Aloe Vera Extract Market

Aloe Vera Extract Market Size

The global Aloe Vera Extract Market size was valued at USD 1,840.0 million in 2023 and is projected to grow from USD 1,941.7 million in 2024 to USD 2,989.1 million by 2031, exhibiting a CAGR of 6.36% during the forecast period. In the scope of work, the report includes products offered by companies such as Aloe Global, Aloe Laboratories., Aloecorp, Ashland, Concentrated Aloe Corporation, Foodchem International Corporation, La Roche-Posay, Lily of the Desert, NaturAloe, Terry Laboratories and others.

The growth of the market is driven by increasing consumer demand for natural and organic products, rising awareness regarding health benefits associated with aloe vera, and the growing use of aloe vera across various industries such as cosmetics, food, and pharmaceuticals.

The expansion of the aloe vera extract market is fueled by the rising demand for natural and organic products, especially in the cosmetics and personal care sectors. Increasing consumer awareness regarding the health benefits of aloe vera, such as its anti-inflammatory, anti-aging, and moisturizing properties, further propels demand.

Additionally, the growing popularity of aloe vera in the food and beverage industry due to its nutritional benefits, supports market expansion. The pharmaceutical industry's rising utilization of aloe vera extract in various therapeutic applications, coupled with advancements in extraction technologies, contributes to the growth of the market.

The global market is experiencing steady growth, largely attributable to its wide range of applications across multiple industries. Europe holds a significant portion of the market share as a result of high consumer demand for organic and natural products. The Asia-Pacific region is emerging as a lucrative market, propelled by increasing disposable income and rising consumer awareness.

Market participants are investing heavily in research and development to enhance product quality and expand their product portfolios. Additionally, companies are engaging in strategic collaborations, as well as mergers and acquisitions, in their efforts to strengthen their market presence.

• For instance, in March 2023, PolyNeo became the exclusive distribution partner and representative for Protameen products in German-speaking countries. This partnership facilitated access to US cosmetics industry expertise for German manufacturers while achieving PolyNeo’s international goals.

The aloe vera extract market comprises products sourced from the aloe vera plant, including gel, powder, and liquid forms. These products are widely used in various industries such as cosmetics, food and beverages, and pharmaceuticals, among others.

Aloe vera extract is highly valued for its medicinal properties, including anti-inflammatory, antimicrobial, and antioxidant effects. It is utilized in skincare and personal care products, dietary supplements, and therapeutic applications. The extraction process involves obtaining the gel from aloe vera leaves, followed by stabilization and processing into different forms.

Analyst’s Review

Manufacturers in the aloe vera extract market are increasingly focusing on innovation and sustainability to maintain a competitive edge. Efforts are being made to develop new, high-quality products that cater to the increasing consumer demand for natural and organic ingredients.

For instance, companies are investing heavily in advanced extraction technologies to enhance the potency and purity of aloe vera extracts. Furthermore, there is a notable shift toward sustainable sourcing and fair-trade practices to meet consumer expectations for ethically sourced products.

• For instance, PolyNeo's curaloe is a certified aloe vera raw material known for its sustainable sourcing. Sourced from South Africa, where the Aloe barbadensis miller variety thrives, curaloe featured a low aloe content, which simplified processing and ensured safety. This versatile material was suitable for various applications, including cosmetics and food. PolyNeo demonstrated a commitment to environmental and social responsibility by adhering to EU organic standards and employing resource-efficient farming methods.

To capitalize on market growth, it is recommended that manufacturers continue to prioritize product transparency and sustainability. Expanding product lines to include diverse applications in cosmetics, food, and pharmaceuticals is likely to further boost market expansion.

Aloe Vera Extract Market Growth Factors

The increasing consumer preference for natural and organic products is a primary factor supporting the growth of the aloe vera extract market. Consumers are becoming more health-conscious and are seeking products with minimal synthetic ingredients. Aloe vera's well-documented benefits, such as its soothing, moisturizing, and healing properties, have established it as a preferred ingredient in cosmetics, personal care, and wellness products.

The demand for clean-label products is promoting the use of aloe vera extract in various formulations. Manufacturers are responding to this trend by incorporating aloe vera extract into a diverse range of products, including skincare and dietary supplements.

A key challenge hampering the development of the market is the risk of adulteration and quality inconsistencies. The varying methods of cultivation and extraction lead to discrepancies in product quality, affecting consumer trust and brand reputation. To overcome this challenge, establishing stringent quality control measures and certifications are essential. Implementing standardized cultivation practices and advanced extraction technologies helps ensure consistent product quality.

Furthermore, third-party testing and certifications, such as organic and fair-trade labels aid in fostering consumer confidence. Educating consumers and promoting transparency in the supply chain are crucial steps in mitigating quality-related issues in the market.

Aloe Vera Extract Market Trends

A notable trend in the aloe vera extract market is the growing use of aloe vera in the food and beverage industry. Manufacturers are increasingly incorporating aloe vera extract into products such as juices, smoothies, and functional beverages due to its associated health benefits.

Aloe vera's nutritional properties, including vitamins, minerals, and antioxidants, are attracting health-conscious consumers. This trend is particularly evident in regions with high awareness regarding natural health products.

Companies are innovating by developing new product formulations to cater to this surging demand, thereby creating opportunities for market growth and diversification. The inclusion of aloe vera in everyday consumables is enhancing its market presence and consumer acceptance.

Another emerging trend reshaping market landscape is the growing implementation of sustainable and ethical sourcing practices in the market. Consumers are increasingly prioritizing environmentally friendly and socially responsible products.

Companies are responding to this rising demand by adopting sustainable farming practices, obtaining fair trade certifications, and incorporating eco-friendly packaging solutions. This trend is further fueled by a growing awareness regarding environmental issues and the increasing demand for transparency in the supply chain.

Companies are actively focusing on sustainability to meet consumer demand and contribute to long-term ecological balance. This shift toward sustainability is becoming a key differentiator in the market, attracting ethically minded consumers and enhancing brand loyalty.

Segmentation Analysis

The global market is segmented based on extract type, nature, end-use industry, distribution channel, and geography.

By Extract Type

Based on extract type, the market is categorized into liquid concentrate/oil and powder. The liquid concentrate/oil segment led the aloe vera extract market in 2023, reaching a valuation of USD 1,147.1 million. The segment is expanding as a result of its versatility and widespread application across various industries. Liquid aloe vera extract is highly preferred due to its ease of incorporation into beverages, skincare products, and pharmaceuticals.

The ability to blend seamlessly with other ingredients enhances its utility in product formulations. Additionally, the concentrated nature of liquid extract ensures higher potency and efficacy, making them more appealing to both manufacturers and consumers. This increased attractiveness contributes to the growth of the segment.

By Nature

Based on nature, the market is classified into organic and conventional. The organic segment is poised to witness significant growth at a robust CAGR of 7.99% through the forecast period (2024-2031). This notable expansion is largely attributable to the rising consumer demand for natural and sustainably sourced products.

Health-conscious consumers are increasingly prioritizing organic products, which are perceived as safer and more environmentally friendly. The growing awareness regarding the benefits associated with the implementation of organic farming practices, which avoid synthetic pesticides and fertilizers, is further contributing to this emerging trend. Moreover, regulatory support and certifications boost consumer confidence in organic aloe vera products, thereby aiding the growth of the segment.

By End-Use Industry

Based on end-use industry, the market is segmented into dietary supplements, food and beverage industry, cosmetic & personal care industry, pharmaceutical industry, and others. The cosmetic and personal care industry segment secured the largest aloe vera extract market share of 36.89% in 2023. Aloe vera's well-known benefits, such as moisturizing, soothing, and anti-aging properties, make it a staple ingredient in a wide range of cosmetic products.

The increasing consumer preference for natural and organic ingredients in personal care products is further propelling the growth of the segment. Additionally, continuous innovation in product formulations and the introduction of new aloe vera-based skincare lines are reinforcing the segment's leading position in the market.

Aloe Vera Extract Market Regional Analysis

Based on region, the global market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

Europe aloe vera extract market share stood around 34.56% in 2023 in the global market, with a valuation of USD 635.9 million. This dominance is attributed to the high consumer demand for natural and organic products in the region. European consumers are increasingly prioritizing health and wellness, which boosts the demand for aloe vera-based products.

Additionally, stringent regulations and standards governing cosmetic and personal care products ensure high-quality and safe products, thereby bolstering consumer trust. The presence of major cosmetic and pharmaceutical companies in Europe further contributes to North America’s leading position, as they continuously innovate and expand their aloe vera product offerings.

Asia- Pacific is poised to experience substantial growth over the forecast period at a CAGR of 7.16%. This rapid expansion is fueled by increasing consumer awareness regarding the health benefits associated with aloe vera and rising disposable incomes. The growing popularity of natural and herbal products in countries such as China, India, and Japan is leading to increased demand.

Additionally, the expansion of the cosmetic and personal care industry in the region, supported by a large population base, contributes to regional market growth. Moreover, the favorable climate for aloe vera cultivation in several Asia-Pacific countries supports local production, thereby enhancing supply and reducing costs.

Competitive Landscape

The global aloe vera extract market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions.

Expansion & investments are the major strategic initiatives adopted by companies in this sector. Industry players are investing extensively in R&D activities, building new manufacturing facilities, and supply chain optimization.

List of Key Companies in Aloe Vera Extract Market

• Aloe Global
• Aloe Laboratories.
• Aloecorp
• Ashland
• Concentrated Aloe Corporation
• Foodchem International Corporation
• La Roche-Posay
• Lily of the Desert
• NaturAloe
• Terry Laboratories

Key Industry Developments

• September 2023 (Launch): Kelly Loves, an Asian snack and drink brand, introduced a new pineapple-flavored aloe vera drink. This launch marked the 8th addition to their drink range, which included gluten-free, sugar-free, and vegan options. The 500ml drink, containing real aloe gel, complemented their existing products such as Ramune Soda, Aloe Vera Drink (Sugar-Free), and Yuzu Iced Green Tea.
• August 2023 (Partnership): Terry Laboratories announced Rahn USA Corp. as its new US distributor. The company maintained a long-standing relationship with Rahn, who was already its European distributor. This new partnership strengthened their presence to the US market.

The global aloe vera extract market is segmented as:

By Extract Type

• Liquid Concentrate/Oil
• Powder

By Nature

• Organic
• Conventional

By End-Use Industry

• Dietary Supplements
• Food and Beverage Industry
• Cosmetic & Personal Care Industry
• Pharmaceutical Industry
• Others

By Distribution Channel

• Business to Business
• Business to Consumer
  • Hypermarket/Supermarket
  • Specialty Store
  • Convenience Store
  • Online Retails
  • Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America