The market for Vetiver Oil is expected to witness a CAGR of over 7% during the forecast period. Major factors driving the market studied are increasing demand for flavor fragrances in spa and relaxation segment and growing demand in the food and beverage sector. On the flip side, the high cost of the products and unfavorable conditions arising due to the COVID-19 outbreak is the major restraint that is hindering the growth of the market.
The growing application of vetiver oil in the medical industry is expected to offer various lucrative opportunities for the growth of the market.
By application, the spa and relaxation segment is expected to dominate the market owing to the increase in the usage of personal care and cosmetics products and the growing trend of aromatherapy.
The Asia-Pacific region dominated the market across the globe with the largest consumption from countries, like China and India.
Key Market Trends
Increasing Demand from Spa and Relaxation Segment
- Vetiver oil is an essential oil extracted by steam distillation of vetiver roots. The vetiver plant is found in India, Haiti, and Indonesia.
- The changing lifestyle of consumers due to busy and hectic schedules has created major requirements for stress-relieving therapies, thereby, increasing the demand for spa and relaxation and, consequently, increasing the demand for vetiver oil.
- Aromatherapy is projected to emerge as the second-largest sub-segment, and personal care and cosmetics are forecasted to emerge as the largest sub-segment under spa and relaxation during the forecast period.
- Vetiver oil has a soothing and stabilizing scent owing to which it is widely used in making fragrances for body perfumes, oils, room coolers, and fresheners and soap.
- The global spa and relaxation segment is projected to witness a CAGR of over 5% during the forecast period, which may create lucrative opportunities for the vetiver oil market to grow in the near future.
- Owing to all the above-mentioned factors for vetiver oil, its market is expected to grow rapidly over the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to dominate the market for vetiver oil during the forecast period. In countries like India, China, and Japan, due to the rapid development in end-use industries like fragrances, cosmetics, and pharmaceuticals, the demand for vetiver oil has increased in the region.
- Vetiver oil is used in massage oil to relieve stress owing to properties such as it reduces neurotic behavior, dispels anger, irritability, and hysteria.
- Vetiver oil is broadly used in food and beverage as a flavoring agent in khus syrups, ice creams, yogurts, and preparing milkshakes in the region, owing to which the demand of vetiver oil is projected to increase during the forecast period.
- Additionally, the growing demand for vetiver oil in the medical industry for treating skin diseases, preventing stretch marks, strengthening the central nervous system, and overcoming conditions like stress, insomnia, and tension is expected to propel the vetiver oil market in the region.
- Furthermore, consumers even opt for homemade cleaners and sprays infused with vetiver oil owing to its pleasant scent and antibacterial and antimicrobial properties, which is projected further to drive the vetiver oil market in the region.
- In China, the revenue from the cosmetics industry in the year 2020 is projected to reach USD 14.1 billion and is further expected to grow at a CAGR of over 9% during the forecast period, which increases the demand for vetiver oil in the region and propel the vetiver oil market.
- Some of the major companies operating in the Asia-Pacific region are - Aromatic Herbals Private Limited, Green Essence Extraction Private Limited, and UniKode SA.
- The aforementioned factors, coupled with government support, are contributing to the increasing demand for vetiver oil during the forecast period.
The vetiver oil market is highly fragmented with top players accounting for a marginal share of the market. Major companies in the market include Aromatic Herbals Private Limited, UniKode SA, Frager, (Agri Supply CO SA), Rajkeerth Aromatics, and Biotech Pvt Ltd, and Imperial Extracts.
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