thus, there is significant demand for herbal extract-based beauty products. Owing to such trends, the personal care industry & cosmetics manufacturers are incorporating botanical extracts in their products. Similarly, botanical extracts have a significant role in the pharmaceutical industry. The herbal extracts have antioxidant and anti-inflammatory properties to enhance the qualities of a drug. This has resulted in the extensive usage of herbal extracts in the pharmaceutical industry.
- Increasing disposable income in emerging economies
Consumers are opting mostly for naturally flavored food products and beverages in the market. Several manufacturers are adding botanical extracts and the main ingredients to their products to satisfy the growing needs of consumers. Moreover, the increased disposable income in emerging economies raises botanical extract across the world, such as a rise in disposable income coupled with rising customer inclination for naturally sourced products. The growing usage of botanical extracts is highly used in emerging countries due to the high disposable income and increasing expenditure on food & beverages made from natural ingredients. This is expected to drive market growth.
- Increasing demand for clean-label products
The demand for clean labels or natural products is on the rise among consumers. The rising customer awareness of naturally functional ingredients increases the need for clean-label products in the market. Moreover, the lifestyle of consumers across the globe is changing as they are becoming healthier and environmentally conscious, which paves the way for the natural ingredients used in every product they are using daily. Moreover, the botanical extracts are chemical residue-free, making them the prior choice for vegan consumers.
- Growing demand for the dietary supplements
According to the WHO, about 80% of Asian and African consumers consume herbal medicine as their daily dietary supplements. Moreover, the side effects caused by the botanical extracts are significantly less compared to the synthetic ingredients. This resulted in the high consumption of botanical extracts as dietary supplements in the North America market. Therefore, the growing consumption and demand for nutritional supplements are expected to provide an opportunity for the market.
Restraints/Challenges
- Stringent government regulations on botanical extract
Botanical extracts are the most popular flavors and natural ingredients globally and the demand is rising exponentially. On the other hand, the need for botanical extract is exceeding production. Thus, the manufacturers are focused on producing botanical extract in conventional and organic ways to meet consumer demand. However, the stringent government regulations on botanical extract are expected to restrain the market growth.
- Continuous fluctuation in prices of raw materials
Severe disruption of the supply chain of raw materials due to the COVID-19 pandemic and lack of labor to transport the raw materials resulted in the fluctuation of prices of raw materials. This sudden occurrence of the pandemic may restrain the market growth. Similarly, consumers are looking for organic and clean-label products. Therefore, the fewer availability of raw materials of botanical extract leads to high price fluctuations of the raw materials. This factor is expected to hamper the market growth.
- High cost of the products
Clean-label products and labeling production require a high capital investment, reflecting the products' outcome. Moreover, the raw materials used to produce botanical extract are to be imported chiefly from other regions, imposing manufacturers' extra costs. These factors ultimately result in the high costs of the botanical extract market, which further is expected to create a significant challenge for the market growth.
Post-COVID-19 Impact on North America Botanical Extract Market
COVID-19 impacted various manufacturing industries in the year 2020-2021 as it led to the closure of workplaces, disruption of supply chains, and restrictions on transportation. Due to the lockdown, the market has experienced a downfall in sales due to the shutdown of retail outlets and the restrictions on customer access over the past few years.
However, the growth of the market post-pandemic period is attributed to increased disposable income. The key market players are making various strategic decisions to bounce back post-COVID-19. The players are conducting multiple R&D activities to improve their offerings. They are enhancing its market share by exploring different retail channels and expanding into new regions.
This North America botanical extract market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, the impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, and technological innovations in the market. To gain more info on the botanical extract market, contact Data Bridge Market Research for an Analyst Brief. Our team will help you make an informed market decision to achieve market growth.
Recent Developments
- In September 2022, Givaudan launched New Purple 2364, a vegan pigment for use in make-up formulations. It is made from the extraction by green fractionation from Raphanus Sativus L. This will help the company to increase its product portfolio.
- In March 2020, International Flavors & Fragrances Inc. had a new partnership with Evolva, a Swiss biotech company. This agreement will benefit the company to expand the commercialization of the International Flavors & Fragrances Inc. products and thereby increase sales and revenue.
North America Botanical Extract Market Scope
The North America botanical extract market is segmented into four notable segments based on type, form, product type, and application. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Type
- Spice Extracts
- Herb Extracts
- Flower Extracts
- Tea Extracts
- Fruit Extracts
- Marine Plant Extracts
Based on type, the market is segmented into spice extracts, herb extracts, flower extracts, tea extracts, fruit extracts, and marine plant extracts.
Form
- Powder
- Liquid
- Leaf Extracts
Based on form, the market is segmented into powder, liquid, and leaf extracts.
Product Type
- Organic
- Conventional
Based on product type, the market is segmented into organic and conventional.
Application
- Food Products
- Sport Nutrition
- Beverages
- Pharmaceutical
- Nutraceutical
- Personal Care & Cosmetics
- Aromatherapy
- Animal Feed
- Others
Based on application, the market is segmented into food products, sport nutrition, beverages, pharmaceutical, nutraceutical, personal care & cosmetics, aromatherapy, animal feed, and others.
North America Botanical Extract Market Regional Analysis/Insights
The North America botanical extract market is analyzed, and market size insights and trends are provided by country, type, form, product type, and application as referenced above.
The countries covered in this market report are U.S., Canada, and Mexico.
The U.S. is dominating the market due to the high demand for botanical extracts for various end-user industries.
The country section of the report also provides individual market-impacting factors and changes in market regulation that impact the current and future trends of the market. Data points such as downstream and upstream value chain analysis, technical trends porter's five forces analysis, and case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of North America brands and the challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and North America Botanical Extract Market Share Analysis
The North America botanical extract market competitive landscape provides details by a competitor. Details include company overview, company financials, revenue generated, market potential, investment in R&D, new market initiatives, North America presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points provided are only related to the companies' focus related to the market.
Some of the major players operating in the market are Givaudan, Kerry Group plc, DSM, Sensient Technologies Corporation, Ingredion Incorporated, McCormick & Company, Inc., Provital, Martin Bauer Group, Organic Herb Inc, Kalsec Inc., Symrise, Synthite Industries Ltd., International Flavors & Fragrances Inc., Carrubba, Inc, Blue Sky Botanics, DÖHLER GmbH, Bio Botanica, Inc., Bio-gen Extracts Private Limited, Plantnat, and Native Extracts Pty Ltd among others.
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