Definition of Market/Industry:
Aloe vera plant looks like a cactus and produces two substances, gel and latex which has numerous health benefits and widely used for medicinal purposes. Aloe medication can be consumed orally or applied directly to the skin. The 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.
The global aloe vera extracts market was valued at US$ 1,839.7 Mn in 2018 and is anticipated to reach US$ 3,697.4 Mn by the end of 2027, growing at a CAGR of 8.2% during the forecast period (2019 to 2027).
Rising demand for aloe vera extract from the pharmaceutical and food industry for producing aloe vera based products is expected to foster the market growth over the forecast timeframe. For instance, in March 2016, SW Safety Solutions Inc. – California, U.S.-based glove manufacturer – introduced AloeTUFF gloves in its portfolio. These aloe vera coated, nitrile gloves mitigate skin irritation and loss of grip due to sweat. In December 2017, a Hyderabad-based CLS Pharma launched a new pain relief gel, which is manufactured by using natural ingredients, for treating backache, strains, arthritis, shoulder pain, joint pains, and sprains.
Increasing adoption of product differentiation strategy by the manufacturer and growing focus in product promotion is another 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 2015 over 2014, while the global sales grew by 12.4%
Europe dominated the global aloe vera extracts market in 2018, accounting for 35.3% share in terms of value followed by Asia Pacific and North America.
Figure 1. Global Aloe Vera Extracts Market Share, By Region, 2018
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 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 product is another major factor that is projected to hinder the market growth.
Increasing consumption of aloe vera extracts based supplements due to various health benefits and increasing launch of skincare products is expected to create favorable growth opportunities to the market of aloe vera extract. In March 2018, Relevium Technologies Inc. entered into an agreement with Curaçao Ecocity Projects N.V. to conduct a soft launch of an exclusive line of aloe vera based supplements and skincare products under the Bioganix brand. The launch of aloe vera based products is an important step for the Bioganix brand as it diversifies its product portfolio into the world of sustainable plant-derived compounds for health and wellness.
Rising application of aloe vera extracts as a low-calorie sweetener and thickener for production of soft drinks and juices is projected to propel the market growth of aloe vera extract. Various manufacturers are focusing on reducing sugar content in the drink, which is expected to foster the market growth of aloe vera extract. In April 2018, Simplee Aloe launched two products of low-sugar aloe vera water in the UK. Simplee Aloe claims the new products are the first aloe vera waters available in the country which do not use artificial ingredients, and the low-sugar drinks contain less than 2.5g of sugar per 100ml.
Figure 2. Global Aloe Vera Extracts Market - Opportunity Analysis
Market Trends/Key Takeaways
The rising trend of exploring new aloe vera plant species that is believed to have a similar effect to the aloe vera plant is projected to add immense growth over the forecast timeframe. Aloe vera is a succulent plant species among the aloe genus, and it has over 500 species of other flowering succulent plants. For instance, Aloe ferox, is already being marketed in the form of gels and other derivatives for producing various products in South Africa. Also, Aloe ferox has high demand from the cosmetic industry for producing skincare products.
Rising demand for aloe vera whole leaf extract that contains both latex and gel products from food, cosmetics and pharmaceutical industries due to its various health benefits is projected to propel the market growth of aloe vera extract over the forecast period. In December 2015, the California Environmental Protection Agency’s Office of Environmental Health Hazard Assessment (OEHHA) listed aloe vera non-decolorized whole leaf extract and goldenseal root powder as known to the state to cause cancer under ‘Proposition 65’ list.
Figure 3. Global Aloe Vera Extracts Market Share, By End-Use Industry, 2018
Based on end-use industry, cosmetics segment accounted for the largest revenue share of 45.2% in terms of value in 2018, followed by food and pharmaceutical segment.
- Lily of the Desert Organic Aloeceuticals
- Aloe Farms Inc.
- Terry Laboratories Inc.
- Foodchem International Cooperation
- Natural Aloe Costa Rica S.A.
- Pharmachem Laboratories Inc.
- Aloecorp Inc.
- Aloe Laboratories Inc.
Few Recent Developments
- Lily of the Desert Organic Aloeceuticals
- In April 2016, Lily of the Desert Organic Aloeceuticals showcased its product offerings at Green Living Show, Canada’s largest consumer show dedicated to a healthy and sustainable lifestyle held in Toronto, Canada
- In March 2016, Lily of the Desert Organic Aloeceuticals showcased its product offerings at Natural Products Expo West 2016 held at Anaheim, California. At this event, the company launched a new range of organic aloe vera water ‘Aloe H2O’ and ‘Aloe H2O with Pure Coconut Water’.
- In April 2016, Terry Laboratories showcased its product offerings at In-Cosmetics Trade Show, a leading global business event for personal care ingredients held in Paris