Onion Oil Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Onion Oil Market is projected to expand from USD 59.31 Million in 2025 to USD 104.79 Million by 2031, registering a CAGR of 9.95%. This concentrated essential oil, obtained via steam distillation of Allium cepa bulbs, is highly regarded for its rich sulfur content and potent antimicrobial characteristics. Market growth is fundamentally anchored by structural developments in the personal care industry, specifically the incorporation of natural extracts into hair growth therapies, alongside increased industrial use of concentrated natural flavorings in food processing; these factors signify a permanent transition in manufacturing toward functional plant-based ingredients rather than fleeting consumer fads.

A major obstacle hindering wider market growth is the intrinsic instability of raw material costs, as onion farming is extremely susceptible to climatic variations, resulting in unpredictable expenditure structures for oil producers. Highlighting the substantial processing infrastructure supporting this supply chain, data from the Agricultural and Processed Food Products Export Development Authority (APEDA) indicates that in the fiscal year 2023-24, exports of dehydrated white onions from the major processing hub of Gujarat totaled 83,452 tons, demonstrating the strong industrial capability available for manufacturing value-added derivatives.

Market Drivers

The growing consumer inclination toward natural and organic personal care products acts as the main engine for the onion oil market, with users increasingly avoiding synthetic chemicals in favor of botanical alternatives. This transition is transforming product development approaches, as brands shift focus to "hero ingredients" such as Allium cepa for their recognized safety and effectiveness. Demonstrating the financial success of this clean-label strategy, Honasa Consumer Limited reported in its 'Audited Financial Results for FY 2024' (May 2024) that it reached a consolidated revenue of INR 19.2 billion, a result heavily supported by the sustained leadership of its onion-based natural product line, confirming that natural sourcing has evolved from a niche appeal to a primary revenue generator in the personal care sector.

Concurrently, the rising incidence of hair loss and scalp conditions has entrenched onion oil as a vital therapeutic remedy, given its high sulfur composition that effectively mitigates thinning and breakage. As pollution and lifestyle stressors worsen hair health, the demand for specific onion-infused treatments has escalated, transitioning from home remedies to organized retail offerings. This increasing dependence on onion-based therapies is exemplified by Emami Limited, which stated in its 'Investor Presentation' of November 2024 that the volume market share for its Kesh King Onion Oil rose by 30 basis points to hit 29.5% in the fiscal second quarter; however, producers face raw material instability, as the Ministry of Agriculture and Farmers Welfare noted that India’s total onion production for the 2023-24 crop year fell to an estimated 24.2 million tonnes in 2024, indicating potential supply-side limitations for extractors.

Market Challenges

The intrinsic instability of raw material pricing constitutes a significant obstacle to the expansion of the global onion oil industry. Because the steam distillation method demands a large quantity of fresh bulbs to produce a small volume of concentrated oil, producers are highly susceptible to variations in agricultural harvest levels. When weather anomalies interrupt crop production, the expense of acquiring raw onions rises erratic, diminishing profit margins and upsetting the cost predictability that industrial purchasers in the food and personal care sectors demand; this fiscal unpredictability dissuades manufacturers from increasing capacity and drives potential customers toward more price-stable synthetic substitutes.

Confirming this volatility with recent market figures, the Agricultural and Processed Food Products Export Development Authority (APEDA) reported in 2024 that wholesale onion prices in major processing zones swung wildly, hitting a bracket of Rs. 1,230 to Rs. 2,578 per quintal between April and July, a steep rise from the Rs. 693 to Rs. 1,205 per quintal observed during the corresponding timeframe in 2023. Such severe fluctuation in input expenditures directly restricts the capacity of oil manufacturers to sustain competitive pricing, thereby impeding wider market acceptance and industrial scalability.

Market Trends

The creation of hybrid mixtures incorporating active elements like collagen, biotin, and Redensyl is transforming the global onion oil landscape, as producers aim to enhance product effectiveness beyond standard botanical advantages. This movement, frequently described as the 'skinification' of hair, entails combining the natural sulfur of onion extract with clinical actives to address distinct scalp issues such as follicle dormancy, enabling brands to justify premium price points. Corroborating this pivot toward high-performance components, Nykaa’s 'Beauty Trends Report 2024' from September 2024 indicates that growing consumer uptake of ingredient-focused formulations - explicitly citing onion oil paired with Redensyl as a popular remedy - is a key driver projected to push the Indian premium beauty market to a valuation of USD 3.0-3.2 billion by 2028.

At the same time, the extension of product lines into men’s grooming marks a significant structural evolution, with brands adapting the hair growth attributes of onion oil for beard care and male-pattern baldness. This diversification enables firms to access a rapidly expanding demographic that was previously neglected by conventional hair oils, thereby lessening dependence on the crowded female personal care market. Highlighting the financial viability of this approach, FashionNetwork India reported in November 2024 via the article 'Beardo reports 62.4% growth in FY24' that Marico’s male grooming arm, Beardo, realized a revenue of INR 173.2 crore in the 2024 fiscal year, a 62.4% surge attributed to its strong lineup of specialized hair and beard growth items.

Key Players Profiled in the Onion Oil Market

• Authentic Oil Co
• AU Natural Organics
• Luxura Business Private Limited
• Hindustan Hills
• Honasa Consumer Pvt. Ltd.
• Alphanso Products Private Limited
• Meena Perfumery
• Soulflower India Private Limited
• TNW International Pvt. Ltd.
• Essentially Australia

Report Scope

In this report, the Global Onion Oil Market has been segmented into the following categories:

Onion Oil Market, by Nature:

• Conventional
• Organic

Onion Oil Market, by Sales Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• Online
• Others

Onion Oil Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Onion Oil Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

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

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