Japan Aloe Vera Extract Market Size, Share & Industry Analysis, By Product Form (Liquid, Gel, and Powder), By Application (Food & Beverages, Cosmetics, and Pharmaceuticals), By Distribution Channel (Offline and Online), Forecast, 2024-2032

The Japan aloe vera extract market size was worth USD 361.26 million in 2023 and is projected to grow from USD 387.92 million in 2024 to USD 676.74 million by 2032, exhibiting a CAGR of 7.20% during the forecast period.

For centuries, aloe vera has been used in Japan for diverse applications, especially in traditional medicine and skincare. Aloe vera is known for soothing skin irritations and burns and healing wounds. Japanese consumers have also been using aloe vera in culinary preparations. Aloe vera is used in a wide range of industry verticals by processing the plant leaves and extracting gel and water. It is then used to produce various extract products, which are available in three forms, namely liquid, gel, and powder.

The food & beverage industry, followed by the cosmetic and pharmaceutical industry, has observed elevated investments in research and development activities for the application of aloe vera extract, which has been one of the major factors contributing to the growing market for aloe vera extract in the country. In addition, beverages made with aloe vera extract are widely consumed in Japan and have been one of the most preferred drinks in the country, owing to their refreshing and hydrating characteristics.

The COVID-19 disease was declared a global pandemic by the WHO in March 2020. The pandemic had major impacts on many sectors, which may prevail in the short and long-term periods. There are also short- and long-term negative impacts on R&D and manufacturing activities, as well as delays in projects/programs unrelated to the core supply chain/data management operations.

Further, the COVID-19 outbreak severely affected the global consumption of the food and beverage industry. Since the beginning of 2020, the sector has shown a decline in the growth rate in the first quarter. Aloe vera has already been established in the natural products industry. For instance, in 2020, as per the data published by Forever Leaving Products International, one of the most prominent players in the global aloe vera extract market, mentioned that the company's aloe vera juice is one of the most preferred drinks in Japan and the demand for aloe vera juice and aloe vera products has shown significant growth.

Growing consumer awareness regarding the antiviral and antibacterial properties makes the natural ingredient prevalent. Its applications have also extended from cosmetic and personal care products, supplements, and natural remedies to hand sanitizers and homemade drinks during the pandemic. Therefore, due to its health benefits and consumer inclination toward natural products amid the pandemic, increasing demand for aloe vera extract is likely to favor the global market growth.

Despite certain challenges posed by COVID-19 for the aloe vera extract market, the market experienced strong growth in 2021 owing to the high demand for natural ingredient-containing products. Further, the innovations in product formulations and the introduction of aloe vera-based food and non-food products are anticipated to sustain this growth.

Japan Aloe Vera Extract Market Trends

Increasing Penetration of E-commerce to Provide Market Growth Opportunities

Consumers today are more inclined towards convenient and dynamic shopping experiences, especially in countries such as Japan, where the workaholic population is higher. Japan is known for people with busier lifestyles who are thus, more inclined towards convenient and time-saving options, which has been one of the significant factors in driving the growth of Japan's e-commerce industry.

E-commerce platforms such as Amazon, Alibaba, and others provide a convenient and accessible avenue for consumers to explore and purchase diverse products, including food products & ingredients, cosmetics, nutraceuticals, and pharmaceuticals from various brands and suppliers. This accessibility also allows for competitive pricing, appealing to price-sensitive customers through targeted marketing strategies, personalized recommendations, and other growth strategies. For instance, in July 2024, Nature Republic, one of the leading Korean cosmetics brands, announced its all-new sale called the "first half sale," where diverse product ranges were provided with offers and discounts for Japanese consumers.

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Japan Aloe Vera Extract Market Growth Factors

Rising Application of Aloe Vera Extract in Food and Cosmetics Industry Drives the Market Growth

The growing investment in launching and developing functional food products is due to the increasing demand for natural and functional foods and the rising  health-conscious consumer base in Japan. This changing consumer landscape, with a rising inclination toward healthy food products, is fueling the demand for aloe vera extract across food manufacturers.

For instance, as per the data published by the Consumer Affairs Agency, Government of Japan, the number of new product launch applications placed by manufacturers in the category of functional foods rose from 272 in 2015 to 5,995 in 2022.

The changing dynamics with evolving consumer demands have increased demand for natural and organic products. As a result, the Japan aloe vera extract market continues to expand as cosmetic companies innovate with formulations that cater to the growing demand for natural and efficacious skincare solutions.

For instance, as per the data published by the Japan Organic Cosmetics Association (JOCA), Japan's natural/organic cosmetics market rose from USD 0.78 billion to USD 1.49 billion.

RESTRAINING FACTORS

Higher Cost of Aloe Vera-Based Products and Higher Dependency of Japan on Imports to Restraint Market Growth

The higher cost of aloe vera-based products significantly restrain Japan aloe vera extract market growth. Aloe vera products are renowned for being therapeutic and for having several benefits. However, with the manufacturing process being labor-intensive, the products tend to have a higher cost in the market. Also, as per the Ministry of Industry Commerce and Employment of India, the aloe vera cultivation and harvesting process is significantly labor intensive and thus, further leads to a significant influence on product cost.

For instance, as per the report published by the United States Department of Agriculture (USDA), Japan’s consumers have become significantly price sensitive over the years due to the country’s changing economic landscape in the country. Consumers have become more selective and value-conscious, especially in the cosmetic industry.

In addition, consumers in Japan are more inclined toward domestically produced products and prefer them over imported products. However, the company is significantly dependent on imports in terms of ingredients required for the food processing industry, which further restrains market growth. For instance, as per the United States Department of Agriculture (USDA), Japan is a country that significantly relies on imports, with around 60% of its caloric intake coming from imports.

Japan Aloe Vera Extract Market Segmentation Analysis

By Product Form Analysis

Rapid Growth in Demand for Liquid Form among Cosmetic Producers to Drive Liquid Segment Growth

The Japan aloe vera extracts market has been segmented by form into gel, liquid, and powder, with liquid form holding the dominant share in the market. The higher share of liquid is owing to the higher demand for aloe vera water in cosmetic products. Furthermore, the medicinal properties of aloe vera water make it an ideal ingredient for a diverse range of food, beverages, and medicinal products, further contributing to its higher share.

The gel form holds a significant share owing to its demand among the food & beverage industry for aloe vera juice and other nutraceutical and probiotic products. With the rising number of applications of aloe vera in herbal food products, the demand for aloe vera extract gel is expected to record significant growth. Thus, it is said to have the highest CAGR in the Japanese aloe vera extract market. For instance, in March 2020, OKF Corporation, one of the leading aloe vera-based beverage manufacturers globally, announced the launch of aloe vera sparkling, its all-new aloe vera gel-based product.

The powder form has a limited share in the Japanese aloe vera extract market. However, aloe vera extract powder has been known to be used in various health foods and medicines and is in significant demand in the pharma industry.

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By Application Analysis

Rising Demand for Organic Cosmetics among Japanese Consumers to Fuel Segment Growth

Based on application, the Japan aloe vera extract market is segmented into food & beverages, cosmetics, and pharmaceuticals.

The cosmetics segment holds the most prominent share and has gained notable traction owing to top players' rapid growth of new products. Furthermore, aloe vera has been a common ingredient in Japanese skincare practices. It thus, is used in a diverse range of cosmetic and skin care products such as creams, moisturizers, toners, masks, sunscreen, and others. The extensive use of aloe vera in various industries is owing to the diverse range of value provided by aloe vera extracts, such as skin soothing, moisturizing, and others, which has further contributed to its dominance in the Japanese market.

Aloe vera extracts are used in a diverse range of food & beverage products such as jelly, gummies, juice, and others. Aloe vera juice is one of the most preferred drinks as it has several active ingredients such as enzymes, amino acids, and others. This preference towards aloe vera juice among Japanese consumers has been a prominent factor contributing to the increased demand for aloe vera extracts in Japan food & beverage industry. In addition, the rising number of new aloe-based products launch across the food & beverage industry in the country to further fuel the market growth. For instance, in April 2023, G.C Food Company, one of the leading aloe vera drinks companies, announced its plans to further expand its presence in the South Korean and Japanese markets by leveraging the free trade agreement of Vietnam with Japan and South Korea.

By Distribution Channel Analysis

Surging Sales in Offline Channels to Fuel Segment Growth

Based on the distribution channel, the market is segmented offline and online, each playing a distinct role in market dynamics.

Sales through offline channels, such as supermarkets/hypermarkets, grocery stores, health food stores, beauty specialty outlets, and pharmacies, are attributed to their ability to provide hands-on product experiences and personalized customer service, which resonate well with Japanese consumers who value trust and product quality verification.

Conversely, online channels are the fastest-growing segment, driven by the convenience and extensive reach of e-commerce platforms such as Amazon Japan, Rakuten, and Yahoo Shopping. These platforms offer a wide range of aloe vera products, from extracts to skincare and supplements, accompanied by customer reviews and targeted marketing strategies that appeal to tech-savvy consumers seeking convenience and variety in their purchases.

KEY INDUSTRY PLAYERS

Market Players Focus on New Product Launches to Extend their Footprint

The Japan aloe vera extract market is highly competitive, with several international and local players competing to expand their market share by implying several strategies such as product portfolio expansion, mergers, acquisitions, and others. A few major players in the market are Forever Living Products International, Nature Republic, Kobayashi Pharmaceutical Co., Ltd. (Aloe Garden Co., Ltd.), Aloe Honpo, and MORINAGA MILK INDUSTRY CO.,LTD. In the fiercely competitive aloe vera extract market in Japan, companies vie for dominance through various means such as product innovation, taste, authenticity, distribution channels, and marketing strategies. Furthermore, these firms invest heavily in research and development to craft novel and superior aloe vera extract alternatives to capture market share in Japan's aloe vera extract market.

LIST OF TOP JAPAN ALOE VERA EXTRACT COMPANIES:

• Kobayashi Pharmaceutical Co., Ltd. (Aloe Garden Co., Ltd.) (Japan)


• Aloins Co. Ltd. (Japan)


• Nihon Aloe Center (Japan)


• Tokyo Aloe Co., Ltd. (Japan)


• Aloe Honpo Co., Ltd. (Japan)


• Morinaga Co., Ltd. (Japan)


• Nature Republic (South Korea)


• Enprani Co., Ltd. (Holika Holika) (South Korea)


• Botanic Healthcare (India)


• Forever Living Products International (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• May 2024 – Nature Republic announced a sale called the first half sale. This new sale scheme launched by the company offers several products from its diverse categories at various discounts and offers.


• March 2024: Aloins Cosmetics Co., Ltd. announced the launch of its all-new acne care product, Acune Medicated Wipe-Off Lotion. The new product is designed to prevent acne during adolescence and rough skin. The new launch is based on the company’s rising focus on expanding its product range across various skin care-related segments


• March 2023 – Forever Living Products International announced Kazuo Watanabe as country manager (vice president) of its Japan headquarters. As per the company with Watanabe, the company aims for significant growth in the Japanese market.


• October 2021 – Kobayashi Pharmaceutical Co., Ltd. (Aloe Garden Co., Ltd.) announced the launch of "AG Penetrating Oil." The new product contains three plant extracts centered around aloe. The latest launch caters to the rising consumer base with a demand for natural skin care products.


• August 2021 – Kobayashi Pharmaceutical Co., Ltd. (Aloe Garden Co., Ltd.) announced its plan to expand its presence in the Japanese market with the launch of a new store in Keio Department Store Shinjuku.

REPORT COVERAGE

The research report provides a detailed analysis of the Japan aloe vera extract market share analysis and focuses on key aspects such as leading companies, product forms, and distribution channels. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

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Report Scope & Segmentation: