While floral essential oils continue to influence the growth strategies, with revenue share of 65% in 2018, manufacturers are focusing on increasing the production of absolutes to capitalize on growing demand for premium fragrances and perfumes. On the one hand, floral concentrates will continue to represent relatively low share as compared to the two types of floral extracts, according to the report. The study forecasts that the sales of natural floral extracts to increase ~5% y-o-y in 2019, while rapid adoption of organic variants is likely to result in increased market share.
Regions such as Europe & North America are expected to hold prominent market shares in terms of value. However, the East Asia market for floral extract is expected to project lucrative growth during the forecast period of 2019-2029, due to increased disposable income available for purchasing high-end products. According to the research, a majority of key players in floral extract market are directing their investments in R&D on extraction techniques. While distillation and solvent extraction methods are widely adopted for various flowers, manufacturers are focused on supercritical fluid extraction method that not only reduces the energy consumption but also eliminates residual solvent in the resulting extracts.
Significantly high application potential of floral extracts is identified in fragrances, which accounted for ~42% in 2018. The rise of vegan perfumes in line with strong desire for cosmetics and fragrances to be cruelty-free will contribute to the overall sales of floral extract. Manufacturers are further exploring the capabilities of floral extracts as colorant and fragrance enhancer in skin care products as well as body care and toiletries. Sensing an increase in direct sourcing of floral extracts to avoid intermediates in the supply chain, manufacturers are focusing on deepening their collaboration with cosmetic producers. In addition, leading players in the floral extract market are aiming to introduce their own product line of cosmetics and personal care.