Vetiver Oil Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Key Highlights

• Over the short term, the increasing demand for flavors and fragrances in the spa and relaxation segment and the growing demand for vetiver oil from the food and beverage sector are expected to drive the market's growth.
• On the flip side, the high cost of the products and unfavorable conditions arising due to the COVID-19 outbreak is expected to hinder the market's growth.
• The growing application of vetiver oil in the medical industry is expected to offer various lucrative opportunities for market growth.
• By application, the spa and relaxation segment is expected to dominate the market owing to the increase in personal care and cosmetics products and the growing trend of aromatherapy.
• The Asia-Pacific region dominated the global market with the largest consumption from countries like China and India.

Vetiver Oil 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 created major requirements for stress-relieving therapies, thereby increasing the demand for spa and relaxation and, consequently, the demand for vetiver oil.
• Vetiver oil includes a soothing and stabilizing scent owing to which it is widely used in spas and for making fragrances for body perfumes, oils, room coolers, fresheners, and soap. The global market size of the spa industry is expected to grow from around USD 95 billion in 2021 to over USD 185 billion by 2030. In 2021, the total number of spas in the United States was 21,510, a slight decrease from the previous year's value of 21,560.
• 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.
• According to Cosmetics Europe, the European cosmetics and personal care market is the world's largest cosmetic product market, valued at approximately USD 85 billion at a retail sales price in 2021. The average annual expenditure on cosmetics, perfume, and bath preparation products amounted to approximately USD 180 per consumer unit in the United States.
• The Brazilian Personal Hygiene, Perfumery, and Cosmetics (HPPC) sector reached USD 1.4 billion in 2021, with an increase of 16.2% over 2020. In 2021, the total value of exports accounted for USD 700 million.
• Therefore, the above factors are expected to impact the market in the coming years significantly.

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-user industries like fragrances, cosmetics, and pharmaceuticals, the demand for vetiver oil increased in the region.
• 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 the demand for 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 are projected to drive the region's vetiver oil market.
• China is one of the major consumers of cosmetics, which increases the consumption of vetiver oil from the cosmetics segment of the country. In 2022, wholesale and retail companies' retail sales of cosmetics in China totaled about USD 55 billion.
• According to estimates, revenue in Thailand's beauty and personal care market is expected to reach USD 5.76 billion by the end of 2023. In 2021, Thailand's prestige cosmetic and fragrance market value amounted to around USD 340 million.
• The players operating in the cosmetics industry are focusing on expanding their product portfolio to expand their beauty and cosmetics. For instance, in October 2021, Sephora China released more than 240 new beauty products from 51 brands, revealing the newness of 7 C-beauty brands and the domestic debut of five overseas niche brands.
• Some major companies operating in the Asia-Pacific region are - Aromatic Herbals Private Limited, Green Essence Extraction Private Limited, and UniKode S.A.
• Therefore, the above factors are expected to impact the market in the coming years significantly.

Vetiver Oil Industry Overview

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