The global botanical drug market is anticipated to grow at a significant CAGR of 9.2% during the forecast period. Botanical medications are made from natural sources, such as plants, and supporting in boosting the immune system, and providing soothing effect to the body. The presence of large levels of bioactive components in medicinal plants aids in the quick treatment of chronic ailments. With the growing demand for traditional medicines coupled up with their several benefits has positively impacted the demand for botanical drug. Additionally, the higher inclination of people towards the usage of herbal medicines for health and wellness is also supporting the market growth due to adverse side effects of synthetic drugs. Botanical extracts are increasingly being used in new product releases across all major categories, from beverages to baked goods and dairy products, as well as savoury categories including soups, sauces, and snacks. They also play an increasingly important role in plant-based dairy and meat replacements, providing both sensory value and product labelling transparency.

Impact of COVID-19 Pandemic on Global Botanical Drug Market

In 2020, the COVID-19 Pandemic had a big impact on the botanical drug market. The COVID-19 had a major influence on public health, along with all levels of the supply chain and numerous businesses. As public awareness of the virus expanded, so did the demand for herbal immune supplements such as fruit and turmeric. With the commencement of the Covid-19 Pandemic, the market for spices and seasonings has seen a quick rise, with some chosen spices that are claimed to boost immunity, such as turmeric, ginger, and garlic, receiving a huge response from consumers all over the globe. Consumers have also been storing non-perishable food, soaps, and health products, such as herbal dietary supplements that include herbal extracts, echinacea, olive (Olea europaea, Oleaceae) leaf, and rosemary (Rosmarinus officinalis, Lamiaceae). As a result, it had created an positive impact on markets. During Covid-19, there was increase in demand for botanical products such as spices and other products which support strong immune system.

Segmental Outlook 

The global botanical drug market is segmented based on the source, dosage form, and therapeutic application. Based on the source, the market is segmented into plant, algae and macroscopic fungi. Based on the dosage form, the market is sub-segmented into the tablets, injections and pills. Based on therapeutic application the market is sub segmented into central nervous system, cardiovascular disease, respiratory disease and others. Among these, the therapeutic application segment is anticipated to propel the growth of the market over the forecast period, owing to the rising in number of chronic diseases. Thus, further driving the respiratory disease penetration compared to central nervous system and cardiovascular disease.

Global Botanical Drug Market Share by Source, 2020 (%)

The Plant Segment is Anticipated to Hold a Prominent Share in the Global Botanical Drug Market

Plant material is anticipated to hold the largest share in the market owing to the presence of natural ingredients for usage purposes. In botanical drugs, botanical Ingredient is a component derived from plants like herbs, roots, flowers, fruits, leaves, or seeds. Consumer’s preference towards this plant based botanical drugs is primarily driven due to safety as they come with minimal risk of having side effect when consumed. The growing use of plant segment is propelling the global botanical and plant-derived drugs market forward. Another factor projected to drive the target market's growth over the forecast period is the low cost of botanical and plant-derived medications compared to speciality drugs also when source of a medicine is plants, people trust this source more as it is a natural source and people have been using it from ancient times.

Regional Outlooks

The global botanical drug market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East &Africa, and Latin America).  The market can be analyzed for particular region or country level as per the requirement. The Europianregional BOTANICAL DRUG market is expected to hold prominent market share due to the presence of several key market players. The expanding use of traditional and plant-based medicine in Europe, as well as significant investments in botanical medicine R&D, and the rising prevalence of asthma in Europe, particularly Germany, are driving the market.

Global Botanical Drug Market Growth, by Region 2022-2028

The Asia-Pacific Region is estimated to hold the Major Share in the Global Botanical Drug Market

The Asia-Pacific is anticipated to hold a prominent share in the market due to increase in the purchasing power of consumers, preference for healthy drugs over synthetic drugs, and higher adoption of a healthy lifestyle among individuals. Due to rising knowledge of plant-derived medications, which comprise drugs, nutritional supplements, and skin care items, Asia Pacific is predicted to grow at the quickest rate over the forecast period. In the Asia Pacific area, India and China are the most important markets for herbal medicinal items utilization.

Other factors promoting the usage of plant extracts in food and beverage items eaten in the Asia-pacific include an increase in the number of instances of osteoporosis, obesity, cardiovascular disease, and other disorders caused by a lack of key nutrients. The market is being propelled forward by the practice of ancient Ayurveda in the region, along with the burgeoning herbal medication sector. Another factor projected to boost the Asia-Pacific botanical extracts market growth in the coming years is the increasing use of botanical extracts such as spice and herb extracts in combination with other ingredients in various food products to enhance flavor. Government limitations on botanical extracts, on the other hand, will limit market demand.

Market Players Outlook

The major companies serving the global botanical drug market include Blue sky Botanics LTD., Ransom Naturals LTD., Prinova Group LLC., PT Indesso Aroma, Synergy Flavours, Inc., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in February 2022, Touchlight, a biotechnology business pioneering enzymatic DNA manufacturing, and Asklepios BioPharmaceutical, Inc. (AskBio), a gene therapy company completely owned and independently operated as a subsidiary of Bayer AG, have announced a revamped structure for their prior joint venture, Touchlight AAV. Both parties benefit from co-exclusive rights to independently supply the Adeno-Associated Virus (AAV) market with doggybone DNA (dbDNA™) through their respective independently owned Contract Development and Manufacturing Organisations (CDMO).

In November 2021, Blue Sky Botanics, a botanical extract company, introduced a Baobab Fruit Puree, which is a bioactive ingredient touted as having a higher prebiotic dietary fiber content than those made with other plant powders like inulin. With the launch of these products it had influenced other market products have natural contents as nowadays people natural products instead of chemical based. Both parties benefit from co-exclusive rights to independently supply the Adeno-Associated Virus (AAV) market with doggybone DNA (dbDNA™) through their respective independently owned Contract Development and Manufacturing Organisations (CDMO).

The Report Covers

• Market value data analysis of 2022 and forecast to 2028.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global botanical drug market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.