The lemongrass oil market is projected to reach USD 62.2 million in 2024. The market is estimated to register USD 89 million by 2034, with an expected CAGR of 3.6%.
Global Lemongrass Oil Market Assessment
| Attributes | Description |
|---|---|
| Estimated Global Lemongrass Oil Market Size (2024E) | USD 62.2 million |
| Projected Global Lemongrass Oil Market Value (2034F) | USD 89 million |
| Value-based CAGR (2024 to 2034) | 3.6% |
The lemongrass oil market is categorized by fragmented supply chains and localized operations. Major production regions include India, Indonesia, and Sri Lanka, and most of the cultivation is driven by small-scale farming. Independent producers and cooperatives operate with limited market centralization or global integration. Climatic dependence also makes the production of lemongrass oil geographically concentrated, thereby limiting large-scale industrial framing initiatives.
Despite global brands like doTERRA and Young Living, regional, location-specific players maintain a significant market presence. This localization is furthered by e-commerce platforms that enable smaller producers to access international customers, increasing market fragmentation. The growing demand for natural and sustainable products ensures opportunities for both local and global players.
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According to CSIR- India leads lemongrass production producing 1,000 tonnes annually and exporting 300-400 tonnes. Thanks to CSIR-CIMAP’s 'Aroma Mission,' that has been supporting the the essential oil industry and supporting farmers and businesses. India has favorable climatic conditions and skilled farmers, and oil produced here is recognized worldwide for its high quality.
Indonesia and Sri Lanka are other prominent producers, leveraging their tropical climates to maintain consistent output. Other key producing nations include Thailand and China.
Organic Momentum Drives Growth
The rising demand for organic and natural products notably soars the market growth. The United States consumer sales in this sector reached USD 302 billion in 2023. Globally, organic food sales are expected to expand by 8% annually over five years. In 2022, 12% of the United States adults regularly purchased organic food with 21% buying it when convenient.
Demographic preferences further highlight the opportunity, as 70% of United States consumers aged 18 - 29 favor natural and organic skincare products. This trend boosts financial growth for manufacturers producing natural oils like lemongrass. Companies aligning with organic preferences benefit from premium pricing, expanded market share, and enhanced brand value. Rising worldwide demand ensures consistent opportunities for investment and economic growth in this segment.
Health and Wellness Benefits Creating Positive Perception
Lemongrass oil is increasingly valued for its therapeutic properties in health applications. Rich in active compounds like citral and limonene, it offers antimicrobial, antifungal, and antibacterial effects. These properties make it effective for treating infections and skin conditions.
Its anti-inflammatory properties make it essential for natural pain relief, particularly for arthritis and muscle stiffness. These attributes position lemongrass oil as a vital ingredient in pharmaceutical formulations and topic treatments, enhancing its market appeal.
Growing Role in Mental Health and Aromatherapy
Mental well-being and emotional health are key aspects people are willing to pay for. Lemongrass oil plays a prominent role in supporting mental health and relaxation. Known for its fresh citrus aroma, it is widely used in aromatherapy to relieve stress and anxiety. Lemongrass oil is used by culinary artists due to its pleasant and fresh aroma. It is one of the world's best-selling oils, according to Discovery Health.
Post-pandemic, the focus on mental well-being has propelled requirements for lemongrass oil in massage therapies, diffusers, and personal care products. Its calming properties make it a preferred choice in holistic wellness, with growing market opportunities in alternative therapies.
Holistic Health Applications Enhance Market Potential
Lemongrass is a staple in immune-boosting products and detoxification therapies. It is commonly used in herbal supplements, teas, and tonics to boost respiratory health and strengthen immunity. As a traditional remedy in Ayurveda and Chinese medicine, lemongrass is trusted for addressing digestive issues and general fatigue. Its wide-ranging benefits and applications in modern and traditional medicine make it a lucrative investment in the natural health market.
Traditional remedies for a variety of health conditions, including digestive disturbances, behavioural issues, circulatory troubles, etc., include the use of lemongrass components as well as its oil. For instance, in 2023, “The Corto Cup” cocktail celebrated the collaboration between two brands, featuring herbaceous aromas and citrus notes. This cocktail kit is enhanced by Corto Olive Co.'s Harvest 2023 Agrumato-Method Lemongrass & Basil Olive Oil.
The market faces significant challenges limiting its mainstream adoption. Issues like limited clinical evidence and market perception affect its growth potential. Other factors like
Lemongrass oil is a versatile ingredient used across food and beverages, pharmaceuticals, and cosmetics and personal care. Its antimicrobial and flavor-enhancing properties make it ideal for food applications, while its therapeutic benefits suit pharmaceutical products like pain relief balms and digestive aids.
In cosmetics, it’s valued for its soothing aroma and skin-healing properties. Key companies can capitalize on its adaptability to meet rising demand in natural products markets. This widespread application of oil soars growth across diverse sectors.
The food and beverage industry leads the use of lemongrass oil due to its unique flavor profile and health benefits. Widely used in teas, soups, and marinades, lemongrass enhances taste while offering antimicrobial properties that improve product safety. Its popularity stems from increasing consumer preferences for natural ingredients in functional foods and beverages, aligning with global wellness trends. Other reasons for its popularity are-
With all the above readings, FMI analysts estimated the share value of food and beverage applications to be 44% in 2024.
Lemongrass oil is utilized in therapeutic and food-grade applications, offering versatility across industries. Healing properties of therapeutic-grade lemongrass oils make them widely used in aromatherapy, skin treatments, and health supplements.
On the other hand, food-grade lemongrass oil is primarily used to enhance flavor and offer natural preservation in food products. Manufacturers can capitalize on both grades as consumer demand for natural products and wellness-oriented solutions continue to rise. This is creating notable growth opportunities across the market.
Food-grade lemongrass oil dominates the market with its safe and natural properties and versatility in culinary applications. It is widely used in teas, beverages, and flavoring, appealing to consumers seeking natural and refreshing ingredients. As health-consciousness and wellness trends grow globally, food-grade lemongrass oil's role in functional foods and beverages expands. This presents substantial opportunities for manufacturers. Other reasons are
According to FMI analysts, the food-grade lemongrass oil is projected to register a share value of 47% for 2024.
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The section below helps key companies and manufacturers to have a brief view of investment opportunities in different markets.
| Countries | CAGR (2024 to 2034) |
|---|---|
| Japan | 6.8% |
| United States | 5.2% |
| United Kingdom | 5.3% |
The United States is a leading consumer of lemongrass oil due to its diverse applications. The demand is fuelled by its use in wellness, aromatherapy, and personal care products. Lemongrass oil’s role in stress management and alternative medicine has grown as consumers prioritize natural and organic products. Additionally, the food and beverage sector’s increasing use of lemongrass as a natural flavoring agent supports market expansion.
The United States lemongrass oil market is experiencing consistent growth driven by wellness trends. Consumer preferences are shifting toward USDA-certified organic oils, with transparency in the supply chain. There is also a rising demand for multipurpose oils, used in diffusers, massage oils, and cleaning products.
This growing consumer interest positions the United States market as a key player in the global expansion of lemongrass oil. For instance, in July 2022, SCJ (an American multinational corporation) launched STEM bug sprays, safe for kids and pets. The plant-derived insecticides, featuring lemongrass, mint, and rosemary oils, effectively targeted insects without harsh chemicals or fragrances.
Despite this growth potential, challenges such as competitive pricing and regulatory requirements exist. Imports from India, Indonesia, and Sri Lanka put pressure on pricing strategies. Furthermore, stringent labeling and safety regulations for food-grade and therapeutic oils may complicate market entry.
However, the United States remains a crucial market with an estimated CAGR of 5.2% from 2024 to 2034 with financial and economic potential for key companies investing in lemongrass oil.
The United Kingdom plays a major role in the European essential oils market, with lemongrass oil being highly sought after. Rising consumer awareness of the health benefits of essential oils drives this demand, particularly in the aromatherapy sector. In addition to wellness and personal care, lemongrass oil’s use in natural cleaning products aligns with the growing trend toward sustainability and holistic health.
The United Kingdom market for lemongrass oil is characterized by soaring consumer preference for eco-friendly and cruelty-free products. Organic certifications, such as Soil Association Organic, are highly valued by consumers, enhancing product credibility. As wellness and spa centers continue to incorporate essentials, the requirement for essential oils like lemongrass oil rises.
However, challenges such as Brexit-related trade adjustments affect import logistics and pricing. Despite this, the United Kingdom market remains competitive with local and imported brands vying for consumer attention. The United Kingdom offers a strong potential for expansion with an expected CAGR of 5.3% from 2024 to 2034.
Japan’s long-standing tradition of herbal medicine and aromatherapy promotes the use of essential oils, including lemongrass. Japanese consumers demand high-quality, premium essential oils, riven by the country’s preference for purity and efficacy in natural products.
In addition to wellness and aromatherapy, lemongrass oil is increasingly used in personal care products, especially skincare. Japan’s focus on skincare and holistic health encourages the integration of essential oils into cosmetic formulations.
The oil is becoming popular in green cleaning products, further expanding its applications in households and offices across the country. For instance, in February 2024, Kao and Earth collaborated to launch the ARS Mos Shooter spray in Thailand. This innovative product effectively eradicated mosquitoes anytime, anywhere, utilizing Kao’s advanced technology.
Challenges in the Japanese market include high consumer expectations for quality and detailed product traceability. Limited domestic cultivation of lemongrass results in a reliance on imports, affecting pricing and availability. Despite these challenges, Japan presents a promising market estimated to register a CAGR of 6.8% by 2034.
South Korea’s vibrant beauty and wellness markets position it as a key consumer of lemongrass oil. The booming K-beauty industry has embraced essential oils, integrating them into skincare and haircare products. Lemongrass oil has become an essential component in creating premium and high-quality beauty products with a growing demand for natural ingredients.
The oil is also gaining popularity in home fragrance products, as urbanization fuels the desire for fresh and natural scents. Additionally, South Korea’s growing market for DIY skincare kits and diffuser blends features lemongrass oil. This is creating new consumer engagement opportunities for manufacturers and key companies.
Challenges in South Korea’s market include a high reliance on imports, particularly from Southeast Asia. This dependency may impact pricing and supply chain stability, but the expanding consumer demand in the beauty and wellness sector presents an attractive investment opportunity.
Companies can enter the expanding lemongrass oil market by emphasizing quality and sustainability. Unique strategies from key players drive growth potential and cater to diverse consumer needs. Focusing on education and community engagement enhances brand loyalty and consumer trust. Manufacturers should adopt innovative approaches to capitalize on rising wellness trends effectively.
The table provides a clear overview of key company’s strategies in the lemongrass oil market.
| Company | Key Strategies |
|---|---|
| doTERRA |
|
| Edens Garden |
|
| Aura Cacia |
|
| Young Living |
|
| Plant Therapy |
|
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.
Information about the leading countries of North America, Latin America, Western Europe, South Asia and Pacific, East Asia, and the Middle East and Africa is given.
It is anticipated to reach USD 62.2 million in 2024.
The market is set to rise at a 3.6% CAGR through 2034.
The lemongrass oil market is projected to reach USD 89 million by 2034.
Food grade dominates the market with a share value of 47% for 2024.
India holds the highest CAGR with 8.2% from 2024 to 2034.
| Industry Size (2024E) | USD 21.2 billion |
|---|---|
| Industry Valuation (2034F) | USD 70.0 billion |
| Value-based CAGR (2024 to 2034) | 12.7% |
| Market CAGR (2023 to 2033) | 4.48% |
|---|---|
| Market Size (2023) | USD 70.95 billion |
| Market Size (2033) | USD 109.97 billion |
| Expected Market value in 2023 | USD 2.7 Billion |
|---|---|
| Projected Market Value in 2033 | USD 4.7 Billion |
| CAGR (2023 to 2033) | 5.7% |
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Lemongrass Oil Market
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