Frankincense Extract Market : Size, Share and Competitive Landscape Analysis and Forecast (2023-2029)

Global Frankincense Extract Market size was valued at USD 303.75 Mn in 2022 and is expected to reach USD 537.67 Mn by 2029, at a CAGR of 8.5 %
Frankincense Extract Market Overview  
The Frankincense Extract Market encompasses the production, processing and global distribution of extracts derived from the resin of the boswellia tree which is commonly known as frankincense. These extracts include essential oils, resins and powders which are obtained through different extraction methods and find applications in fragrance, cosmetics, traditional medicine and aromatherapy. The market is driven by trends such as the increasing demand for natural and organic products, growing interest in aromatherapy and holistic wellness and the use of frankincense extracts in the pharmaceutical industry. Major players in the market include doTERRA International, Young Living Essential Oils, AOS Products Pvt. Ltd. and Oman Frankincense Company. The industry is regulated for quality, safety and labeling standards and sustainability practices are crucial to ensure the long-term availability of boswellia trees. To know about the Research Methodology :- Request Free Sample Report
Frankincense Extract Market Dynamics
Driving Forces in the Frankincense Extract Market: Natural and Organic Product Demand, Aromatherapy Trend, Health and Skincare Benefits, Fragrance Industry Application and Pharmaceutical Potential

The frankincense Extract market is driven by various factors that give a boost to its market growth. Key drivers of the market are the escalating consumer preference for natural and organic products across fragrance, cosmetics and healthcare industries. This inclination towards sustainability has positioned frankincense extract derived from natural resin as an environmentally friendly choice compared to synthetic alternatives. The growing popularity of aromatherapy and holistic wellness practices has created a surge in demand for frankincense extract as it is used for relaxation, stress relief and overall well-being.

The extract's perceived health and skincare benefits including anti-inflammatory, antimicrobial and antioxidant properties contribute to its increasing usage in traditional medicine and cosmetics. Frankincense extract's distinct and captivating fragrance profile adds depth and complexity to perfumes and colognes enhancing its demand. The exploration of frankincense extract in the pharmaceutical sector for potential therapeutic applications such as anti-inflammatory and anti-cancer properties further boosts its market growth.In 2021, the United States witnessed a stable shift in shopping patterns, with food sales, constituting over 90% of organic sales, reaching $57.5 billion, reflecting a 2% growth. The USDA's unprecedented $300 million investment over five years in the Organic Transition Initiative aimed to bolster the next generation of American organic producers and fortify supply chains. Despite robust consumer demand, the organic sector faced growth constraints due to supply challenges such as seed shortages and high costs. However, the global demand for U.S.-produced organic goods surged, with exports nearly doubling from $400 million in 2011 to over $700 million in 2021.

In Canada, the organic marketplace expanded, ranking as the world's fifth-largest organic market. While 2021 experienced slower growth in producers and acreage due to climatic conditions and pandemic-related challenges, the country remains home to over 1.2 million hectares of organic farmland. The sector anticipates an influx of new producers in the coming years, emphasizing sustained growth despite short-term setbacks.

Increasing Demand of Natural, Sustainable, and Wellness-Driven Frankincense Extract to Create Lucrative Opportunity for the Frankincense Extract Market

The frankincense extract market presents various market opportunities for growth businesses and capitalize on. Growing consumer demand for natural and sustainable ingredients provides a favorable environment for frankincense extract which is derived from a natural resin and offers environmental benefits. The expanding market of aromatherapy and holistic wellness practices also creates an opportunity for frankincense extract given its traditional use and therapeutic properties. Product diversification and innovation are additional avenues to explore allowing companies to develop new formulations, blends and delivery methods that cater to specific customer preferences.

Geographic expansion beyond the traditional production regions as well as collaboration with other industries such as cosmetics, fragrance and pharmaceuticals further unlock growth potential. Rise of e-commerce and online retail with which companies leverage digital strategies and optimize online platforms to reach a wider customer base and increase sales of frankincense extract products. These market opportunities offer a pathway for businesses to tap into the demand for natural, sustainable and wellness-focused products in the frankincense extract Industry.

The Frankincense Extract Market is influenced by market trends that shape its growth and development of business in the industry. Surging demand for natural and organic products across various sectors such as fragrance, cosmetics and healthcare is driving the popularity of frankincense extract as consumers seek sustainable and natural ingredients. Rise of aromatherapy and wellness practices has led to an increased interest in essential oils including frankincense extract for their relaxation and well-being benefits. Sustainable sourcing and conservation efforts have gained significance with companies focusing on responsible harvesting, reforestation and supporting local communities.

The cosmetics industry has embraced frankincense extract due to its potential anti-aging and anti-inflammatory properties while ongoing research explores its health benefits in pharmaceutical and nutraceutical applications. Innovation in product formulations including unique blends and delivery methods keeps the industry dynamic and the growth of online retail and e-commerce channels has transformed market dynamics by enabling wider consumer access. Frankincense is an oleogum resin, which is also called olibanum.

Table: Classification of Frankincense Products

Growing Awareness of Health and Wellness Benefits Trend to Boost the Frankincense Extract Market

Frankincense extract is associated with a range of health and wellness benefits, including anti-inflammatory and anti-aging properties. As awareness about these benefits continues to grow, consumers are incorporating products containing frankincense extract into their daily routines. The extract's potential to alleviate stress, improve skin health, and support overall well-being is contributing to its popularity and Frankincense Extract Market growth.

Expanding Applications in Cosmetics and Personal Care Products 

The cosmetic and personal care industry has witnessed a surge in the utilization of natural ingredients, and frankincense extract is gaining traction for its skin-rejuvenating properties. Cosmetic manufacturers are incorporating frankincense extract into formulations for anti-aging creams, serums, and skincare products, driving market growth. The extract's ability to promote healthy skin and address various skin concerns is a significant factor propelling its adoption in the beauty and personal care sector.

Frankincense Extract Market Restraints and Challenges

The Frankincense Extract Market encounters various restraints and challenges that hinder its growth and pose obstacles to businesses. These challenges include limited supply and sustainability concerns due to the restricted availability of boswellia trees fluctuating prices influenced by resin supply and market dynamics, difficulties in maintaining consistent quality and meeting regulatory standards with intense competition within the frankincense extract industry. Limited awareness and understanding of frankincense extract among consumers, the complexity of regulatory compliance across different jurisdictions and the potential impact of economic & and political instability in the regions of production are some other challenges that the market faces.

The solution to these challenges is businesses must adopt sustainable sourcing practices, implement quality control measures, differentiate themselves in the market, educate consumers about the benefits of frankincense extract, ensure compliance with regulations and develop contingency plans to address economic and political uncertainties. Solutions help businesses navigate the market and find opportunities for growth and success in the frankincense extract industry.
Frankincense Extract Market Segmentation
The Frankincense Extract Market has the following segments which give the details about the Market by Product Type, Application, Distribution Channel and Region.

By Product Type

Based on Product Type, the Frankincense Extract Market is segmented into Powder, Oil and Resin. The powder segment is the largest segment with a market share of 45% in 2022. The powder segment is forecasted to grow due to the increasing demand for frankincense extract in the food & and beverage industry. The oil segment is growing due to the increasing demand for frankincense extract in the cosmetics and personal care industry where it is used as a fragrance and moisturizer. The resin segment is growing increasing demand for frankincense extract in the aromatherapy industry, where it is used as a diffuser oil.

By Application

Based on Application, the Frankincense Extract Market is segmented into Food & Beverage, Cosmetics and Personal Care, Aromatherapy, Pharmacological and Others. The food and beverage segment is the largest segment of the frankincense extract market with a share of over XX% in 2022 due to the increasing demand for natural and organic ingredients in the food & and beverage industry. The cosmetics & and personal care segment is the second largest segment of the frankincense extract industry with of over share of 25% in 2022. Frankincense extract is a natural ingredient that has a variety of benefits such as anti-inflammatory, antiseptic and anxiolytic properties. Followed by other segments in the same order.By Distribution Channel

By Distribution channel, the Frankincense Extract Market is segmented as Direct and Indirect. The indirect distribution channel is the largest segment of the market with a share of over 80% in 2022. This is due to the increasing demand for frankincense extract in a variety of end-use industries. The direct distribution channel is the second largest segment of the frankincense extract market with a share of over 20% in 2022 due to the increasing demand for frankincense extract from online retailers and direct-to-consumer brands.
Frankincense Extract Market Regional Insights
North America, South America, Europe, Asia-Pacific, Middle East and Africa and South America are the five geographic regions that provide complete analysis for investment and future growth. The Frankincense Extract Market is led by the North American market. Asia-Pacific is forecasted to be the largest region for the Frankincense Extract Market in the forecast period 2023-2029.

North America dominated the largest market share in 2022 with a market share of over 35%. The region's well-established healthcare and beauty industries contribute to the market growth. The United States and Canada are the major markets in this region with a focus on high-quality and organic frankincense extract products.

Europe is the second largest region for the Frankincense Extract Market with a share of over 25% in the global market share. Driving forces for this region are increasing consumer preference for natural and organic ingredients in skincare, aromatherapy and traditional medicines. Germany, France and the United Kingdom are key markets due to the presence of a well-informed consumer base and a strong market for personal care products.

Asia Pacific is the third largest region for the Market with a share of over 20% in the global market share. Increasing disposable incomes, changing lifestyles and rising awareness of natural products drive the market in countries such as China, India, Japan and South Korea. Traditional herbal medicine practices in countries like India contribute to the demand for frankincense extract.

India's Organic Boom Creates Opportunities for the Frankincense Extract Market

India's thriving organic sector presents a lucrative opportunity for the Frankincense Extract industry. According to an MMR study, in March 2022-23, the country boasts 10.17 million hectares under organic certification, reflecting a robust commitment to environmentally and socially responsible agriculture. With a rich tradition of organic farming in various regions, India is well-positioned to tap into the growing domestic and global market for organic products. The National Programme for Organic Production (NPOP), implemented by the APEDA, has played a pivotal role in accrediting Certification Bodies, establishing standards, and promoting organic farming practices.

India's rank as the 6th largest in the world for organic agricultural land underscores its potential. The nation produced 2.9 million MT of certified organic products in 2022-23, with significant exports to the USA, European Union, Canada, and other global markets. As the demand for natural and organic products continues to rise, the Frankincense Extract industry can leverage India's organic momentum, finding new avenues for growth and collaboration in this dynamic Frankincense Extract Market landscape.
Competitive Analysis
The Market is growing with the presence of several prominent players vying for Frankincense Extract Market share. Key companies operating in the market include dōTERRA International LLC, Young Living Essential Oils, Mountain Rose Herbs, PLT Health Solutions, Aromatics International and Florihana. These companies specialize in providing high-quality frankincense extract products and differentiate themselves through factors such as sustainable sourcing practices, organic offerings, product transparency and strong distribution networks. They compete based on product quality, pricing strategies, customer reach and marketing initiatives. With a focus on the aromatherapy, wellness and natural products sectors, these companies have established themselves as leaders in the market. Market participants need to stay abreast of the competitive landscape as new entrants and strategic adjustments from existing players can impact market dynamics.
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Global Frankincense Extract Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 303.75 Mn


Forecast Period 2023 to 2029 CAGR:
8.5%
Market Size in 2029:
US $ 537.67 Mn


 Segments Covered:
by Product Type
Powder
Oil
Resin


by Application
Food & Beverage
Cosmetics & Personal Care
Aromatherapy
Pharmacological
Others


by Distribution Channel
Direct
Indirect



Frankincense Extract Market, by Region
North America (United States, Canada, and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria, and the Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan, and the Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria, and the Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Key players in the Global Frankincense Extract Market
1. doTERRA- Pleasant Grove, Utah, USA
2. Young Living - Lehi, Utah, USA
3. Mountain Rose Herbs- Eugene, Oregon, USA
4. Edens Garden - San Clemente, California, USA
5. Plant Therapy - Twin Falls, Idaho, USA
6. Now Foods - Bloomingdale, Illinois, USA
7. Aura Cacia - Urbana, Iowa, USA
8. Rocky Mountain Oils - Orem, Utah, USA
9. Nature's Fusions - Spanish Fork, Utah, USA
10. Plant Guru - Miami, Florida, USA
11. Healing Solutions - Phoenix, Arizona, USA
12. Radha Beauty - Houston, Texas, USA
13. Majestic Pure - San Diego, California, USA
14. ArtNaturals - Gardena, California, USA
15. Fabulous Frannie - Boise, Idaho, USA
16. Gya Labs - Singapore
17. Prime Natural - Houston, Texas, USA
18. Plantlife - San Clemente, California, USA
19. Aromatics International - Missoula, Montana, USA
20. Florihana - Oraison, France

Frequently Asked Questions:
1] What is the growth rate of the Global Frankincense Extract Market?
Ans. The Global Frankincense Extract Market is growing at a significant rate of 8.5 % during the forecast period.

2] Which region is expected to dominate the Global Frankincense Extract Market?
Ans. North America is expected to dominate the Frankincense Extract Market during the forecast period.

3] What is the expected Global Frankincense Extract Market size by 2029?
Ans. The Frankincense Extract Market size is expected to reach USD 537.67 Mn by 2029.

4] Which are the top players in the Global Frankincense Extract Market?
Ans. The major top players in the Global Frankincense Extract Market are The Coca-Cola Company, Evolution Fresh, Honest Tea and others.

5] What are the factors driving the Global Frankincense Extract Market growth?
Ans. Consumers are increasingly concerned about their health is the primary driver for market growth and is expected to drive the market during the forecast period

6] Which is the leading country for the sale of Frankincense Extract in 2022?
Ans. Germany is the leading country for the sale of Frankincense Extract in 2022.