Hibiscus Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Hibiscus Category Overview

The hibiscus category is anticipated to grow at a CAGR of 5% from 2023 to 2030. The category demand is mainly driven by the increasing usage in the food and beverages industry. According to the 2022 food and beverage flavor trends report, hibiscus is noted as one of the trending flavors, with its presence on menus increasing by 25% from Q2 2018 to the corresponding period in 2021. Hibiscus, a versatile plant with numerous health advantages, presents a wealth of possibilities for product innovation and ingredient creation within this industry, which continually adapts to shifting healthcare trends and evolving consumer preferences. In recent years, there has been growing interest in hibiscus as a functional ingredient. Extract from this flower can contribute to reducing blood pressure, enhancing lipid profiles, lowering bad cholesterol levels, and delaying the absorption of sugar into the bloodstream.

India is a significant producer of the hibiscus plant, boasting more than 70 safe-to-consume varieties. In this area, the plant has been traditionally employed to address hair-related concerns. The sector's commercialization, facilitating the convenient incorporation of hibiscus into personal care items like soaps and shampoos, is anticipated to foster favorable growth prospects.

Industries such as food & beverages, pharmaceuticals, and cosmetics are the largest consumers of hibiscus flowers. Manufacturers from these industries procure dried hibiscus flowers for further hibiscus flower powder production. Additionally, the increasing demand for hibiscus flower powder in herbal beverages and mixes is anticipated to fuel category expansion. Consumers are becoming accustomed to the flavors, textures, and overall appeal of food and drink products infused with hibiscus, which is expected to boost the usage of hibiscus flower powder in these products.

Category suppliers, such as farmers and agricultural cooperatives, may have moderate to low bargaining power. This is because there are often multiple suppliers available, and hibiscus cultivation is not dominated by a small number of suppliers. However, the quality and availability of hibiscus can vary depending on geographic regions and climate conditions, which could give some suppliers more leverage.

Seed cost, nursery management cost, labor cost, chemical (pesticides cost), transportation, and others are some of the cost components in the cultivation of hibiscus. Market players encounter significant challenges such as unpredictable raw material supply, disorganized and insufficiently supervised expansion, and a shortage of skilled labor for both pre-harvest and post-harvest activities. Nonetheless, the growing demand for this product in the end-use sector is anticipated to encourage growers to choose hibiscus production in the coming period. In India, the average price of dried hibiscus flowers is around USD 3.61 to 4.82 per kilogram. Similarly in China, the prices are between USD 10 to 15 per kilogram.

In terms of hibiscus cultivation, it is preferred to have an in-house cultivation team for various tasks from seed sowing to crop maintenance, and plucking of flowers can be beneficial as it can reduce overall cost. Additionally, having product handling and warehousing, transportation, and distribution internally can benefit the company over the long run. Developing a strong relationship with seed, pesticides, and equipment suppliers and ensuring consistency is key to sourcing the category. Other strategies include establishing strict quality control measures to assess the quality of hibiscus flowers or products. This may include visual inspections, aroma tests, and moisture content analysis. Similarly, evaluating potential suppliers and their samples for quality checks are some of the best sourcing practices for the category. China, India, and Mexico are the preferred countries for the sourcing category. India's substantial production of hibiscus can be attributed to its favorable climate encompassing warm temperate, subtropical, and tropical zones. India boasts several advantages in this sector, including supportive government policies and cost-effectiveness, as well as ongoing progress in rural areas.

Hibiscus Procurement Intelligence Report Scope