The global botanical beverage market is projected to reach a value of $608 million by the end of 2033. This growth is fueled by consumer demand for functional, flavorful, and convenient products that cater to various usage occasions, especially those related to energy and sleep. In the past, botanicals were seen as niche ingredients primarily used by startup companies. However, there has been a substantial increase in the use of botanicals, particularly in mainstream products. Large beverage manufacturers are now incorporating botanicals into their juice beverages, even if they are not explicitly highlighted on the front label. This allows for a complexity of flavor without alienating customers who may not be familiar with or think they dislike certain botanicals.
Consumers perceive botanicals, including herbs, florals, and mushrooms, as functional and healthy ingredients, which has led to the blurring of categories within the sparkling/still waters, mocktail, and functional beverage landscape. This perception of botanicals as beneficial, even when combined with unfamiliar ingredients, contributes to their appeal in the market. The rise of wellness as a global trend, especially in light of the pandemic, has further amplified the demand for botanicals and adaptogens, particularly for their perceived benefits in areas such as immunity, cognitive support, sleep, relaxation, digestive support, and energy.
Popular botanical ingredients sought after by consumers include florals, herbs, citrus, and coffee, especially if they offer functional benefits. However, formulating beverages with botanicals can present challenges, with bitter notes being the most common obstacle. To address this, natural modulators like those offered by Kerry can help maintain flavor balance while keeping the product label clean and natural. This balance is crucial in creating unique and differentiated products that resonate with consumers.
In addition to health benefits, botanicals also align with consumer concerns about environmental responsibility. However, distinguishing between authentic sustainability practices and greenwashing can be challenging for consumers. Companies that engage in greenwashing may experience lower customer satisfaction scores. Kerry is committed to responsible sourcing, aiming to source 100% of its priority raw materials sustainably by 2030. This involves considering various factors such as labor, environment, human rights, and carbon footprint. Kerry has partnered with the Café Femenino Foundation, a non-profit organization that supports women coffee farmers in rural areas. By sourcing coffee extract from this partnership, Kerry’s customers can showcase their support for the organization and female coffee growers on their packaging.
Overall, the use of botanicals in the food and beverage industry aligns with current trends in the market, including innovation, sustainability, and consumer preferences. As the demand for functional and healthy products continues to grow, botanicals offer a unique opportunity for brands to differentiate themselves and create products that resonate with consumers.
