ALOE VERA EXTRACTS MARKET ANALYSIS

Aloe Vera Extracts MarketSize and Trends

Global Aloe Vera Extracts Market was valued at US$ 2,573.1 Mn in 2022, and is expected to exhibit a CAGR of 9.35%, in terms of revenue, over the forecast period (2023-2030) to reach US$ 5,260.2 Mn by 2030. The Aloe Vera plant looks like a cactus and produces two substances, gel and latex which has numerous health benefits and are widely used for medicinal purposes. Aloe medication can be consumed orally or applied directly to the skin. Aloe vera extract is used in the treatment of various medical conditions such as hepatitis, diabetes, osteoarthritis, inflammatory bowel diseases, asthma, radiation-related skin sores, fever, stomach ulcers, itching, and inflammation, and as a general tonic. For instance, acemannan is a chemical in aloe that is taken by mouth for HIV/AIDS. Sometimes fresh aloe leaves are also consumed orally for cancer.

Global Aloe Vera Extracts Market: Growth Drivers

Growing demand for aloe vera extract in pharmaceutical and food industry

Rising demand for aloe vera extract from the pharmaceutical and food industry for producing aloe vera-based products is expected to foster market growth over the forecast timeframe. The pharmaceutical industry can benefit greatly from aloe vera extract. It is used to treat a variety of illnesses, such as diabetes, skin conditions, and hair problems, and is renowned for its medicinal properties. The plant is a useful component in pharmaceutical products because it has beneficial plant compounds with anti-inflammatory and antioxidant properties. Shampoos, creams, lotions, and other personal care items all contain aloe vera extract. The extract is utilized in the pharmaceutical sector to create beverages, skincare, and dietary supplements. In 2021, Desert Harvest, a producer of nutritional supplements with a high concentration of aloe vera, obtained approval from (FDA) Food and Drug Administration  to utilize their superior Medicine, aloe vera capsules for treating Interstitial Cystitis (IC), which is a chronic

Bladder health conditions nearly impacting 12 million people.

Benefits and diverse applications in various end use Industry

Increasing adoption of product differentiation strategy by the manufacturers and growing focus on product promotion is other major factor propelling the market growth of aloe vera extract. Additionally, expanding the e-commerce industry is another major factor fueling the market growth of aloe vera extract as online sales have witnessed a significant increase over the last few years. This is due to the rising focus of e-retailers on enhancing the online shopping experience through targeted marketing. According to Coherent Market Insights analysis, e-commerce sales in the Asia Pacific region grew by 34% in 2020 over 2021, while global sales grew by 12.4%

Figure 1. Global Aloe Vera Extracts Market Share, By End Use Industry, 2022

Global Aloe Vera Extracts Market: Regional Analysis

Europe dominated the global aloe vera extracts market in 2022, accounting for a 35.3% share in terms of value followed by Asia Pacific and North America. Consumer interest in nutritional health and supplement products is rising in European nations like Germany, the U.K., and France. To ward off illness and enhance their health and wellness, more consumers are turning to natural and organic goods and medical procedures. Additionally, organic and natural ingredients are sought after by health and wellness companies as they enhance and broaden their product portfolios. Aloe vera extract-based health products are well-known and well-proven among European consumers.

Asia Pacific is anticipated to experience the highest CAGR over the forecast period, followed by Europe, owing to expanding application industries in developing nations like China and India. In terms of imports and exports, major markets include China and India. Aloe vera is widely used in traditional Chinese medicine, and Chinese consumer believes that it is a Chinese plant. The nation has a robust ability to produce aloe vera extracts at home. Nevertheless, there may be price competition if there is no product differentiation.  All factors are therefore expected to promote regional market growth over the course of the forecast period.

Figure 2. Global Aloe Vera Extracts Market Share, By Region, 2022

Global Aloe Vera Extracts Market: Market Restraints

Rising high initial cost and low return

High initial cost and low return on investment due to the cultivation of aloe vera plant on small lands are projected to curb the market growth of the aloe vera extract over the forecast period. Moreover, limited access to technical assistance for developing and managing aloe plantations successfully as a commercial business is also expected to curb market growth over the forecast period. Furthermore, price fluctuations in the case of aloe vera extract-based products across different regions is another major factor that is expected to restrain the overall market growth of aloe vera extracts.

The unpleasant taste of aloe vera extract has limited its application in the food and beverage industry though it has various health benefits. This factor has led to the increasing usage of aloe vera extract-only dietary supplements. Hence, this is projected to limit market growth over the forecast timeframe. Also, the complex processing method of aloe vera extract products is another major factor that is projected to hinder the market growth.

Global Aloe Vera Extracts Market: Market Segmentation

On the basis of end use, global aloe vera extracts market is segmented into Food, Cosmetics, Pharmaceuticals, and others. In 2022, the cosmetics segment held the dominant position in the global market. The market is expanding quickly as a result of the use of herbal extracts in a variety of cosmetic and personal care products for the skin, hair, and body. The prevalence of numerous skin conditions and other related issues has sparked a demand from cosmetic product manufacturers for aloe vera products, which is anticipated to grow rapidly in the upcoming years (2023- 2030).