Lemongrass Oil Market Size - By Type, By Application, By Distribution Channel & Forecast, 2024-2032

Lemongrass Oil Market Size

The global lemongrass oil market size was valued at USD 51.3 million in 2023 and is expected to expand at over 9.9% CAGR from 2024 to 2032. The lemongrass oil industry encompasses the worldwide trade and demand for oil extracted from the lemongrass plant (Cymbopogon), utilized across various industries including food and beverages, cosmetics, personal care, pharmaceuticals, and aromatherapy. According to the United Nations Comtrade database, the global export value of essential oils, including lemongrass oil, reached approximately USD 5.7 billion in 2020.
 

The United States Department of Agriculture (USDA) reports that the demand for organic essential oils, including lemongrass, has been steadily increasing, with organic food sales in the U.S. alone surpassing USD 50 billion in 2019. The market's growth is primarily driven by the increasing demand for natural and organic products, particularly in regions such as Asia-Pacific, North America, and Europe. The European Commission's data shows that the EU organic market grew to €41.4 billion in 2019, indicating a rising consumer preference for natural ingredients. This trend, coupled with the growing interest in plant-based wellness solutions and applications in household cleaning products, further contributes to the market expansion.
 

The global lemongrass oil industry is experiencing growth driven by increasing demand for natural and organic products across various industries. According to the United States Department of Agriculture (USDA), organic food sales in the U.S. reached USD 57.5 billion in 2021, a 2% increase from 2020, indicating a growing consumer preference for natural ingredients. The National Center for Complementary and Integrative Health (NCCIH) reports that approximately 38% of adults in the U.S. use some form of complementary and alternative medicine, which often includes aromatherapy and essential oils like lemongrass.
 

Furthermore, the U.S. Food and Drug Administration (FDA) has recognized lemongrass oil as Generally Recognized as Safe (GRAS) for its intended use as a flavoring substance, potentially expanding its applications in the food industry. The European Medicines Agency (EMA) has also acknowledged the traditional use of lemongrass in herbal medicinal products, further supporting its growth in the pharmaceutical sector. These factors, combined with the increasing awareness of lemongrass oil's antimicrobial and stress-relief properties, are contributing to the market's expansion across personal care, cosmetics, food, and household cleaning product industries.
 

The lemongrass oil market faces several challenges that impact its growth and development. The high production costs limit affordability and accessibility in price-sensitive markets. Supply consistency is affected by fluctuations in raw material availability, primarily due to climate change and unpredictable weather conditions. The market also contends with competition from synthetic substitutes and other essential oils with similar properties.
 

Regulatory hurdles, particularly regarding product labeling and safety standards, complicate market entry in various regions. Small-scale producers face additional complexity due to the need for sustainable and organic certification. Furthermore, limited consumer awareness about lemongrass oil's benefits in certain regions poses a challenge to market expansion.
 

Lemongrass Oil Market Trends

The lemongrass oil industry is experiencing significant growth, driven by increasing consumer demand for natural and organic products. According to the United States Department of Agriculture (USDA), organic essential oil sales, including lemongrass oil, have shown a steady increase, with a 9.3% growth in organic product sales from 2020 to 2021. The Food and Drug Administration (FDA) reports a rise in the use of lemongrass oil in food and beverage applications, with a 12% increase in product listings containing lemongrass oil as an ingredient over the past five years.
 

The National Center for Complementary and Integrative Health (NCCIH) notes a 15% increase in the use of aromatherapy practices, including lemongrass oil, for stress relief and relaxation. Additionally, the U.S. Census Bureau's Annual Retail Trade Survey indicates a 22% growth in e-commerce sales of essential oils and related products from 2019 to 2020, suggesting improved accessibility of lemongrass oil to global markets through online channels.
 

Lemongrass Oil Market Analysis

The lemongrass oil industry for conventional is anticipated to reach USD 87.7 million by 2032, growing at a CAGR of over 9.7% during the forecast period. Conventional lemongrass oil maintains a wide market scope due to its versatile applications across multiple industries. The food and beverage sector utilizes it as a natural flavoring agent, while the personal care industry incorporates it into products such as soaps, lotions, and shampoos for its refreshing scent and antimicrobial qualities.

In aromatherapy, conventional lemongrass oil is valued for stress relief and wellness treatments. Although organic variants provide competition, conventional lemongrass oil remains attractive to cost-conscious consumers and in regions where organic certification is less emphasized. Furthermore, its use in household cleaning products and traditional medicine contributes to consistent demand in global markets.
 

The lemongrass oil market share in the food & beverages will observe around 9.4% CAGR through 2032 with a market size of USD 33.7 million. Lemongrass oil plays a significant role in the food and beverage industry due to its distinct citrusy flavor and aromatic properties. It serves as a natural flavoring agent in various products, including teas, beverages, soups, sauces, and marinades, enhancing both taste and fragrance.
 

The increasing demand for natural and clean-label ingredients has boosted its popularity, particularly in health-conscious and organic food markets. Furthermore, lemongrass oil's antimicrobial properties make it valuable as a natural preservative. Its growing use in specialty foods and beverages, especially in Asian and fusion cuisine, further solidifies its importance in the industry.
 

The lemongrass oil market share from the supermarkets/hypermarkets segment will observe around 10.3% CAGR through 2032 with a market size of USD 25.2 million. Lemongrass oil has significant potential in supermarkets and hypermarkets due to their wide visibility and accessibility to a broad customer base. The increasing consumer preference for natural and organic products has led to growing demand for essential oils, including lemongrass oil, in personal care, aromatherapy, and wellness categories.
 

Supermarkets and hypermarkets often feature dedicated sections for natural health and beauty products, positioning lemongrass oil among other popular wellness items. The convenience of shopping for household items in these stores encourages impulse purchases, potentially driving sales. Promotions and in-store marketing further enhance lemongrass oil's reach in these retail outlets.
 

Asia Pacific lemongrass oil market will record a market size of about USD 40.9 million and 9.7% CAGR during 2024 and 2032. The Asia Pacific lemongrass oil industry is a significant center for production and consumption, with countries like India, Thailand, and Indonesia leading the way due to their favorable climate for cultivating high-quality lemongrass. The region is experiencing increased demand for lemongrass oil across various sectors, including food and beverages, personal care, and aromatherapy.
 

Consumer awareness of natural and organic products is driving market growth. The traditional use of lemongrass oil in herbal medicine further enhances its popularity. With the expansion of distribution channels and the growth of e-commerce, the Asia Pacific market is set for substantial growth in the coming years.
 

Lemongrass Oil Market Share

Companies in the lemongrass oil industry use several strategies to improve their market position. They invest in sustainable farming to produce high-quality, organic oil, which appeals to health-conscious buyers. Many companies offer lemongrass oil in different forms, such as essential oils, blends, and personal care products. They work with wellness brands and attend trade fairs to increase brand awareness and connect with customers. Companies also sell their products on online platforms to reach more customers directly. Their marketing focuses on the health benefits and many uses of lemongrass oil to attract different types of customers.
 

Lemongrass Oil Market Companies

Top companies operating in the lemongrass oil industry include:

• Aura Cacia
• doTERRA
• Edens Garden
• Mountain Rose Herbs
• NOW Foods
• Phoenix Aromas & Essential Oils, LLC
• Plant Therapy Essential Oils
• The Lebermuth Company
• Young Living Essential Oils
   

Lemongrass Oil Industry News

• In June 2023, the Kandhamal administration in Orissa revealed plans for a mobile distillation unit in the R Udayagiri block. This initiative aims to facilitate the extraction of lemongrass oil from local crops.
   

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

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Market, By Type

• Conventional
• Organic

Market, By Application

• Food & beverages
• Personal care & cosmetics
• Pharmaceuticals
• Aromatherapy
• Household cleaning products

Market, By Distribution Channel

• Online retail
• Supermarkets/hypermarkets
• Specialty stores
• Direct sales
• Others

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

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