The global cosmetic botanical extracts market is driven by the growing cosmetic industry worldwide. Botanical extracts are gaining popularity in cosmetic products due to their antioxidant and anti-aging properties. They are used in various cosmetic products such as skin care, hair care, makeup, and fragrances. Botanical extracts help provide nutrition to the skin and protect it from environmental damage. They contain vitamins, minerals, and other phytonutrients that are beneficial for skin health. Some commonly used botanical extracts in cosmetics include aloe vera, tea tree, grapeseed, green tea, and rosehip extracts. Their therapeutic properties nourish and rejuvenate the skin.
The global Cosmetic Botanical Extracts Market is estimated to be valued at US$ 2.36 Bn in 2024 and is expected to exhibit a CAGR of 9.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the cosmetic botanical extracts market is the growing demand for natural and organic products. Consumers are increasingly preferring cosmetic products containing natural ingredients over chemical-laden products due to rising health concerns. This growing interest in natural cosmetics is driving the demand for botanical extracts in the industry. Many leading cosmetic brands are focusing on incorporating more plant-based ingredients and highlighting the natural and organic positionings of their products. Another trend is the development of multifunctional botanical extracts. Extracts combining anti-aging with moisturizing or skin lightening properties are gaining traction. Companies are investing in research and development to come up with innovative plant-based solutions targeting specific skincare needs. This is expected to present lucrative opportunities for botanical extracts market in the coming years.
Porter’s Analysis
Threat of new entrants: The cosmetic botanical extracts market requires high R&D investment and strict regulations which pose barriers for new companies.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes and differentiated products offered by manufacturers.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to the presence of substitute raw materials and dependence of manufacturers on consistent supply.
Threat of new substitutes: Substitutes like synthetic extracts pose moderate threat due to regulations supporting natural ingredients.
Competitive rivalry: The market is consolidated with top players competing on innovation and brand value.
Key Takeaways
The Global Cosmetic Botanical Extracts Market Size is expected to witness high growth. The market size was valued at US$ 2.36 Bn in 2024 and is projected to reach over US$ 4 Bn by 2030, registering a CAGR of 9.4% during the forecast period.
Regional analysis: North America dominates the market currently due to strong consumer demand for natural cosmetic products. However, Asia Pacific is expected to witness the fastest growth over the forecast period supported by rising disposable incomes, increasing awareness about natural cosmetics, and growing youth population in countries like India and China.
Key players: Key players operating in the cosmetic botanical extracts market are Sanofi SA, Pfizer Inc., Novavax Inc., Merck & Co. Inc., Johnson & Johnson, GlaxoSmithKline PLC, Daiichi Sankyo Co. Ltd., Emergent BioSolutions Inc., AstraZeneca, and Takeda Pharmaceutical Company Limited, among others. These major players are focusing on new product launches and partnerships to expand their market share.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it