Botanical Extracts Market

The market for Botanical Extracts was estimated at $7.1 billion in 2024; it is anticipated to increase to $12.4 billion by 2030, with projections indicating growth to around $19.7 billion by 2035.

Report ID:DS1805013

Author:Debadatta Patel - Senior Consultant

Published Date:January 2025

Datatree

Life Science

Nutraceuticals

Botanical Extracts

Customization Available

Botanical Extracts - 2024-2034

Market Outlook
Market Key Insights
Growth Opportunity
Market Dynamics
Application
Recent Development
Impact Analysis

Report Summary

Market Data

Methodology

Table of Contents

Report Summary

Market Data

Methodology

Table of Contents

Global Botanical Extracts Market Outlook

Revenue, 2024

$7.1B

Forecast, 2034

$18.0B

CAGR, 2025 - 2034

9.7%

The Botanical Extracts industry revenue is expected to be around $7.8 billion in 2025 and expected to showcase growth with 9.7% CAGR between 2025 and 2034. Companies involved in the manufacture of food, drink, health supplements, cosmetics and pharmaceutical products are increasingly turning to botanical extracts as a business opportunity. Their growing demand for natural ingredients, which help to prevent health problems and also meet clean label standards, is driving this trend. The market for organic food and beverages and nutraceutical applications represents 68% of the total consumption of the industry. This is due to the integration of botanical extracts into fortified formulations, dietary supplements and functional foods and beverages. Worldwide powders will continue to lead in the market with projected sales of $3.05 billion in 2024. This is because multinational companies prefer to work with plant based ingredients that are stable and standardised. These ingredients are easier to dose, transport and can be used on a large scale across the world.

These botanical extracts are made from concentrated phytochemicals which are found in flowers, fruits, roots, seeds and leaves. They ensure consistent levels of potency, improved solubility and a targeted effect in the end product. These products feature standardised active ingredients, a variety of formats such as powders and liquids, compatibility with a range of food products and uses in the fields of functional drinks, dietary supplements, sports nutrition, cosmetics and over the counter health products. Consumer demand for products made from plant extracts and a broader interest in natural health is causing an increase in their use in weight loss products, supplements that support mental health, digestive health supplements and immune system boosters. Meanwhile companies are increasingly relying on plant extracts for their natural preservation properties, as well as to enhance the colour and flavour of products. The increasing demand for products that are sustainably sourced, organic and extracted using the latest methods, which also use less chemicals and are purer, has heightened the importance of botanical extracts in many companies development plans.

Botanical Extracts market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2024-2034 — Botanical Extracts Market Outlook

Market Key Insights

The Botanical Extracts market is projected to grow from $7.1 billion in 2024 to $18.0 billion in 2034. This represents a CAGR of 9.7%, reflecting rising demand across Cosmetics and Personal Care, Nutraceuticals, and Food and Beverage Industry.
Among the major players in this market are Blue Sky Botanics Ltd, Ransom Naturals Ltd and Fruterom Industries Ltd, these three companies have a significant influence on the competitive market landscape.
The United States and Germany are expected to dominate the botanical extracts market with the market size expected to grow at a rate of 7.1% to 10.2% in the forecast period of 2024 to 2030.
China, Brazil and Mexico are among regions predicted to experience the highest growth rates with compound annual growth rates of 9.3% to 12.1%.
The growth of the clean label trend will contribute to a $592 million increase in the size of the market for botanical extracts by 2030.
The botanical extracts industry is predicted to grow by $10.8 billion between 2034 and 2024. Pharmaceutical and nutraceutical applications are expected to be the main region for the increased activity.
With
growing consumer preference for natural, clean‑label and health‑oriented products driving botanical extract adoption, and
Expansion of functional food, beverages and dietary supplements boosting botanical extract demand, Botanical Extracts market to expand 152% between 2024 and 2034.

Botanical Extracts - Country Share Analysis

Opportunities in the Botanical Extracts

American and Canadian soft drink manufacturers are turning to plant extracts to produce low calorie beverages featuring botanical ingredients which have been proven by science to promote hydration, well being and mental performance. The global market for fruit derived botanical extracts, currently valued at $3 billion and expected to reach $5.01 billion by 2030, will experience its greatest expansion within the functional drinks sector. Among the many potential region's for innovation is also the development of sugar free energy drinks aimed at young professionals, low calorie mineral water for women that promotes wellness, and an immune system enhancing shot for children. Collaborations between producers of extracts and makers of sports drinks will optimise the standardisation of phytochemicals as well as the masking of flavours and stability in drinks ready for immediate consumption.

Growth Opportunities in North America and Asia Pacific

In North America the biggest market for nutraceuticals from botanicals will be due to strong demand for dietary supplements which will be used to help with healthy ageing, cognitive functioning and immunity. Key market opportunities include clean label nutraceutical products formulated with standardised herbal extracts and plant based materials and natural antioxidants that can be used in both the food and the health food industries. With growing competition arising from contract manufacturers who are expanding their botanicals operations, it is necessary for businesses to differentiate themselves by using phytochemicals which have been scientifically tested, sourcing their products transparently and employing eco friendly extraction methods. The region is particularly appealing due to rising consumer focus on overall wellbeing, a regulatory environment which is clearer than in other parts of the world when it comes to the making of health claims and the rapid growth of plant based food sales. This market presents brands with the opportunity to meet the high standards of pharmaceutical products with the widespread availability and convenience that consumers from the mainstream expect from nutraceutical products.

In the Asia Pacific, the food and drinks sector is the most important market for botanical extracts. The demand in this region is increasing due to its use in various products like flavoured drinks, fortified foods and products combining traditional herbal remedies with modern requirements. Businesses which capitalise on the current trend will likely do so by focusing on herbal extracts and locally sourced plant based products which enable the sale of traditional remedies in more contemporary formats. This could include items such as regionally specific soft drinks or healthy snacks that are fortified with natural antioxidants or botanicals. The global botanical extracts market is being influenced by several key players, including agribusinesses, extract specialists and multinational companies, which are working to establish themselves in the industry. They are trying to get hold of raw materials and increase their scale of operation in the botanical extracts market where consistency in quality and traceability are guaranteed. Increasing prosperity, the movement of people to the city and a preference for natural additives are main drivers of the market. Government interest in the study of traditional medicines and the trend towards nutraceuticals and food items are other significant drivers of growth. The development of localised extraction facilities, the formation of partnerships between companies and brands and tailored products to meet different regulatory and cultural requirements in the region are all opening up investment opportunities.

Market Dynamics and Supply Chain

Driver: Growing consumer preference for natural, clean‑label and health‑oriented products driving botanical extract adoption

The shift toward natural and clean‑label products is also a powerful growth factor for the botanical extracts market. Consumers increasingly seek plant‑based alternatives to synthetic ingredients due to perceived health benefits, antioxidant properties, and functional effects like immunity support, stress relief, and digestive wellness. This trend is also especially strong in personal care, nutraceuticals, and functional food segments, where natural credentials and sustainability credentials drive purchase decisions and premium pricing. Parallelly, advancing extraction technologies such as supercritical CO₂ and green solvent methods enhance yield, purity, and bioactivity of botanicals, enabling manufacturers to deliver consistent, high‑quality ingredients that meet stringent regulatory and consumer expectations. These technological improvements reduce solvent residues, maintain bioactive compound integrity, and support scalable production, further boosting market confidence and application diversification across industries.

Demand for functional foods, beverages, and dietary supplements is also driving the botanical extracts market as consumers prioritize preventive health and wellness. Extracts with antioxidant, anti‑inflammatory, and adaptogenic effects are also increasingly incorporated into fortified products that aid energy, immunity, and metabolic health. This niche trend reflects broader shifts toward proactive self‑care and natural solutions, strengthening botanical inclusion in product development pipelines in global markets.

Restraint: Inconsistent raw material quality and supply chain volatility limiting reliability and production continuity

The botanical extracts market faces significant challenges due to inconsistent quality and fluctuating availability of plant raw materials caused by seasonal changes, climate impacts, and fragmented agricultural supply chains. This variability can lead to unpredictable active compound levels, undermining product efficacy and trust while increasing costs for standardization and quality control. Supply disruptions may delay production and limit market responsiveness, restraining revenue growth and product launches.

Opportunity: Premium natural cosmeceuticals and skincare in Asia-Pacific leveraging flower Botanical Extracts for sensitive consumers and Evidence-backed nutraceuticals for healthy aging populations in Europe and Japan using herbal Botanical Extracts

As markets in the Asia Pacific region continue to experience a shift towards premium natural herbal skincare products, there is growing consumer demand for botanical extracts that provide noticeable benefits. Over the globe, floral extracts are projected to expand their market size from $0.44 billion in the year 2024 to $1.21 billion by 2030 at a compound annual growth rate, or CAGR, of 9.51%.These extracts will be predominantly used in the manufacture of products having anti pollution and skin soothing properties. The niche market includes customers who seek cosmetics that are specifically designed for sensitive urban skin. There is also a growing demand for products which cater to the needs of those following halal or vegan diets. By forming alliances with experts in extraction and k beauty brands, the concentration of bioactive ingredients, encapsulation processes and safety testing procedures which must comply with regulatory requirements can be improved.

As the populations of Europe and Japan are rapidly ageing there is a substantial demand in these countries for plant extracts used in evidence based nutritional supplements and over the counter remedies. Between 2024 and 2030, the global market in herbal extracts is expected to expand at a CAGR of approximately 8.9%. The herbal extracts market will rise from $3.05 billion to $5.09 billion over this period. Personal care and well being opportunities lie in health products targeting joint and heart health in older people, plus sleep. Pharmaceutical companies and companies that specialise in traditional medicine will work together to ensure products are clinically validated. Another region of co operation will be standardising the active ingredients in traditional remedies, as well as developing manufacturing processes which are scalable and where the supply chain is traceable.

Challenge: High production costs and regulatory complexity restricting competitive pricing and market entry

Production of botanical extracts involves energy‑intensive, technology‑driven processes such as advanced extraction and rigorous quality testing, resulting in elevated input costs. Combined with diverse global regulations governing labeling, safety, and permissible bioactive levels, these financial and compliance pressures restrict competitive pricing, slowing adoption in price‑sensitive markets. Smaller manufacturers may struggle to absorb certification and regulatory costs, limiting innovation and reach.

Supply Chain Landscape

Botanical Sourcing

Blue Sky Botanics LtdRansom Naturals Ltd

Botanical Extracts Production

Frutarom Industries LtdPt. Indesso Aroma

Formulation & Blending

Synergy FlavorsPrinova Group LLC

End-Use Applications

Food & BeveragesDietary SupplementsPersonal Care

Botanical Sourcing

Blue Sky Botanics LtdRansom Naturals Ltd

Botanical Extracts Production

Frutarom Industries LtdPt. Indesso Aroma

Formulation & Blending

Synergy FlavorsPrinova Group LLC

End-Use Applications

Food & BeveragesDietary SupplementsPersonal Care

Botanical Extracts - Supply Chain

Use Cases of Botanical Extracts in Cosmetics & Personal Care

Cosmetics and Personal Care : Botanical extracts are widely used in cosmetics and personal care for their natural bioactive benefits such as anti‑aging, hydration, and anti‑inflammatory effects, with aloe vera, herbal tea tree oil, chamomile, and ginseng being among the most prevalent. These ingredients enhance skin and hair formulations while aligning with consumer demand for clean‑label products. Key suppliers like Arjuna Natural Extracts and Sensient Technologies support major brands with standardized, high‑performance botanicals for skincare and haircare innovations.

Nutraceuticals : In the nutraceuticals segment, botanical extracts from turmeric (curcumin), ashwagandha, ginseng, and elderberry are commonly incorporated for their antioxidant, immunity, and adaptogenic properties. These extracts serve consumers seeking natural preventive health solutions in supplements, capsules, and powders. Industry leaders such as DSM and Sabinsa Corporation bolster this market by providing research‑backed and clinically standardized botanicals that enhance product efficacy and consumer trust.

Food and Beverage Industry : Botanical extracts in food and beverages are used for natural flavoring, coloring, and functional health benefits, with green tea, rosemary, ginger, and vanilla extracts dominating usage. These plant‑derived ingredients support clean‑label trends and fortify products like teas, baked goods, and functional drinks. Companies such as Döhler and Blue Sky Botanics supply high‑quality botanical solutions that cater to evolving taste preferences and wellness‑oriented consumer demands in global food and drink portfolios.

Recent Developments

Recent developments in the botanical extracts market show strong momentum as major ingredient suppliers launch new plant‑derived actives and expand extraction capacity to meet rising natural ingredient demand. For example, Givaudan introduced botanical extract ranges for personal care and makeup while Nektium showcased stress‑supporting botanicals at Vitafoods Europe, reflecting innovation in tailored plant bioactives. A key market trend remains the shift toward clean‑label, sustainable and traceable botanicals across food, beverage, nutraceutical and cosmetic applications, driven by health‑conscious consumer preferences and eco‑friendly sourcing.

April 2025 : Prinova Group LLC announces the acquisition of Brazilian specialty ingredients provider Aplinova to broaden its global presence and strengthen its portfolio in natural flavor & wellness solutions for food, beverage, supplements and personal care markets.

January 2025 : PT Indesso Aroma completes first export shipment from its new Ungaran production facility, shipping 12 tons of vanillin (a botanical derivative used across food, cosmetic and fragrance sectors) to the United States, demonstrating expanded production capabilities and global market reach.

November 2024 : Ransom Naturals Ltd enters a strategic partnership with Nordmann to distribute its botanical extracts in key European markets including BeNeLux, DACH, Nordic and Poland, enhancing its footprint and accessibility for food, pharma and personal care applications.

Impact of Industry Transitions on the Botanical Extracts Market

As a core segment of the Nutraceuticals industry, the Botanical Extracts market develops in line with broader industry shifts. Over recent years, transitions such as Emergence of Clean Label Trend and Integration of advanced extraction technologies have redefined priorities across the Nutraceuticals sector, influencing how the Botanical Extracts market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.

Emergence of Clean Label Trend

The trend towards using fewer, more natural ingredients is gaining momentum and is predicted to be a major growth factor for the botanical extracts market. This trend could be worth $592 million by 2030. With consumers becoming more demanding over the origin of the ingredients used in products, their purity and environmental sustainability, companies are focusing on utilising natural plant extracts that are free from non genetically modified components and synthetic additives. Companies are using advanced extraction techniques such as supercritical fluid extraction to produce solvent free products that meet the standards set by retailers and government regulations, enhance bioavailability and help differentiate products. Clean label products are now no longer a niche movement but a major factor in competing in the botanical extracts market. This shift is altering brand positioning, product development and premium pricing strategies globally.

Integration of advanced extraction technologies

Another significant transition involves the adoption of advanced extraction technologies like supercritical fluid extraction, ultrasonic processing, and green chemistry methods. These technologies improve yield, maintain bioactive integrity, and reduce environmental impact compared to conventional solvent extraction. Enhanced extraction methods enable the development of high‑purity, customized botanical ingredients, expanding applications in pharmaceuticals, functional foods, and personalized nutrition solutions. This technological evolution supports product performance, scalability, and innovation, strengthening competitive advantage for manufacturers and enabling broader market penetration.