Botanicals Market Size, Share, Forecast, & Trends Analysis by Product (Garlic Extract, Turmeric Extract, Tea Tree Oil, Peppermint Oil, Lemon Oil), Form (Powder, Liquid), Nature (Organic), Application (Food & Beverages, Cosmetics)—Global Forecast to 2031

The Botanicals Market was valued at $12.58 billion in 2023. This market is expected to reach $24.97 billion by 2031 from an estimated $13.69 billion in 2024, at a CAGR of 9% during the forecast period from 2024 to 2031.

Botanicals Market Size & Forecast

The expansion of this market is driven by increased consumer awareness of the health benefits associated with botanical extracts, the expanding cosmetics and personal care sector, a surge in demand for botanicals in the food & beverage industry, and a rising preference for natural and organic products. However, fluctuations in raw material prices, the prevalence of synthetic alternatives, and issues related to standardization and quality inconsistency are anticipated to restrain market growth.

Moreover, regulatory support and the increasing demand for vegan beauty products are expected to generate growth opportunities for the players operating in this market. Furthermore, prominent trends in the botanicals market include the increasing adoption of clean-label products and increasing awareness of health & wellness.

Click here to: Get Free Sample Pages of this Report

Botanicals Market Growth Drivers

Growing Awareness About the Health Benefits of Botanical Extracts

Consumer awareness of the health benefits of botanical extracts has grown substantially. The widespread availability of information via digital platforms, health blogs, social media, and scientific research has empowered consumers to better understand the advantages of specific botanical extracts. This increased accessibility allows individuals to make informed decisions about incorporating these ingredients into their diets.

Extracts from herbs, spices, and medicinal and aromatic plants are widely acknowledged for their numerous health benefits, such as immune support, digestive improvement, and anti-inflammatory properties. For example, turmeric is well-known for its anti-inflammatory effects, while green tea extract is prized for its antioxidant benefits. Consequently, consumers are increasingly pursuing natural alternatives to conventional ingredients in food & beverages, cosmetics and personal care products, and pharmaceuticals. This has led to a significant rise in demand for botanical extracts.

This growing awareness is reshaping individuals' approaches to health & wellness, with many opting for more natural and holistic solutions. Advancements in technology are driving a trend toward personalized health & wellness products. Botanical extracts are increasingly being incorporated into customized supplements and skincare solutions that address individual needs, highlighting the shift toward tailored wellness strategies.

Therefore, the increasing awareness of the health benefits associated with botanical extracts is reshaping consumer behavior and significantly driving market growth across several sectors, including cosmetics, personal care, nutraceuticals, pharmaceuticals, and food & beverage industries.

Increasing Demand for Botanicals in the Food & Beverages Industry

Increasing consumer awareness of the negative health effects linked to the excessive use of synthetic ingredients in food & beverage products is significantly shaping market trends. Growing health concerns are prompting consumers to pursue healthier lifestyles characterized by nutritious food choices. Additionally, rapid urbanization, changing lifestyles, and rising disposable incomes have further fueled the demand for healthy food options. As a result, health-conscious consumers are increasingly prioritizing organic products and those made with natural ingredients.

Botanicals are increasingly gaining popularity in the food & beverage industry due to their distinctive flavors, health benefits, and consumer preference for sustainable, pure ingredients. They are often viewed as premium components that enhance the authenticity of food products. Moreover, the growing trend toward vegan and plant-based diets has further boosted demand for botanicals, highlighting their nutritional advantages. Many companies are now focusing on botanical applications across various segments, including ready-to-drink beverages, instant powders, confectionery, ice cream, baked goods, cereals, and dairy products. Consequently, the rising demand for botanicals in the food & beverage sector is driving the global market growth.

Botanicals Market Opportunity

Increasing Demand for Vegan Beauty Products

In recent years, consumers have become more discerning about the ingredients in their skincare products, resulting in a preference for natural-based cosmetics with fewer harmful chemicals, artificial additives, and potential allergens. Several factors are driving the growth of vegan cosmetics, including the rise of veganism as a lifestyle choice and social movement, increased awareness of the benefits of vegan cosmetics for skin health and environmental sustainability, and the innovation and diversification of vegan product offerings and brands.

These products are formulated with naturally derived ingredients, including vitamins, minerals, and antioxidants, and are entirely free from animal-derived ingredients or byproducts. Consequently, vegan beauty products are devoid of toxins, providing a notable advantage over chemical-based cosmetics, especially for acne management and overall skin health. Common botanicals utilized in cosmetic formulations include turmeric, green tea, aloe vera, chamomile, rosemary, and hibiscus. These botanicals are rich in vitamins, minerals, amino acids, and flavonoids, offering anti-inflammatory, antimicrobial, and antioxidant properties.

Therefore, the rising adoption of vegan beauty products will drive demand for botanicals, creating additional opportunities for manufacturers within this market.

Botanicals Market Trend

Increasing Adoption of Clean-label Products

Clean-label initiatives are consumer-driven efforts that emphasize transparency and showcase natural, minimally processed ingredients that are non-GMO and free from artificial additives. Consumers perceive these components as safer, healthier, and more environmentally friendly than their synthetic counterparts. This trend particularly resonates with health-conscious and sustainability-focused buyers. According to Ingredion’s ATLAS survey 2023, 78% of global consumers are willing to pay a premium for clean-label products. This shift toward clean labels presents significant opportunities for stakeholders in the botanicals market.

Botanicals Market Analysis: Key Findings

The Garlic Extract Segment to Dominate the Botanicals Market in 2024

Based on product, the botanicals market is segmented into garlic extract, peppermint oil, turmeric extract (curcumin), tea tree oil, echinacea extract, ginseng extract, herbal tinctures, lemon extract, lavender extract, maca extract, matcha extract, moringa extract, eucalyptus extract, and other product. In 2024, the garlic extract segment is expected to account for the largest share of 30—35% of the botanicals market. This segment’s large market share is primarily due to its diverse medicinal properties, such as supporting cardiovascular health, enhancing the immune system, and providing anti-inflammatory effects. Its wide-ranging applications across food & beverage, pharmaceuticals, and cosmetics further contribute to its prominence. Additionally, it is frequently used in cosmetics for its antimicrobial properties.

However, the turmeric extract (curcumin) segment is estimated to register the highest CAGR of 10.4% during the forecast period. The rapid growth of this segment is driven by its numerous health benefits and applications across various industries. Renewed interest in herbal medicine and traditional remedies, along with an increasing focus on foods enriched with herbal ingredients and greater availability, are further supporting market expansion. Curcumin, known for its anti-inflammatory, antioxidant, and potential anti-cancer properties, is widely utilized in food & beverages, skincare, dietary supplements, and pharmaceutical products.

The Powder Segment to Dominate the Botanicals Market in 2024

Based on form, the botanicals market is segmented into powder and liquid. In 2024, the powder segment is expected to account for the largest share of the botanicals market. This segment’s large market share is primarily due to its versatility in application, ease of incorporation into various formulations, cost-effectiveness stemming from simpler production processes, and a comprehensive range of active components.

However, the liquid segment is estimated to register a higher CAGR during the forecast period. This segment's rapid growth is driven by its increasing adoption, facilitated by its easy incorporation into various Ready-to-Drink (RTD) beverages, smoothies, and functional drinks.

The Non-organic Botanicals Segment to Witness High Demand During the Forecast Period

Based on nature, the botanicals market is segmented into non-organic and organic. In 2024, the non-organic segment is expected to account for a larger share of the botanicals market. This segment's large market share is primarily attributed to the widespread availability of non-organic botanical extracts, mainly due to the presence of numerous key players offering these products without organic certifications. Additionally, a significant number of cost-conscious consumers prioritize affordability over organic certification, especially as the perceived health benefits of non-organic botanicals are often viewed as comparable to those of their organic counterparts. This dynamic further supports market growth.

However, the organic segment is estimated to register a higher CAGR during the forecast period. This growth is primarily attributed to the increasing number of suppliers offering organic-certified botanical extracts in response to rising consumer demand for organic ingredients. This demand is driven by increased awareness of the health benefits and environmental sustainability associated with organic products.

The Cosmetics and Personal Care Segment to Witness High Demand During the Forecast Period

Based on application, the botanicals market is segmented into cosmetics and personal care, food & beverage, nutraceutical, pharmaceutical, and other applications. In 2024, the cosmetics and personal care segment is expected to account for the largest share of the botanicals market. This segment's significant market share is primarily attributed to the expansive global cosmetics and personal care industry and the rising consumer demand for natural and organic ingredients in beauty products. Increasing awareness of the potentially harmful effects of synthetic chemicals in cosmetics has fueled demand for eco-friendly and sustainable options. The popularity of botanical extracts in cosmetics, thanks to their therapeutic properties—such as anti-inflammatory, antibacterial, and antioxidant benefits—further supports market growth. Additionally, the growing trend toward vegan cosmetics, rising spending among young consumers on premium herbal products, and the increasing incorporation of botanicals by manufacturers into various personal care and cosmetics items are expected to boost demand for botanicals in this sector.

However, the nutraceutical segment is estimated to register the highest CAGR during the forecast period. This segment's growth is driven by a rapidly increasing consumer interest in preventive healthcare & wellness, coupled with a rising demand for natural supplements that promote health and well-being. Growing awareness of the health benefits associated with botanical ingredients—such as improved digestion, enhanced immune function, and overall vitality—is further propelling the growth of the nutraceutical segment during the forecast period.

Geographical Analysis

Europe Dominates the Global Botanicals Market

Based on geography, the botanicals market is majorly segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Europe is expected to account for the largest share of 35.8% of the botanicals market, followed by North America and Asia-Pacific. The European botanicals market is estimated to be worth USD 4.64 billion in 2024. Europe's large market share is attributed to several key factors, including increased awareness of natural and organic products, increased spending on health & wellness items, stringent regulations regarding the use of synthetic ingredients across various industries, and a strong emphasis on natural ingredients in the personal care and cosmetics sector.

However, Asia-Pacific is estimated to register the highest CAGR during the forecast period. This growth is driven by increasing consumer awareness of health, changing lifestyles, and higher spending on health products. It is also accompanied by a growing trend toward natural ingredients and a larger segment of consumers opting for vegan cosmetic products. Moreover, there is a rising cultivation of various botanical plants and an expanding presence of cosmetic and food manufacturers in the region.

Botanicals Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years. Some of the key players operating in the botanicals market are International Flavors & Fragrances (U.S.), MB-Holding GmbH & Co. K.G. (Germany), Givaudan SA (Switzerland), Bell Flavors& Fragrances (U.S.), Synergy Flavors (U.S.), Blue Sky Botanics Ltd. (U.K.), Dohler GmbH (Germany), Synthite Industries Ltd. (India), Cargill, Incorporated (U.S.), Kalsec Inc. (U.S.), Nexira (U.S.), Botanical Ingredients Ltd. (Australia), Lipoid Kosmetic AG (Switzerland), and Nutra Green Biotechnology Co., Ltd. (China).

Botanicals Industry Overview: Latest Developments from Key Industry Players

• In September 2024, Givaudan SA (Switzerland) launched the [N.A.S.] Vibrant Collection of vegan botanical extracts designed for hybrid makeup.
• In April 2024, Evonik Industries AG (Germany) launched CapilAcid and Oleobiota for the beauty and personal care markets.
• In March 2024, NATIVE EXTRACTS Pty Ltd (Australia) partnered with HeYi Commercial Group Co., Ltd (China) to expand its range of natural ingredients, including botanicals, in the Chinese market.
• In February 2022, Merck KGaA (Germany) launched two new cosmetic ingredients: RonaCare Baobab and RonaCare Hibiscus.

Botanicals Market Research Summary:

Key questions answered in the botanicals market report: