Frankincense extracts have been used for ages in religious ceremonies and for its therapeutic properties. Extracts obtained from Boswellia serrata tree resin has shown anti-inflammatory, anti-arthritic and anti-anxiety effects. Frankincense essential oil is used in aromatherapy for its regulating effect on nervous system.
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. Rising awareness about health benefits of frankincense extracts such as joint pain relief, lowering stress and anxiety levels, and anti-inflammatory properties is fueling its demand. Pharmaceutical and cosmetic industries are also greatly utilizing frankincense extracts due to its bioactive components like boswellic acids that have therapeutic effects. Globally, companies are expanding their operations into Asia Pacific and Middle Eastern countries to leverage raw material availability and tap rising demands.
Market key trends
One of the major trends witnessed in the Frankincense Extract Market Demand is its increasing utilization in cosmetic products owing to anti-aging properties of boswellic acid that helps in reducing wrinkles, firming skin and fading scars. Additionally, companies are investing heavily in R&D to develop standardized formulations containing quantified and research-backed levels of boswellic acids to ensure product efficacy and consistency. With growing consumer awareness, scientific research is validating advantages of Frankincense extracts, expanding scope of applications and contributing to its sustained growth over forecast period.
Porter’s Analysis
Threat of new entrants: It is moderate as new players will require large investments for raw material sourcing and extraction facilities.
Bargaining power of buyers: It is high as buyers have several suppliers to choose from and can bargain for better prices.
Bargaining power of suppliers: It is moderate as there are few players controlling the raw material supply.
Threat of new substitutes: It is moderate as there are substitutes available but are not as effective as frankincense for therapeutic applications.
Competitive rivalry: It is high among existing players to gain more market share through product innovation and expansion to other application segments.
Geographical regions
Middle East accounts for over 60% share in the global market value owing to large-scale frankincense cultivation and extraction facilities in countries like Somalia and Yemen.
Asia Pacific is expected to grow at the fastest CAGR during the forecast period with increasing awareness and demand from countries like China and India for aromatherapy and medicinal applications of frankincense extracts.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it