Global Eucalyptus Oil Market Trends, Applications, Analysis, Growth, and Forecast: 2018 to 2027

The Eucalyptus oil market was valued at USD 145.76 billion in 2022. It is expected to reach USD 160.56 billion in 2032, with a CAGR of 8% during the forecast period from 2023 to 2032.

The surge in demand for eucalyptus oil in therapeutics, aromatherapy, cosmetics, and other personal care is one the major factors for eucalyptus oil market expansion.

Eucalyptus oil is used for its several benefits such as helping in respiratory relief, treating sore muscles, and boosting relaxation. It can also be used for the treatment of the herpes simplex virus.

It is considered an effective natural moisturizer with anti-inflammatory ingredients that can heal any skin-related disorders such as acne and eczema. Eucalyptus oil is antiseptic and antibacterial which helps to purify the epidermis of the impure particles that contribute to acne breakouts. The usage of eucalyptus oil also lightens and tightens the skin by decreasing the visibility of wrinkles and dark spots. These are some of the major reasons why cosmetic and personal care manufacturers opt to use eucalyptus oil in their products.

Eucalyptus oil is also used as a flavoring additive in many types of cuisines, baked goods, and other confectionery food items. It is also used in gluten-free and natural food products. The consumption of natural foods is gaining popularity all across the globe. The Duchenne Muscular Dystrophy market presents challenges, but innovations like Eucalyptus Oil offer potential relief for patients.

Additionally, gluten-free products are in high demand by consumers. The market of eucalyptus oil is rapidly increasing due to the above aforesaid factors. Pharmaceutical industries are more inclined towards eucalyptus oil as it provides proper nutrition to the dietary substitutes.

Eucalyptus oil has several antibacterial elements that can be used in skin care products for healing and smoothing purposes. Many customers are also seeking to have organic food products, which could lead to market expansion of the eucalyptus oil.

E-commerce or online distribution plays a major role in the eucalyptus oil market. Eucalyptus oil producers are using online portals to distribute their items as it decreases operational costs and allows them to reach customers globally.

The surge in demand for the eucalyptus oil market has been supported by e-commerce giants such as Amazon and Flipkart. Many small and big manufacturers are selling their products online to gain profits and reach consumers worldwide. Customers are getting more inclined towards online shopping in order to save time and money. Due to the popularity of online shopping, it contributes a major share in expanding the eucalyptus oil market.

Driving factors

Increasing Demand for Natural and Organic Products Spurs Eucalyptus Oil Market Growth

The increasing consumer demand for natural and organic products significantly drives the growth of the eucalyptus oil market. In an era where health consciousness is on the rise, consumers are actively seeking natural alternatives to synthetic ingredients, particularly in personal care, wellness, and aromatherapy products. Eucalyptus oil, known for its natural, therapeutic properties, fits well into this trend.

This shift towards natural products is not just a niche movement but a mainstream consumer trend, as evidenced by the increasing shelf space dedicated to natural products in retail stores. The long-term implication is a sustained demand for eucalyptus oil as a key ingredient in a range of natural and organic products, encouraging continued market expansion and product innovation.

Growing Awareness Regarding Health Benefits Boosts Eucalyptus Oil Market

Growing awareness of the health benefits of eucalyptus oil is another factor propelling market growth. Eucalyptus oil is acclaimed for its anti-inflammatory, antispasmodic, decongestant, antiseptic, and antibacterial properties, making it a popular choice in alternative medicine and therapeutic applications. As more consumers become educated about these benefits, either through marketing efforts or personal research, the demand for eucalyptus oil increases.

This growing awareness is also fueled by the popularity of aromatherapy and holistic health practices, where eucalyptus oil is a staple. The market is likely to see continued growth as consumers seek effective, natural remedies for health and wellness.

Growing Demand for Food and Beverages Influences Eucalyptus Oil Market

The growing demand for eucalyptus oil in the food and beverage industry also contributes to the market's expansion. Eucalyptus oil is used as a flavoring agent in certain food and beverage products, lending a unique, fresh taste. This application aligns with the current trend of incorporating exotic and natural flavors into food and beverages.

As food and beverage manufacturers continue to innovate with natural ingredients to meet consumer preferences for unique and healthful products, the use of eucalyptus oil is expected to grow. This trend points towards a diversification of the eucalyptus oil market into new application areas, broadening its consumer base.

Expansion of the Market Amplifies Eucalyptus Oil Demand

The overall expansion of the eucalyptus oil market is a culmination of the increasing demand across various sectors, including personal care, pharmaceuticals, aromatherapy, and food and beverages. As the market grows, eucalyptus oil is finding new applications in emerging industries and untapped geographical regions. This expansion is supported by improved distribution channels, online retailing, and marketing strategies that increase the visibility and accessibility of eucalyptus oil products.

The anticipated long-term implications of market expansion include a broader and more diverse range of eucalyptus oil products, catering to different consumer needs and preferences. This expansion also suggests a growing global footprint for the eucalyptus oil market, with potential growth in both established and developing markets.

Restraining Factors

Resource Depletion Concerns Restrain Eucalyptus Oil Market Growth

The growth of the eucalyptus oil market is restrained by concerns over resource depletion. Eucalyptus oil is extracted from the leaves of eucalyptus trees, and the increasing demand for this essential oil could lead to overharvesting and unsustainable agricultural practices. This risk of resource depletion is particularly significant in countries where eucalyptus trees are not native, and cultivation practices may not be optimized for sustainable yield. The potential negative impact on local ecosystems and biodiversity can also lead to regulatory restrictions on eucalyptus cultivation and oil production, thereby limiting market growth.

Environmental Concerns Restrain Eucalyptus Oil Market Growth

Environmental concerns also significantly limit the eucalyptus oil market. The cultivation of eucalyptus for oil production can have various environmental impacts, such as soil erosion, water usage, and the use of pesticides and fertilizers. Moreover, eucalyptus trees are known for their high water consumption, which can lead to water scarcity issues in areas where water resources are already limited. These environmental factors can influence consumer perception, especially among environmentally conscious buyers, and can lead to stricter regulations and sustainability standards in the industry, potentially restraining market expansion.

Eucalyptus Oil Market Segment Analysis

By Product Type

Eucalyptus Globulus oil, commonly known as Blue Gum oil, is the most widely used and commercially significant variety of eucalyptus oil. Its high cineole content is prized for its therapeutic properties, particularly in respiratory and antiseptic applications. This variety's dominance is due to its extensive use in pharmaceuticals, therapeutics, and cosmetics, where its antimicrobial and anti-inflammatory properties are highly valued. The widespread cultivation of Eucalyptus Globulus and its efficacy in a range of applications underpin this segment's market leadership.

Eucalyptus Kochii and Eucalyptus Polybractea oils are known for their higher cineole content and are used in similar applications as Eucalyptus Globulus, though they are less commonly produced. Their roles in the market are significant in niche applications where specific oil profiles are required.

By Nature

The organic segment leads the eucalyptus oil market, driven by the growing consumer preference for natural and organic products, particularly in health and wellness applications. The perceived purity, safety, and superior quality of organic eucalyptus oil make it a preferred choice for consumers who are increasingly conscious of product sourcing and environmental impact.

While the conventional segment is significant, its growth is tempered by the rising demand for organic products. Conventional eucalyptus oil remains relevant in markets where cost is a primary concern or where organic certification is less prioritized.

By Application

Therapeutics and cosmetics are the primary application areas for eucalyptus oil. Its use in respiratory remedies, pain relief formulations, and skin care products underscores this segment's dominance. The oil's antiseptic, anti-inflammatory, and soothing properties make it a staple in various therapeutic and cosmetic products.

In food and beverages, eucalyptus oil is used as a flavoring agent. In aromatherapy, it is valued for its refreshing and clearing aroma. The fragrance industry utilizes eucalyptus oil in perfumery and household cleaning products for its crisp scent.

By Distribution Channel

Online channels lead the distribution of eucalyptus oil, benefiting from the growing trend of e-commerce. The convenience, wide product selection, and access to global brands make online platforms a preferred shopping destination for consumers. The availability of detailed product information, reviews, and competitive pricing further enhances the appeal of online purchasing.

Hypermarkets and supermarkets offer consumer convenience and accessibility, while specialty stores are important for customers seeking expert advice and high-quality, niche products. Other channels include direct sales from manufacturers and health stores.

By Product Type

• Eucalyptus Globulus
• Eucalyptus Kochii
• Eucalyptus Polybractea

By Nature

• Organic
• Conventional

By Application

• Therapeutics & Cosmetics
• Food & Beverages
• Aromatherapy
• Fragrances

By Distribution Channel

• Online Channels
• Hypermarkets/Supermarkets
• Specialty Stores
• Others

Growth opportunities

Growing Trend Towards Natural Remedies Spurs Eucalyptus Oil Market Growth

The growing trend towards natural remedies is catalyzing the growth of the eucalyptus oil market. Consumers are increasingly turning to natural solutions for health and wellness, including essential oils like eucalyptus for their therapeutic properties. The rise in popularity of alternative medicine and the increasing adoption of aromatherapy are indicative of this trend. Eucalyptus oil, known for its anti-inflammatory, antibacterial, and decongestant properties, is becoming a preferred choice in natural treatments. This growing inclination towards natural health remedies is likely to drive the demand for eucalyptus oil, expanding its market reach.

Increasing Government Investments in R&D Enhance Eucalyptus Oil Market Potential

Rising government investments in research and development (R&D) present significant opportunities for the eucalyptus oil market. These investments enable the exploration of new applications and benefits of eucalyptus oil, expanding its potential uses. Government funding in natural product research, including essential oils, is crucial for validating the efficacy and safety of these products. This support can lead to increased market acceptance and credibility, further driving demand. Enhanced R&D efforts are likely to uncover new properties and applications of eucalyptus oil, contributing to market growth.

Increasing Demand from the Cosmetics and Personal Care Industry Propels the Eucalyptus Oil Market

The increasing demand for eucalyptus oil from the cosmetics and personal care industry is a major growth factor for the market. Eucalyptus oil is gaining popularity in this sector due to its antiseptic, soothing, and refreshing properties, making it a desirable ingredient in skincare, haircare, and aromatherapy products. The global cosmetics industry is experiencing a shift towards natural and sustainable ingredients, with consumers showing a preference for products containing natural oils. This trend significantly benefits the eucalyptus oil market, as manufacturers incorporate it into their products to meet consumer demand, thereby driving market expansion.

Regional Analysis

Asia Pacific Dominates in the Eucalyptus Oil Market

Asia Pacific holds a commanding position in the global eucalyptus oil market, a status underpinned by the region’s extensive eucalyptus cultivation and its entrenched use in traditional medicine. Key factors contributing to this dominance include the ideal climatic conditions for eucalyptus growth, the presence of major eucalyptus oil-producing countries like China and India, and a long-standing cultural affinity for natural and herbal remedies, where eucalyptus oil plays a crucial role.

The market dynamics in Asia Pacific are influenced by the growing demand for natural essential oils in aromatherapy, pharmaceuticals, and personal care products. The region also benefits from the availability of raw materials and cost-effective production processes.

Looking ahead, the Asia Pacific eucalyptus oil market is expected to maintain its lead, driven by increasing consumer preference for natural and organic products, rising awareness about the health benefits of eucalyptus oil, and ongoing developments in the agriculture and essential oils sector.

North America:

North America's eucalyptus oil market is experiencing growth, driven by the rising popularity of aromatherapy and natural wellness products. The market is supported by the growing consumer awareness about the therapeutic properties of eucalyptus oil and its applications in respiratory health, pain relief, and skin care.

The market in North America is expected to grow steadily, fueled by health and wellness trends, an increasing preference for natural and organic products, and the expansion of the aromatherapy and personal care industries.

Europe:

Europe holds a significant market share in the global eucalyptus oil industry. The region's market is driven by a strong demand for natural essential oils in the pharmaceutical, aromatherapy, and personal care sectors. The increasing consumer focus on sustainability and organic products also contributes to the market growth.

The European market is likely to see continued expansion, propelled by the rising popularity of natural therapies, increasing research and development in natural health products, and the growing awareness of the benefits of eucalyptus oil in various applications.

Eucalyptus Oil Industry by Region

North America

• The US
• Canada

Europe

• Germany
• France
• The UK
• Spain
• Italy
• Russia
• Netherlands
• Rest of Europe

Asia-Pacific

• China
• Japan
• South Korea
• India
• New Zealand
• Singapore
• Thailand
• Vietnam
• Rest of Asia Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• South Africa
• Saudi Arabia
• UAE
• Rest of the Middle East & Africa

Key Player Overview: Eucalyptus Oil Market

The eucalyptus oil market is marked by the presence of both long-established essential oil companies and emerging players. Firmenich International S.A. and Frutarom Industries Ltd are renowned for their extensive experience and market influence, particularly in the fragrance and flavor industries. Their strategic positioning is underscored by a focus on quality and innovation in essential oil products.

NOW Health Group, Inc., and NOW Foods, Inc. have established themselves as key players in the natural products market, offering a range of eucalyptus oil products that cater to health-conscious consumers. Their market presence is enhanced by their commitment to purity and affordability.

NHR Organic Oils and Plant Therapy Essential Oils are recognized for their focus on organic and high-quality eucalyptus oils, appealing to niche markets that prioritize natural and sustainable products. doTERRA International and Young Living Essential Oils LLC, with their direct selling business models, have a significant influence on consumer access to and education about eucalyptus oil.

Integria Healthcare Pty Ltd and Ananda Apothecary are notable for their specialized offerings in therapeutic and medicinal-grade eucalyptus oils, catering to the growing demand for natural health remedies. Emu Ridge Eucalyptus and Biolandes SAS have carved out niches with their focus on locally sourced and unique eucalyptus oil varieties.

Overall, these key players in the eucalyptus oil market drive industry growth through their diverse strategies, which include an emphasis on quality, sustainability, consumer education, and innovative applications of eucalyptus oil in various sectors.

Top Key Players in the Eucalyptus Oil Market 

• Firmenich International S.A
  
• NOW Health Group, Inc.
  
• NHR Organic Oils
  
• Integria Healthcare Pty Ltd
  
• doTERRA International
  
• Plant Therapy Essential Oils
  
• Emu Ridge Eucalyptus
  
• Frutarom Industries Ltd
  
• Psc Aromatic
  
• Sensient Technologies Corporation
  
• Ananda Apothecary
  
• Biolandes SAS
  
• NOW Foods, Inc.
  
• Symrise AG
  
• Young Living Essential Oils LLC

Recent Development

• In 2023, Caitlin Hernández conducted a test of various mosquito repellent technologies and products, including eucalyptus oil-based solutions, in a backyard in Los Angeles known for its mosquito problem.
• In June 2023, TIG reported that, with the support of a $50 million debt investment pledged by U.S. President Joe Biden, is expanding its planted forest operations in the Cerrado.TIG announced plans to transform 300,000 hectares of Cerrado land into mostly commercial eucalyptus and pine tree farms, committing to conserving 50% of the land, surpassing the legal requirement of 20%.
• In 2023, Costco-exclusive Lemon Eucalyptus Oil Insect Repellent Spray Bundle," which includes one 4-oz. spray bottle and two 2-oz. spray bottles of Murphy’s Naturals’ plant-based formula. This formula is designed to repel mosquitos for up to six hours and is priced at $14.99.
• In December 2022, the COP15 biodiversity summit recognized 10 pioneering restoration initiatives, including the UN Trinational Atlantic Forest restoration target. This ambitious goal aims to recover 1 million hectares by 2030 and 15 million hectares by 2050. These projects emphasize the need for long-term funding to achieve large-scale reforestation commitments.