by The global Cosmetic Botanical Extracts Market is estimated to be valued at US$ 2.36 Bn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Cosmetic botanical extracts are obtained from plants, which provide various functional properties and benefits in cosmetic products. Commonly used cosmetic botanical extracts include plant oils, plant extracts, phytochemicals, and plant-derived bioactive compounds. These extracts impart skin conditioning properties, anti-aging benefits, antioxidants, anti-inflammatory effects, and UV protection in cosmetic products such as moisturizers, facial masks, toners, serums, and sunscreens. Growing demand for natural ingredients in cosmetics due to rising health and environmental concerns is driving the growth of the market.
Market key trends:
One of the key trends in the cosmetic botanical extracts market is the increasing adoption of organic and natural cosmetic products. Consumers are preferring more eco-friendly products with natural botanical ingredients due to rising awareness about harmful chemicals in cosmetics. This is encouraging cosmetic manufacturers to develop natural formulations using organic plant extracts. Furthermore, advances in plant biotechnology have aided the development of new plant-derived antioxidants, peptides, and other functional compounds for cosmetic applications. Continuous research on novel plant sources and their phytochemicals is also expanding the product portfolio. Growing demand for anti-aging and skin-care cosmetic products endorsed by rising aging population is another factor fueling the market growth.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in this market is low as significant capital investment and expertise is required to develop botanical extracts as there are strict regulations for entry in this market. Bargaining power of buyers: The bargaining power of buyers is high in this market as buyers have a variety of options available and they can negotiate on prices. Bargaining power of suppliers: The bargaining power of suppliers is moderate as they have processing technologies and expertise required to extract botanical ingredients but buyers can shift to other suppliers in case of non-compliance. Threat of new substitutes: The threat of new substitutes is moderate as other natural ingredients can be used as substitutes for botanical extracts but the properties offered by botanical extracts are unique. Competitive rivalry: High as the market is fragmented with many global and regional players competing on the basis of quality, reliability of supply and innovation.
Key Takeaways
The Global Cosmetic Botanical Extracts Market Share is expected to witness high growth, exhibiting CAGR of 6.3% over the forecast period, due to increasing demand for natural ingredients in cosmetic products.
The US dominates the cosmetic botanical extracts market owing to high per capita spending on personal care products and stringent regulations regarding the use of natural ingredients in cosmetics. Asia Pacific region is expected to witness the fastest growth during the forecast period propelled by rising middle-class population, increasing disposable income and growing preference for natural cosmetics in countries like China and India.
Key players operating in the cosmetic botanical extracts market are Croda International, Ashland Global Holdings, Givaudan, BASF SE, Symrise AG, International Flavors & Fragrances Inc., Biolandes SAS, Lipotec SAU, Rahn AG, and Carrubba Incorporated. Croda International offers a wide range of plant-based extracts for skin, hair, color cosmetics and fragrances under its Botanical brand.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
