Botanical Infused Drink Market

Botanical Infused Drink Market Outlook (2024 to 2034)

Worldwide revenue from the botanical infused drink market is estimated at US$ 379.2 million in 2024 and has been forecasted to increase at a CAGR of 6.5% to climb to US$ 710.3 million by the end of 2034.

Some key factors driving the global market for botanically infused beverages are rising demand for clean labels and organic products and growing consumer awareness of the health benefits of natural food ingredients. The market is growing due to the growing appeal of functional beverages, which provide extra health advantages such as better digestion, increased energy, and relaxation. The use of superfoods and adaptogens in product formulation has improved the appeal of beverages infused with botanicals. The growing inclination towards non-alcoholic substitutes and the widening of channels for distribution bolster the expansion of the market.

Demand for products that provide multifunctional benefits is rising significantly due to the prevailing chronic diseases among the general population. Sources such as flowers, roots, leaves, herbs, etc. for making infusions in beverages have antimicrobial, antioxidant, antifungal as well and pain-relieving properties making them popular as an ideal ingredient in manufacturing beverages.

Increasing awareness among consumers via social media platforms regarding the use of botanical-infused drinks for weight reduction, and preventing chronic inflammation as well as insomnia is influencing people to take up botanical-infused drinks in their routine consumption thereby expanding the market.

European consumers are more likely to pay more for natural and organic products. Furthermore, several market leaders in the healthcare, dietary, and food & beverage industries have opportunities to invest and grow their revenues in herb-infused water due to the easy availability of these herbs in almost every country and the very low production and manufacturing costs.

The botanical infused drink market size is increasing due to the growing appeal of functional beverages, which provide extra health advantages such as better digestion, increased energy, and relaxation. Also, the use of superfoods and adaptogens in product formulation has improved the appeal of beverages infused with botanicals. Growing inclination toward non-alcoholic drinks and the widening of channels for distribution are also bolstering the expansion of the market.

Report Attribute	Detail
Botanical Infused Drink Market Size (2024E)	US$ 379.2 Million
Forecasted Market Value (2034F)	US$ 710.3 Million
Global Market Growth Rate (2024 to 2034)	6.5% CAGR
East Asia Market Share (2024E)	23.5%
North America Market Share (2024E)	26.8%
Market Value of Fruit Segment (2034F)	US$ 325 Million
Non-Alcoholic Drinks Segment Value (2024E)	US$ 275 Million
Key Companies Profiled	Tata Consumer Products Limited; Coca-Cola Company; PepsiCo Inc.; Associated British Foods 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; Dr. Pepper Snapple Group; The Alkaline Water Company Inc.

Why is There Increasing Preference for Botanical Infused Drinks in the Market?

“Adoption of Inorganic Market Approach by Manufacturers to Drive Sales”

The ever-adventurous spirit of the millennial population is pushing the market players to meet their convenience needs by demanding innovation in every sector. This growing popularity for innovation is influencing manufacturers in the beverage sector to craft botanical infusions in their alcoholic as well as non-alcoholic beverage product portfolio.

Market players operating in the botanical-infused beverage market actively seek strategies to maintain a prominent position in the market. Regional players are developing strategic alliances with global players to witness consistent market growth to fuel the worldwide demand for the target product. This in turn is anticipated to drive the sales of botanical-infused drinks across the globe.

What Obstacle Do Botanical Infused Drink Manufacturers Need to Overcome?

“Need for Costly Machinery Pushing Up Prices of Final Product”

The botanical infused drink market is still thought to be constrained by several factors. The high cost associated with the procurement of raw materials is one such key factor anchoring the market growth. The involvement of expensive machinery and a professional workforce in the production of botanical-infused beverages affects the final price of the manufactured products. It is estimated that 60% of the world's population are medium income and spending on expensive drinks becomes a great challenge for them. This factor will showcase the decreasing sales of botanical-infused beverages.

Country-wise Insights

North America is set to capture a market share of 26.8% in 2024, followed by East Asia with a market share of 23.5%. UK being one of the most developed countries across the European region, has staged an opportunity for the growth of healthy food and beverages. Nearly 30% of the population prefers organic plant-based food and beverages for their routine consumption.

Awareness regarding the medicinal benefits of botanicals, such as improved mental state and immune function, better skin, and improved concentration and memory has influenced the popularity of botanical-infused beverages in the United Kingdom. Moreover, the incorporation of multiple flavored botanical ingredients by the manufacturers to escalate their product's market presence and acceptance has proportionally inclined the botanical-infused drink market growth.

Why is the United States a Key Market for Botanical Infused Drinks?

“Several Well-known Beverage Manufacturers”

Attribute	United States
Market Value (2024E)	US$ 80.8 Million
Growth Rate (2024 to 2034)	6.9% CAGR
Projected Value (2034F)	US$ 157.1 Million

The United States is estimated to account for 79.5% of the North American market share in 2024. The country is home to some of the biggest beverage manufacturing hubs. Providing a variety of botanical infusion flavors via online sales channels has provided the population of the United States access to premium branded infused beverages in the world. The reasons mentioned earlier play a major role in the growing acceptance of botanical infusions, thereby increasing the sales of botanical-infused drinks in the country.

Why is China Witnessing a Surge in Consumption of Botanical Infused Drinks?

“Herbal Remedies Old Tradition Gaining Resurgence in China”

Attribute	China
Market Value (2024E)	US$ 62.4 Million
Growth Rate (2024 to 2034)	6.7% CAGR
Projected Value (2034F)	US$ 119.7 Million

China is set to have a strong presence in the Asia-Pacific region with a market share of 70.2% in 2024 due to the growing health and nutritional benefits of botanical infusion and rising awareness among consumers. Herbal remedies have long been used in China, and many conventional Japanese cures contain herbal components. As a result, people are becoming more interested in herbal-infused drinks such as tea and water as they look for natural, healthful substitutes for sugar-filled beverages. Moreover, increasing demand for convenient foods with high nutrition will have a positive impact on market growth in China.

Category-wise Insights

The market for botanical infused drinks is categorized into alcoholic and non-alcoholic drinks of which the latter is set to account for a market share of 72.5% in 2024. As per the source, the market is segmented into roots, flowers, fruits, herbs, leaves, and seeds. Of all these fruits are expected to account for 42.2% share of the market.

What Type of Drink Accounts for Higher Sales in the Market?

“Shift toward Non-Alcoholic Drinks Complementing Botanical Infused Drink Demand Growth”Top of Form

Attribute	Non Alcoholic
Segment Value (2024E)	US$ 275 Million
Growth Rate (2024 to 2034)	6.2% CAGR
Projected Value (2034F)	US$ 500 Million

The booze world is presently experiencing a non-alcoholic revolution. Although botanicals play a major role in the booze culture, they seamlessly fold into non-alcoholic beverages. The botanical benefits present in the infusions come through when there is no presence of alcohol and sugar getting in the way of them. In addition, the curiosity among youngsters to steer a healthier way of life is on the rise which in turn will uplift the demand for botanical infused nonalcoholic drinks across the globe. The growing population migration toward wellness has been noticed by big companies thereby encouraging them to manufacture botanical infused non-alcoholic beverages.

Which Source Accounts for Higher Revenue Share in Botanical Infused Drink Sales?

“Increasing Interest of Consumers in Beverages with Basic Nutrition”

Attribute	Fruits
Segment Value (2024E)	US$ 160 Million
Growth Rate (2024 to 2034)	4.3% CAGR
Projected Value (2034F)	US$ 89.04 Million

Fruit-sourced infusions are the most commonly used botanical infused drinks for consumption. The segment is expected to hold a key market share of 42.2% of the global target market in 2024. The growing consumer interest in beverages that provide benefits beyond basic nutrition has motivated manufacturers to use various raw materials in beverage manufacturing. The provision of near-instant effects such as support to heart health and upper respiratory health after consumption of fruit sources infusion beverages is gaining popularity in the botanical-infused drinks market.

Market Developments

• Focusing on in-depth research and development as well as enhancing innovation capabilities via the use of cutting-edge technologies, Axiom Ayurveda Pvt. Ltd.'s primary goal is to supply high-quality goods that promote consumer health.
• Sector Gin's latest invention, the Hibiscus and Peach Infused Gin, was introduced in January 2024. This artisanal gin promises an extraordinary sensory experience, combining fruity allure with botanical finesse. Expert distillers at Sector Gin have skillfully blended the sweet juicy juiciness of ripe peaches with the delicate essence of hibiscus blossoms, all while using precision and passion in their craft.
• In 2022, PepsiCo reportedly made its foray into the hemp market in Germany when it unveiled Rockstar Energy + Hemp.

Fact.MR provides detailed information about the price points of leading manufacturers of botanical infused drinks positioned across the world, sales growth, production capacity, and technological advancements, in this updated market report.

Segmentation of Botanical Infused Drink Market Research

• By Source :

  • Roots
  • Flowers
  • Fruits
  • Herbs
  • Leaves
  • Seeds

• By Drink :

  • Alcoholic
  • Non-Alcoholic

• By Packaging :

  • Cans
  • Bottles
  • Jars

• By Sales Channel :

  • Offline
  • Online

• By Region :

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