The global botanicals market size is estimated to stand at USD 119.84 billion in 2025. It is anticipated to reach a valuation of USD 188.69 billion by 2032, displaying a CAGR of 6.7% during the forecast period (2025-2032).
The growing preference for natural wellness formulations and integration of botanical ingredients in functional foods and beverages are expected to boost the market growth. The inclusion of these ingredients in new product lines of major food & beverage and personal care brands can augur favorably for the market during the forecast period.
However, regulatory concerns required for the approval of botanical-based drugs and challenges in sustainable sourcing of ingredients can hamper the market.
Key Market Insights
The botanicals market is expected to surge owing to a back-to-nature trend among customers and the demand for holistic supplements among Gen Z customers.
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Botanicals Market Report Coverage
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Report Coverage |
Details |
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Market Revenue in 2025 |
USD 119.84 billion |
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Estimated Value by 2032 |
USD 188.69 billion |
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Growth Rate |
6.7% |
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Historical Data |
2020–2024 |
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Forecast Period |
2025–2032 |
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Forecast Units |
Value (USD billion) |
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Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
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Segments Covered |
By Product Type, Application, Form, and Distribution Channel |
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Geographies Covered |
North America (U.S. and Canada), Latin America (Brazil, Argentina, Mexico, and Rest of Latin America), Europe (Italy, Spain, U.K., Germany, France, Russia, and Rest of Europe), Asia Pacific (China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific), Middle East (GCC Countries, Israel, and Rest of Middle East), and Africa (South Africa, North Africa, and Central Africa) |
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Growth Drivers |
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Opportunities |
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Trends |
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Restraints & Challenges |
Market Dynamics
The back-to-nature trend among Generation Z consumers, coupled with a focus on overall health, can induce demand for botanicals. Their focus on self-care while consuming foods and beverages that contain naturally sourced derivatives can drive the trend.
The demand for clean labels that specify the ingredients used and the manner of ethical production can drive the need for botanical-derived products. Personal care products, botanical-inspired foods, and beverages can drive the market growth significantly. Natural extracts added to soaps, toners, lotions, and conditioners add hues to the products.
Market Opportunity: Use of Botanicals to Battle Medical Disorders and Diseases
Companies are turning to botanical extracts to synthesize working medicinal formulations for battling diseases and disorders. These extracts are tested in human and animal studies to assess their efficacy in fighting drug-resistant microorganisms.
For instance, DeFloria, a joint venture between Charlotte’s Web and Ajna Biosciences, gained a drug clearance for AJA001, a multi-cannabinoid botanical drug for the treatment of autism spectrum disorder in February 24, 2025.
Similar progress has been witnessed in the research by the U.S. National Science Foundation that managed to synthesize phaeocaulisin A, a compound extract from the plant Curcuma phaeocaulis on May 08, 2025. It can be used in the development of botanical drugs to be used in battling triple-negative breast cancer.
Market Challenge: Complex Regulatory Process to Limit Market Growth
Complex regulatory processes for the approval of botanical-derived products can be a deterrent against the botanical market growth. The delay in clearances across various nations and the growing conditions required for plants to be harvested with all their functional compounds can negatively impact the market.
Analyst’s View
Recent Developments
Indesso, an Indonesia-based manufacturer of botanical ingredients, launched a vanillin production facility in Central Java, Indonesia, in December 2024. It aims to serve flavors & fragrances, food & beverages, and cosmetics sectors effectively.
Competitor Insights
Market Segmentation
Regional Insights
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