India Menthol Market, By Region, Competition Forecast & Opportunities, 2020-2030F

India Menthol Market achieved a total market volume of 12.34 thousand Metric Tonnes in 2024 and is expected to reach 16.02 thousand Metric Tonnes by 2030 with a CAGR of 4.40% during the forecast period.

Menthol, a versatile organic compound renowned for its cooling and refreshing properties, is a critical ingredient in various industries, including pharmaceuticals, cosmetics, and food and beverages. In India, the menthol market has seen substantial growth in recent years, driven by increasing consumer demand for products with menthol-based ingredients.

This article provides an in-depth overview of the menthol industry in India, highlighting its demand dynamics, supply landscape, regulatory aspects, competitive forces, challenges, and opportunities. Menthol is a fundamental component in numerous over-the-counter (OTC) medicines and topical analgesics. Its cooling and soothing properties make it an essential ingredient in products like cold rubs, pain relief balms, and throat lozenges. The robust pharmaceutical industry in India, with a focus on affordable healthcare solutions, has substantially increased the demand for menthol-based medications.

Menthol's refreshing scent and cooling effect have made it a popular choice in cosmetics and personal care products, including creams, lotions, shampoos, and perfumes. The growing awareness of personal grooming and hygiene, driven by changing lifestyles and urbanization, has led to an upsurge in demand for such products. The food and beverage industry in India is another significant consumer of menthol.

Menthol is used as a flavoring agent in various products, including candies, chewing gum, and beverages. Its ability to create a refreshing and minty taste has made it a favored choice among consumers. The menthol market is also influenced by the tobacco industry, where menthol is used to provide a minty flavor in menthol cigarettes and other tobacco products. The growth in India's tobacco industry, despite regulatory challenges, contributes to the demand for menthol.

The Indian menthol market is characterized by a combination of domestic production and imports. While India does have domestic menthol manufacturers, the demand often surpasses the local supply, leading to substantial imports. The primary suppliers to India include countries like China, Indonesia, and the United States. Domestic menthol production has seen consistent growth as local manufacturers have been investing in expanding their production capacities to reduce dependency on imports and meet the increasing demand from various industries.

Regulations play a vital role in the menthol industry, particularly in the context of its usage in the pharmaceutical, food, and tobacco sectors. The Food Safety and Standards Authority of India (FSSAI) sets guidelines for the permissible limits of menthol usage in food and beverages. The pharmaceutical industry, on the other hand, is subject to regulations from the Central Drugs Standard Control Organization (CDSCO) regarding the quality and safety of menthol-containing medications.

Compliance with these regulations is critical for manufacturers and ensures the safety and quality of the end products. It also contributes to consumer trust and safety. The competitive landscape of the Indian menthol market is a mix of domestic and global players. Domestic manufacturers, such as Vinayak Ingredients (India) Private Limited and Bhagat Aromatics Limited, have a significant presence in the market and have been expanding their production capacities.

Global manufacturers from countries like China and the United States are also active in the Indian market. They either export menthol directly or collaborate with local distributors and partners. This competitive environment has driven innovation, product quality improvements, and competitive pricing in the market. Menthol is derived from mint oils, and fluctuations in the supply and prices of mint oils can affect production costs. The crop's susceptibility to weather conditions and diseases adds to this challenge. The cultivation of mint, from which menthol is derived, can have environmental implications due to pesticide usage and water consumption. Sustainable farming practices are crucial to mitigate these concerns. The tobacco industry, a significant consumer of menthol, is often subject to increased regulatory scrutiny and potential restrictions, which can impact the market.

The continued growth of the pharmaceutical, cosmetics, and food and beverage industries in India ensures a consistent demand for menthol. As domestic production capacity grows, India has the potential to become an exporter of menthol to other countries in the region and beyond. Companies are investing in research and development to develop advanced extraction methods and improve mint cultivation practices, thereby increasing the efficiency of menthol production.

The Indian menthol market is experiencing robust growth, driven by its diverse applications in pharmaceuticals, cosmetics, and food and beverages. While challenges, such as raw material price volatility and environmental concerns, exist, the market's opportunities, including its growth in end-user industries and a focus on innovation, promise a bright future. As India continues to evolve and expand its industrial landscape, the menthol market is poised to play a pivotal role in meeting the demand for refreshing and aromatic products in the nation and beyond.

Key Market Drivers

Growing Demand from Cosmetics and Personal Care Industries

The Indian menthol market is currently experiencing a significant surge in demand, primarily driven by the ever-growing needs of the cosmetics and personal care industries. This surge in demand can be attributed to the versatile properties and unique characteristics of menthol, which have positioned it as a crucial component in these sectors. As the Indian cosmetics and personal care industries continue to expand, the use of menthol has become integral to the production of a wide range of products, from skincare and haircare to fragrances and toiletries.

Menthol, derived from various mint plants, is known for its cooling and refreshing properties, making it a popular ingredient in a multitude of cosmetic and personal care products. In skincare, menthol is often used in creams, lotions, and balms to provide a soothing and cooling sensation, making it an ideal component for products targeting skin conditions like sunburn, insect bites, and irritation. Its analgesic properties offer relief to the skin, while its pleasant aroma adds to the overall sensory experience of the product.

In the personal care sector, menthol is widely utilized in products such as shampoos, conditioners, and shower gels. Its cooling effect not only invigorates the scalp and skin but also creates a refreshing and revitalizing shower or grooming experience. This has made menthol a sought-after ingredient in personal care products, enhancing their market appeal. Menthol's aromatic properties have made it a valuable component in fragrances and perfumes. The minty and fresh scent of menthol blends well with various other fragrance notes and adds a unique and invigorating element to perfumes and colognes. It is used to create a range of scents, from minty and cool to clean and crisp, catering to a diverse consumer base.

Menthol is known for its potential to alleviate common respiratory discomforts, and its inclusion in products like throat lozenges, inhalers, and lip balms has contributed to its increased demand. The soothing and cooling sensation it provides is highly valued in these products, especially in a country like India, where changing weather patterns can lead to various seasonal health issues.

The rising demand for menthol in the cosmetics and personal care industries has prompted manufacturers to invest in expanding menthol production capacities and refining production processes. This ensures a reliable and consistent supply of high-quality menthol to meet the diverse and growing needs of these industries, which are becoming increasingly competitive.

Moreover, the Indian government's initiatives to promote the growth of the cosmetic and personal care sectors, such as the "Make in India" campaign, have further fueled the expansion of the menthol market. Government policies aimed at supporting the domestic manufacturing of cosmetic and personal care products have encouraged manufacturers to source high-quality menthol locally, contributing to the growth of the domestic menthol market.

Hence, the demand for menthol in India's cosmetics and personal care industries is on the rise, driven by the growing need for products that offer refreshing and invigorating sensory experiences. Menthol's versatile properties, soothing effects, and aromatic characteristics have made it a crucial component in a wide range of personal care and cosmetic products. As India's cosmetics and personal care industries continue to expand and diversify to meet consumer preferences, the menthol market is poised for sustained growth, contributing to both product innovation and the overall development of these sectors.

Rising Demand from Pharmaceutical Industry

The Indian menthol market is currently witnessing a substantial surge in demand, predominantly driven by the escalating needs of the pharmaceutical industry. This surge can be attributed to the versatile properties and unique characteristics of menthol, which have positioned it as a crucial component in the pharmaceutical sector. As the pharmaceutical industry in India continues to expand to meet the healthcare needs of a growing population and a global market, menthol has emerged as an indispensable solution for various pharmaceutical applications.

Menthol, a natural compound derived from mint plants, is renowned for its cooling and soothing properties. In the pharmaceutical sector, menthol is widely utilized in the production of over the counter (OTC) and prescription medications. It plays a crucial role in the formulation of oral care products such as mouthwashes, throat lozenges, and cough syrups.

The cooling sensation menthol provides offers relief from throat and oral discomfort, making it an integral component in these pharmaceutical products. Its soothing effect on the mucous membranes and its ability to reduce irritation and pain are highly valued in such medications. Menthol is often incorporated into topical pharmaceutical products like analgesic creams and ointments. Its cooling properties help alleviate muscle aches, joint pain, and various types of skin irritations. The application of menthol-containing products can provide temporary relief from pain and inflammation, making it a favored choice for both consumers and healthcare professionals.

The demand for menthol in the pharmaceutical industry is also evident in its role in the formulation of dermatological products, including skin creams, balms, and lotions. Menthol's refreshing and soothing characteristics are beneficial in products designed to address skin conditions such as itching, redness, and inflammation. In addition, it can also provide relief from insect bites and minor burns, making it a valuable component in various dermatological formulations. Menthol's inclusion in respiratory products, such as inhalers and chest rubs, is driven by its potential to alleviate nasal and respiratory discomforts. The cooling sensation and ability to open up airways can offer relief to individuals experiencing congestion and cold symptoms, which are common occurrences, especially during certain seasons in India.

The rising demand for menthol in the pharmaceutical industry has prompted manufacturers to invest in expanding menthol production capacities and refining production processes. This ensures a reliable and consistent supply of high-quality menthol to meet the diverse and growing needs of the pharmaceutical sector, where product quality and consistency are paramount. The Indian government's initiatives to promote pharmaceutical manufacturing and research have further fueled the expansion of the menthol market.

Government policies aimed at supporting domestic pharmaceutical production and innovation have encouraged manufacturers to source high-quality menthol locally, contributing to the growth of the domestic menthol market. The demand for menthol in India's pharmaceutical industry is on the rise, driven by the growing need for medications and healthcare products that offer soothing and cooling relief. Menthol's versatile properties, analgesic effects, and soothing characteristics have made it a crucial component in a wide range of pharmaceutical products. As India's pharmaceutical industry continues to grow and diversify to meet the healthcare needs of a burgeoning population, the menthol market is poised for sustained growth, contributing to both pharmaceutical development and patient well-being.

Growing Demand from Tobacco Industry

The Indian menthol market is currently experiencing a significant surge in demand, largely propelled by the growing needs of the tobacco industry. This surge in demand can be attributed to the unique properties and versatile applications of menthol, which have positioned it as a critical component in the production of various tobacco-related products. As the Indian tobacco industry continues to evolve and adapt to consumer preferences, menthol has emerged as an essential solution for enhancing the appeal of tobacco products. Menthol, a naturally occurring compound derived from mint plants, is renowned for its cooling and refreshing properties.

In the tobacco industry, menthol is extensively utilized in the production of menthol cigarettes and other tobacco products. The cooling and soothing sensation provided by menthol is highly valued by smokers, as it can reduce the harshness of tobacco smoke and create a more pleasant smoking experience. This has made menthol an integral component in the formulation of menthol-flavored cigarettes, which have gained popularity among consumers in India.

India ranks second globally and first in the WHO South-East Asia Region for tobacco use, with an estimated 253 million tobacco users in 2022. This includes 200.2 million males and 53.5 million females, aged 15 years and older. According to the National Family Health Survey 2019-21, tobacco consumption is most prevalent among males aged 50-64, with a usage rate of 52.8%. For females, the highest prevalence rate, 18.6%, is observed in the 65+ age group. These figures highlight the significant scale of tobacco consumption in India, underscoring the need for targeted public health interventions and regulatory measures.

Menthol is used to create various tobacco additives, including mentholated filters and paper. These additives are designed to infuse menthol flavor into tobacco smoke, providing a mentholated taste and aroma. This has made menthol a favored choice for tobacco manufacturers looking to diversify their product offerings and cater to consumers who prefer menthol-infused tobacco products. The demand for menthol in the tobacco industry extends to smokeless tobacco products, such as snuff and chewing tobacco. Menthol is used to create a range of menthol-flavored smokeless tobacco products, which offer consumers an alternative to traditional tobacco consumption. The cooling sensation and flavor that menthol provides can make these products more appealing to a broader audience.

The increasing demand for menthol in the tobacco industry has prompted manufacturers to invest in expanding menthol production capacities and refining production processes. This is essential to ensure a reliable and consistent supply of high-quality menthol to meet the diverse and growing needs of the tobacco sector, where product quality and consistency are paramount. The Indian government's regulations and taxation policies related to tobacco products have had an impact on the menthol market. As the government imposes restrictions and taxes on tobacco products, tobacco manufacturers have sought opportunities to enhance the appeal of their products, and menthol-infused options have become one of the strategies to maintain market share.

It's important to acknowledge that the tobacco industry is a heavily regulated sector, with ongoing discussions and debates surrounding the health impacts of tobacco consumption. While menthol provides a more pleasant smoking experience for some consumers, its use in tobacco products remains a topic of scrutiny and regulation, both in India and globally. The demand for menthol in India's tobacco industry is on the rise, driven by the growing consumer preference for menthol-flavored tobacco products. Menthol's versatile properties, refreshing effects, and unique characteristics have made it a crucial component in the formulation of menthol cigarettes and other tobacco-related products. As the tobacco industry in India continues to adapt and offer a wider range of products to consumers, the menthol market is poised for sustained growth, contributing to both product diversification and the overall development of this sector.

Key Market Challenges

Dependency Raw Material on Agriculture

The India Menthol market is facing substantial hindrances to its growth due to its heavy dependency on raw materials sourced from agriculture. Menthol, a versatile compound extensively used in various industries, is primarily derived from mint plants, such as peppermint and spearmint. The agriculture sector plays a pivotal role in the menthol supply chain, as it's the source of these essential raw materials.

The vulnerability of agriculture to external factors like weather conditions, pests, and diseases makes the menthol market susceptible to raw material shortages and price fluctuations. In India, where agriculture is a significant contributor to the economy, any disruptions in the mint cultivation can have a domino effect on the menthol industry, affecting production and pricing stability.

To mitigate these challenges, the India Menthol market must explore diversification in raw material sourcing, sustainable agricultural practices, and risk management strategies. This would reduce the market's vulnerability to the uncertainties in agriculture and foster more stable and sustainable growth, despite the dependence on agricultural raw materials.

Key Market Trends

Rising Export Potential

The India Menthol market is currently experiencing a substantial growth trend, largely due to the rising export potential of this versatile and naturally derived compound. Menthol, with its characteristic cooling and refreshing properties, has gained popularity not only in domestic markets but also as an essential component in the international supply chain.

One of the key factors contributing to this trend is the expanding demand for menthol in the pharmaceutical industry. Menthol is widely used in the formulation of various pharmaceutical products, including cough syrups, throat lozenges, and topical analgesics. With India being a significant player in the global pharmaceutical market, the export potential for menthol as a critical ingredient in these medications has increased. This is especially significant as menthol's soothing properties are sought after in over-the-counter remedies worldwide. Menthol's applications in the food and beverage industry have fueled its export potential. It is commonly used in confectionery, chewing gums, and various food products for its cooling and minty flavor. As Indian food exports continue to grow, menthol's role as a flavoring agent has gained importance, further enhancing the export potential for this compound.

The personal care and cosmetics industry is another sector benefiting from the rising export potential of menthol. Its use in products like shampoos, lotions, and perfumes for its refreshing scent and cooling sensation has made it an integral component of these goods. With the increasing global demand for high-quality personal care products, the export of menthol-infused items has grown substantially. The expanding export potential, especially in the pharmaceutical, food and beverage, and personal care industries, is a significant catalyst for the growth of he India Menthol market. As India's industries continue to tap into international markets, the demand for menthol, given its versatile applications and unique properties, is poised for sustained growth, further establishing India's position as a key player in the global menthol market.

Segmental Insights

Form Insights

Based on the form, the crystalline solid form has emerged as the fastest-growing segment. This growth trend can be attributed to several factors contributing to the increased demand for crystalline solid menthol. Crystalline solid menthol offers several advantages over other forms, such as liquid or powder. Its solid state ensures stability during storage and transportation, reducing the risk of degradation and ensuring product quality. Crystalline solid menthol is highly versatile and can be easily incorporated into various applications across industries such as pharmaceuticals, cosmetics, and food and beverages. Its solid form allows for precise dosing and easy handling during manufacturing processes, making it a preferred choice for formulators.

Furthermore, the rising demand for menthol-based products in the pharmaceutical and personal care sectors has driven the growth of the crystalline solid segment. Manufacturers are increasingly opting for crystalline solid menthol to meet the growing consumer demand for products with menthol's soothing and refreshing properties. Overall, the crystalline solid form of menthol is experiencing rapid growth in the Indian market due to its stability, versatility, and high demand across multiple industries.

Application Insights

Based on Application, the medical products segment is projected to experience rapid growth during the forecast period primarily due to Menthol's crucial role in various pharmaceutical and medical applications. Menthol, a cooling and soothing compound, is highly valued in the healthcare industry for several reasons. Indian Menthol market can be attributed to Menthol's indispensable role in pharmaceuticals, OTC medicines, and its alignment with the preference for natural remedies, underscoring its significance in the healthcare industry.

Menthol is widely utilized in medical products such as cough drops, throat lozenges, and topical analgesic creams. Its cooling properties make it a key ingredient in these products, providing relief from sore throats, coughs, and muscular pain. As the pharmaceutical sector continues to grow in India, the demand for Menthol in medical applications remains consistently high.

Menthol is an essential component in over the counter (OTC) medicines and inhalers. Its ability to alleviate congestion and provide a refreshing sensation in respiratory products has led to its dominant role in this segment, particularly during cold and flu seasons. The Indian population's increasing health awareness and changing consumer preferences for natural and herbal remedies have further boosted the prominence of the medical products segment. Menthol's natural origin and therapeutic benefits align with the growing demand for natural healthcare solutions.

Regional Insights

Based on the region, North region's dominance in the Indian Menthol market can be attributed to its advantageous agro-climatic conditions, strong supply chain infrastructure, and well-established production and trading networks, all of which have positioned it as the dominant player in the Menthol market.

The North region of India, with states like Uttar Pradesh, is known for its robust cultivation of mentha arvensis, the primary source of natural Menthol. The favorable agro-climatic conditions and the rich alluvial soil in this region make it an ideal location for mentha arvensis cultivation. Consequently, the West region enjoys a prominent position in the production of Menthol, which is the key factor in its dominance. This region has a well-developed infrastructure and supply chain network that facilitates the extraction, processing, and distribution of Menthol. Proximity to major production hubs and easy access to transportation networks are crucial factors that contribute to the West's dominance in the Menthol market.

Moreover, the North region's established network of Menthol manufacturers and traders has created a competitive advantage. It has allowed for efficient procurement of raw materials, processing, and the production of high-quality Menthol products to meet the growing demand both within India and for export.

Key Market Players

• N.S.Mint Products Pvt. Ltd.
• Ganpati Agri Business Private Limited
• Neeru Menthol Private Limited
• Silverline Chemicals Ltd
• Malik Polychem Private Limited

Report Scope:

In this report, the India Menthol Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

India Menthol Market, By Product Type:

• Natural
• Synthetic

India Menthol Market, By Form:

• Crystalline Solid
• Powder
• Liquid

India Menthol Market, By Application:

• Medical Products
• Ointments
• Cough Drops
• Nasal Inhalers
• Other
• Flavouring/Additives
• Food & Beverages
• Cigarettes
• Liqueurs
• Cosmetics
• Other
• Oral Care
• Others

India Menthol Market, By Region:

• West India
• North India
• South India
• East India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Menthol Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.