May 24, 2024
Frankincense Extracts Market

Frankincense Extracts Market is Estimated to Witness High Growth Owing to Increasing Applications in Pharmaceuticals and Cosmetics Industries

The global frankincense extracts market is primarily driven by the numerous health and skincare benefits offered by frankincense extracts. Frankincense extracts contain boswellic acid that helps reduce inflammation and swelling. It is also used for skincare purposes like reducing signs of aging, improving skin tone and texture. Frankincense extracts finds wide applications in pharmaceuticals for treating arthritis, digestive issues and certain cancers owing to its anti-inflammatory and anti-tumor properties. In cosmetics, it is used in anti-aging creams and serums for its ability to reduce wrinkles and improve skin elasticity.

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 2024 to 2030.

Key Takeaways
Key players operating in the frankincense extracts market 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 key opportunities in the Frankincense Extract Market Demand include product innovation through formulations catering to specific health conditions and use in new applications like dietary supplements. Companies are also exploring opportunities in underpenetrated regional markets in Asia and Latin America for further market expansion.

Rising health awareness and increasing disposable incomes are driving the demand for herbal medicinal and cosmetic products globally. This is prompting companies to focus on geographical expansion into countries with large consumer bases like China, India, Brazil and Mexico.

Market drivers
The high growth of the frankincense extracts market is attributed to the growing demand from the pharmaceutical industry. Pharmaceutical applications account for over 35% of the global demand for frankincense extracts. Rising prevalence of inflammation-related diseases like arthritis and growing acceptance of botanical medicines is expected to further drive the demand from the pharmaceutical segment over the forecast period.

PEST Analysis

Political: Frankincense extract market is influenced by laws and regulations governing natural ingredients used in food, beverage, personal care and other end-use industries. Any changes in such regulations directly impact demand and supply dynamics of frankincense extracts.

Economic: Changes in economic conditions of key consumer markets directly impact the purchasing power of end-use industries. As these industries forms major demand segments, their growth and investment outlook influences Frankincense extracts consumption.

Social: Rising awareness about benefits of natural ingredients is proving favourable for frankincense extracts market. Growing preference for herbal products provide opportunities for formulators to innovate and launch new products using frankincense extracts.

Technological: Advances in extraction technologies help isolate high-value compounds from frankincense resin. This allows manufacturers to develop standardised, consistent and application-specific formulations. New application areas are also explored through research.

Geographical Regions of Concentration

The market in terms of value is highly concentrated in the Middle East and North African regions. Countries like Somalia, Ethiopia, Sudan and Yemen account for more than 80% of the global production of frankincense resin. Abundant availability and established supply chains make these origins the dominant sourcing locations for extracts.

Fastest Growing Region

The Asia Pacific region is witnessing the fastest value growth in the frankincense extracts market. Increasing health-conscious consumer base, surge in herbal formulations, and emergence of key end-use industries like personal care and food & beverage are major growth drivers. China, India and other Association of Southeast Asian Nations (ASEAN) countries are projected to be the new high potential markets.

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