Vetiver Oil Market To Witness High Growth Owing To Increasing Usage in Pharmaceuticals and Growing Awareness About Its Health Benefits
The Vetiver Oil Market is estimated to be valued at USD 743.4 Mn in 2024, exhibiting a CAGR of 9.5% over the forecast period (2024-2031). Vetiver oil is gaining popularity for its therapeutic properties to treat anxiety, depression, and insomnia. Furthermore, growing awareness about vetiver oil's antiseptic, anti-inflammatory properties contributing to growth of various health conditions is further propelling the market growth.
The growth of the global vetiver oil market is driven by the increasing usage of vetiver oil in the pharmaceutical industry owing to its various medicinal properties. Vetiver oil is extensively used in the production of medicines to treat anxiety, insomnia, and depression. Moreover, vetiver oil is a popular ingredient in aromatherapy due to its pleasant smell and therapeutic properties. Vetiver oil is known to reduce stress and anxiety while promoting relaxation of mind. The oil also helps in alleviating symptoms of depression. Growing awareness about the benefits of aromatherapy is contributing significantly to the increasing demand for vetiver oil globally. Furthermore, the surging adoption of organic cosmetic and personal care products incorporated with natural ingredients is also providing impetus to the market growth over the forecast period.
The rising popularity of aromatherapy as a stress reliever is driving growth in the vetiver oil market
Aromatherapy has witnessed rising popularity in recent years as more people look for natural and herbal remedies to deal with stress and anxiety. Vetiver oil is commonly used in aromatherapy as its woody and earthy scent has relaxing and calming properties. Massage therapists and beauty professionals are increasingly recommending vetiver oil for its stress-relieving benefits. The growth of aromatherapy as a stress-relieving technique is fueling higher demand for vetiver oil from individual consumers as well as the commercial sector including spas, salons, and wellness centers.
Increasing use of vetiver oil in premium fragrances is propelling market revenues
Leading luxury perfume brands are incorporating vetiver oil into their premium fragrances launched for men due to its rich and masculine aroma. The oil finds application in high-end fragrances launched by Dior, Tom Ford, Armani and Calvin Klein among others. It adds depth and complexity to perfumes while imparting a sophisticated and refined touch. The growing demand for premium and luxury fragrances from the affluent consumer segment is driving vetiver oil suppliers to expand production capacities. Various new product launches in the men's premium fragrance category will continue promoting the use of vetiver oil.
Fluctuating raw material supply and prices pose a challenge for market players
Vetiver oil is extracted through the steam distillation of vetiver roots that are harvested from cultivated vetiver plants. The supply of vetiver roots depends on climatic conditions and farming yields in countries such as Haiti, Brazil and Indonesia that are major producers. Any extreme weather events, pest attacks or shortages in cultivated land area can negatively impact the supply of raw materials. This leads to price volatility in the vetiver oil market. Moreover, the root harvesting process is labor-intensive, driving up production costs. The unstable supply and pricing of vetiver roots act as a restraint on the growth projections of end-use industries.
High dependence on specific growing regions increases supply chain risks
Most of the world's vetiver oil supply is concentrated in a few tropical countries of the Caribbean, Latin America, and Southeast Asia. Around 80% of the total vetiver production originates from Haiti alone, exposing the market to geo-political and environmental risks prevailing in that region. Any disruptions, conflicts, or natural disasters in major sourcing regions can severely impair the global vetiver oil supply. This leads to an over-reliance on a narrow base that increases overall supply chain vulnerabilities. Buyers have limited alternatives and cannot hedge the risks associated with single-source dependence. This supply concentration hampers long-term demand fulfillment within the industry.
Growing popularity of clean labels and organic certification presents lucrative opportunities
Consumers are increasingly demanding natural, organic, and sustainably-sourced ingredients in personal care and beauty products. The vetiver oil market players can leverage this trend by promoting certified organic and fair trade varieties of the oil. Producing countries are also encouraging sustainable and organic vetiver cultivation practices. Suppliers aiming to promote vetiver oil for applications in premium cosmetic formulations need to obtain relevant organic certifications. This represents a major opportunity to achieve premiumization, drive higher margins, and expand the addressable market for organic vetiver oil.
Rising global middle class is opening up new consumer markets
There is significant growth potential in emerging economies that are witnessing a rise in disposable incomes and spending power of expanding middle-class populations such as India, China, Indonesia, and Brazil. As living standards improve in these regions, the demand will spike for natural wellness products including aromatherapy oils. Vetiver oil suppliers need to devise effective entry strategies and marketing campaigns customized for the new markets in Asia Pacific and Latin America. Partnering with local wellness retailers provides an opportunity to tap the grooming and skincare requirements of upwardly mobile consumers. This will enable vetiver oil producers to ensure sustained volume growth over the long run.
Link - https://www.coherentmarketinsights.com/market-insight/vetiver-oil-market-1064
Key Developments
- In 2022, Robertet, a leading manufacturer of natural ingredients, announced the launch of its own online sales platform dedicated to essential oils.
- In 2023, Givaudan, the world's leading manufacturer of fragrances and beauty products, announced the completion of its acquisition of a major cosmetic ingredients portfolio from Amyris, Inc.
Key Players
International Fragrance Flavor Inc., Lluch Essence SL, UniKode S.A., Frager S.A., Robertet Group, Ernesto Ventos S.A., Floracopeia Inc., Fleurchem Inc., Haiti Essential Oil Co. S.A., Aadhunik Ayurveda, Botanic Healthcare, Rakesh Sandal Industries
