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The global lemongrass oil market size was USD 38.02 million in 2020. The market is projected to grow from USD 41.98 million in 2021 to USD 81.43 million in 2028 at a CAGR of 9.93% in 2021-2028. The global impact of COVID-19 has been significant, with the product witnessing a positive effect on demand across all end-use industries amid the pandemic. Based on our analysis, the global market witnessed a high growth of 11.02% in 2020 than the average year-on-year growth during 2017-2019.
Increasing knowledge of herbs & oils, traditional medicines, their applications areas, and technical advancement is anticipated to support the sturdy growth of the market. Some of the compounds found in this oil, such as ketones, flavonoids, and phenolic compounds, are associated with the oil's benefits. With an extensive range of benefits, from alleviating headaches and improving skin texture to promoting hair growth, the oil has now found its importance beyond aromatherapy.
Increased Demand for Lemongrass Oil to Bolster Industry Progress
The pandemic has positively impacted the market worldwide. There have been reports of the massive increase in the use of essential oils that enhance health and immunity or have antimicrobial properties. For instance, in March 2020, the Indian Institute of Technology Hyderabad Researchers has developed a new hand sanitizer. The composition of this new hand sanitizer contains lemongrass essential oil for antimicrobial activity and therapeutic aroma.
The rising awareness regarding the antibacterial and antiviral properties of the products is anticipated to support its sale during COVID-19. The major companies, such as Young Living Essential Oils and doTERRA, are experiencing increased product sales during this pandemic. Henceforth, the manufacturers are focusing on establishing an automated supply chain model to eliminate manual errors and discrepancies, ensure smooth workflow, and monitor the whole process from a single point of operation. Integrating an automated supply chain with the help of artificial intelligence (AI) will also increase production capabilities and return on investments.
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Growing Popularity of Aromatherapy to Foster Market Development
In the past few years, several spas and wellness centers have adopted aromatherapy as a treatment method. These centers have become more selective about their product uses. Therefore, the research and development expenditure of more effective products, processes, services, and technologies is tremendously increasing, which is expected to impact the market growth positively. Lemongrass oil is one of the widely used essential oils in aromatherapy, and it is used to get rid of fear, depression, and anxiety. It also helps as a tranquilizer and energizes a tired mind and body, further boosting the global market. These product benefits are likely to drive the lemongrass oil market growth in the coming years.
Rising Investments in Affordable Oil Extraction Methods to Drive Growth
There are numerous methods for lemongrass oil extraction. However, steam distillation method is widely used, as it permits obtaining the oil without changing product quality.
The rising focus on research and development of economical oil extraction methods is anticipated to impact market growth positively. For instance, in December 2018, students from TU Delft and Amrita conducted a field survey in Kerala, India, to identify locally available resources containing renewable energy sources to design and build a sustainable and low-cost oil distillation unit. The team developed a solar thermal-based steam distillation unit to distill oil from the lemongrass plant. This new solar-powered steam distillation unit will help villagers extract oil without a huge investment in equipment set-up.
Rising Awareness Regarding Endless Product Benefits to Drive Growth
Traditionally, lemongrass essential oil is widely utilized in fragrances, personal care, and aromatherapy, but, in recent years, the rising application of the product in several other industries such as food and beverages, pharmaceuticals, and cosmetics is anticipated to drive product sales. The citrusy smell of the product is utilized in perfumery, cosmetic and pharmaceutical industries for controlling pathogens. Moreover, it is also used as a powerful mosquito repellent.
In recent years medicinal and pharmacological significance of the product has been rapidly increased. A number of studies have revealed many beneficial bioactivities such as allelopathic, anti-inflammatory, antimicrobial, antioxidant, mosquito, flies, and insect repellent of lemongrass oil-derived compounds. Moreover, it is a natural food preservative. Some studies suggest that pure oil is a useful and innovative tool as a substitute for synthetic fungicides or other sanitation techniques in food packaging and storage.
High Price of Product May Hamper Growth in Developing Economies
Lemongrass oil is a very concentrated product. Henceforth, one liter of it consumes around 288 kg of lemongrass. The declining supplies of lemongrass and delays in import and export activities due to COVID-19 possess a greater risk to the market's growth. Furthermore, the high cost of the product may hamper the full growth potential of the market.
Pure Oil to Hold Major Share Backed by Increasing Demand from End-user Industries
The market by product type is categorized into pure oil and blend. The pure oil segment held a dominant share of the market in 2020. Pure oil dominates the global marketplace due to its superior functional and organoleptic characteristics and strong demand dynamics.
Numerous stakeholders in the essential oil blends market have been focusing on making frequent product innovations to increase their consumer base. For instance, in April 2021, the U.S.-based brand Commit Haircare introduced the debut product of its Rooted in Strength Collection. The product is its Spring to Life Oil, which contains key essential oil ingredients such as lemongrass oil, aloe oil, rice bran oil, and rosemary oil. Moreover, they collaborate with raw material producers and sellers to gain a large share in the global market. These key factors affecting and are anticipated to support the steady growth of the segment.
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Rising Consumer Inclination Toward Fresh Flavor Supports Steady Growth of Fragrances, Personal Care & Aromatherapy Segment
Based on application, the global market is classified into food and beverages, fragrances, personal care & aromatherapy, pharmaceuticals and medical formulations, and others.
The fragrances, personal care & aromatherapy segment is expected to account for the largest share during the forthcoming years. This oil contains antibacterial, antifungal, and antioxidant components making it a prevalent choice for consumers looking for flawless skin and thick & healthy hair. Henceforth, several cosmetics and pharmaceutical companies have increased their stakes among lemongrass oil producers.
The rising popularity of aromatherapy for therapeutics is also boosting the prospects in the global market. Manufacturers in the market are witnessing a resurgence of interest among companies specializing in plant-based therapeutic-grade products. The rising popularity of aromatherapy is anticipated to support the steady growth of the segment. The application spectrum of the product is anticipated to expand based on the reported anti-parasitic and insecticidal traits.
Europe Lemongrass Oil Market Size, 2020 (USD Million)
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The market value in Europe stood at USD 15.96 million in 2020, and the region is likely to continue dominating the global market in the coming years. The demand for the product has been growing at a significant pace. Corresponding to the need, gaps & requirements, the European companies have the vision to offer high-quality products. The key players operating in the market have well-equipped production units, sufficiently manned laboratories, and a team of specialized and qualified experts who carry out a diverse range of activities pertinent to the quality of products. The rising focus on technological advancement is anticipated to drive the regional market. Moreover, the rising popularity of aromatherapy in key markets of the U.K., Germany, and France is anticipated to further contribute to product sales.
The product sales in North America are likely to witness significant growth over the next few years due to the growing consumption of natural ingredients containing cosmetic and personal care products and rising expenditure on premium and all-natural products.
Asia Pacific is expected to witness significant growth during the forecast period. The growing demand for the product in Asia Pacific is stimulated by its therapeutic benefits, such as anti-antiseptic and antifungal properties. Increasing awareness regarding the product’s benefits has spurred its commercial use in the personal care and food industry. Asian countries, including India and China have seen a rise in commercial production of lemongrass. The increase in the adoption of the product in aromatherapy is a strong trend bolstering the production and consumption of the product.
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The Middle East & Africa and South America markets are likely to grow moderately. Numerous reasons, including increasing concerns about aging UV effects are expected to fuel growth in these regions. Furthermore, increasing applications of the product for hair, skin, and acne treatment are expected to drive the regional markets.
Increasing Market Prominence to Remain as Main Priority of Companies in Market
The global market remains fragmented due to the presence of local and private-label brands in different regions. However, technological advancements resulting in superior product quality are the key for sustainable growth trajectory of lemongrass oil. Companies, such as the Lebermuth Company, doTERRA, and Young Living Essential Oils, embark on new product launches and base expansion to increase their prominence in the marketplace.
An Infographic Representation of Lemongrass Oil Market
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The global market research report includes qualitative and quantitative insights into the market. It also analyzes the market size, research methodologies, market segmentation, and growth rate for all possible market segments. Several key insights presented in the report are an overview of related markets, competitive landscape, recent industry developments such as new product launches, mergers & acquisitions, the regulatory scenario in critical countries, and global lemongrass Oil industry trends.
ATTRIBUTE | DETAILS |
Study Period | 2017-2028 |
Base Year | 2020 |
Estimated Year | 2021 |
Forecast Period | 2021-2028 |
Historical Period | 2017-2019 |
Unit | Value (USD Million) |
By Type |
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By Application |
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By Region |
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Fortune Business Insights says that the global market size was USD 38.02 million in 2020 and is expected to reach USD 81.43 million by 2028.
Increasing at a CAGR of 9.93%, the market will exhibit promising growth over the forecast period (2021-2028).
Pure oil is expected to be the leading segment during the forecast period.
Rising awareness regarding the endless benefits of the product is the key factor driving the market growth.
The Lebermuth Company, doTERRA, and Young Living Essential Oils are a few of the leading players in the market.
Europe dominated the market in terms of revenue share in 2020.
The fragrances, personal care & aromatherapy segment holds the major share in the global market.
Growing demand for aromatherapy is the new market trend.