Vetiver Oil Market

Vetiver Oil Market Size-2023-2028

The Vetiver Oil Market size was US$ 0.6 billion in 2022. The vetiver oil market is forecast to grow to US$ 1.2 billion by 2028, registering a compound annual growth rate (CAGR) of 7.9% during the forecast period from 2023 to 2028.

Vetiver Oil Market Overview

Vetiver oil is made from a plant called vetiver, which has a strong and earthy fragrance. The oil is extracted from the plant's roots and is used in various ways, like making perfumes, soaps, and cosmetics. It's also used in holistic medicine for its relaxing and grounding effects. Vetiver oil has many beneficial properties, like being an antioxidant and anti-inflammatory, which can help with joint pain and other health issues. The demand for vetiver oil is increasing because people are changing their lifestyles and being influenced by the media. It's becoming popular as a massage oil for aromatherapy and is used to flavor drinks in some places. The rise in humid and extreme weather conditions also contributes to its demand for flavored beverages. People are interested in personal grooming and exotic fragrances, which drives the demand for vetiver oil. However, it's expensive and faces competition from other essential oils, which may limit its market growth. On the bright side, vetiver oil can repel mosquitoes, which creates an opportunity for repellent manufacturers, especially in areas with mosquito problems.

Vetiver Oil Market Drivers

Vetiver oil is becoming popular as a pest repellant when combined with other essential oils. Many people now understand the importance of personal care, leading to a higher demand for personal care products. Vetiver oil is used in these products because it has relaxing and soothing effects and a pleasant fragrance. It can also help reduce stretch marks and wrinkles and treat skin issues. Some food and beverages also use vetiver oil, which helps in the vetiver oil market growth. Fragrance manufacturers are interested in vetiver oil because of its smoky and woody aroma. It blends well with alcohol, making it a unique ingredient in perfumes. The best part is that it's a natural and non-toxic product. Researchers are working to find skin-friendly ingredients for personal care products, and consumers are becoming more aware of the ingredients used in cosmetics. There's a growing emphasis on sustainability and natural ingredients, and technology is improving the harvesting and manufacturing processes of such ingredients. All of these factors are contributing to the increasing demand for the vetiver oil market.

Vetiver Oil Market Restraints

Growing vetiver plants can be expensive and challenging due to the specific climatic conditions they need, which are hot and humid. The delicate nature of the plants also makes them prone to crop failure. These factors contribute to the high cost of the vetiver oil market, which might limit its adoption and revenue growth in the vetiver oil market. Moreover, there's a shortage of skilled people to handle the cultivation process, and not many consumers are aware of the various uses of vetiver oil. Strict regulations related to farming activities due to environmental concerns also add to the challenges. All of these factors could significantly restrain the vetiver oil market's revenue growth in the future.

Vetiver Oil Market Opportunities

As consumers become more environmentally conscious, there is a growing demand for natural and sustainable ingredients in personal care and cosmetic products. Vetiver oil, a plant-based and non-toxic product, is well-suited to this trend. Its relaxing and soothing effects make it a valuable ingredient in personal care products such as lotions, creams, and massage oils. The increasing awareness of its benefits for skincare and haircare products presents opportunities for vetiver oil market application in the beauty industry. The smoky and woody aroma of vetiver oil is highly sought after in the fragrance industry, especially as the demand for unique and natural fragrances increases. Its mosquito-repellent properties also make it a valuable ingredient in insect repellents, particularly as vector-borne diseases become a growing concern. Ongoing research and development focused on enhancing the efficiency and sustainability of vetiver oil production can lead to improved yields and cost-effectiveness, making it more appealing to various industries. The rising interest in natural and holistic wellness solutions creates a favorable environment for the adoption of vetiver oil in aromatherapy and wellness practices. Additionally, vetiver oil can enhance the flavor of certain food and beverage products and appeal to consumers seeking unique and exotic tastes. With increased awareness and marketing efforts, vetiver oil has the potential to penetrate new geographic markets and find applications in diverse industries beyond its traditional use.

Impact Of Covid-19 On Vetiver Oil Market

Due to the pandemic and subsequent lockdowns and restrictions, the supply chain of vetiver oil was disrupted, leading to shortages and fluctuations in demand and prices. Industries like fragrance and personal care saw a decline in demand for vetiver oil as non-essential businesses closed and consumer spending decreased. With a shift in consumer priorities towards essential products, luxury items like perfumes and cosmetics containing vetiver oil were less in demand. Agricultural activities, including vetiver cultivation, were also impacted by challenges such as labor shortages, transportation disruptions, and reduced access to resources. This could impact the supply of vetiver oil in the market. Financial constraints caused by the pandemic affected investments in research and development of vetiver oil-based products and expansion efforts. However, there may have been some growth in the demand for vetiver oil in pest-repellant products due to increased focus on health and hygiene during the pandemic. As economies gradually reopen and consumer spending improves, the vetiver oil market is expected to recover, especially with the growing interest in natural and sustainable products.

Key Developments In The Vetiver Oil Market

• In September 2022, Robertette introduced an online sales platform for essential oils. This platform features an extensive selection of essential oils, vegetal oils, and floral waters. Additionally, they plan to launch absolute CO2 extracts and more in the future. 

• In February 2022, Givaudan acquired Myrissi, a fragrance and beauty company based in France. This acquisition supports Givaudan's long-term fragrance and beauty strategy. Myrissi brings expertise in AI that will assist Givaudan in proposing new organoleptic approaches to customers.

Market Segmentation 

• By Product

• Organic

• Conventional

 According to market predictions, the organic segment will bring in the most revenue in the vetiver oil market. Organic Vetiver Oil is a powerful and fragrant liquid that comes from the roots and rhizomes. To produce the oil, the dried rootstock is steam reformed and then hydro distilled for several hours, resulting in a yield of around 25%. The final product is a clear to pale yellow oil with a pleasant woody-earthy scent that is commonly used in perfumes.

Vetiver Oil Market-By End-Use 

• Perfume and Scents Products

• Food & Beverages

• Pharmaceuticals

• Others

The Vetiver oil market size is highly valued in the Perfume and Scents Products industry, primarily as a result of its smoky and woody scent. Its versatile aroma makes it a key ingredient in perfumes, colognes, and other scented products. Perfume manufacturers often use vetiver oil as a base note in their fragrances, providing a rich and earthy foundation that complements other aromatic ingredients. Vetiver oil can be found in a variety of perfumes, from high-end luxury fragrances to more affordable options. It has become increasingly popular in the fragrance industry due to the demand for natural and sustainable ingredients.

Vetiver Oil Market-By Region 

• North America
•  Europe
•  Asia Pacific
• Latin America
•  Middle East & Africa

Europe region dominates the vetiver oil market demand. The fragrance and pharmaceutical industries are growing in Europe, making it a significant region in the global market. Vetiver oil-infused medical and cosmetic items are particularly popular in Europe due to their effectiveness in treating respiratory problems, rheumatism, arthritis, and cramps. The United Kingdom, the Netherlands, France, Germany, and Spain are key players in the essential oil market and importers in Europe. The vetiver oil market value is increasing due to customers' interest in aromatherapy and its appealing scent and antioxidant properties. Additionally, there is a rise in demand for antimicrobial cleansing and household cleaning solutions throughout Europe.

Key Market Players In The Vetiver Oil Market

• Aromatic Herbals Private Limited

• Citrus and Allied Essences Ltd.

• UniKode S.A.

• Bontoux S.A.S

• Greenleaf Extractions Private Limited

• Rajkeerth Aromatics and Biotech Pvt Ltd.

• Young Living Essential Oils LLC

• Imperial Extracts, Synthite Industries Ltd

• Mountain Rose Herbs Inc.

• Albert Vieille