Lemongrass Oil Market Size

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.

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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.