Lemongrass Oil Market

Lemongrass Oil Market Size and Forecast (2023-2028):

The Global Lemongrass Oil Market share value is expected to grow at a CAGR of 9.93% during the forecast period 2023–2028 to reach USD 81.42 billion by 2028 from USD 46.14 billion in 2022.

Market Overview:

Lemon grass oil is a popular traditional essential oil that is derived from the lemon grass plant, scientifically known as Cymbopogon citratus or Cymbopogon flexuosus. This aromatic oil is widely used in aromatherapy, perfumery, and various traditional medicine practices due to its pleasant scent and potential health benefits. Lemongrass oil is typically extracted from the leaves and stalks of the lemongrass plant through a process called steam distillation. It is pale yellow to yellow-green and has a fresh, citrusy, and slightly sweet aroma with earthy undertones. The main active compound in lemongrass oil is citral, which gives it its distinctive lemony scent. Other constituents include geraniol, limonene, and myrcene, which contribute to its therapeutic properties. Lemongrass oil also has anti-inflammatory properties, making it useful for alleviating pain and discomfort associated with inflammation. Along with this, research suggests it has antioxidant activity, which protects cells from oxidative damage. Lemongrass oil has antimicrobial properties and is used in some natural remedies for its potential to combat infections and bacteria. In addition, it also aids in digestion and alleviates digestive issues like bloating and indigestion. Therefore, lemongrass oil has a long history of use in traditional medicine and is valued for its pleasant scent and potential health benefits.

Recent Developments in Lemongrass Oil Industry:

• In September 2023, Trader Joe's released a new Lemongrass Moisturizing Shampoo that is designed to give hair a spa-like experience. The shampoo is made with a blend of lemongrass oil, argan oil, vitamin E, and other botanical oils that leave hair feeling soft, silky, and refreshed. It is also free of sulfates, phthalates, parabens, and silicone.
• In January 2021, doTERRA, a company that sells essential oils, announced in January 2021 that it would open stores in India. This expansion would allow the company to reach a new market of potential customers and increase its revenue.
• In April 2019, Edens Garden, a natural deodorant company, launched seven new deodorant aromas. The new deodorants are made with 100% pure essential oils and non-toxic ingredients. The new aromas include lemongrass, ylang-ylang, and six others.

REPORT COVERAGE:

Drivers:

The growing demand for natural and organic products is one of the major factors that is driving the growth of the lemongrass oil market, as consumers are increasingly looking for natural and organic products as they become more aware of the potential health risks associated with synthetic chemicals. As lemongrass oil is a natural product that is extracted from the leaves and stems of the lemongrass plant. It is free from chemicals and synthetic components, which makes it a popular and safe choice for consumers who are looking for natural, organic, and healthy products. Hence, the growing demand for natural and organic therapeutic products has led to an increase in the lemongrass oil market.

Another significant factor that caused the rise in the popularity of aromatherapy is aromatherapy, which is the practice of using essential oils to promote physical and mental well-being. They are inhaled, applied topically, or diffused into the air. Lemongrass oil is a popular essential oil in aromatherapy because of its refreshing and relaxing scent. Also, it reduces stress and anxiety, improves sleep, boosts the immune system, relieves pain and inflammation, and clears skin. Hence, this is causing a rise in the demand for lemon grass aromatherapy among consumers and, therefore, fuelling the lemongrass oil market share.

Furthermore, the increasing use of lemongrass oil in cosmetics and personal care products is also propelling the lemongrass oil market size. Lemongrass oil is a common ingredient in cosmetics and personal care products because of its pleasant scent and ability to freshen and moisturize the skin. Also, it reduces acne and inflammation, prevents sunburn, soothes insect bites, and promotes hair growth. Hence, the growing demand for natural and organic products caused the lemongrass oil market expansion in the cosmetic and personal care sector.

Along with this, there is an increasing demand for lemongrass oil in the food and beverage industry,

Lemongrass oil is a natural flavoring agent that is used in a variety of food and beverage products. It has a refreshing, lemony flavor that adds peculiar depth to dishes. The growing demand for plant-based and vegan diets has also caused a rise in the lemongrass oil market size. Thus, lemongrass oil is used in teas, desserts, alcoholic beverages, salad dressings, soups, marinades, sauces, condiments, snacks, and candy.

Moreover, there is an increasing production of lemongrass oil, which is driving the growth of the lemongrass oil market. Countries such as India, China, and Thailand have large productions of lemongrass oil due to the availability of raw materials and government support for the cultivation and production of lemon grass. Also, the technological advancement in the extraction of lemongrass oil is contributing to the growth of lemongrass oil.

Restraints:

One of the major restraining factors affecting the lemongrass oil market growth is the declining supply of lemongrass since lemongrass oil is a concentrated product, and one liter of it consumes around 288 kg of lemongrass, which therefore creates a challenge for the manufacturer to produce lemon grass with limited raw material supply, as they are grown in tropical and subtropical climates. Also, lemongrass are highly sensitive plants and get infected with pests and diseases, which further reduces the supply of raw material and impacts the production capacity. It is also an expensive product, and the high cost of the product thus hampers the growth of the lemongrass oil market. There is also increasing competition from synthetic lemongrass oil. Synthetic lemongrass oil is made from chemicals and does not have the same health benefits as natural lemongrass oil. However, it is less expensive than natural lemongrass oil, which may make it more attractive to price-conscious consumers.

Opportunities:

Lemongrass oil market has a wide opportunity in the pharmaceutical sector, due to its anti-bacterial and anti-microbial properties, it has been used in creams and ointments to treat a variety of skin infections, such as acne, eczema, and athlete's foot. Lemongrass oil has also been shown to have calming and relaxing effects. It is being studied for its potential use in treating anxiety and depression. Moreover, it has been shown to lower blood pressure, thus proving to be an effective treatment for hypertension. Additionally, due to its calming effect, it has also been used as a pain reliever to treat headaches, muscle pain, and joint pain. Along with this, lemongrass oil contains antioxidants that can protect cells from damage. It is being studied for its potential use in preventing and treating chronic diseases, such as cancer and heart disease.

Impact of COVID-19 on the Lemongrass Oil Market:

The outbreak of the COVID-19 pandemic had a significant impact on the lemongrass oil market due to the increasing awareness and demand for natural and organic products such as lemongrass oil, which can boost the immune system and fight off infection. This has led to a surge in sales of lemongrass oil products, such as essential oils and aromatherapy products. The pandemic has also disrupted the supply chain for lemongrass oil. This is due to the implementation of travel restrictions and lockdowns, which have made it difficult to transport lemongrass oil from its production regions to its markets. And this has led to higher prices for lemongrass oil and shortages. Hence, overall, the impact of COVID-19 on the lemongrass oil market had both positive and negative impacts on the market share.

Lemongrass Oil Market Segmentation Analysis:

By Type:

• Pure Oil
• Blend

The pure oil segment is ruling with the largest shares of the market due to the increasing demand for pure lemongrass oil for various applications, such as aromatherapy, cosmetics, and food and beverage. Pure lemongrass oil is also used in a variety of pharmaceutical products, such as anti-bacterial and anti-fungal creams and ointments. The blend segment also has significant market growth because of the increasing demand for lemongrass oil blends for their pleasant scent and their ability to freshen and moisturize the skin. They are also used in a variety of household products, such as air fresheners and cleaning products.

By Application:

• Food & Beverages
• Fragrances
• Personal Care & Aromatherapy
• Pharmaceuticals and Medicinal Formulations
• Others

Personal care and aromatherapy have the highest market share. This is due to the increasing demand for lemongrass oil in cosmetics and personal care products, such as soaps, shampoos, lotions, and deodorants. Lemongrass oil is used for its pleasant scent and its ability to freshen and moisturize the skin. It is also used in aromatherapy products, such as diffusers, sprays, and lotions. The pharmaceuticals and medicinal formulations have the largest CAGR. Lemongrass oil is used in a variety of pharmaceutical products, such as anti-bacterial and anti-fungal creams and ointments. Also, it has been used in the treatment of anxiety and depression. Food and beverage have the fastest growth since it is used as a flavoring agent in a variety of food and beverage products, such as teas, desserts, and alcoholic beverages. The fragrances segment has significant growth since it is used in a variety of fragrances, such as perfumes, colognes, and air fresheners. It is also used in aromatherapy products. The other segments include insect repellents, pest control, and industrial uses and accounted for the smallest market share.

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

By Region Analysis:

Europe is ruling with the largest shares of the market with the increasing demand and popularity of lemongrass oil in aromatherapy by countries like Germany, France, the United Kingdom, Italy, Spain, and others. The rising use of lemongrass oil in cosmetics and food and beverage products is elevating the market demand exponentially in Europe. North America is second in leading the largest shares of the market because of the increasing demand for organic and natural products for the treatment of various ailments such as inflammation, boosting the immune system, and aiding in digestion. Asia Pacific has the fastest market growth since countries like India, China, and Japan are the largest producers of lemongrass oil, which has contributed to the market growth. Latin America is forecasted to have market growth in the forecasted period, whereas the Middle East and Africa have low market share as compared to other regions.

Key Players in the Market:

Major Key Players in the Global Lemongrass Oil Market are

• 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.