Babassu Oil Market Size - By Nature, Application, Distribution Channel Analysis, Share, Growth Forecast, 2024 - 2032

Babassu Oil Market Size

The global babassu oil market was valued at USD 220.1 million in 2023 and is estimated to grow at a CAGR of over 4.2% from 2024 to 2032.   Babassu is used for sensitive skin formulations as an emollient and thus, is universally acclaimed. Besides its usage in the cosmetics industry, the oil is used for cooking and has other potential marketable applications due to its fatty nutrient profile. The pharmaceutical industry has potential usage for babassu oil caring for wounds and sores.
 

As consumers become more concerned about the economic and environmental impacts of products and services, there is behavioral change towards natural and sustainable products. Due to increasing market demand, babassu oil is becoming a strong substitute to coconut oil.
 

That is because babassu oil has a unique combination of characteristics. This diversity permits its use in personal care and food supplements. Indeed, babassu oil has a fatty acid composition like palm kernel oil and coconut oil. It contains nearly 50% lauric acid, which lends babassu oil effective emollient properties. This high lauric acid content is desired in skin and hair care but has potential applications in food and wellness.
 

Babassu Oil Market Trends

The need for consumer sustainability in plant-based personal care, food, and wellness products is on the rise which is caused by the increased requirements in the babassu oil industry. This oil has carved a special place in the market because of its high lauric acid content, making it far better than other oils such as coconut oil. It is used in many products including moisturizers, shampoos and conditioners. Furthermore, it is also far more environmentally friendly than other options in the market. Now, brands are shifting towards systematic strategies which are aimed at reducing the impact on the environment. This is particularly useful for babassu oil as it has positive social effects, especially in the Amazon region. The growing awareness of the oil's anti-inflammatory properties is also leading to a growth in its popularity in the pharmaceutical sector. Innovations in products and the globalization of the target market have also given an opportunity to the market to cater to the rising demand for ethically made natural products.
 

Babassu Oil Market Analysis

Cosmetics and skincare are booming which is accompanied by the incremental popularity in organic and natural products, therefore making babassu oil far more appealing and resulting in higher demand. With an increase in readership and an understanding of this oil's advantages, moisturizing properties, and gentle nature on sensitive skin, the market is expected to flourish. Furthermore, modern innovations in technology, especially in extraction methods, are augmenting product quality, raising the yield, and providing more opportunities for the producers.
 

The conventional babassu oil market segment was USD 121.8 million in 2023 and is predicted to increase at CAGR 4.3% during 2024-2032.  There is also greater demand because traditional babassu oil is accepted and used by manufacturers in their cosmetic and personal care and food oil products. Furthermore, conventional babassu oil is used by mass market cosmetics brands. There is also widespread use of conventional babassu oil in cooking oils.  
 

The cosmetics & personal care segment dominate the babassu oil market, accounting for a significant share due to its beneficial properties. Cosmetics & personal care segment were valued at USD 121.5 million in 2023 and gained 4.2% CAGR from 2024 to 2032. Known for its high lauric acid content, babassu oil is an excellent emollient, making it a popular choice in moisturizers, creams, shampoos, and conditioners.
 

According to the projection, between 2024 and 2032, the market for cosmetic products and personal care items is expected to grow at a 4.2 % CAGR, inclining the market valuation to USD 121.5 million by the end of 2032. Given the nature of the entire market for babassu oil, beauty and personal care industries hold a strategically important and leading position since it has a high worth due to the numerous advantages it offers. Babassu oil is highly desired by users of moisturizers, creams, shampoos and conditioners because it has high emollient properties due to its high lauric acid content.
 

Additionally, its low density and emollient properties appeal to sensitive skin consumers of natural botanical skincare. Furthermore, its reputation increases with growing preference of organic and ethically sourced cosmetics due to the clean beauty trend. Due to the sensory experience of product sampling, along with the opportunities to pick other competitor products on the shelf, their satisfaction and loyalty easily reaches high levels.
 

In 2023, China babassu oil market recorded a revenue of around USD 34.7 million, which is estimated to rise by 4% CAGR. China is strategically positioned in the Asia Pacific market due to tremendous supply, and demand for natural and organic ingredients. The country is a high tier buyer of babassu oil for use in cosmetics, food and pharma products. China’s position is further enhanced due to the investment made on ready supply chains and joint ventures with Brazilian growers of babassu palm. This coupled with the rapidly changing consumer preference towards environmentally friendly and plant-based goods in China reinforces its dominance.
 

Babassu Oil Market Share

In the babassu oil industry, environmentally sensitive companies like Citróleo and Atina are narrowing their scope to certain consumer groups. The target market each company is competing for is business process sustainability and product quality. While most of the companies like Pioma Chemicals and Hallstar are focusing on the cosmetics and food industries and working on supply chains and business formulation innovations.
 

Babassu Oil Market Companies

Major players operating in the babassu oil industry are:

• Atomm Botanicals
• Alfa Chemicals
• Atina
• Beraca Ingredientes Naturais
• Botanic Innovations
• Citróleo
• Hallstar
• Moksha Lifestyle Products 
• Natures Natural India
• Pioma Chemicals
   

Babassu Oil Industry News 

• In November 2022, Evonik established a direct supply agreement with the Intercos Group, this partnership allows the group to source directly a wide range of raw materials, including active components, emulsifiers, and cosmetic oils.
   
• In March 2023, from the Intercos group, the Kirsch company reported at the in-cos global in Barcelona the implementation of marketing two products targeted towards skin regeneration and relaxation during sleep. The new active components have a dual mechanism for enhancing sleep quality and rejuvenating skin in order to improve nighttime recovery processes.
   

This babassu oil market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) & volume (Kilo Tons) from 2021 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Nature

• Organic
• Conventional

Market, By Application

• Cosmetics & personal care
• Food & beverage
• Pharmaceutical
• Others

Market, By Distribution channel

• Online retail
  • E-commerce websites
  • Company-owned website 
• Offline retail
  • Supermarkets/hypermarkets
  • Specialty stores
  • Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa