Australia Botanicals Market Report and Forecast 2024-2032

Australia Botanicals Market Outlook

The Australia botanicals market size was valued at USD 4.86 billion in 2023. The market is further projected to grow at a CAGR of 6.2% between 2024 and 2032, reaching a value of USD 8.39 billion by 2032.

Key Takeaways

• Notably, there are more than 140 botanical gardens across Australia.

• The Flora of Australia online by the Australian Biological Resources Study (ABRS) provides comprehensive information on Australia’s plant life.

• Regulatory bodies, such as the Food and Drug Administration (FDA), have imposed restrictions on artificial flavourings, which is further promoting the use of botanicals.

• Prominent companies in the market are Pocket Herbs & Produce, The Pharmaceutical Plant Company Pty Ltd, and The Herbal Extract Company of Australia.

According to Australia botanicals market analysis, the growth of the market is driven by the increasing demand for organic and natural raw materials and the rising consumer preference for cleaner-label products. These factors have significantly influenced consumer choices, leading to a surge in sales of botanical ingredients across markets.

The botanicals market is also witnessing a shift towards sustainable sourcing of botanical ingredients and adherence to ethical practices. Consumers and stakeholders are placing importance on environmental impact, biodiversity conservation, and fair-trade practices, influencing market players to adopt sustainable sourcing strategies to meet consumer expectations.

One example is the sourcing of organic Shea Nuts from highland farms in Guinea, West Africa, by Mac's Shortbread Company Pty. Ltd. Implemented in September 2023, this sourcing allowed for lower-waste harvesting and production of premium shea butter rich in vitamins and natural extracts, supporting local village farmers and their families through fair trade practices. Another example  is the partnership between Babo Botanicals and a woman-owned farm in Australia for sourcing Eucalyptus Oil using 100% renewable energy. This sustainable approach was established in May 2022. It ensures responsible farming practices and aligns with the company's commitment to using botanical ingredients sourced ethically and sustainably.

In applications, botanical ingredients like turmeric, beetroot, green tea, fenugreek seeds, and liquorice root are commonly used in animal feed industry for their various health benefits and nutritional support. These botanicals serve as natural additives that contribute to the overall well-being of animals, providing functional advantages such as anti-inflammatory properties, antioxidant effects, appetite stimulation, and colour enhancement in animal feed formulations. This segment is expanding as consumers show a preference for natural and sustainable options in animal nutrition.

The pharmaceutical sector is also leveraging botanical ingredients, such as turmeric, ginseng, and ginger, for their medicinal properties and the segment is growing due to the rising demand for plant-based ingredients in healthcare products, aligning with consumer preferences for natural remedies. Moreover, in the cosmetics & skincare segment, consumers are increasingly choosing products with botanical extracts for their natural and beneficial properties, which is propelling Australia botanicals market growth. For example, botanical extracts like aloe vera or green tea are commonly used in skincare products due to their soothing and antioxidant properties.

Market Segmentation

Australia Botanicals Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Source

• Spices 

• Herbs 

• Flowers 

• Others 

Market Breakup by Form 

• Liquid

• Powder  

Market Breakup by Application

• Dietary Supplements

• Food and Beverage
  • Bakery and Confectionery
  • Functional Beverages
  • Sauces and Dressings
• Animal Feed 

• Pharmaceutical

• Cosmetics & Skincare  

• Others 

Market Breakup by Region

• New South Wales

• Victoria

• Queensland

• Western Australia

• Australian Capital Territory

• Others

Competitive Landscape

Market players are focused on sourcing botanicals using sustainable and ethical practises to comply with regulations and strengthen their market positioning.

• Pocket Herbs & Produce

• The Pharmaceutical Plant Company Pty Ltd.

• The Herbal Extract Company of Australia

• Southern Light Herbs

• Three Springs Farm

• Planet Organic 

• Others

Key Highlights of the Report