Almond Extracts Market Report

Almonds are packed with complex nutrients and offers lots of nutritional values due to which use of almond extract in food & beverage and cosmetic industry is rising. One of the considerable key factors is increasing awareness about the health benefits of almonds and different distribution platforms such as online platforms, retail stores and e-commerce. Due to the skin benefiting properties, almond extract is widely used in cosmetic industry, also the rising beauty concerns are propelling the almond extract market. The rapid expansion of food and beverage industry is primarily attributed to the rising global demand for healthy food alternatives, which has created new business opportunities for manufacturers to innovate new products, uses and applications.

The use of almond extract in almond oil, almond milk and confectionery fillings is creating demand. The almond extract is gaining popularity due to the increase in premium and artisanal products, whereas almond extract is considered as a key ingredient in many gourmet products. Almond extract in flavoured beverages particularly in flavoured milk, smoothies, coffee and other speciality drinks makes it popular. As a result, these factors create significant opportunity for almond extract manufacturers to innovate almond extract without lessening its nutritional values to cater broader market, especially food & beverages and cosmetics market.

As almond farming is high water-concentrated, especially in regions with water scarcity there’s challenge of limited usage of water which could impact almond production, thereby affecting the almond extract market. Rising cost of almonds and lack of awareness about the benefits of almond extract are the key factors restraining the revenue growth in the global almond extract market. High cost of almonds and the extraction process remains crucial restraining factor of almond extract. Availability of other substitutes such as coconut, hazelnut, vanilla extract, etc. limit the adoption of almond extract also water scarcity in some regions creates challenge for almond production. Lack of awareness about the benefits of almond extract negatively impacts the expansion of market. Areas where other flavors are dominant and almonds are not staple can limit the adoption of almond extract in specific regions. Apart from this, bitter almond extract contains cyanogenic glycosides that can release cyanide, which is highly regulated to its potential toxicity. This limits the use of bitter almond extract in food products and can lead to less adoption by consumers. Intense competition in almond extract market pressurizes market players to continuous innovate in order to remain competitive and differentiate the company presence in the market.

To reduce environmental impact and addressing water scarcity issues, manufacturers are focusing on extracting almond extract by following sustainable sourcing practices. Companies are investing more in research & development to develop and launch new almond extract products with enhanced flavors, organic certifications and use of natural ingredient to appeal to health-conscious consumers, to cater diverse range of consumer preference, manufacturers are introducing flavoured almond extract alternatives such as vanilla-almond, honey-almond extract, etc. which are supposed to provide a unique flavour for culinary applications. Additionally, companies are opting eco-friendly packaging options for almond extract products, such as recyclable and biodegradable materials to reduce environmental impact.

For instance, on 4 January 2024, Watkins had launched its Pure Almond Extract which is naturally derived, gluten free, and zero artificial flavors and colors. The product was designed for baking and flavoring drinks. Function of Beauty had launched its Sweet Almond Extract on 19 December 2023, the almond extract has created by sweet almonds, the product was developed for haircare to increase har shine, volume and manageability and helps in protecting hair fibre and structure of hair surface. Such products with all-natural ingredients are expected to accelerate the almond extract market. Also, companies are investing in technological advancements to enhance extraction techniques that improve flavour intensity, purity and shelf-life of almond extract, in order to expand market.

North America dominated the almond extract market due to the growing demand across various industries, such as baking, food & beverages and cosmetic industry. Europe represents a significant market for almond extract due to the rising awareness about the health benefits of almond. Latin America experiences growth in demand for almond extract driven by the rising popularity of natural flavors and ingredients used in food and beverages industry. Asia-Pacific region is expected to experience considerable expansion over the forecast period. Rising disposable income and rising consumer awareness of health benefits are anticipated to propel the almond extract market. Likely, in Middle East and Africa, the almond extract market is driven by the increasing consumer preference for food products with natural and premium quality. Also, urbanization and expansion of food beverage and cosmetics industry are expected to accelerate the growth of almond extract market globally.