Market Outlook:

The lemongrass oil market size is poised to reach USD 51.55 Million by 2023, with a projected escalation to USD 132.91 Million by 2031, reflecting a compound annual growth rate (CAGR) of 9.99% during the forecast period (2024-2031). 

Lemongrass Oil Market will be attributed to the fact that there is quite a high demand for natural and organic products in the market as everyone needs the herbal products. One of the main causes which proportionally contribute to the market growth is a more expansive usage of aromatherapy and oils in general if considered for therapeutic and relaxation purposes. Furthermore, the rising use of lemongrass in cosmetics, personal care products, and food and beverages is, in return, leading to the growth of the market. New procedures of extraction as well as increased processing is expected to boost the market. Also, because of the relative higher level of inclusive awareness of the green aspects of lemongrass cultivation it opens up more space for improvements on the market side. In the Lemongrass Oil Market, there are recent strategies such as: when there is the uptake of more natural and eco friendly sourced products, more natural cleaning and disinfecting products, new uses are being discovered especially in the pharmaceutical and healthcare sectors. It is believed that these trends will define the future of the Lemongrass Oil Market and hold great potential for market stakeholders in the industry.

Market Dynamics:

Driver:

Today’s consumers are more and more convinced by natural and organic products for several uses such as cosmetics, food and beverages and domestic cleaning. It is evident that lemongrass oil has natural properties such as, antimicrobial, antifungal and antioxidant properties which is making it to become special addition to these products. Increased concerns have been made towards the environmental conservation hence the need to increase the usage of natural products in the Lemongrass Oil Market Industry which is contributing to its growth. This type of oil is used commonly in our food and drinks industry due to its citrous and woody characteristic flavor. Lemongrass oil is best known for its uses as a food and beverages flavoring ingredient in tea, drinks, sweets, and foods. The market for Asian food products is rising together with the customers’ preference to get actual Asian tastes, which fuels the need for lemongrass oil in the Lemongrass Oil Market Industry. The Lemongrass Oil Market is being spurred by the rising use of the aromatic therapy and the uptick in the use of essential oil in bodies and for wellness. Lemongrass oil is a very much in demand in aromatherapy and essential oil markets due to its immense health values. It is said that lemongrass oil has the ability to create positive effects on stress and depression as well as anxiety relief.

Restraint:

Lemongrass oil is a product that contains a very high concentration. From now on it uses about 288 kg of lemongrass for one liter of it production. The reduced availability of lemongrass and disruptions to import/export business due to coronavirus have a higher risk to market expansion. In addition, it should be noted that expensive products can contribute to the limitation of the growth of the market. The market experiences many disadvantages that can potentially slow down its popularization. Aspects such as evidence in clinical practice and consumers’ attitudes inhibit its possibility. Others such as The following facts are still shocking Many consumers and professionals are skeptical of lemongrass oil benefits without research findings. thus, absence of efficient trial continues lemongrass oil categorisation as an aversive limiting health claims. Pectin based remedies such as turmeric, ginger or lemongrass cover the list more than lemongrass oil with scientific backup. Diversification in natural and herbal products markets places lemongrass at a disadvantageous position on the market.

Opportunity:

Earlier, lemongrass essential oil was largely employed in perfumes, cosmetics, soaps, and other aromatherapies; however, in the recent past, due to the increasing use of the product in various other sectors and sub-sectors including the food and beverage industry, the pharmaceuticals industry and cosmetics industry, among others, the duplicity of the product ought to record a very high level of sales. This smell is used in cosmetic and pharmaceutical industries in order to control pathogens, and the product has a citrus smell. In addition to that, it can also be used as a strong repellent of mosquito. Over some years ago medicinal and pharmacological importance of the product has been increased tremendously. Some of the works that have shown that lemongrass oil contained many bioactivities, including allelopathic, anti-inflammatory, antimicrobial, antioxidant, mosquito and flies and insect repellant of lesrgress oil derived compounds. Also, it is a natural food preservative. Speculated research indicates that the application of pure oil as an implement in place of synthetic fungicides or other food packaging and storage mechanisms is harmless and creatively stimulating.

Key Players:

• Plant Therapy
• Nature's Way
• Life Extension
• New Chapter
• Integrative Therapeutics
• NOW Foods
• doTERRA
• Starwest Botanicals
• Edens Garden
• BulkSupplements
• Mountain Rose Herbs
• Gaia Herbs
• Young Living
• Aura Cacia
• Eden Botanicals
• Others

Recent Development:

• In October 2023, Modern Original People Care (MOP), a company that deals with premium quality hair care item with customizable appearance, unveiled lemongrass volume collection for salons.

Segment Insights:

By Application

Lemongrass Oil Market is divided into several segments, a key segment being the application segment due to its criticality in identifying significant market trends and their impact on the industry. Of all the applications, Food and Beverages sector has come out as the markets most valuable segment, as it has the biggest market share in the total market sales value. This segment is anticipated to maintain its supremacy staring into the forecast period due to increasing use of lemongrass oil as natural ingredients and preservative in food products and beverages. Cosmetics and Personal Care is another promising application segment with more significant improvement. That’s why Lemongrass oil is often used in therapeutic products such as skincare and hair care products, which defines the segment’s growth. Also, the fact that more and more end users choose natural and organic products in personal care boosts the market for this chemical. Medicines is the most promising application segment for lemongrass oil due to its excellent therapeutic activity. Over the counter drugs and medicines as an ingredient for pain-relievers, antiseptic, and digestive health aids is yet another industry that applies lemongrass oil as the oil is anti-inflammatory, analgesic, and antimicrobial.In Household Cleaning Agents industry, lemongrass oil’s disinfecting and deodorizing features make it valuable. The segment was enriched by the increasing demand for hygiene and the availability of many special and environmentally friendly cleaning products. Lemongrass oil, we find it in green cleaning, odor control products, and disinfectant because of its natural value as a cleaner. There is vast potential for the use of lemongrass oil but aromatherapy remains one of its quickly growing sectors. Due to its soothing scent it used frequently when practicing aromatherapy and is believed to have stress relieving benefits.

By Type

The classification of the Lemongrass Oil Market by extraction method has been done on the basis of steam distillation, hydro distillation, cold pressing, solvent extraction, and supercritical fluid extraction. Steam distillation has a maximum market share which is more than 60% if we discussed only about the method which are most effectual effective and economical. The second most used process is hydro distillation which has about 25% market share in the present world. This method gives higher yield of oil but is relatively costly. Cold Pressing is used the least and the oil generated through Cold Pressing is of superior quality or the oil that can be considered as organic. Solvent Extraction and Supercritical Fluid Extraction are two of the other processes and jointly represent a revenue market of less than 10%.

Regional Insights:

The market value for Europe is USD 20.91 million in the year 2023 and thus strategies the market of the globe. The market being served by the product has been growing at a cognitive rate. In response to the need, gaps & requirements, the European companies have the vision to provide a quality product. The key market players across the region have well-equipped production units, sufficiently manned laboratories, and a team of specialized and qualified experts, who perform a wide spectrum of activities related to the quality of products. This driven by the growth in technological aspect of the regional market is expected to rise in the coming years. In addition, other external factors such as the growth of aromatherapy within the significant countries of the UK, Germany and France will increase product demand. The BCG matrix shows that, due to increasing demand for consumption of natural ingredients and cosmetic and personal care products in North America and increasing expenditure on premium and all-natural products, the sales of products in North America are strategically planned for the next few years to grow. Asia Pacific region is expected to show considerable growth during the anticipated period. The heightened trend of the product in Asia Pacific may be attributed to its medicinal uses since it has qualities like anti-antiseptic and anti-fungal. In the recent past, there was enhanced knowledge about the benefits of the product; this has led to rise of the product acceptance in personal care segment as well as food segment. India and China are the major Asian countries that have revived their commercial production of lemongrass. There is also the increased usage of the product in aromatherapy which is an ideal trend promoting the production and use of the product. The MARKETS in Middle East & Africa and South America are expected to show moderate growth. There are many reasons but some are increasing concern in UV aging impact, these factors are likely to drive growth in these areas. Besides, growing market demands for the product as it is used in the hair, skin and acne treatments will help propel the regional markets.

Segmentation:

By Type

• Pure Oil

• Blend

By Application

• Food & Beverages

• Fragrances

• Personal Care & Aromatherapy

• Pharmaceuticals & Medicinal Formulations

• Others

By Extraction Method

• Steam Distillation

• Hydro-Distillation

• Cold Pressing

• Solvent Extraction

• Supercritical Fluid Extraction

By Form 

• Liquid

• Powder

• Capsules

By Region

North America

• USA

• Canada

• Mexico

Europe

• France

• UK

• Spain

• Germany

• Italy

• Rest of Europe

Asia Pacific

• China

• Japan

• India

• South Korea

• Rest of Asia Pacific

Middle East & Africa

• GCC

• South Africa

• Rest of the Middle East & Africa

South America

• Brazil

• Argentina

• Rest of South America

What to Expect from Industry Profile?

1. Save time carrying out entry-level research by identifying the size, growth, major segments, and leading players in the Lemongrass Oil market in the world.

2. Use the PORTER’s Five Forces analysis to determine the competitive intensity and therefore market attractiveness of the Global Lemongrass Oil market.

3. Leading company profiles reveal details of key Lemongrass Oil market players’ global operations, strategies, financial performance & recent developments.

4. Add weight to presentations and pitches by understanding the future growth prospects of the Global Lemongrass Oil market with forecast for the decade by both market share (%) & revenue (USD Million).

FAQ’s

1) What are the major factors driving the growth of the Global Lemongrass Oil Market?

• Increasing demand for natural and organic ingredients in personal care, cosmetics, and food & beverages has intensified the demand for lemongrass oils.

2) What would be the CAGR of the Global Lemongrass Oil Market over the forecast period?

• The Global Lemongrass Oil Market is poised to grow at a CAGR of 9.99% from 2024 to 2032.

3) Which region will provide more business opportunities for the growth of the Global Lemongrass Oil Market in the future?

• The North America region is expected to create more opportunities in the market.

4) Who are the major players dominating the Global Lemongrass Oil Market?

• Plant Therapy, Nature's Way, Life Extension, New Chapter, Integrative Therapeutics, NOW Foods, doTERRA, Starwest Botanicals, Edens Garden, BulkSupplements, Mountain Rose Herbs, Gaia Herbs, Young Living, Aura Cacia, Eden Botanicals, Others.

5) What are the segments in the Global Lemongrass Oil Market?

• By Type, By Extraction Method, By Application, By Form are the industry key segments considered for research study.

6) What is the estimated market revenue for the Global Lemongrass Oil Market in 2032?

• The estimated revenue for the Global Lemongrass Oil Market in 2031 is USD 132.91 Million.