Market Insights

Demand for Aloe Vera Fluctuated in 2020 But Is Still On the Rise

Shawn Matthew Feb 25, 2021

The aloe vera plant has been used for centuries, given its highly effective health care, skincare, and medicinal properties, and continues to be popular among consumers now. Today, the most common applications of aloe vera include products that work as a natural moisturizer, reduce acne, and soothe sunburns, rashes, and skin irritations. 

According to Grand View Research, the market for aloe vera products was valued at $1.6 billion in 2018, and it is anticipated to have a compound annual growth rate of 7.6% through to 2025. Additionally, the online segment is expected to exhibit the fastest growth at CAGR of 9.1% over the forecast period. In the next section, we try to understand if the aforementioned prediction is proving to be true, starting with a deep dive into aloe vera sales on Amazon, and what types of aloe vera products consumers are most seeking. 

Aloe Vera Category Growth

When we look at the overall aloe vera category on Amazon over the last two years, we see that total revenue has increased by 162%. Additionally, the number of units sold increased 154%. This shows us that the category is indeed growing. However, it is worth noting that the growth has not been steady, especially over the past 12 months. Here are some insights:

  •  The most dramatic increase was just after February 2020. As February is not typically known for an abundance of sun, the increase is instead explained by the COVID-19 pandemic. 
  • Additionally, consumers have not continued to purchase aloe vera products with the same fervor that they did in early February 2020. This can be seen if we look at the category’s QoQ growth trends. In Q2 2020, we saw a dramatic 50% increase in revenue as compared to Q1 2020, but this was not sustained, as it declined by 40% from Q2 2020 to Q3 2020. 

The variance in revenue growth can also be seen when we look at the quarter-over-quarter performance of top brands in the aloe vera category. There are many examples of brands that experienced highly variable performance in 2020:

  • Honeyskin saw a 265% increase in revenue from Q2 to Q3 2020 and then a 68% decrease in revenue. 
  • Fruit of the Earth saw similar trends with an initial revenue increase of 77% from Q1 to Q2, then a decline of 32% from Q2 to Q3.

On top of looking to Amazon for aloe vera growth trends, the marketplace also reveals how brands are catering their products to the benefits consumers seek. We can particularly observe this by the title that brands list on their product detail page. For instance, brands are positioning their products as supporting sunburn relief by using words such as ‘soothing’ (appearing 1,408 times), ‘skin’ (appearing 1,293 times), ‘sunburn’  (appearing 715 times), and ‘sun’ (appearing 607 times). Additionally, we know from the market insights that consumers prefer natural products. We can validate this by looking at how brands list their products as well. The term ‘Organic’ appears 1,170 times, ‘pure’ appears 993 times, and ‘natural’ appears 644 times.

So what does this synopsis mean? In essence, consumers are purchasing aloe vera products from Amazon much more now than they did two years ago. In addition, even though there was variability in sales across 2020, aloe vera products are selling more in 2021 than their pre-pandemic levels. This is a promising sign for the future of the category and its continued upward trajectory! To get more insights about aloe vera, or other categories in the natural products space, reach out to us here.

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