by Frankincense extracts are obtained from the resin of the frankincense tree and find wide usage in applications ranging from perfumes, incense, and religious ceremonies to cosmetics and aromatherapy owing to their fragrant properties. Frankincense extracts contain various active compounds including boswellic acid which are believed to offer therapeutic benefits.
The global Frankincense Extracts Market is estimated to be valued at US$ 377.4 Mn in 2024 and is expected to exhibit a CAGR of 7.4% over the forecast period from 2024 to 2031.
Frankincense extracts are used extensively in perfumery and cosmetic applications for their distinctive woody, earthy aroma. They are often added to soaps, shampoos, lotions, massage oils and other personal care products due to their anti-ageing, anti-inflammatory, and anti-microbial properties. Increasing consumer preference for herbal and natural products is fueling the demand for Frankincense Extracts Market Demand in the FMCG industry. Additionally, the burgeoning aromatherapy trend has bolstered the used of Frankincense oil as it helps relieve stress and anxiety. Mounting cognizance regarding health benefits of boswellic acid present in frankincense resin for treatment of chronic diseases is further supplementing the market growth. The Global Frankincense Extracts Market is estimated to be valued at US$ 377.4 Mn in 2024 and is expected to exhibit a CAGR of 7.4% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the Frankincense Extracts are Caterpillar, Inc., Deere & Company, Komatsu Ltd., Mahindra Construction Equipment, Volvo Construction Equipment, J C Bamford Excavators Ltd., Terex Corporation, CNH Industrial NV, Manitou Group, Action Construction Equipment Ltd., and Hitachi Construction Machinery Co., Ltd.
The rising demand from personal care and cosmetics industry is one of the major factors propelling the growth of the frankincense extracts market. Frankincense extracts find wide usage in production of anti-ageing creams, serums, lotions and other skincare products owing to their antioxidant and anti-inflammatory properties. Additionally, shifting consumer preference towards herbal ingredients is also driving its demand from cosmetics segment.
Global expansion of personal care and cosmetics industry has opened lucrative growth opportunities for frankincense extracts market players. Key market participants have been investing in strengthening their distribution channels especially in emerging economies of Asia Pacific and Latin America where demand for herbal cosmetic products is rising significantly. Domestic producers from India, China, Brazil etc have also forayed into the market to cater to growing local demand.
Market Key Trends
One of the key trends gaining prominence in the frankincense extracts market is increasing incorporation in dietary supplements. Pure frankincense oil supplements are becoming popular for their potential health benefits. Emerging clinical research studies indicating therapeutic properties of boswellic acid present in frankincense for conditions like arthritis and cancer is boosting product development in dietary supplements segment. Major players have launched various frankincense oil capsules and tablets targeting the increasing health-conscious consumer base. Strong marketing campaigns by supplement brands regarding purported benefits is propelling sales growth of frankincense supplements. The trend is expected to continue and drive the demand for frankincense extracts over the forecast period.
Porter’s Analysis
Threat of new entrants: New players might face high initial investment costs to set up production facilities and obtain necessary certifications.
Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of numerous established players offering similar products.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitutes and dependence of buyers on a limited number of raw material sources.
Threat of new substitutes: Substitutes like essential oils pose minimal threat due to customer preference for frankincense extracts’ unique properties.
Competitive rivalry: Intense competition exists among existing players to gain higher market share through product differentiation, quality, and pricing.
Geographical Regions in Terms of Value
Europe dominates the global market in terms of value, accounting for over 30% revenue share in 2024. This is attributed to increased consumption of aromatherapy and related products for their therapeutic properties. The APAC region, especially India and China, is expected to be the fastest growing market owing to rising awareness about herbal medicines and spiritual practices.
Fastest Growing Geographical Region
The APAC region is projected to be the fastest growing market for frankincense extracts during the forecast period. This growth can be attributed to factors such as rising disposable incomes, growing millennial population afflicted by lifestyle diseases, and revival of ancient Ayurvedic and traditional Chinese medicinal practices incorporating herbal extracts. Expanding modern retail channels and e-commerce platforms are further augmenting market growth in the region.
