Botanical Infused Beverage Market

Market Study on Botanical Infused Beverages: Rising Demand for Healthy F&B Ingredients to Drive Market Growth

Botanical Infused Beverage Market Segmented By Herbs & Spices, Flowers, Fruits Source in Non-alcoholic, Alcoholic Botanical Infused Beverages Product

Market Snapshot

As per a new study conducted on the botanical infused beverage market by Persistence Market Research, Europe dominates the global market with around 29.8% value share. Non-alcoholic infused beverages account for around 65% share in the global market, mainly due to increasing focus on health and nutrition. Overall, the global botanical infused beverage market is worth US$ 300 Mn, and is projected to more than double by 2031.

Market Value (2021)

US$ 300 Mn

Projected Market Value (2031)

US$ 647 Mn

Value CAGR (2021-2031)

8%

Market Share of Top 5 Players

35% - 45%

Find Out More about the Report Coverage

Companies

  • Tata Consumer Products Limited
  • Associated British Foods plc
  • Diageo PLC
  • Pernod Ricard
  • Synnovate Pharma Inc.
  • CULT Artisan Beverage Company
  • Martin Bauer Group
  • Mayway
  • Bigelow Tea
  • Nestlé S.A.
  • Butterfly Ayurveda
  • Axiom Ayurveda Pvt. Ltd.
  • Ahmad Tea
  • Premier's Tea Ltd.
  • Bacardi Limited
  • Others (Available on Request)

Demand Analysis of Botanical Infused Beverages from 2016-2020 Vs Market Outlook for 2021-2031

From 2016-2020, the global market for botanical infused beverages expanded at the rate of 5.4%. Major market driver was increasing demand for healthy and nutritious beverages along with natural flavors. Botanical infused beverages have multiple functional and nutritional benefits, making them an excellent alternative beverage option for consumers.

Major demanding region for botanical infused beverages is Europe, followed by North America. In both these regions, demand is expected to grow owing to the fact that these regions have dominance over the beverage industry. The U.S. holds a market share of around 86.5%, in North America. Germany is a major market in the European region.

Overall, through 2031, the global market for botanical infused beverages is expected to surge at a CAGR of 8%.

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Why are We Seeing Increased Application of Botanical Infused Beverages?

Demand for products that provide multifunctional benefits is rising significantly due to many prevailing chronic diseases. Botanical infused beverages are used for various types of plant-based protections and remedies.

The fragrance of these infusions helps in the upliftment of mood and depression release. These infusions are also used in numerous applications such as natural therapies, alternative medicines, and pharmaceuticals.

Botanical infused beverages also act as antimicrobial, antioxidant, anti-fungal, and pain relievers. The fruity flavor also attracts consumers, especially millennials. These beverages also help in reducing weight, chronic inflammation, and insomnia, as they increase the sleeping time and help in experiencing a relaxed sleep cycle.

Botanicals, which were formerly considered a niche product, are now one of the fastest-growing products. The spotlight on the bioactive components of botanical infused beverages, which have potential application in the beverage industry, has spurred the recent spike in demand.

  • According to Andreas Suter, CEO of A. Vogel Group International, “there is a lot of interest and demand worldwide for products having to do with stress, energy, and sleep, and it increased in 2020”.

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Will Side Effects of Synthetic Products Drive Sales of Botanical Infused Beverages?

With increase in the number of health-conscious consumers, there has been a shift toward customer preference for substitutes of synthetic products, which are natural and organic. Increasing awareness regarding the harmful effects of synthetic products and ingredients that cause diseases such as diabetes, obesity, and heart diseases have influenced consumers to opt for natural substitutes that are free from any kind of chemical additives.

Many botanical manufacturers are attempting to promote botanical infused beverages as a healthy alternative to conventional drinks to help mitigate the risks of various illnesses and diseases.

Consumers are also shifting from synthetic products due to their concerns regarding the environment. Thus, shifting of consumers from synthetic products would increase the sales of botanical infused beverages in the global market.

  • According to the National Center for Biotechnology Information, the side-effects associated with conventional medicines are driving the adoption of botanicals.

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Will Further Studies on Botanicals Provide More Opportunity to Botanical Infused Beverage Manufacturers?

Although some botanical components are now in the limelight for immunity, the market is always open for new botanical ingredients that can make products such as beverages have differentiated properties for any given benefit.

Botanical studies would give access to further improvement in the areas of morphology, genetics, development, evolution, and different systematics of various plant groups. Furthermore, because the immune system is a complicated system with a wide range of support requirements, new dietary immune-supporting regimens will continue to be created.

Nowadays, companies are focusing on further product development of botanicals that would provide multiple health benefits. Thus, when it comes to botanicals, the possibilities are limitless. Therefore, further clinical studies of botanicals would provide more opportunities for botanical infused beverage suppliers to flourish in the global market.

What are the Factors Restraining Market Growth of Botanical Infused Beverages?

Although the popularity of botanicals is growing at a very fast pace, lack of strict norms and regulations about the efficacy and safety of botanical infusions is posing a threat to the market. Due to low emphasis on labelling and safety of botanical infusions, incidents of false health claims by producers have increased significantly.

With increased demand for botanicals for various applications such as herbs, infusions, and others, adulteration of botanicals is also increasing day by day. Accidental adulteration also occurs due to human error and poor-quality control procedures by manufacturers.

However, deliberate adulteration is found more often, which is carried out mainly for financial gain. This economically motivated adulteration includes intentionally diluted, substituted, or spiked with undisclosed and lower quality of botanical ingredients. Thus, adulteration reflects a significant challenge to market progress.

Therefore, there should be proper research and scientific study for backing the usage of botanicals in infused beverages, especially for health-conscious customers to support them in having a healthy lifestyle.

  • Three leading non-profit organizations, namely, American Botanical Council (ABC), American Herbal Pharmacopoeia (AHP), and University of Mississippi's National Center for Natural Products Research (NCNPR) have initiated a large-scale botanical adulteration program to educate people and tackle the adulteration problem.

botanical-infused-beverage-market

Country-wise Insights

Why Does Germany Account a Large Share in the European Region?

The market in Germany is witnessing significant growth with a projected value CAGR 4.5%. Demand for botanical infused beverages in the European region is growing at a significant rate, which provides a favourable market growth opportunity for manufacturers, with Germany leading the way.

Which Country Leads the East Asia Market for Botanical Infused Beverages?

Market growth in China is projected at a high CAGR of 9.2%. China holds a major share in the East Asian market. This is due to the growing health and nutritional benefits of botanical infusion and rising awareness consumers. Moreover, increasing demand for convenient foods with high nutrition will have a positive impact on market growth in China.

Category-wise Insights

Which Product Type of Botanical Infused Beverages is Most Demanded?

Based on product type, non-alcoholic botanical infused beverages are mostly demanded and consumed. The market value share of non-alcoholic botanical infused beverages is 65.1%.

Demand for non-alcoholic botanical infused beverages is high in the retail sector owing to their functional food ingredients that enhance the taste and texture of beverage items, besides the numerous health benefits.

Which Sales Channel is Aiding Demand for Botanical Infused Beverages?

Demand for botanical infused beverages is increasing in hypermarkets/supermarkets due to easy availability of the product. Market value of botanical infused beverages in the hypermarket/supermarket segment is expected to reach US$ 230 Mn by the end of 2031.

Impact of COVID-19 Crisis

The global pandemic slowed down industrial and economic activities around the world, due to which, there was a significant drop in demand for botanical infused beverages, majorly due to lockdowns, restrictions on travel and transport, and closure of retail outlets.

The food & beverage industry was prominently hit around the world and faced serious disruptions in terms of supply chain breaks, distribution cancellations, and closures of businesses as a result of the pandemic. Lockdown situation in major botanical infused beverage manufacturing countries affected the supply chain of raw materials as well.

However, the e-Commerce sector was the one that facilitated the buying of botanical infused beverages and helped the industry to stay afloat during this tough situation.

Competitive Landscape

Key market players are inclined toward innovation, research & development, and expansion to obtain botanical infused beverages with fine-quality. Manufacturers are striving to enhance their operation and innovation capabilities.

  • In May 2020, Tata Consumer Products Limited announced its plan to acquire PepsiCo’s stake in NourishCo Beverages Limited, which will strengthen the company’s liquid beverage portfolio. This investment will help the company widen its portfolio in the value-added liquid refreshment beverages space in the Indian market.
  • In September 2021, Diageo PLC announced its plan to expand its manufacturing footprint in Mexico through an investment of more than US$ 500 Mn for new facilities in Jalisco. This investment will support the company’s growth in the tequila category through production capacity expansion.

Botanical Infused Beverage Industry Report Scope

Attribute

Details

Forecast period

2021-2031

Historical data available for

2016-2020

Market analysis

USD million for value

Key regions covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East & Africa

Key countries covered

  • U.S.
  • Canada
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • Turkey
  • Northern Africa
  • South Africa

Key segments covered

  • Source
  • Product Type
  • Sales Channel
  • Region

Key companies profiled

  • Tata Consumer Products Limited
  • Associated British Foods plc
  • Diageo PLC
  • Pernod Ricard
  • Synnovate Pharma Inc.
  • CULT Artisan Beverage Company
  • Martin Bauer Group
  • Mayway
  • Bigelow Tea
  • Nestlé S.A.
  • Butterfly Ayurveda
  • Axiom Ayurveda Pvt. Ltd.
  • Ahmad Tea
  • Premier's Tea Ltd.
  • Bacardi Limited

Report coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & pricing

Available upon request

Botanical Infused Beverage Industry Analysis by Category

Source:

  • Herbs & Spices
  • Flowers
  • Fruits

Product Type:

  • Non-alcoholic Botanical Infused Beverages
  • Alcoholic Botanical Infused Beverages

Sales Channel:

  • Hypermarkets/Supermarkets
  • Speciality Stores
  • Convenience Stores
  • Online Retail

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  • Is this research conducted by Persistence Market Research?

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  • What research methodology is followed by Persistence Market Research?

    Persistence Market Research follows a methodology that encompasses the demand-side assessment of the market and triangulates the same through supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions. Request a detailed methodology.

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Media Release

- FAQs -

The global botanical infused beverage market is currently valued at over US$ 300 Mn.
Increased usage of botanical infused beverages for flavor and aroma, manufacturers building strategic alliances, shift in consumer preference due to side-effects of synthetic products, and increasing application due to multifunctional benefits are main factors bolstering product sales.
From 2016 to 2020, demand for botanical infused beverages increased at a CAGR of 5.4%.
Sales of botanical infused beverages are projected to increase at 8% CAGR and be valued at around US$ 647 Mn by 2031.
Key market trends include increased consumer preference for leading proactive life and high demand for clean label and traceable products.
Tata Consumer Products Limited, Associated British Foods plc, Diageo plc, Pernod Ricard, and Nestle SA are the top 5 market players with 35%-45% share.
The South Asia market holds a value of US$ 41.3 Mn in 2021, and is anticipated to reach US$ 115.6 Mn by the end of 2031.
The market in Japan is anticipated to reach US$ 24.8 Mn, with Canada expected to reach a valuation of US$ 18.4 Mn, by 2031.
The global botanical infused beverage market is currently valued at over US$ 300 Mn.
Increased usage of botanical infused beverages for flavor and aroma, manufacturers building strategic alliances, shift in consumer preference due to side-effects of synthetic products, and increasing application due to multifunctional benefits are main factors bolstering product sales.
From 2016 to 2020, demand for botanical infused beverages increased at a CAGR of 5.4%.
Sales of botanical infused beverages are projected to increase at 8% CAGR and be valued at around US$ 647 Mn by 2031.
Key market trends include increased consumer preference for leading proactive life and high demand for clean label and traceable products.
Tata Consumer Products Limited, Associated British Foods plc, Diageo plc, Pernod Ricard, and Nestle SA are the top 5 market players with 35%-45% share.
The South Asia market holds a value of US$ 41.3 Mn in 2021, and is anticipated to reach US$ 115.6 Mn by the end of 2031.
The market in Japan is anticipated to reach US$ 24.8 Mn, with Canada expected to reach a valuation of US$ 18.4 Mn, by 2031.

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