by The cosmetic botanical extracts industry has witnessed significant growth in recent years owing to the increasing number of consumers embracing healthy and natural products. Cosmetic botanical extracts are extracts obtained from various botanical (plant) sources and are widely used in skincare, hair care, and makeup products, including cleansers, moisturizers, serums, and lipsticks, among others. Botanical extracts provide various benefits when used in cosmetic formulations such as anti-aging, lightening, tightening, hydrating, and antioxidant properties. The organic and natural origin of botanical extracts is appealing to the conscious consumer who prefers products containing ingredients that have few side-effects.
The global Cosmetic Botanical Extracts Market is estimated to be valued at US$ 2.72 Bn in 2024 and is expected to exhibit a CAGR of 9.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends witnessed in the cosmetic botanical extracts market size is the growing demand for multi-benefit formulations. Consumers today seek products that can treat multiple skin concerns through a single formulation. As a result, cosmetic manufacturers are increasingly incorporating innovative botanical extract combinations that deliver anti-aging, hydration, brightening, and skin repair benefits synergistically. For instance, formulations containing combinations of ginseng, licorice, and magnolia bark extracts are gaining popularity for their multi-pronged anti-aging effects on the skin. Another key trend is the increasing demand for botanical extracts sourced through sustainable practices. Companies are emphasizing their efforts towards developing organic, fair-trade, and deforestation-free botanical extract sourcing programs to strengthen their sustainability credentials and meet consumer expectations.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as this market requires high capital investments and resources to carry out extensive R&D activities required for product development.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of numerous established players offering a variety of product options. Buyers can negotiate on price and dictate terms related to product quality easily.
Bargaining power of suppliers: The bargaining power of suppliers is moderate given that raw materials used in this industry are commonly available from multiple international and domestic suppliers.
Threat of new substitutes: The threat of new substitutes is low as botanical extracts provide unique benefits that are difficult to substitute.
Competitive rivalry: The competitive rivalry in the market is high owing to the presence of many global and regional players competing on the basis of product differentiation, quality, and pricing.
Key Takeaways
The global Cosmetic Botanical Extracts market is expected to witness high growth over the forecast period of 2024 to 2031. The market size for 2024 is US$ 2.72 Bn and projected to reach over US$ 5 Bn by 2031, growing at a CAGR of 9.4%.
Regional analysis: North America dominates the global market currently owing to high consumer expenditure on personal care and beauty products. Asia Pacific is poised to be the fastest growing market during the forecast period supported by increasing production capacities in countries like China and India along with rising disposable incomes.
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 players are focusing on new product launches and expansion strategies to strengthen their global presence.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
