Market Trends of Botanicals Industry
Increasing awareness regarding clean label products
The concept of clean eating is most closely associated with natural ingredients. As a result of the global pandemic, consumers have begun to look after themselves more. And there is an increased understanding that their health begins with nutrition. For this reason, botanical ingredients have broken through the trend barrier. They are becoming more commonplace in premium product development projects for functional food brands that are looking to further enhance the benefits of their products. As the number of label-reading consumers grows exponentially, beverage makers that are looking to appeal to these consumers are launching botanical-based beverages in increasing numbers across various categories. The source and origin stories carried by botanicals appeal to increasingly sustainability-minded consumers. Thus, botanical ingredients bring cleaner labels. Increasing health and wellness trends are driving demand for healthier food products. In addition, the increasing awareness regarding the benefits of natural products over synthetic products and the rising demand for transparency in sourcing and labeling are some of the other major factors driving the botanicals market.
For instance, in the United States, 63% of adults have said the ingredients in a food or beverage have at least a moderate influence on what they buy, and 64% said they try to choose foods made with clean ingredients, according to the International Food Information Council's (IFIC) June 2021 survey from "chemical-sounding" to "clean" consumer perspective on food ingredients. 22% of U.S. consumers also say they regularly buy foods and beverages because they are advertised on the label as having clean ingredients, according to IFIC's 2021 Food and Health Survey.
Europe is projected to be the fastest growing market.
Europe has a pretty big share of the market for different botanical extracts like essential oils, spices, and herbs. Spain is a major producer of paprika and saffron, which are traded globally. The majority of Spanish saffron is exported to the United States and other countries. Germany has emerged as the leading market in the region. The country is also one of the leading importers of spices and herbs in the European market. Evolving consumer taste preferences, healthy living habits, and convenience are the primary factors boosting the botanical extract market in the region. Extracts such as laurel, rosemary, oregano, cayenne pepper, and nori are widely used in Spanish dishes. The French cosmetics industry is also shifting toward natural and clean products, which is driving up demand for botanical extracts. Moreover, there is a growing trend of organic spice consumption in the region. Consumers are inclined toward herbal drinks, teas, and infusions. The consumer preference for organic food is on the rise owing to an increase in health consciousness among consumers. Further, the surge in disposable income and improvement in living standards have augmented market growth in the region. Therefore, to meet consumers' demands, various companies are innovating and introducing products.
Consumers in the area prefer fruit, cocoa, vanilla, coffee, tea, and floral botanicals, according to Kerry's latest white paper, "Flourishing with Botanicals," which focuses on the food and beverage botanical trend in Europe.
Nektium, a company based in Spain that makes botanical ingredients, expanded its product line in April 2022 to include the food and beverage market. This means that its products can be used for more than just supplements.
