The worldwide market for Lemongrass Oil was valued in the year 2023 at USD 60.4 million. Lemongrass oil could grow to USD 64.1 million by 2025. The stated forecast equates to a projected global growth rate of 3.6% CAGR (2025 to 2035), with revenue value to reach USD 91.2 million by the end of 2035.
One of the key drivers of the lemongrass oil market is therefore, increasing demand in the personal care, pharmaceutical and food & beverage trades. Beneath its signature zesty citrusy, herbaceous, and ginger-like flavor, lemongrass oil boasts a myriad of therapeutic properties it’s antibacterial, antifungal, and anti-inflammatory, so it’s a top pick toward the aromatherapy, skin care, and medicinal spectrum.
It has also gained in popularity as the demand for organic natural ingredients increased and brands like doTERRA, Young Living, and Edens Garden broadened their offerings to include essential oils.
Lemongrass oil business fulfills a number of consumer requirements, given the different applications, from cosmetics to perfumery to insect repellents. Moreover, the rising inclination toward holistic wellbeing and therapeutic properties of essential oils have supplemented the demand.
They are equally helping in widening the markets and maintaining sustainability in production and sourcing processes of businesses, as consumers are becoming more mindful of their environmental and ethical impact.
| Attributes | Description |
|---|---|
| Estimated Global Lemongrass Oil Industry Size (2025E) | USD 64.1 million |
| Projected Global Lemongrass Oil Industry Value (2035F) | USD 91.2 million |
| Value-based CAGR (2025 to 2035) | 3.6 % |
Lemongrass oil is gaining popularity in the application of aromatherapy and natural medicine, which has been a key factor in boosting the size of this market. With customers currently fixated on chemical-free and organic goods, lemongrass oil has become a sought-after choice because of its refreshing fragrance and medicinal properties. Additionally, food and beverage companies are utilizing lemongrass oil in herbal tea, flavored water, and dietary supplements, which will gradually boost the demand in the market.
Explore FMI!
Book a free demo
The table below presents a comparative assessment of the variation in CAGR over six months for the base year (2024) and the current year (2025) for the global lemongrass oil industry. This analysis highlights crucial shifts in market performance and revenue trends, giving stakeholders better insight into growth patterns.
| Particular | Value CAGR |
|---|---|
| H1 | 3.3 % (2024 to 2034) |
| H2 | 3.4 % (2024 to 2034) |
| H1 | 3.5 % (2025 to 2035) |
| H2 | 3.6 % (2025 to 2035) |
The industry is expected to have a growth rate of about 3.5 percent during H1 of the decade between 2025 to 2035, and a growth rate about 3.6 percent during H2 of the same decade. Looking into the next phase, the CAGR will probably keep it steady from H1 2025 to H2 2035. Growth will be fueled by increasing applications in personal care, holistic wellness trends, and a growing consumer preference for natural and organic ingredients.
Tier 1 Major Brands: Tier 1 brands control the lemongrass oil market with a real revenue, a worldwide distribution and strong brand value. These firms spend big on quality, R&D and marketing to keep themselves at the top. The best-known brands are doTERRA, with high-purity essential oils such as lemongrass oil widely used in aromatherapy, wellness, and domestic uses.
Another big player is Young Living, specializing in premium essential oils and blends, marketing the therapeutic benefits of lemongrass oil for relaxation, skin treatment and natural cleaning. These brands have employed strong retail networks, direct sales strategies, and customer confidence to overshadow the competition.
Tier 2 Mid-sized brands that dominate niche market: all-organic certification, sustainably sourced products, and fair price. For instance, lemongrass oil is available under the brand name NOW Foods, which offers an extensive range of natural health and wellness products, attracting value-seeking consumers who want high-quality but affordable products.
A popular brand, Plant Therapy, also has pure and ethically sourced essential oils, including reports/disclosures to instill consumer confidence. These brands stand out for their sustainability initiatives, third-party purity testing or dedication to making essential oils accessible to a wide customer base.
Tier 3: Emerging and small brands, rapidly gaining ground via DTC, e-commerce, and specialty distribution. These companies tend to tout organic, wild-harvested or small-batch production to differentiate themselves in a crowded marketplace. Edens Garden, for example, specializes in therapeutic-grade essential oils at competitive prices, providing both blends and single-source lemongrass oil. Other small brands and artisanal producers use social media, local markets, and sustainable marketing to target eco-conscious consumers.
Growing Demand for Natural and Organic Essential Oils
Shift: Lemongrass oil is often preferred by consumers that prioritize natural, organic, and chemical-free foods, as they tend to avoid synthetic chemicals. This shift is inspired by escalating familiarity with aromatherapy, holistic healing, and natural remedies. It is especially sought after in North America and Europe, and in some parts of Asia where people look for these alternatives to synthetic fragrances and pharmaceuticals.
Strategic Response: In response to this demand, doTERRA and Young Living have developed certified organic and therapeutic-grade lemongrass oil, meeting the standards of purity and quality. Responding to eco-conscious consumers, NOW Foods and Plant Therapy have expanded their portfolios to include non-GMO, chemical-free essential oils. Such a growing consumer preference has also seen an increase in certified organic lemongrass oil by the USDA and ECOCERT Approved lemongrass oil.
Expanding to Applications in Personal Care and Cosmetics
Shift: Here comes the lemongrass oil approach which is being used as a trending ingredient in skincare, haircare, and personal hygiene products because of its antimicrobial and anti-inflammation capabilities. The movement toward clean beauty and natural cosmetics has driven its adoption in soaps, shampoos, deodorants and lotions.
Strategic Response: To ride this wave, L’Oréal and The Body Shop slapped lemongrass onto skin- and hair-care lines, playing up natural ingredients. Burt’s Bees and Avalon Organics added lemongrass oil to organic deodorants and moisturizers, catering to shoppers looking for chemical-free personal care. Small and independent brands like Dr. Bronner’s and Rocky Mountain Oils have also found success with handmade, natural lemongrass oil soaps and balms.
Increased Interest in Aromatherapy and Anxiety Relief
Shift: Aromatherapy has become increasingly popular as a form of treatment with the growing awareness of mental wellness and relaxation therapies. Consumers are turning to lemongrass oil for stress relief, heightening relaxation and sleep quality.
Strategic Response: In answer to the demand, doTERRA and Young Living broadened their aromatherapy lines to include lemongrass oil in the products, offering pre-diluted roll-ons and diffuser blends. Aromatherapy brands Aura Cacia and Edens Garden launched travel-friendly packs, appealing to wellness-minded consumers. Sales in the B2B segment are also being driven by the use of lemongrass oil in massages and relaxation therapies, as well as in spa chains and wellness centers.
Growing Use in Pharmaceuticals and Traditional Medicine
Shift: The antifungal, antibacterial, and anti-inflammatory properties of lemongrass oil have long been used in herbal medicines, pain relief balm and other alternative therapies. There is a growing need for natural antimicrobial agents in pharmaceutical and nutraceutical industries.
Strategic Response: Companies such as Himalaya Herbals and Patanjali Ayurveda launched lemongrass-based herbal medicines and pain-rescue balms, targeting consumers looking for traditional treatments. Boiron and Nelsons Homeopathy formulated homeopathic preparations with lemongrass oil for use in treating skin infections and for digestive health. Pharmaceutical companies are performing clinical studies on lemongrass oil’s antimicrobial effects, which further validate its medical applications.
Food and Beverage Sector Expansion
Shift: Due to the increasing need for natural taste and health-boosting components, lemongrass oil is becoming more common in foodstuff and beverage recipes. It is ubiquitous in herbal teas, flavored waters, and functional drinks because of its citrusy aroma and digestive benefits.
Strategic Response: To satisfy this demand, Twinings and Yogi Tea introduced lemongrass-infused herbal teas, touting their digestive and detoxifying properties. GT’s Living Foods launched kombucha and probiotic beverages infused with lemongrass essence for health-conscious consumers. Flavored sparkling water, as well as organic juices, from artisanal and craft beverage companies has also embraced lemongrass oil, which has been a major force in product diversification.
Summary of Direct Sourcing & Sustainability Initiatives
Shift: There is a growing awareness among consumers about the environmental and ethical implications of essential oil production. Sustainable farming practices, fair-trade sourcing, and eco-friendly packaging deeply affect purchasing decisions.
Strategic Response: Reflecting the push for sustainability, doTERRA and Young Living, both purity-based essential oil brands, developed ethical sourcing initiatives designed to guarantee their lemongrass oil is sourced using sustainable and fair trade farming methods. This paradox has led to increasing popularity of ECOCERT-certified lemongrass farms and Rainforest Alliance, a non-profit civil society organization that aids brands maintain transparency. NOW Foods and Plant Therapy switched to biodegradable packaging, cutting down their carbon footprint.
Market penetration pricing strategy
Shift: There is premium, therapeutic-grade lemongrass oil and it is in demand, but price-sensitive consumers want to spend less, even if it means low-grade quality. Mass markets are in reach, thanks to supermarket brands and private-label offerings.
Strategic Response: Stores such as Walmart, Target and Whole Foods released private-label lemongrass essential oils, giving consumers cheaper substitutes for high-end brands. NOW Foods and Aura Cacia offered economy-sized lemongrass oil containers that lowered the cost per ounce for those purchasing in bulk. Companies like Saje and Rocky Mountain Oils offer subscription-based models that give repeat customers discounts, bringing both affordablity and access to users.
The following table shows the estimated growth rates of the top five territories expected to exhibit high consumption of lemongrass oil through 2035.
| Country | CAGR, 2025 to 2035 |
|---|---|
| USA | 3.2% |
| Germany | 3.0% |
| China | 4.1% |
| Japan | 3.5% |
| India | 5.0% |
In the United States, the lemongrass oil market is growing, owing largely to increased consumer awareness about aromatherapy, stress relief and natural skin care. A major demand is coming from cosmetics, personal care & home care products, which prefer the use of chemical-free and organic essential oil. This increase in demand is expected to continue as consumers continue to prefer natural, plant-derived oils that can provide multiple therapeutic benefits amid growing concerns about artificial ingredients and their implications for health.
Moreover, cold-press and steam distillation processes are getting improved for obtaining therapeutic grade lemongrass oil. Processing techniques have evolved to retain the bioactive compounds to a greater extent, thereby offering lemongrass oil as a powerful tool for holistic health.
As health and societal concerns top priority, most commercial brands available in the USA. are both sustainable and transparent about their use of organically grown lemongrass, natural production methods, and green practices.
The growing popularity of lemongrass oil in home fragrance products such as diffusers, candles and room sprays is expected to increase the demand in the market. The growing USA. spa and wellness industry is also adding to demand for lemongrass oil. Lemongrass oil plays a huge role as a staple in its use for massage therapy, relaxation treatments and mental well-being in holistic healing centers. It is also gaining ground as an ingredient in natural household cleaners and disinfectants because of its antifungal and antimicrobial properties that cater to the growing popularity of green cleaning solutions.
Germany lemongrass oil market is witnessing steady growth on the back of increasing adoption of sustainable sourcing and eco-friendly beauty products. There is high demand for certified organic, fair-trade lemongrass oil for use in skincare, aromatherapy and herbal medicine. Cautious consumers, famous for their love of quality and ethically sourced products, are fuelling demand for sustainably sourced and minimally processed essential oils.
Germany has strict regulations governing natural and organic product formulations; as such, manufacturers are working to invest in high-purity lemongrass oil specifically for pharmaceutical and therapeutic applications." Traceability and authenticity have become key principles in the German market, which has led companies to have their products certified with widely accepted organic and fair-trade labels. Moreover, the growing trend of DIY skincare and natural beauty formulations is attracting consumers toward lemongrass oil due to its skin-brightening and anti-inflammatory features.
The rising popularity of lemongrass oil in alternative medicine and herbal supplements is further anticipated to fuel the growth of the market for Germany. Its well-established herbal medicine industry, which integrates essential oils for immune health, digestion, and respiratory function, is inspiring new product innovations in the dietary supplement market. To meet the increasing appetite for health products derived from plants, German wellness brands are bringing to market lemongrass-infused teas, herbal tinctures and aromatherapy blends.
Emergence of the natural herbal treatment is fuelling the growth of the lemongrass oil market in China as natural herbal treatment as well as functional food parts and personal wellness commodities gain market share among consumers.
Essential oils are on the rise in TCM, prompting novel herbal formulations and lemongrass oil-fortified supplements. As the consumers now embracing food as medicine with plant-based healing extracts, lemongrass oil is gaining attention for its detoxifying, digestive, and antimicrobial benefits.
Also, initiatives supported by China’s government to promote organic farming and clean-label ingredients are driving investments by domestic and international players in oil extraction from traditional oilseeds.
Germany’s drive for sustainable agricultural practices has resulted in booming production of organic lemongrass and its derivatives. Its antioxidant-rich composition makes lemongrass oil an ingredient of choice in face creams, serums, and anti-pollution skincare solutions for most of the leading skincare and wellness brands in China.
Lemongrass oil is increasingly being used in the food and beverage sector as well. Chinese herbal tea brands are adding lemongrass extracts to detox teas and functional drinks designed for digestive health. In addition, growing online retail platforms have contributed to the accessibility of quality essential oils in the market, thereby enhancing penetration.
Holistic wellness trends in urban areas and each-on disposable income growth are propelling the premium essential oil boom in China. With the growing market, global manufacturers of essential oil may adopt collaborations with local distributors to strengthen the supply chain and maximize product availability across multiple consumer segments.
| Segment | Value Share (2025) |
|---|---|
| Cosmetics and Personal Care (By Application) | 47.8% |
Cosmetics and Personal Care: Lemongrass oil is gaining high demand in the cosmetics and personal care segment owing to its natural antibacterial, antifungal and anti-inflammatory properties. Growing demand for organic and herbal skincare products has pushed manufacturers to add lemongrass oil in the formulation of moisturizers, shampoos, soaps, and deodorants. Its bright, citrusy scent has also made it a staple ingredient in perfumes and aromatherapy products, which has only increased demand.
As consumers move towards clean-label beauty that does not rely on synthetic chemicals, usage of lemongrass oil in natural skincare has soared. Further, the oil's effectiveness in treating acne, offering relaxation and stress relief is propelling its demand in wellness-based personal care products such as massage oils and bath essentials. The growing popularity of sustainable and cruelty-free beauty products is expected to also contribute to the growth of the segment as brands are currently promoting lemongrass oil based cosmetics the ecofriendly way.
| Segment | Value Share (2025) |
|---|---|
| Therapeutic Grade (By Grade) | 59.2% |
The therapeutic grade lemongrass oil segment recognized to command most of the share of the overall market owing to its wide usage in aromatherapy, holistic healing, and alternative medicine. This grade of oil has known antimicrobial, anti-inflammatory and pain-relieving properties, making it commonly used in traditional medicine, essential oil therapy, and homeopathic treatments. Its stress-busting, immune-boosting, digestion-boosting properties have made it a favorite among health-conscious consumers.
Some pharmaceutical companies have developed natural medicine formulations that contain therapeutic-grade lemongrass oil inside herbal supplements, topical pain relief, etc. The increasing acceptance of essential oils for the treatments of anxiety, headache and muscle pain is driving demand in the spa, wellness & health-centric retail end-users segments. Further, with increased awareness among consumers regarding natural healing methods, the demand for high purity, undamaged lemongrass oil will continue to rise, thereby fueling the growth of lemongrass essential oil market in the years to come.
The rising demand for natural and eco-friendly products is prompting lemongrass oil producers to adopt sustainable sourcing and production methods, and invest in research for new applications. And companies are pouring money into high-efficiency steam distillation, fair-trade lemongrass sourcing and therapeutic formulation development.
Some of the key players in this market include doTERRA, Young Living, Ultra International, Eden Botanicals, and Plant Therapy that provide extracted essential components of the oils, functional mixes, and personalized aromatherapy. The major players are heavily investing in the Asia-pacific and the European region to cater to the growing demand for high-end organic essential oils.
This will be powered in part by joining forces with sustainable farming cooperatives, investing in proprietary extraction techniques, and producing allergen-free, non-GMO lemongrass oil products. Manufacturers are also centering recyclable packaging, carbon-neutral production and environmentally-muted ingredient sourcing, among others.
For instance
The global lemongrass oil industry is projected to reach USD 64.1 Million in 2025.
The market registered a CAGR of 3.3% between 2020 and 2024.
Key players include doTERRA, Young Living, Ultra International, Eden Botanicals, and Plant Therapy.
North America is expected to dominate due to high demand for natural and organic essential oils in wellness and personal care.
The industry is forecasted to grow at a CAGR of 3.6% from 2025 to 2035.
Key drivers include rising demand for natural health remedies, increasing applications in organic skincare and aromatherapy, growing awareness of sustainable ingredient sourcing, and advancements in cold-extraction essential oil processing.
The market is classified into food and beverages, pharmaceuticals, and cosmetics and personal care applications.
Therapeutic and food grade are two major grades of lemongrass oil.
The market is segmented as North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, Central Asia, Russia and Belarus, Balkan & Baltic Countries, Middle East and Africa.
USA Bubble Tea Market Analysis from 2025 to 2035
Food Testing Services Market Trends - Growth & Industry Forecast 2025 to 2035
USA Dehydrated Onions Market Insights – Size, Trends & Forecast 2025-2035
Latin America Dehydrated Onions Market Outlook – Demand, Share & Forecast 2025-2035
Europe Dehydrated Onions Market Analysis – Growth, Trends & Forecast 2025-2035
ASEAN Dehydrated Onions Market Trends – Size, Demand & Forecast 2025-2035
Lemongrass Oil Market
Thank you!
You will receive an email from our Business Development Manager. Please be sure to check your SPAM/JUNK folder too.
