April 19, 2024
Cosmetic Botanical Extracts Market

Cosmetic Botanical Extracts Market Is Poised To Grow At A Robust Pace Owing To Rising Skin Care & Hair Care Demand

Cosmetic botanical extracts are plant-derived ingredients comprising biologically active components such as phytochemicals, vitamins, minerals, and essential oils. They offer anti-ageing, anti-acne, moisturizing, and skin brightening benefits essential for skincare and hair care products. Cosmetic botanical extracts from fruits, vegetables, herbs, spices, and plants have been used for centuries to pamper and rejuvenate the skin and hair.

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 from 2024 to 2031.

Key Takeaways

Key players operating in the Cosmetic Botanical Extracts 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. Key players are focusing on developing advanced botanical extracts and exploring new sources to expand their product portfolios. Rising disposable incomes in developing countries are expected to provide significant opportunities for players to penetrate new markets.

Key opportunities in the market include new product launches, increased R&D investments for developing sustainable and organic ingredients, and mergers & acquisitions between ingredient suppliers and personal care product manufacturers. Globally, North America dominates the cosmetic botanical extracts market. However, Asia Pacific is expected to witness the fastest growth owing to the expanding middle-class population, increasing spend on premium skincare, and hair care products.

Market Drivers

Growing demand for herbal and  Botanical Extracts Market Demand zaturally derived cosmetic products is a key driver for the market. Botanical extracts are widely accepted as they are gentle, safe, and provide visible anti-aging benefits. Rising popularity of organic and sustainable personal care products is further fueling the demand. The COVID-19 pandemic has led to increased attention towards health and wellness, propelling the need for skincare and haircare formulations with antibacterial properties. This is boosting the demand for cosmetic botanical extracts market.

PEST Analysis

Political: Regulations about natural and organic ingredients used in cosmetics are becoming more stringent. Some countries have banned certain ingredients.
Economic: Rising disposable incomes in developing nations are driving demand for premium beauty products containing natural extracts. Higher R&D spending by cosmetic companies is pushing innovation.
Social: Consumers are increasingly preferring natural and organic cosmetic products due to greater awareness about the benefits of botanical ingredients and concerns over side effects of chemicals.
Technological: Advanced extraction technologies are enabling efficient sourcing of high-value compounds from plants. Companies are investing in analytical techniques to standardize botanical extracts.

The geographic regions with the highest market value currently are North America, Western Europe, and Asia Pacific. North America accounts for the largest share owing to the presence of major cosmetic companies and advanced research facilities. Western Europe is another major market led by countries such as Germany, France, and Italy with their strong personal care industries. The Asia Pacific region is growing rapidly due to rising expenditure power, increasing urbanization, and expanding middle class in nations such as China, India, and South Korea.

The market in Latin America is projected to expand at the fastest pace during the forecast period. Factors propelling growth include increasing per capita spend on cosmetic and skin care products, growing middle class, and rising demand for herbal formulations. Countries including Brazil, Mexico, and Argentina offer lucrative opportunities for players in the cosmetic botanical extracts industry. The market is also anticipated to experience steady growth in the Middle East & Africa region backed by improving disposable incomes, changing lifestyles, and rising health consciousness.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.