Home Business NewsBusiness Botanical extracts sector seeing surge in demand as M&A activity booms

Botanical extracts sector seeing surge in demand as M&A activity booms

by LLB Reporter
19th Apr 23 8:51 am

Consolidation expected to continue in the fragmented European botanical extracts market, largely driven by mid-tier ingredients players , according to a new study by Oghma Partners.

There are also the larger global ingredients players who are actively seeking out botanical extract companies to help diversify their offering beyond their core capabilities ­.

Furthermore, several private equity firms have a well-defined strategy to invest in botanical extracts producers that benefit from the favourable growth trends in nutraceuticals and the increasing preference for healthier food options among consumers.

Although approximately 60.0% of the deals were cross-border, Europe-based buyers drove the activity, accounting for around 80.0% of the total deal volume.

Botanical extract companies generally receive valuations at the higher end of the overall food ingredients market ­
Companies that produce botanical extracts for the nutraceutical and pharmaceutical industries usually command higher valuations than those that serve the food industry.

Oliver North, Associate Director at Oghma Partners, said: “Estimates for the size of the global botanical extracts market vary depending on definition. According to Precedence Research the global plant extracts market size in 2021 amounted to $10.2bn and is expected to reach $22.5bn by 2030. ­ The botanical extracts market is being driven by factors such as changing lifestyles, consumer awareness, increased use of natural ingredient-based products and biotechnological breakthroughs. ­

“Botanical extracts are becoming increasingly popular in a number of industries, including food & beverage, cosmetics, perfumes, medicines, and nutraceuticals . On application basis, the food & beverage category held the largest market share with more than 45.0%.”

Leave a Comment

You may also like


Sign up to our daily news alerts

[ms-form id=1]