ID: MRFR/F-B & N/9124-HCR | 90 Pages | Published By Snehal Singh on March 2023
Lavender extracts market is projected to register a CAGR of 5.38% and reach a value of USD 337.9 million by 2028.
The global lavender extracts market is projected to register a CAGR of 5.38% and reach a value of USD 337.9 million by 2028. Lavender extractsare majorly in the form of essential oil that is produced by distillation from the flower spikes of certain species of Lavender. Well-known producers of lavender extractsin the world are Bulgaria and France followed by Italy, Spain, Greece, South Africa, Turkey, England, Australia, and Canada among others. Depending on the origin, the chemical and aromatic profiles of the extract vary slightly.The popular species of lavender used to produce lavender extracts are Lavandula angustifolia and Lavandula hybrida. Lavender extracts are popularly used in aromatherapy to promote relaxation, calm the nervous system, and reduce anxiety.Other than aromatherapy, lavender extractsare also used as a natural deodorant, treat minor scrapes or rashes, promote hair growth, perfume fabrics, treat acne, insect repellant, and many more.
COVID-19 Impact Analysis
COVID-19 has created immense pressure across the supermarkets & hypermarkets, retail stores, and plant-extract suppliers. As a result of increasing panic among consumers for food, stockpile for fresh and processed food along with personal care and aroma productshave become a common phenomenon in the last couple of months across the globe. The manufacturers of natural products are increasing their procurement quantities from the vendors of lavender extracts. However, the biggest concern remained in logistics during the lockdown. The rapid proliferation of the COVID-19 pandemic throughout the world is leading to increased restrictions on vehicular movement. As the global economy is under significant pressure due to the pandemic, its impact on the global trade and supply chain is growing due to reducing global investment flows. The lowered demand for botanical extracts is creating uncertainty in the transportation industry. The governments of various countries have imposed strict containmentand preventive measures to control the impact of the outbreak resulting in restricted transportation of raw materials across the globe. Therefore, a demand and supply gapis formed, resulting in the reduced production of pharmaceutical, personal care, and aromatherapy products. This trend is expected to continue owing to the uncertainty in the global market. However, measures are be imposed by Governments across the globe to address the supply/demand imbalance.
The growth of the lavender extracts market is expected to be driven by the increasing consumption of dietary supplements across the globe. Lavender extractsare majorly used for aroma therapy products and the applications of aromatherapy include pain management and the treatment of cardiovascular disease, insomnia, and cold and cough. Lavender extracts are also used in the production of several food & beverage products, especially functional beverages. However, limited supply of raw materials and price fluctuations may hamper the growth of the global lavender extracts market during the forecast period. Increasing consumer preference for organic food & beverages acts as a lucrative opportunity for the key players in the global lavender extracts market.
Skin care products are one of the important segments in the overall cosmetic products. The growth of the skin care products is expected to be driven by various factors. Increasing obsession towards fair complexion among the youth and women population, and rising instances of social discrimination based on skin color is driving the growth of the skin care products. The growth of the skin care market is also backed by the increasing working women population in the developing economies. Also, the men’s grooming products market has witnessed robust growth over the last few years both in developed and developing economies and the trend is expected to prevail in the coming years, which all together is anticipated to propose significant growth for skincare market in the future. Moreover, the increasing disposable income of the consumers is also expected to propel the sales of skin care products during the forecast period. Among the skin care products, natural skin care products are an established trend in developed economies over the last few years and the concept is fast catching up in the developing economies. Organic skin care products are manufactured from natural ingredients extracted from plants, herbs and flowers under eco-friendly conditions. Growing urbanization, rising concerns for health safety, increasing go green consciousness and growing consumer awareness towards the hazards of synthetic chemicals has driven the demand for organic skin care products. All the factors are expected to boost the overall growth of lavender extracts market at a global level.
The healthcare industry has experienced a substantial growth over the last few years both in developed and developing nations and the trend is expected to continue in the future. Recently, there has been a shift in universal trend from synthetic to herbal medicine in developed economies. Lavender extracts are used heavily in the production of pharmaceutical products. One of the significant factors for the rising growth of herbal medicine is the increasing high cost of traditional medicinal products. Also, the overall healthcare cost has increased drastically over the last couple of years which is expected to enforce the consumers to opt for substitute products which in turn accelerates the sales of herbal medicine during the forecast period of 2021-2028. Also, herbal supplement products have gained huge acceptance among the consumers due to the increasing preference towards the natural derived products. Also, the manufacturers are coming up with new products which in turn escalates the sales of herbal medicine products. The manufacturers of herbal medicine are adopting new & innovative marketing techniques to capture the attention of the consumers. Moreover, governments in developing economies are promoting herbal products in an innovative way to enhance the volume sales of the products. All the factors are anticipated to positively impact the overall sales of lavender extracts during the forecast period of 2021-2028.
Regulatory authorities are setting up stringent standards and regulations for products involving botanical extracts for consumer safety. Key players in the lavender extracts market are required to fulfil the rules and regulations set by the government to meet the standards set by them. The concerned authorities are responsible for controlling permits, setting regulations for the entry of new players, residual management issues, and inspection of expiry dates for certain products like essential oils and herbal formulations. FDA is responsible for regulating the manufacturing and distribution of products prepared from lavender extracts in the US. The concerned authorities place strict regulations on the type of products that can be introduced in the market, the amount of ingredients that can be used, and the labelling criteria for various ingredients that are to be mentioned on product labels. Furthermore, the lavender extracts used for manufacturing products needs to be tested before and it should be regarded as generally recognized as safe (GRAS). All these regulatory authorities keep a close eye on natural extract manufacturers to provide safe and high-quality products for human consumption.
Aromatherapy market is expected to expand at a high pace in the years to come. Increasing consumer inclination towards therapeutic uses of essential oils has led to the growth of the aromatherapy market. There are various factors driving the growth of aromatherapy market. For instance, a large pool of the patient population opting for essential oils and carrier oils for aromatherapy massages, which is expected to boost the growth of the aromatherapy products market. Growing sales of essential oils for home usage is a key factor responsible for enhancing the revenue of the lavender extracts over the forecast period of 2021-2028.
Based onform, the global lavender extractsmarket has beendivided into powder and oil. The oil segment accounted for the largest market share in 2020.The use of oil extractsfrom lavender is increasing in the aroma therapy and food industry as they are stable, contamination-free, and clean. Additionally, oil extracts can be easily standardized by blending with different products.
By category, the global lavender extracts market has been segmented as organic and conventional. Between the two, the organic segment is projected to exhibit the higher CAGR of 5.62% during the forecast period.Organic lavender extractsare sourced from lavenders grown in organic environment and considered a safer alternative as compared to its counterpart.
Based on application, the global lavender extracts market has been segmented into food and beverages, personal care, pharmaceutical, and aromatherapy. The aromatherapy segment accounted for the largest market share in 2020.The personal care segment captured the second largest market share in the same year.Essential oil offers different therapeutic benefits during aroma therapy. The increasing prevalence of lifestyle diseases is one of the significant factors for the growth of aromatherapy segment.
Global Lavender Extracts Market Share, by Region, 2020 (%)
Source: MRFR Analysis
The global lavender extractsmarket has been divided into geographies as North America, Europe, Asia-Pacific, and Rest of the World.Europe accounted for the largest market share of 41.23% in 2020. Asia-Pacific captured the second-largest market and is expected to register the fastest growth rate during the period of 2021 to 2028.
The Europe lavender extracts market accounted for the highest shareof the global market in 2020. The growth of the lavender extracts market in the region can be attributed to the increasing use of botanical extracts in aromatherapy products.Moreover, Bulgaria, France, Ukraine, and Spain being major lavender producing countries are further aiding to the regional market growth. Further to this,there is a robust demand for lavender extracts in Spain and Italy due to the presence of a developed food processing industry. The increasing use of lavender extracts in bakery products, high demand for healthy food ingredients, and large vegan population in Europe are boosting the growth of the regional market.
Asia-Pacific is anticipated to be a lucrative region for manufacturers of lavender extracts. The growth of the regional market is marked by the expanding food service industry in the region. Rising trends such as innovative culinary items followed by subtle sweet taste and fresh aroma of lavender in bakery products are boosting the growth of regional lavender extracts market. Furthermore, aromatherapy is traditionally used in countries such as China and India to treat common lifestyle ailments such as stress and fatigue. These factors are expected to boost the demand for lavender extracts in the region during the forecast period.
The market comprises tier-1 players along with some local players with diverse product portfolios. Companies such as Ultra International B.V. (Netherlands), Biolandes SAS (France), Essential oils and herbs Ltd. (Bulgaria), and Galen-N (Bulgaria) dominate the global market due to brand reputation, product differentiation, financial stability, and strong distribution network.The players are focused on lowering their environmental footprint and investing in research and development along with strategic growth initiatives such as acquisitions and mergers to strengthen their market position and capture a large customer base.
Prominent players in the global lavender extractsmarket include Ultra International B.V. (Netherlands), Biolandes SAS (France), Essential oils and herbs Ltd. (Bulgaria), Galen-N (Bulgaria), Frey + Lau GmbH (Germany), Lavender Oil Bulgaria (Bulgaria), Bontoux SAS (France), BMV Fragrances Pvt. Ltd. (India), NorexFlavours Private Limited (India), and K. K. Enterprise (India).
Scope of the Report
Global Lavender ExtractsMarket, by Form
Global Lavender ExtractsMarket, by Category
Global Lavender Extracts Market, by Application
Global Lavender ExtractsMarket, by Region
|Market Size||USD 337.9 Million|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Form, By Category, By Application, and By Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Ultra International B.V. (Netherlands), Biolandes SAS (France), Essential oils and herbs Ltd. (Bulgaria), Galen-N (Bulgaria), Frey + Lau GmbH (Germany), Lavender Oil Bulgaria (Bulgaria), Bontoux SAS (France), BMV Fragrances Pvt. Ltd. (India), NorexFlavours Private Limited (India), K. K. Enterprise (India)|
|Key Market Opportunities||Mounting Growth of Herbal Medicine|
|Key Market Drivers||Growing Demand of Skin Care Products with Natural Ingredients|
In 2028, the lavender extracts industry is expected to be worth USD 337.9 Million
Lavender Extracts Market share is expected to grow at a 5.38% CAGR during the forecast period of 2021–2028
Ultra International B.V. (Netherlands), Biolandes SAS (France), Essential oils and herbs Ltd. (Bulgaria), Galen-N (Bulgaria), Frey + Lau GmbH (Germany), Lavender Oil Bulgaria (Bulgaria), Bontoux SAS (France), BMV Fragrances Pvt. Ltd. (India), NorexFlavours Private Limited (India), K. K. Enterprise (India)
Europe will lead the lavender extract market