The cosmetic botanical extracts market deals with ingredients extracted from plant sources which are extensively used in manufacturing cosmetics products such as skin care, hair care and makeup products. Botanical extracts offer numerous benefits like anti-aging properties, moisturization, UV protection, anti-inflammatory qualities and more. Extracts from aloe vera, green tea, witch hazel, neem, jojoba are commonly used due to their regenerative properties. The surging demand for natural and organic personal care products meeting stringent regulations is fueling market growth.
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.
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.
Growing demand for multifunctional botanical extracts from skin care and hair care industry is expected to drive market growth. Manufacturers are offering innovative product ranges enriched with botanical extracts known for tackling several skin and hair issues.
Technological advancements have enabled extraction of exotic plant compounds which were inaccessible earlier. Companies are investing heavily in R&D to develop sustainable and eco-friendly extraction techniques to meet demand for natural ingredients.
Market Trends
The increasing popularity of natural and organic cosmetic products is a major trend in the market. There is growing adoption of Ayurveda and herbal ingredients in personal care products.
The rise of nanoencapsulation technology allows entrapping botanical extracts in nano-sized capsules, protecting them from degradation and enhancing efficacy. This has further increased scope of applications.
Market Opportunities
Untapped regions especially Asia Pacific and Middle East provide lucrative opportunities owing to rising disposable incomes and growing awareness.
Manufacturers can focus on leveraging advances in biotechnology for large-scale sustainable cultivation of botanicals in controlled environments. This will ensure steady supply and commercialization of unique high-value plant metabolites.
Impact of COVID-19 on Cosmetic Botanical Extracts Market Growth
The COVID-19 pandemic has significantly impacted the growth of the Botanical Extracts Market Demand During the initial months of the pandemic, lockdowns and restrictions led to a decline in demand as manufacturing activities, supply chains and distribution channels were disrupted. Shutdowns of brick-and-mortar retail stores also negatively impacted market growth. However, with the relaxation of lockdowns and increasing awareness about personal hygiene, demand for skincare and haircare products containing botanical extracts started recovering. Many consumers started focusing more on self-care needs and turned to natural ingredients based cosmetics for their soothing properties. This helped revive the market to some extent in the later part of 2020.
Moving forward, the market is expected to grow at a steady pace as manufacturing and supply chain operations normalize. Companies are focusing on e-commerce platforms and direct-to-consumer channels to drive sales. Demand from Asia Pacific and Europe where regulations favor natural ingredients is also likely to boost growth. However, any future waves of the pandemic may impose restrictions again which can hamper market expansion. Ongoing R&D to identify new herbal extracts with pharmaceutical properties and their inclusion in skin therapeutic products are strategies that can help sustain growth in the post-pandemic future.
Geographical Regions with High Concentration in Cosmetic Botanical Extracts Market
Asia Pacific accounts for the largest share of the global cosmetic botanical extracts market in terms of value. This is attributed to the presence of major markets like China, India, Japan and South Korea where herbal medicines and cosmetics have been an important part of traditional healthcare and self-care regimes. The rising popularity of natural and organic personal care along with growing per capita incomes is boosting demand across Asia Pacific countries. Additionally, these regions have various indigenous plant reserves offering a wide range for botanical extractions.
Fastest Growing Region in Cosmetic Botanical Extracts Market
Europe is expected to be the fastest growing regional market for cosmetic botanical extracts during the forecast period driven by high consumer preference for natural cosmetic ingredients. Stringent EU regulations that restrict synthetic chemicals while promoting renewable bio-based formulations are also creating opportunities. With companies actively researching, developing and launching herbal skin care ranges, the demand is rising steadily in countries including Germany, UK, France and Italy where organic and natural products have gained wider acceptance.
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