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Botanical Extracts: A Leading Driver Behind Growing Demand For Convenience Foods Drives Botanical Extracts Market Market Expansion in 2025
Botanical Extracts
What Is the Expected CAGR for the Botanical Extracts Market Through 2025?
The market size of botanical extracts has experienced a significant growth in the past few years. Its growth is projected to increase from $7.07 billion in 2024 to $7.72 billion in 2025 at a compound annual growth rate (CAGR) of 9.2%. The expansion during the historical timeframe can be credited to factors such as conventional remedies, cultural and traditional applications, exploration and trade routes, and supportive government regulations.
What's the Projected Size of the Global Botanical Extracts Market by 2029?
In the coming years, the size of the botanical extracts market is predicted to surge rapidly. This market is estimated to expand to $11.63 billion by 2029, experiencing a compound annual growth rate (CAGR) of 10.8%. The anticipated growth in this forecast period can be accredited to factors such as increased health consciousness, escalated demand for functional foods and beverages and plant-centric products, the ascending popularity of herbal supplements, and a rise in disposable income. Significant trends for this forecast period encompass research and development, innovation in products, corporate mergers and acquisitions, and governmental directives.
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Top Growth Drivers in the Botanical Extracts Industry: What's Accelerating the Market?
The growing popularity of easy-to-prepare food items is fueling the botanical extracts market. Ready-to-eat processed food, also known as tertiary processed food, often utilizes plant extracts to boost color and flavor in items rich in fat, such as meat. Botanical extracts are plant-derived substances with concentrated therapeutic characteristics that are implemented in the food sector to provide health benefits. Hence, the rising preference for convenient food options is predicted to stimulate the botanical extracts market growth. For example, the Economic Research Service of U.S. Department of Agriculture, a government agency based in the U.S., stated in 2022 that American consumers spent approximately 11.3% of their total food budget on dining out. Therefore, the increased popularity of convenient food items is igniting the demand for botanical extracts.
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What Trends Will Shape the Botanical Extracts Market Through 2029 and Beyond?
Product Innovation is a seminal trend that is gaining momentum in the botanical extracts market. Leading enterprises in this sector are creating extracts that have enhanced bioavailability. A prime example is Layn Natural Ingredients, a Chinese firm known for providing inventive, natural, and functional botanical extract ingredients. In September 2022, they launched bio Quercitrin - an incredibly bioavailable version of Quercetin for use in nutraceuticals. The unique attribute of bio+Quercitrin is that it is a potent antioxidant flavonoid which combats free radicals and minimises oxidative stress. Layn's bio Quercetin, aided by a linked ribose molecule, is six times more absorbable and permeable in the small intestine compared to traditional Quercetin. Not only does it act as a replacement for regular Quercetin, but also Layn bio+Quercitrin stands as a steady, soluble, and bioavailable form that is particularly effective when employed as a separate supplement or in concoctions for maintaining human and pet health.
What Are the Main Segments in the Botanical Extracts Market?
The botanical extracts market covered in this report is segmented -
1) By Technology: CO2 Extraction, Solvent Extraction, Steam Distillation, Enfleurage, Other Technologies
2) By Source: Spices, Herbs, Flowers, Leaves, Other Sources
3) By Form: Liquid, Powder, Semi-Solid
4) By Application: Food And Beverages, Pharmaceutical And Nutraceutical, Cosmetics
Subsegments:
1) By CO2 Extraction: Supercritical CO2 Extraction, Subcritical CO2 Extraction
2) By Solvent Extraction: Ethanol Extraction, Hexane Extraction, Other Solvent-Based Methods
3) By Steam Distillation: Traditional Steam Distillation, Water Distillation
4) By Enfleurage: Cold Enfleurage, Hot Enfleurage
5) By Other Technologies: Microwave-Assisted Extraction, Ultrasound-Assisted Extraction, Cold Press Extraction
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Which Top Companies are Driving Growth in the Botanical Extracts Market?
Major companies operating in the botanical extracts market include International Flavors & Fragrances Inc., Himalaya Herbal Healthcare, Blue Sky Botanics Ltd., Naturex, Synthite Industries Ltd., Nexira, Layn Natural Ingredients Corp., Indesso, Dohler GmbH, Hunan Nutramax Inc., Haldin Natural, Nutra Green Biotechnology Co. Ltd., Kalsec Inc., Arjuna Natural Pvt. Ltd., Shaanxi Jiahe Phytochem Co. Ltd., Tianjin Jianfeng Natural Products Co. Ltd., Bio-Botanica Inc., Nature's Power Nutraceuticals Corp., Synergy Flavors, Martin Bauer Group, Lipoid-Kosmetik, Phytochem India, Plant Extracts International Inc., Kuber Impex Ltd., Ransom Naturals Ltd., MB-Holding GmbH & Co KG, Frutarom Industries Ltd., Biomax Life Sciences Ltd., Organic Herb Inc., Xi'an Sgonek Biological Technology Co. Ltd.
Which Regions Will Dominate the Botanical Extracts Market Through 2029?
North America was the largest region in the botanical extracts market share in 2024. The regions covered in the botanical extracts market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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