The global botanical extracts market is projected to reach USD 6.03 Billion by 2022, in terms of value, at a CAGR of 9.0% from 2017. Botanical extracts are widely used ingredients in food & beverage applications, owing to their enhanced organoleptic characteristics and improved nutritional profile.
The key players in the botanical extracts market include Frutarom Ltd. (Israel), Döhler GmbH (Germany), Kalsec Inc. (U.S.), and Synergy Flavors (U.S.). Other players include MB-Holding GmbH & Co. KG (Germany), Prinova Group LLC (U.S.), and Haldin Natural (Indonesia).
Download PDF brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=3151938
Acquisitions, partnerships, and expansions were some of the major strategies adopted by the leading players in the botanical extracts market; these strategies were adopted by the players to increase their market presence. They also helped the players to expand their businesses geographically, strengthen their distribution networks, and enhance their product portfolios. Market leaders such as Frutarom Ltd (Israel) and Synergy Flavors (U.S.), successfully tapped the potential markets through acquisitions, expansions, and partnerships.
Frutarom Ltd (Israel) is a leader in the global botanical extracts market. The company operates in more than 150 countries through its 57 production facilities in Israel, New Zealand, and countries of Europe, North America, South America, Asia, and Africa. The company produces a wide range of natural flavor extracts from a large variety of botanical sources, which include plant leaves, stems, roots, fruits, and seeds. The main end users of these extracts are food and beverage industries. The company has three facilities, one each in the U.S., the U.K., and Switzerland, which are focused on extractions from botanical sources. The company adopted acquisition as one of its major strategies, to expand its product portfolio in the botanical extracts market. Frutarom tapped local players to expand its presence globally. For instance, in October 2016, Frutarom acquired Nardi Aromas Ltda (Brazil), in order to expand its presence in the South American market.
Döhler GmbH (Germany) provides a wide range of tea and spice extracts. The company provides a separate line of botanical extracts specific to the African market. These extracts are used by the food & beverage industry. Döhler has presence in over 130 countries worldwide and distributes its products in countries of North America, Africa, and Asia. The company adopted acquisition as one of its major strategy to expand its presence on a geographical front. For instance, in July 2016, Döhler acquired Teawolf, Inc. (U.S.), to expand its presence in the U.S. market.
In 2017, North America is estimated to account for a significant share in the global botanical extracts market, while Europe is projected to grow at the highest CAGR during the forecast period. The increase in consumer awareness regarding the benefits of consumption of food & beverages that include botanical extracts, without compromising on the flavor of the products has broadened base for botanical extracts in the region. The European market is driven by shifting consumer preferences toward natural products and healthy lifestyles.