HOME Top Market Reports Botanical Extracts Market by Source (Spices, Herbs, Flowers, Tea leaves), Application (Food: Bakery & Confectionery and Sauces & Dressings, Beverages: Alcoholic Beverages, Carbonated Soft Drinks, Ice Tea), Form, and Region - Global Forecast to 2022

Botanical Extracts Market by Source (Spices, Herbs, Flowers, Tea leaves), Application (Food: Bakery & Confectionery and Sauces & Dressings, Beverages: Alcoholic Beverages, Carbonated Soft Drinks, Ice Tea), Form, and Region - Global Forecast to 2022

By: marketsandmarkets.com
Publishing Date: June 2017
Report Code: FB 5332

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The global botanical extracts market is estimated to be valued at USD 3.92 Billion in 2017, and projected to reach USD 6.03 Billion by 2022, at a CAGR of 9.0% from 2017. Growth in the market can be attributed to the rising demand for natural flavors in food application. Rise in awareness of side effects of using artificial flavors in food & beverages, coupled with increased awareness of botanical extracts among consumers are some other key drivers.

The global market has been segmented on the basis of source, application, form, and region. It has been further segmented on the basis of region into North America, Europe, Asia-Pacific, and the Rest of the World (RoW). The main objectives of the report are to define, segment, and project the size of the global botanical extracts market with respect to the above-mentioned segmentations and provide a detailed study of the key factors influencing the growth of the market, along with profiling the key players in the market and their core competencies.

Years considered for this report are as follows:

Base Year: 2016
Projection Period: 2017–2022

Research Methodology

This report includes estimations of market sizes for value (USD million), with the base year as 2016, and forecast period from 2017 to 2022. Top-down and bottom-up approaches have been used to estimate and validate the size of the botanical extracts market and those of various other dependent submarkets. Key players in the market have been identified through secondary research such as the Food and Agriculture Organization (FAO), U.S. Department of Agriculture (USDA), International Food and Agribusiness Management (IFAM), and World Health Organization (WHO), while their market share in the respective regions have been determined through primary and secondary research processes. All percentage shares, splits, and breakdowns have been determined using secondary sources and were verified through primary sources.

Botanical Extracts Market

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The key players in the botanical extracts market include Frutarom Ltd. (Israel), Kalsec Inc (U.S.), and Döhler GmbH (Germany). Other players include MB-Holding GmbH & Co. KG (Germany), Synergy Flavors (U.S.), and Blue Sky Botanics (U.K.).

The botanical extracts value chain includes extracts manufacturers such as Frutarom Ltd (Israel), Kalsec Inc (U.S.), and Döhler GmbH (Germany). Other players include MB-Holding GmbH & Co. KG (Germany), Synergy Flavors (U.S.) and Blue Sky Botanics (U.K.). Further, the extracts manufactured by these companies are used in the food industry by bakery & confectionery and sauce & dressing companies; within beverage industry, it is used by companies involved with alcoholic beverages, carbonated soft drinks, ice teas, and flavored dairy products.

Target Audience

The stakeholders for the report include the following:

  • Raw material suppliers
  • Associations & industry bodies
  • Processed food manufacturers
  • End users (food & beverage manufacturers)
  • Botanical extract manufacturers
  • Traders, distributors, and suppliers

“The study answers several questions for stakeholders primarily, which market segments to focus on in the next two to five years for prioritizing efforts and investments.”

Scope of the Report

The botanical extracts market has been segmented on the basis of the following:

Source:

  • Spices
  • Herbs
  • Tea leaves
  • Flowers

Application:

  • Food
    • Bakery & Confectionery
    • Sauces and Dressings
  • Beverages
    • Alcoholic beverages
    • Carbonated soft drinks
    • Iced teas
    • Flavored dairy products

Form:

  • Powder
  • Liquid

Region:

  • North America
  • Europe
  • Asia-Pacific
  • Rest of the World (RoW) (South America, Middle East and Africa)

Available Customizations

With the given market data, MarketsandMarkets offers customizations according to client-specific needs.

The following customization options are available for the report:

Product Analysis

  • Product matrix, which gives a detailed comparison of the product portfolio of each company

Company Information

  • Detailed analysis and profiling of additional market players (up to five)

Rising demand for natural flavors in food applications to drive the global botanical extracts market size to USD 6032.5 million by 2022

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 with a solvent such as alcohol or water. The global botanical extracts market was valued at USD 3.60 billion in 2016 and is projected to reach USD 6.0 million by 2022, at a CAGR of 9.0% during the forecast period.

The growth in demand for convenience foods is projected to be one of the major drivers of botanical extracts such as spice extracts during the forecast period. This market is greatly influenced by the changes in consumption patterns of consumers who are seeking natural flavors in their food instead of synthetic ingredients due to the rising health awareness. The growing trend toward clean label products, which are slowly becoming mandatory across the globe, is also driving the market growth for botanical extracts and in turn compelling food manufacturers to develop new formulations and products to cater to the rising consumer demand for healthier food products. The increasing application of various botanical extracts such as spice & herb extracts, in combination with other ingredients, in various food products to enhance the flavor, is another factor expected to drive the botanical extracts market growth across the globe.

Availability of substitute products is the major restraint for the market

The availability of substitute products in the form of synthetic flavors is the main restraint for the market; this is largely due to the advantages associated with synthetic flavors such as lower prices compared to spices & herbs, uniform & consistent quality, and ease of use in contrast to natural products.

Botanical Extracts Market

The North American market is primarily driven by the US which accounted for a share of about 35.3% in 2016. The US market is mainly driven by the growth in consumer awareness regarding the benefits of consumption of food & beverages that include botanical extracts, without compromising on the flavor of the products.

Market Dynamics

Botanical Extracts Market

Botanical extracts in food: Demand is increasing due to healthy life choices

Botanical extracts are used as flavoring substances in fats, oils, and food emulsions. They produce a synergizing effect when added along with other natural food preservatives. This helps control the microbial growth, even if their antimicrobial effect is limited. The process used to derive such extracts is referred to as the food-grade liquid extraction process. Botanical extracts are standardized as water-soluble & oil-soluble liquids and powders with different strengths. Urbanization, high disposable income, and growing demand for healthy nutritional foods are key factors driving the natural extracts market.

The food segment is further is subsegmented into bakery & confectionery products and sauces & dressings. The market in the food industry is dominated by the bakery & confectionery subsegment.

Botanical Extracts Market

Bakery & confectionery products:

Bakery products include flour-based products such as bread, cakes, cookies, and pastries. Different kinds of flavors are used in bakery & confectionery products, varying according to the requirements of different regions. The demand for bakery products is increasing with the growth of the on-the-go consumption trend. With the high growth in demand for bakery & confectionery products, along with the increasing preference for natural flavoring agents, the market for botanical extracts in this industry is significant. Botanical extracts also play an essential role in improving the organoleptic characteristics and providing functional properties to the bakery product. This has further enhanced their demand in the industry.

Sauces & dressings:

Consumers demand fresh and authentic flavors, natural ingredients, and spices and expect high-quality soups, sauces, and dressings formulated for appealing taste, texture, and appearance. Manufacturers of ready-to-eat meal rely on sauces & seasonings to differentiate their products in the food service and retail industries. Developing traditional sauce profiles or creating new authentic regional sauces requires an optimal blend of botanical extracts and seasonings to match consumer tastes and preferences. Hence, manufacturers across the globe are importing various spices extracts, mostly from developing Asian countries, to create and maintain the required blend of spices & seasonings, in accordance with consumer demand.

Beverages: Clean label trend driving demand

With the rise in consumer demand for absolute transparency on product labels, manufacturers are replacing ingredients that consumers perceive to be “artificial,” “unhealthy,” or “processed.” As a result, the clean label trend has progressively become the new standard for many soft drink creators. Additionally, there has been a significant shift of consumers trying to find the right balance between healthy and tasty drinks. Extracts are used for flavoring. As consumers are seeking reduced sugar content in beverages without compromising on taste, manufacturers are focusing on using botanical extracts for taste and aroma. Consumers are also favoring beverages with added functional ingredients such as minerals and vitamins; botanical extracts are used to improve the nutritive value of these products while not compromising or enhancing the flavor profile.
The beverages segment is further is subsegmented into alcoholic beverages, carbonated soft drinks, iced teas, and flavored dairy products.

Alcoholic beverages

 The most widely used spices in alcoholic drinks are cardamom, hot pepper, cinnamon, and ginger. These four ingredients could be used as extracts or, in the case of ginger, even in the juice form. Ginger and hot pepper are popular for their spice, while cinnamon and cardamom are mostly infused in drinks for sweetness and spice as well. Herbal extracts, on the other hand, are used for their distinctive properties, as well as for aromatic effects. Basil is the most widely used herb in most alcoholic and non-alcoholic beverages

Carbonated soft drinks

Carbonated drinks with natural ingredients, developed to offer a greater variety of tastes while providing functional properties, guarantee top line and innovative growth. Consumers prefer clean label and sustainably sourced products. The market for spice extracts in carbonated soft drinks is fairly well established, but brands are getting more innovative with their blends, as consumers become more familiar with spices in their beverages and are demanding greater variety. Using spices not only provides natural flavors but also help companies with product differentiation.

Iced tea:

The most popular flavors for ice tea are lemon, plain tea, and peach, though there have been launches of new flavors in recent years as well. An increase in unsweetened, organic, and diet variants has been observed in response to consumers opting for healthier alternatives to conventional beverages. Producers are adding to the “healthy” image of their products by adding herbal enhancements (often traditional to Asia) such as ginseng, matcha, and hibiscus, and bringing the antioxidant and cleansing properties of tea at the forefront of their brand imaging and marketing. For iced tea drinks, a stronger tea flavor becomes a high priority for beverage producers in order to provide a factor of difference between brands, to meet consumer demand, and to obtain higher levels of healthy ingredients found in tea.

Flavored dairy products:

 Flavored dairy products include flavored milk, cheese, ice cream, and yogurt. Consumers are constantly looking for products with new flavors and health benefits. Dairy processors are now introducing spicy/savory dairy products containing various spice extracts, which gives a new flavor profile to these products, with additional health benefits. With newer flavors, the market for botanical extracts in this segment is projected to be promising.

Key Questions

  • What are the upcoming technologies, substitutes, and trends that will have a significant impact on the market in the future?
  • The spices segment is getting traction in the market, how will this impact the food industry in the next five years?
  • What will the prominent revenue-generating pockets for the market in the next five years be?
  • Most suppliers have opted for expansion & acquisition as the key strategies as could be seen from the recent developments. Where will it take the industry in the mid to long term?

Table of Contents

1 Introduction (Page No. - 13)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Study Scope
           1.3.1 Periodization Considered
    1.4 Currency Considered
    1.5 Units Considered
    1.6 Stakeholders

2 Research Methodology (Page No. - 17)
    2.1 Research Data
           2.1.1 Secondary Data
           2.1.2 Primary Data
    2.2 Market Size Estimation
           2.2.1 Bottom-Up Approach
           2.2.2 Top-Down Approach
    2.3 Market Breakdown & Data Triangulation
    2.4 Research Assumptions & Limitations
           2.4.1 Assumptions
           2.4.2 Limitations

3 Executive Summary (Page No. - 25)

4 Premium Insights (Page No. - 29)
    4.1 Market Opportunities for Botanical Extract Manufacturers
    4.2 Botanical Extracts Market, By Region
    4.3 Market, By Source & Region
    4.4 Botanical Extracts Market Attractiveness

5 Market Overview (Page No. - 33)
    5.1 Introduction
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 Increase in the Demand for Convenience Food
                    5.2.1.2 Rise in Awareness Regarding the Side-Effects of Synthetic Flavors
                    5.2.1.3 Growth of the Clean Label Trend Across Food & Beverage Markets
                    5.2.1.4 Increase in Application of Botanical Extracts
           5.2.2 Restraints
                    5.2.2.1 Availability of Substitutes
           5.2.3 Opportunities
                    5.2.3.1 Identifying and Marketing New Spices and Herbs in Accordance With the Changing Consumption Trends
           5.2.4 Challenges
                    5.2.4.1 Limited Or Inadequate Supply and Varying Prices of Herbs & Spices
    5.3 Regulations and Standardization in Botanical Extract Market
           5.3.1 Introduction
           5.3.2 North America
                    5.3.2.1 U.S. Food and Drug Administration
           5.3.3 Europe
                    5.3.3.1 European Food Safety Authority
           5.3.4 Asia-Pacific
                    5.3.4.1 Food Standards Australia New Zealand
                    5.3.4.2 Food Safety and Standards Authority of India

6 Botanical Extracts Market, By Source (Page No. - 38)
    6.1 Introduction
           6.1.1 Spices
           6.1.2 Herbs
           6.1.3 Flowers
           6.1.4 Tea Leaves

7 Botanical Extracts Market, By Form (Page No. - 42)
    7.1 Introduction
           7.1.1 Powder
           7.1.2 Liquid

8 Botanical Extracts Market, By Application (Page No. - 45)
    8.1 Introduction
           8.1.1 Food
                    8.1.1.1 Bakery & Confectionery
                    8.1.1.2 Sauces & Dressings
           8.1.2 Beverages
                    8.1.2.1 Alcoholic Beverages
                    8.1.2.2 Carbonated Soft Drinks
                    8.1.2.3 Ice Tea
                    8.1.2.4 Flavored Dairy Products

9 Botanical Extracts Market, By Region (Page No. - 51)
    9.1 Introduction
    9.2 North America
           9.2.1 U.S.
           9.2.2 Canada
           9.2.3 Mexico
    9.3 Europe
           9.3.1 Germany
           9.3.2 France
           9.3.3 U.K.
           9.3.4 Rest of Europe
    9.4 Asia-Pacific
           9.4.1 China
           9.4.2 Japan
           9.4.3 India
           9.4.4 Australia & New Zealand
           9.4.5 Rest of Asia-Pacific
    9.5 Rest of the World (RoW)
           9.5.1 South America
           9.5.2 The Middle East
           9.5.3 Africa

10 Competitive Landscape (Page No. - 80)
     10.1 Introduction
     10.2 Vendor Dive Analysis
             10.2.1 Vanguard
             10.2.2 Innovator
             10.2.3 Dynamic
             10.2.4 Emerging
     10.3 Competitive Benchmarking
             10.3.1 Product Offering Scorecard (For 25 Players)
             10.3.2 Business Strategy Scorecard (For 25 Players)

*Top 25 Companies Analyzed for This Study are – Frutarom Ltd. (Israel), Blue Sky Botanics (U.K), Ransom Naturals Ltd (U.K), Prinova Group LLC, Pt. Indesso Aroma (Indonesia), Synergy Flavors (U.S.), Haldin Natural (Indonesia), Kalsec Inc (U.S.), Synthite Industries (India), Döhler GmbH (Germany), BI Nutraceuticals (U.S.), Nutra Green Biotechnology (China), Kuber Impex Ltd (India), Greenvit (Poland), Mb-Holding GmbH & Co. Kg (Germany), Inovia International (U.K), Green Source Organics (U.S.), Changsha Botaneix, Inc (China), Organic Herb Inc (China), Arjuna Natural Extracts Ltd (India), Nexira (France), Jairamdass Khushiram Impex Pvt. Ltd (India), Futureceuticals, Inc. (U.S.), Fytosan (France), Acumen Life Sciences (India)

11 Company Profiles (Page No. - 84)
(Business Overview, Products Offered & Services Strategies, Key Insights, Recent Developments, MnM View)*
     11.1 Introduction
     11.2 Frutarom Industries Ltd.
     11.3 Blue Sky Botanics Ltd
     11.4 Ransom Naturals Ltd
     11.5 Prinova Group LLC.
     11.6 Pt. Indesso Aroma
     11.7 Synergy Flavors
     11.8 Haldin Natural
     11.9 Kalsec Inc.
     11.10 Synthite Industries Ltd.
     11.11 Döhler GmbH
     11.12 BI Nutraceuticals
     11.13 Nutra Green Biotechnology Co., Ltd
     11.14 Kuber Impex Ltd.
     11.15 Mb-Holding GmbH & Co. Kg

*Details on Business Overview, Products Offered & Services Strategies, Key Insights, Recent Developments, MnM View Might Not Be Captured in Case of Unlisted Companies.

12 Appendix (Page No. - 120)
     12.1 Insights of Industry Experts
     12.2 Discussion Guide
     12.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     12.4 Introducing RT: Real-Time Market Intelligence
     12.5 Available Customizations
     12.6 Related Reports
     12.7 Author Details


List of Tables (60 Tables)

Table 1 Botanical Extracts Market Size, By Source, 2015–2022 (USD Million)
Table 2 Market Size For Botanical Extracts, By Source, 2015–2022 (Tons)
Table 3 Market Size For Botanical Extracts, By Form, 2015–2022 (USD Million)
Table 4 Market Size For Botanical Extracts, By Form, 2015–2022 (Tons)
Table 5 Botanical Extracts Market Size, By Application, 2015–2022 (USD Million)
Table 6 Market Size For Botanical Extracts, By Application, 2015–2022 (Tons)
Table 7 Market Size For Botanical Extracts, By Food Sub-Application, 2015–2022 (USD Million)
Table 8 Market Size For Botanical Extracts, By Food Sub-Application, 2015–2022 (Tons)
Table 9 Market Size For Botanical Extracts, By Beverage Sub-Application, 2015–2022 (USD Million)
Table 10 Market Size For Botanical Extracts, By Beverage Sub-Application, 2015–2022 (Tons)
Table 11 Botanical Extracts Market Size, By Region, 2015–2022 (USD Million)
Table 12 Market Size For Botanical Extracts, By Region, 2015–2022 (Tons)
Table 13 North America: Botanical Extracts Market Size, By Country, 2015–2022 (USD Million)
Table 14 North America: Market Size For Botanical Extracts, By Country, 2015–2022 (Tons)
Table 15 North America: Market Size For Botanical Extracts, By Source, 2015–2022 (USD Million)
Table 16 North America: Market Size For Botanical Extracts, By Source, 2015–2022 (Tons)
Table 17 North America: Market Size For Botanical Extracts, By Application, 2015–2022 (USD Million)
Table 18 North America: Botanical Extracts Market Size, By Application, 2015–2022 (Tons)
Table 19 North America: Market Size For Botanical Extracts, By Food Sub-Application, 2015–2022 (USD Million)
Table 20 North America: Market Size For Botanical Extracts, By Food Sub-Application, 2015–2022 (Tons)
Table 21 North America: Market Size For Botanical Extracts, By Beverage Sub-Application, 2015–2022 (USD Million)
Table 22 North America: Market Size For Botanical Extracts, By Beverage Sub-Application, 2015–2022 (Tons)
Table 23 North America: Market Size For Botanical Extracts, By Form, 2015–2022 (USD Million)
Table 24 North America: Market Size, By Form, 2015–2022 (Tons)
Table 25 Europe: Botanical Extracts Market Size, By Country, 2015–2022 (USD Million)
Table 26 Europe: Market Size For Botanical Extracts, By Country, 2015–2022 (Tons)
Table 27 Europe: Market Size For Botanical Extracts, By Source, 2015–2022 (USD Million)
Table 28 Europe: Market Size For Botanical Extracts, By Source, 2015–2022 (Tons)
Table 29 Europe: Market Size For Botanical Extracts, By Application, 2015–2022 (USD Million)
Table 30 Europe: Market Size For Botanical Extracts, By Application, 2015–2022 (Tons)
Table 31 Europe: Market Size For Botanical Extracts, By Food Sub-Application, 2015–2022 (USD Million)
Table 32 Europe: Market Size For Botanical Extracts, By Food Sub-Application, 2015–2022 (Tons)
Table 33 Europe: Botanical Extracts Market Size, By Beverage Sub-Application, 2015–2022 (USD Million)
Table 34 Europe: Market Size For Botanical Extracts, By Beverage Sub-Application, 2015–2022 (Tons)
Table 35 Europe: Botanical Extracts Market Size, By Form, 2015–2022 (USD Million)
Table 36 Europe: Market Size, By Form, 2015–2022 (Tons)
Table 37 Asia-Pacific: Market Size For Botanical Extracts, By Country, 2015–2022 (USD Million)
Table 38 Asia-Pacific: Market Size For Botanical Extracts, By Country, 2015–2022 (Tons)
Table 39 Asia-Pacific: Market Size For Botanical Extracts, By Source, 2015–2022 (USD Million)
Table 40 Asia-Pacific: Market Size For Botanical Extracts, By Source, 2015–2022 (Tons)
Table 41 Asia-Pacific: Market Size For Botanical Extracts, By Application, 2015–2022 (USD Million)
Table 42 Asia-Pacific: Botanical Extracts Market Size, By Application, 2015–2022 (Tons)
Table 43 Asia-Pacific: Market Size For Botanical Extracts, By Food Sub-Application, 2015–2022 (USD Million)
Table 44 Asia-Pacific: Market Size For Botanical Extracts, By Food Sub-Application, 2015–2022 (Tons)
Table 45 Asia-Pacific: Market Size For Botanical Extracts, By Beverage Sub-Application, 2015–2022 (USD Million)
Table 46 Asia-Pacific: Market Size For Botanical Extracts, By Beverage Sub-Application, 2015–2022 (Tons)
Table 47 Asia-Pacific: Market Size For Botanical Extracts, By Form, 2015–2022 (USD Million)
Table 48 Asia-Pacific: Market Size For Botanical Extracts, By Form, 2015–2022 (Tons)
Table 49 RoW: Botanical Extracts Market Size, By Region, 2015–2022 (USD Million)
Table 50 RoW: Market Size For Botanical Extracts, By Region, 2015–2022 (Tons)
Table 51 RoW: Botanical Extracts Market Size, By Source, 2015–2022 (USD Million)
Table 52 RoW: Market Size For Botanical Extracts, By Source, 2015–2022 (Tons)
Table 53 RoW: Botanical Extracts Market Size, By Application, 2015–2022 (USD Million)
Table 54 RoW: Market Size For Botanical Extracts, By Application, 2015–2022 (Tons)
Table 55 RoW: Botanical Extracts Market Size, By Food Sub-Application, 2015–2022 (USD Million)
Table 56 RoW: Market Size For Botanical Extracts, By Food Sub-Application, 2015–2022 (Tons)
Table 57 RoW: Botanical Extracts Market Size, By Beverage Sub-Application, 2015–2022 (USD Million)
Table 58 RoW: Market Size For Botanical Extracts, By Beverage Sub-Application, 2015–2022 (Tons)
Table 59 RoW: Botanical Extracts Market Size, By Form, 2015–2022 (USD Million)
Table 60 RoW: Market Size For Botanical Extracts, By Form, 2015–2022 (Tons)


List of Figures (24 Figures)

Figure 1 Market Segmentation
Figure 2 Botanical Extracts Market: Regional Segmentation
Figure 3 Botanical Extracts Market: Research Design
Figure 4 Breakdown of Primaries, By Company Type, Designation, and Region
Figure 5 Market Size Estimation Methodology: Bottom-Up Approach
Figure 6 Market Size Estimation Methodology: Top-Down Approach
Figure 7 Data Triangulation & Methodology
Figure 8 Beverages Segment Projected to Be the Fastest-Growing
Figure 9 Botanical Extracts Snapshot (2017 vs 2022): Spices Segment, By Source, Projected to Be the Largest During the Forecast Period
Figure 10 Botanical Extracts Snapshot (2017 vs 2022): Powder Segment Projected to Be Relatively Larger
Figure 11 North America Dominated the Botanical Extracts Market in 2016
Figure 12 Attractive Growth Opportunities in the Botanical Extracts Market for Manufacturers Between 2017 & 2022
Figure 13 Botanical Extracts Market: Europe to Grow at the Highest Rate From 2017 to 2022
Figure 14 Spice Extracts Segment Dominated the Botanical Extracts Market Across All Regions in 2017, in Terms of Value
Figure 15 Japan is Projected to Be the Fastest-Growing Country-Level Market
Figure 16 Botanical Extracts Market: Drivers, Restraints, Opportunities, and Challenges
Figure 17 Botanical Extracts Market Size, By Source, 2017–2022 (USD Million)
Figure 18 Market Size For Botanical Extracts, By Form, 2017–2022 (USD Million)
Figure 19 Market Size For Botanical Extracts, By Application, 2017–2022 (USD Million)
Figure 20 Geographic Snapshot: U.K. Projected to Grow at the Highest Rate in the European Botanical Extracts Market, 2017–2022
Figure 21 North American Botanical Extracts Market Snapshot: U.S. Accounted for the Largest Market Share
Figure 22 European Botanical Extracts Market Snapshot: Germany Accounted for the Largest Share
Figure 23 Dive Chart
Figure 24 Frutarom Industries Ltd.: Company Snapshot

The botanical extracts market is projected to grow at a CAGR of 9.0%, in terms of value, from 2017 to reach USD 6.03 Billion by 2022. Botanical extracts are widely used ingredients in food & beverage applications owing to their functional properties. Also, the growing demand for natural & nutritious products has increased the demand for botanical extracts in the food & beverage industry.

The global market has been segmented by source into spices, herbs, tea leaves, and flowers. Spice extracts have emerged as the most widely used, owing to changes in lifestyles and growth in the trend of exploring & experiencing new foods. Some of the spices include cinnamon, pepper, clove, fennel, cumin, cardamom, coriander, and tamarind.

Based on form, the powder segment is estimated to account for a major share in 2017. The demand for powdered botanical extracts is driven by its wide range of applications such as meat, dairy, and bakery & confectionery to develop the desired aroma and taste. Better stability than in liquid botanical extracts and increased shelf life are some of the other key drivers for this form.

The food application segment is estimated to account for a larger market share in 2017, with the beverage application projected to grow at a higher CAGR. The food segment is subsegmented into bakery & confectionery and sauces & dressings. The beverage application is subsegmented into alcoholic beverages, carbonated soft drinks, iced tea, and flavored dairy products. The flavored dairy products segment is projected to grow at the highest CAGR, owing to demand for flavored milk and flavored yogurt among consumers, these days.

North America is estimated to account for the largest share of the global botanical extracts market, in terms of both value and volume, in 2017. Growth in this region can be attributed to the shift in consumer preference for fat-free & nutritious food and rise in acceptance for exotic foods & flavors. Rise in consumer awareness regarding the benefits of consumption of food & beverages that include botanical extracts, without compromising on the flavor of the products is also boosting the botanical extracts business in the region.

Botanical Extracts Market

The availability of substitute products in the form of synthetic flavors is the main restraint for the market; this is largely due to the advantages associated with synthetic flavors such as lower prices compared to spices and herbs, uniform & consistent quality, and ease of use in contrast to natural products.

The leading players that dominated the botanical extracts market include Frutarom Industries Ltd (Israel), Döhler GmbH (Germany), and Kalsec Inc (U.S.).

The key players have been exploring the market in new regions by adopting acquisitions, expansions, and partnerships as their preferred strategies. They have been investing in intensive R&D activities and also adopting expansions and acquisitions, as a mode to enhance their product offerings and capture a larger market share, thus increasing the demand for botanical extracts.

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