Lemongrass Oil Market Analysis

Lemongrass Oil Market Analysis

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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.