
Lemongrass Oil Market By Type(Pure Oil, Blend), By Grade(Therapeutic Grade, Food Grade), By Application(Food & Beverages , Fragrances, Personal Care & Aromatherapy, Pharmaceuticals and Medicinal Formulations, Others), By Region And Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, And Forecast 2023-2032
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Dec 2023
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This report was compiled by Shreyas Rokade Shreyas Rokade is a seasoned Research Analyst with CMFE, bringing extensive expertise in market research and consulting, with a strong background in Chemical Engineering. Correspondence Team Lead-CMFE Linkedin | Detailed Market research Methodology Our methodology involves a mix of primary research, including interviews with leading mental health experts, and secondary research from reputable medical journals and databases. View Detailed Methodology Page
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Quick Navigation
- Lemongrass Oil Market Size, Share, Trends Analysis
- Lemongrass Oil Market Dynamics
- High Product Prices Expected to Hinder Lemongrass Oil Market's Progress
- Limited Availability of Lemongrass Restrains Market Growth
- Lemongrass Oil Market Segmentation Analysis
- Lemongrass Oil Industry Segments
- Lemongrass Oil Market Growth Opportunities
- Lemongrass Oil Market Regional Analysis
- Lemongrass Oil Industry By Region
- Lemongrass Oil Market Share Analysis
- Lemongrass Oil Industry Key Players
- Lemongrass Oil Market Recent Development
- Report Scope
The lemongrass oil market was valued at USD 42. million in 2022. It is expected to reach USD 108.6 million by 2032, with a CAGR of 10.2% during the forecast from 2023 to 2032.
The rising demand for pharmaceuticals, as well as cosmetics and personal products, is the key factor for the rapid growth of lemongrass oil. Lemongrass plant oil is full of vital nutrients that are required for certain of the complex and essential tasks performed by the body. It acts as a preservative, pesticide, spray, soap, etc.
Lemongrass plant also helps to regulate some of the major health diseases such as obesity, diabetes type 1 and 2, respiratory issues, fever, infections, and other health problems. When the lemongrass is taken orally, it instantly settles the stomach discomfort and other gastrointestinal problems that consist of cramps and vomiting. It is also well-known for treatments such as stomach ailments, indigestion, and gastric ulcers by guarding the stomach lining.
Lemongrasses are an excellent source of flavonoids as well as phenolic compounds that have antioxidants. It functions as an antifungal, antibacterial, and antibacterial agent, with food antioxidants and anti-inflammatory components. Lemongrass contains one of the most effective components known as quercetin. This reduces inflammation, which blocks the growth of cancerous cells. It also prevents heart disease.
According to WHO, there are around 17.9 million deaths due to cardiovascular diseases. As per the World Heart Federation, there are approx. 4.4 million people die due to high cholesterol. Moreover, as per the American Cancer Society, cancer is the second most common disease and leads to death after heart attacks in the US.
There are a total of 1.9 million new cancer cases reported and among that 609,360 area deaths due to cancer in the US in 2022, which is across 1,670 deaths each day. The usage of lemongrass is beneficial for coronary heart disease.
The pharmaceutical industry's significance of lemongrass oil is highlighted by its use as an effective product for various health issues. It serves as a natural food preservative and is a debut product in the market. The growth rate of lemongrass oil usage is expected to continue, given its largest share in key markets. The key trends in the industry point towards the increasing recognition of the lemongrass oil segment for its numerous benefits.
Lemongrass Oil Market Dynamics
Natural Product Trend Boosts Lemongrass Oil Market
The growing demand for natural and organic products is a significant driver for the lemongrass essential oil market's growth. In an era where health and wellness are prioritized, consumers increasingly seek products with natural ingredients, and lemongrass oil, known for its therapeutic properties, fits this market trend perfectly.
The shift towards natural products is not just a fad but a fundamental change in consumer behavior, indicating a sustained demand for lemongrass oil in various sectors including personal care, health, and food industries.
Diverse Industrial Applications Propel Market Expansion
Renewable energy sources in end-user industries are propelling the largest market growth. Its versatile properties make it a sought-after ingredient in sectors such as cosmetics, pharmaceuticals, aromatherapy, and food and beverage.
The broadening industrial application highlights the adaptability of lemongrass oil and ensures a steady demand across various sectors. The market trend suggests a future where lemongrass oil's market presence expands, driven by its diverse and growing industrial uses.
Product Launches and Expansion Spur Market Innovation
New product launches and base expansion by key players are crucial in driving the lemongrass oil market forward. As market leaders innovate and broaden their portfolios, they cater to a wider range of consumer needs and preferences.
This dynamic contributes to a competitive and vibrant market environment, fostering continuous innovation and quality improvement in the natural deodorant market. The long-term effect is a market that is not only diverse but also at the forefront of new product developments and applications in the essential oil market.
High Product Cost Presents Challenges and Opportunities
The high cost of lemongrass oil is a notable factor influencing its market. While this may limit accessibility for some consumers, it also positions lemongrass oil as a premium product in certain markets.
High-quality, ethically sourced, and organic lemongrass oil can command higher prices, appealing to a segment of consumers willing to invest in premium natural products. This aspect may also drive innovation in production and supply chain efficiency to make the product more accessible while maintaining its quality, suggesting the largest market that evolves to balance cost and quality.
High Product Prices Expected to Hinder Lemongrass Oil Market's Progress
The high cost of lemongrass oil is an important reason behind its slowing market expansion. The process of extracting lemongrass oil is labor intensive and requires a significant amount of raw material to create a tiny amount of oil.
The inefficiency of production contributes to the cost-intensive nature of the end product. Furthermore, the rising demand for organic and natural products has increased the price. Prices that are high limit the accessibility of the lemongrass extracts to the largest market, particularly in markets with high prices.
This pricing challenge is particularly acute for smaller brands that struggle to compete with larger, more established companies with economies of scale.
Limited Availability of Lemongrass Restrains Market Growth
The expansion of the lemongrass oil industry is also impeded by the lack of lemongrass that grows only under certain climatic conditions. Lemongrass is mainly grown in tropical areas, and its cultivation is prone to environmental influences like changes in the climate, which can alter the quality and yield of crops.
This geographical and climatic limitation leads to supply chain vulnerabilities, impacting the consistent availability and pricing of lemongrass oil. Moreover, any adverse climatic events in these regions can significantly disrupt the supply chain, leading to volatility in the market. This factor poses a challenge for producers in scaling up production to meet increasing global demand.
Lemongrass Oil Market Segmentation Analysis
By Type Analysis
Pure lemongrass oil which is distinguished by its pure and unblended type, dominates the market. Popularity is due to strong concentration and strength that makes it highly effective in many different applications. The lemongrass oil is pure and is sought-after due to its strong, lemony smell and benefits to health, which include anti-fungal, antibacterial, and anti-inflammatory properties. The development of this sector is supported by the growing demand for organic and natural products for personal health, food and drinks as well as aromatherapy.
Blended lemongrass oil, often mixed with other essential oils, caters to a specific market looking for customized aromas or therapeutic benefits. While this segment is smaller than pure oil, it plays a significant role in industries like aromatherapy and personal care, where tailored blends are preferred for specific uses or scent profiles.
By Grade Analysis
Therapeutic-grade lemongrass oil, known for its high quality and purity, is the leading market segment. This grade is predominantly used in aromatherapy, personal care products, and medicinal formulations due to its therapeutic properties. The demand for therapeutic-grade lemongrass oil is driven by the growing wellness trend and the increasing popularity of natural remedies and holistic treatments.
Food-grade lemongrass oil, used in flavoring food and beverages, complies with food safety standards and is suitable for consumption. While this segment is smaller compared to therapeutic grade, it is vital in the food and beverage industry, particularly in creating distinctive flavors in culinary applications.
By Application Analysis
Lemongrass oil's primary application in food and beverages is a significant market driver. Its unique citrus flavor makes it a popular ingredient in teas, soups, curries, and marinades. The growing culinary trend of incorporating exotic and natural flavors in food products further propels this segment.
In fragrances and personal care, lemongrass oil is valued for its refreshing scent and skin benefits. The aromatherapy sector utilizes it for its calming and mood-enhancing properties. In pharmaceuticals, it is used for its health benefits, including pain relief and immune system support. The 'Others' category includes applications in cleaning products and insect repellents, where lemongrass oil is appreciated for its natural efficacy and fragrance.
Lemongrass Oil Industry Segments
By Type
- Pure Oil
- Blend
By Grade
- Therapeutic Grade
- Food Grade
By Application
- Food & Beverages
- Fragrances, Personal Care & Aromatherapy
- Pharmaceuticals and Medicinal Formulations
- Others
Lemongrass Oil Market Growth Opportunities
Increasing Demand for Traditional Medicines and Aromatherapy Offers Growth Opportunity in Lemongrass Oil Market
The growing global interest in traditional medicines and aromatherapy presents a significant steady growth opportunity for the lemongrass oil market. A growing number of people are turning to holistic and natural treatments that are natural and holistic healing techniques The demand for essential oils, such as lemongrass has seen a significant rise.
Lemongrass oil, which is well-known due to its curative properties is extensively employed in aromatherapy as a replacement for traditional treatments. Recent trends show a significant increase in the use of oil essentials as a component of routines for wellness and are fueled by an increasing awareness of the advantages they offer. This trend presents a significant potential for market expansion in the market for this oil especially in the health and wellness sectors.
Stress on Technological Advancements and Superior Product Quality Fuels Lemongrass Oil Market Growth
Emphasis on technological advancements and superior product quality is a crucial factor fueling growth in the lemongrass oil market. The modernization of extraction techniques and quality control procedures ensure greater purity and effectiveness in the lemongrass extract, which makes the oil more attractive to customers.
As the market gets more competitive, businesses invest in technology to enhance the quality reliability the quality and consistency of their goods. This emphasis on technological innovations not only produces higher quality products but also increases the trust of consumers and their satisfaction. The constant push for top-quality technology-driven products is likely to boost the market for lemongrass oils, especially in areas where quality is a top priority.
Lemongrass Oil Market Regional Analysis
Europe Dominates with a 45% Market Share
Europe's robust 45% hold on the global lemongrass oil market is primarily driven by its well-established fragrance and essential oil industries. The huge demand in the regional market for natural and organic products for cosmetics, aromatherapy, and pharmaceuticals significantly contributes to the demand for lemongrass oil. In addition, the strict European company regulations regarding sustainable products and quality encourage the use of natural ingredients like lemongrass oil, which in turn enhances the value of the product.
The market dynamics in Europe are also shaped by the region's advanced research and development capabilities in essential oil extraction and application. The growing trend towards aromatherapy and natural wellness products, coupled with the increasing use of essential oils in the food and beverage industries, supports the market growth. Europe's strategic position in the global supply chain, with a network of established suppliers and distributors, ensures a steady market presence.
Looking forward, Europe’s influence in the lemongrass oil market is expected to remain strong. Additionally, innovations in product formulations and the expansion of the organic product market are anticipated to further drive the growth of lemongrass oil in Europe.
North America is A Growing Market with Diverse Applications
In North America, the lemongrass oil market is expanding, driven by the region’s increasing interest in natural and holistic health solutions. The U.S. and Canada are seeing a surge in the use of essential oils for aromatherapy, personal care, and natural remedies, promoting the growth of the lemongrass oil market. The region’s focus on sustainable and eco-friendly products also aligns well with the demand for natural essential oils like lemongrass.
Asia-Pacific's Traditional Use and Increasing Exports is Rising
Asia-Pacific, particularly countries like India and Thailand, is a significant player in the lemongrass oil market. The traditional use of lemongrass in local medicines, cosmetics, and cuisine underpins the region's market share. The growing global demand for natural essential oils and the region’s capacity to produce high-quality lemongrass oil at competitive prices position Asia-Pacific as a key exporter in the global market.
Lemongrass Oil Industry By Region
North America
- The US
- Canada
- Rest of North America
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 Middle East & Africa
In the lemongrass oil market, a niche yet significant segment of the essential oils industry, the major companies listed play crucial roles in shaping market dynamics. The Lebermuth Company and Young Living Essential Oils LC, renowned for their extensive range of essential oils, highlight the market's focus on purity and quality, catering to a growing consumer base seeking natural products.
doTERRA International LLC and Edens Garden Inc., with their strong direct selling and online presence, underscore the importance of accessibility and consumer education in the essential oils market. West India Spices Inc. and Rajkeerth Aromatics and Biotech Pvt. Ltd, rooted in regions known for lemongrass cultivation, emphasizes the significance of sourcing and supply chain management in maintaining product quality and consistency.
Falcon Oil & Gas Ltd. and NOW Health Group, Inc., although broader in their product offerings, contribute to the lemongrass essential oil market through their focus on natural and organic products. Rocky Mountain Oil Corp and Frontier Natural Products Co-op (Aura Cacia), with their commitment to ethical sourcing and sustainability, reflect the industry's shift towards environmentally responsible business practices.
Katyani Exports and Grammeproducts, specializing in the export of essential oils, highlight the global nature of the major market players and the importance of international trade in this sector.
The Good Scents Company, known for its wide range of aromatic and essential oil products, demonstrates the market's diversification and the growing demand for varied applications, from aromatherapy to personal care.Collectively, these essential oil companies not only influence the lemongrass oil price market but also represent diverse strategies, from focusing on product quality and sustainability to leveraging global trade and direct-to-consumer sales channels, essential in navigating this specialized market.
Lemongrass Oil Industry Key Players
- The Lebermuth Company
- Young Living Essential Oils LC
- doTERRA International LLC
- West India Spices Inc.
- Falcon Oil & Gas Ltd.
- Rajkeerth Aromatics and Biotech Pvt. Ltd
- Edens Garden Inc.
- NOW Health Group, Inc.
- Rocky Mountain Oil Corp
- Frontier Natural Products Co-op (Aura Cacia)
- Katyani Exports
- Grammeproducts
- The Good Scents Company
- AOS Products
- Radha Beauty Essential Oils
- Mountain Rose Inc
Lemongrass Oil Market Recent Development
- In November 2023, A collaborative effort led to the successful adoption of lemongrass cultivation, oil extraction, and packaging in Mayurbhanj District, Odisha The initiative achieved an annual turnover of INR 1 crore, resulting in a remarkable 40% increase in the income of lemongrass farmers in the region.
- In January 2023, the State Minister in the Ministry of Industry, Investment, and Commerce, Dr. Norman Dunn, emphasized the importance of cultivating crops used to produce essential oils in Jamaica. He encouraged local farmers to grow crops like ginger, turmeric, lemongrass, pimento, and castor beans, which are essential for producing these oils.
- In September 2022, Bhutanese traditional products, including lemongrass oil, gained access to international markets with the support of the European Union (EU)-Bhutan Trade Support Project.
Report Scope
Report Features Description Market Value (2022) USD 42.0 Million Forecast Revenue (2032) USD 108.6 Million CAGR (2023-2032) 10.2% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Type(Pure Oil, Blend), By Grade(Therapeutic Grade, Food Grade), By Application(Food & Beverages , Fragrances, Personal Care & Aromatherapy, Pharmaceuticals and Medicinal Formulations, Others) Regional Analysis North America - The US, Canada, Rest of North America, 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 Middle East & Africa Competitive Landscape The Lebermuth Company, Young Living Essential Oils LC, doTERRA International LLC, West India Spices Inc., Falcon Oil & Gas Ltd., Rajkeerth Aromatics and Biotech Pvt. Ltd, Edens Garden Inc., NOW Health Group, Inc., Frontier Natural Products Co-op (Aura Cacia), Katyani Exports, Grammeproducts, The Good Scents Company, AOS Products, Radha Beauty Essential Oils, Mountain Rose Inc Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) -
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- The Lebermuth Company
- Young Living Essential Oils LC
- doTERRA International LLC
- West India Spices Inc.
- Falcon Oil & Gas Ltd.
- Rajkeerth Aromatics and Biotech Pvt. Ltd
- Edens Garden Inc.
- NOW Health Group, Inc.
- Rocky Mountain Oil Corp
- Frontier Natural Products Co-op (Aura Cacia)
- Katyani Exports
- Grammeproducts
- The Good Scents Company
- AOS Products
- Radha Beauty Essential Oils
- Mountain Rose Inc