Eucalyptus Oil Market - Forecasts from 2022 to 2027

The global eucalyptus oil market is expected to grow at a compound annual growth rate of 5.82% over the forecast period to reach a market size of US$1,447.688 million in 2027, from US$974.460 million in 2020. The Eucalyptus oil market will grow at a decent rate in the coming years. The surge in demand for natural and organic food products and the enhancement of eucalyptus oil fragrances and flavours in food products, cosmetics, and personal care are imperative for the eucalyptus oil market growth. Eucalyptus oil is formed from the leaves of the Eucalyptus tree, which is mainly found in Asia Pacific Regional countries such as Australia, Indonesia, and the Philippines. The Eucalyptus tree is native to Australia. With the increasing demand for Eucalyptus oil, it is now cultivated worldwide. Eucalyptus oil has a higher cineole content, with some of its types, like Eucalyptus kochii and Eucalyptus polybractea, having a cineole content of around 80-85%, far above the standard cineole content. Eucalyptus globalus has a substantial share in the market. Eucalyptus oil has antioxidant properties, enhances immunity and is beneficial for respiratory circulation.

Demand for Natural Products

Due to the rise in income among consumers and the substantial rise in the number of health-conscious people worldwide, the demand for eucalyptus oil will continue to surge. Eucalyptus oil's popularity will continue to soar among consumers despite its higher price range. Consumers are shifting away from processed and refined food products. There has been a substantial increase in the knowledge and awareness of consumers regarding the harmful effects of artificial preservatives, flavours and colours. Consumers are diversifying their purchasing options when it comes to food and beverage products. Technology has been playing an imperative role in enhancing awareness and knowledge among consumers. A consumer can now locate the source of the food to ensure the safety of the product. Consumer demands and preferences have been constantly changing with time. There are a lot of people that are suffering from various harmful diseases and are not comfortable with artificial products. This has led to a surge in demand for eucalyptus oil. It has a plethora of properties that are beneficial for human skin. It has removed all barriers and resolved side effects related to conventional drugs and medicines. There has been a significant surge in the demand for pharmaceutical products and medicinal medical supplements that contain eucalyptus oil because of its antiseptic properties. It helps to regulate high blood pressure and is beneficial for consumers with respiratory problems. It is also in demand because of its properties as a biopesticide and insect repellent. It is becoming popular in industrial applications because it prevents the separation of ethanol and petrol fuel blends. Eucalyptus oil has a lot of challenges, but with varying consumer preferences, it is expected to register moderate and decent growth in the coming years.

Market Frontrunners

• Based on nature, the market is segmented between organic and conventional Eucalyptus oil products. Organic Eucalyptus oil products have the majority of the market share in the market, followed by conventional Eucalyptus oil products. The organic segment will have a majority of the market share because of the increasing health-enthusiastic consumers. Organic and natural oil products are free from artificial preservatives and adulteration.
• Based on the grade, market is segmented between pharmaceuticals, fragrances, and industrial. The pharmaceutical segment has a majority of the market share because of the medicinal properties of the oil. It has a substantial concentration of cineole content that has a lot of medicinal effects. The fragrance segment is also expected to register decent growth because of the natural and healthier properties of the oil.
• Based on the applications, the market is segmented between food and beverage, pharmaceuticals, and cosmetics-based Eucalyptus oil products. The therapeutic and cosmetic industry holds the majority of the market share and is expected to keep it in the future. It has a lot of therapeutic applications and gives muscle and nerve pain solutions. It is used to overcome hair problems and dental problems. The food and beverage industries will also register decent growth because of the oil because it acts as a flavouring agent in many bakery products and blends easily with beverages.
• Challenges in the global eucalyptus oil marketThe coronavirus have a significant impact on the global eucalyptus oil market. With governments worldwide imposing lockdowns to combat the pandemic and with trade restrictions, the supply chain has been disrupted and will hold up the expansion of the market for the next few months. Contingency strategies have been adopted by companies and manufacturers to reduce the impact of the COVID-19 pandemic. With the reduction in income and revenues, consumers tend to purchase only ‘essential goods and services.
• There are a lot of challenges in the production of eucalyptus oil. A substantial quantity of eucalyptus leaves is needed to create a single ounce of oil. There is a lot of resource depletion, and substantial capital is required for the advanced equipment. Because of that, the market has become extremely concentrated with key players have formed a significant entry barrier for new players. Moreover, with the substantial rate of resource depletion, there are significant challenges in acquiring certification by the government.

The Expanding Retail Business

Currently, store-based retail businesses have the majority of the share in the global eucalyptus oil market. . Supermarkets and convenience stores are boosting the retail growth of Eucalyptus-based products. Online retail is also gaining a lot of traction. With a substantial number of users engaged on the internet and a surge in the demand for smartphones, online retail will generate significant growth in the coming years. Because it is widely available in retail stores, the offline retail business is expected to dominate in the future.

Asia-Pacific will register a significant growth

The Asia Pacific holds the majority of the global market share and is followed by North America and Europe. Australia is the major exporter of eucalyptus oil. China has a significant and substantial share in the eucalyptus oil market. The reason is the surge in the number of health-conscious consumers in the Asia Pacific. Europe and North America will register significant growth because of the presence of major cosmetic and pharmaceutical companies in Europe. There is a major challenge for the European and North American regions because of the lower presence of eucalyptus plants in their regions. They are dependent on imports from Asian countries. This has a huge impact on the revenue and sales because of the surge in prices.

Competitive Analysis

Some of the major players in the E eucalyptus oil industry are Green Fields Oil Factory, Plant Therapy Essential Oils, Maretai Organics, Lionel Hitchen Essential Oils, Aromaaz International, IL Health & Beauty Natural Oils Co. Inc, Aksuvital, Shaanxi Guanjie Technology Co, Young Living Essential Oils LC Natural India, Biolandes, Greenleaf Extractions Pvt Ltd. These key players are investing a lot of capital in research and development. Furthermore, major players are focusing on collaborations with the local industry, acquiring small companies to enhance their production capacity, and continuing to improve their distribution channels through mergers and joint ventures.

Covid-19 Impact

COVID-19 has wreaked havoc on all economic sectors and industries around the world. The disruptions are largely due to lockdown protocols created and implemented by countries around the world as a health strategy to lessen the impact of the pandemic's spread on the human population. Production halts, limits on people and commodities movement, border closures, logistical constraints, and a slowdown in commerce and economic activity have all resulted from the COVID-19 lockdown measures. This has had a negative impact on the eucalyptus oil market throughout the pandemic. Because eucalyptus oil is a non-essential substance, shipping limitations have restricted its supply. Furthermore, the eucalyptus oil market was stabilized in the short term due to the increased use of eucalyptus oil in the pharmaceutical industry.

Key developments

• In March 2022, Charlotte Tilbury's collagen superfusion face oil, which contains essential oils including rose absolute, neroli, damask rose, lavender, and eucalyptus for a comfortable application and at-home spa experience, produces the skin sparkling lotion. The unique face oils are high-performance face oil that has a collagen blend and powerful ingredients for skin that appears plumper, healthier, and shines.

Market Segmentation:

By Nature

• Organic
• Conventional

By Grade

• Pharmaceutical
• Fragrance
• Industrial

By Applications

• Food and Beverage
• Therapeutics
• Cosmetics
• Fragrances

By Distribution Channel

• Offline
• Supermarket and Hypermarket
• Specialty Stores
• E-commerce

By geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Europe
• Germany
• Spain
• United Kingdom
• France
• Middle East and Africa
• Saudi Arabia
• UAE
• South Africa
• Asia Pacific
• China
• Japan
• South Korea
• India
• Indonesia