The Asia Pacific Lemongrass Oil Market would witness market growth of 10.1% CAGR during the forecast period (2024-2031). In the year 2022, the Asia Pacific market's volume surged to 34.61 tonnes, showcasing a growth of 22.1% (2020-2023).
The lemongrass oil market in the food and beverage sector is witnessing significant growth due to its diverse uses, numerous advantages, and emerging market trends. In this application, lemongrass oil is valued for its distinctive citrusy flavor and aroma, which enhance the sensory profile of a variety of culinary creations. It is used as a flavoring agent in beverages such as teas, cocktails, and soft drinks, as well as in foods like soups, sauces, and marinades. Therefore, the China market consumed 1.18 tonnes of this oil in food and beverage applications in 2023.
The China market dominated the Asia Pacific Lemongrass Oil Market by Country in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $6,648.7 Thousands by 2031. The Japan market is registering a CAGR of 9.3% during (2024 - 2031). Additionally, The India market would showcase a CAGR of 10.8% during (2024 - 2031).
Growing awareness and scientific research on the therapeutic benefits of lemongrass oil have contributed to its increased adoption. Studies highlighting its potential benefits for skin health, digestive health, pain relief, and infection control have spurred interest among consumers and manufacturers. In addition, expanding e-commerce platforms has simplified consumer access to purchasing lemongrass oil and associated products.
Moreover, the lemongrass oil market has been experiencing significant trends fueled by changing consumer preferences, technological advancements, and evolving industry dynamics. There is a marked shift towards natural and organic products across various sectors, including personal care, food and beverage, and pharmaceuticals. Lemongrass oil, known for its natural origin and beneficial properties, has gained traction as consumers increasingly seek products free from synthetic chemicals and additives. Manufacturers are responding by incorporating lemongrass oil into formulations that align with clean-label trends and cater to health-conscious consumers.
The Indian fragrance industry is integrating more herbal and Ayurvedic elements into their products. Lemongrass oil is a key ingredient in many such products due to its pleasant aroma and therapeutic properties. As per the National Investment Promotion and Facilitation Agency, the Indian perfumes and deodorants industry stood at $368 Mn in 2022 and is projected to surpass $473 Mn by 2026, growing at a rate of over 6.4%. Indian consumers are increasingly favoring natural and organic products over synthetic ones. Likewise, South Korea is renowned for its innovative skincare and beauty products, collectively known as K-Beauty.
Lemongrass oil, with its beneficial properties, is increasingly being incorporated into these products. The International Trade Administration reports that in 2021, South Korea's overall cosmetics production value was $14.5 billion, while the country's cosmetics exports reached a record high of $9.2 billion, up 21.3 percent from the year before. South Korea’s trade surplus in the cosmetics sector grew by 28.6 percent to $7.8 billion. Hence, the growing cosmetics and fragrance industries in the region are driving the market's growth.
Free Valuable Insights: The Global Lemongrass Oil Market is Predict to reach USD 90.8 Million by 2031, at a CAGR of 9.2%
Based on Type, the market is segmented into Pure Oil, and Blend. Based on Application, the market is segmented into Fragrances, Personal Care & Aromatherapy, Food & Beverages, Pharmaceuticals & Medicinal Formulations, and Others. Based on countries, the market is segmented into China, Japan, India, South Korea, Singapore, Malaysia, and Rest of Asia Pacific.
By Type (Volume, Tonnes, USD Million, 2020-2031)
By Application (Volume, Tonnes, USD Million, 2020-2031)
By Country (Volume, Tonnes, USD Million, 2020-2031)
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