Lemongrass Oil Market Size, Share & Industrial Analysis, By Type (Pure Oil and Blend), Application (Food & Beverages, Fragrances, Personal Care & Aromatherapy, Pharmaceuticals and Medicinal Formulations, and Others), and Regional Forecast, 2024-2032

The global lemongrass oil market size was USD 50.29 million in 2023 and is projected to grow from USD 55.11 million in 2024 to USD 123.73 million by 2032 at a CAGR of 10.64% over the forecast period (2024-2032). Europe dominated the lemongrass oil market with a market share of 41.58% in 2023. Moreover, the lemongrass oil market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 21.08 million by 2032, driven by growing demand for natural ingredients, especially essential oils in cosmetics and personal care product formulations.

Increasing knowledge of herbs & oils, traditional medicines, their application 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.

The widespread of COVID-19 pandemic disturbed the overall production and supply chain of almost all industries. However, the pandemic positively impacted the lemongrass sales worldwide. The antibacterial and antifungal properties of lemongrass facilitated its usage as majority of the customers were seeking for products, formulated with natural/medicinal extracts. Thus, lemongrass was highly used in the preparation of hand sanitizers and witnessed a promising growth in 2020-21. For instance, in April 2020, a “Self-Help Group” known as Sakhi Mandal in Khunti, a Jharkhand district, used medicinal plants, such as lemongrass and basil oil, to enhance the effectiveness of sanitizers.

Lemongrass Oil Market Trends

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.

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Lemongrass Oil Market Growth Factors

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 April 2022, Chandrabhas Narayana, Director of Rajiv Gandhi Centre for Biotechnology (RGCB), inaugurated the latest lemongrass extraction unit at Valad, Wayanad, a district in Kerala. With the help of financial support from the Department of Science and Technology, the Indian Government, under the Science Heritage Research Initiative (SHRI) program, made an attempt to strengthen the tradition of lemongrass extraction via steam distillation process across the tribal communities. 

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 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.

RESTRAINING FACTORS

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.

Lemongrass Oil Market Segmentation Analysis

By Type Analysis

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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 2023. 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 consists of 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.

By Application Analysis

Rising Consumer Inclination Toward Fresh Flavor Supports Steady Growth of Fragrances, Personal Care & Aromatherapy Segment

Based on application, the global market is segmented into food and beverages, fragrances, personal care & aromatherapy, pharmaceuticals and medical formulations, and others.

The fragrances, personal care & aromatherapy segment is projected to hold the maximum 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. 

REGIONAL INSIGHTS

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The market value in Europe stood at USD 20.91 million in 2023, and is the leading region in the global market. 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 market players across the region 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 anticipated to experience 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.

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.   

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List of Key Companies in Lemongrass Oil Market

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.

LIST OF KEY COMPANIES PROFILED

• The Lebermuth Company (Indiana, U.S.)


• doTERRA (Utah, U.S.)


• Young Living Essential Oils (Utah, U.S.)


• Aura Cacia (Lowa, U.S.)


• Edens Garden Inc. (California, U.S.)


• Mountain Rose Herbs (Oregon, U.S.)


• NOW Health Group, Inc. (Illinois, U.S.)


• Phoenix Aromas & Essential Oils LLC (New Jersey, U.S.)


• Ultra International B.V. (Netherlands, Europe)


• Plant Therapy Essential Oils (Idaho, U.S.)

KEY INDUSTRY DEVELOPMENTS

• In October 2023, Modern Original People Care (MOP), a premium-quality, customizable haircare item provider, announced lemongrass volume collection for salons. Both the shampoo and conditioner are made by using extracts of lemongrass and chamomile, which add volume and moisture to the hair.


• In August 2023, Trader Joe’s, one of the leading grocery chains in the U.S., introduced their latest product, “Lemongrass Moisturizing Shampoo,” through their beauty section. This latest shampoo is formulated by using argan oil, lemongrass oil, vitamin E, and other botanical oils and is also sulfate and paraben-free.


• In June 2023, the Administration of Kandhamal, a city in Orissa, announced a mobile distillation set-up unit in R Udayagiri block, which would help in the extraction of lemongrass oil from the crops.


• In January 2021, doTERRA announced that it would officially expand and open its stores in India. This base expansion can help a company to increase its consumer base and revenue generation.


• In April 2019, Edens Garden launched seven new, natural deodorant aromas as the natural deodorant market continues to expand. The deodorants combine the power of 100% pure essential oils and non-toxic ingredients. The new aromatic varieties include lemongrass, Ylang, and six others.

REPORT COVERAGE

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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.

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