Vetiver Oil Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Vetiver Oil Market is projected to register a CAGR of over 7% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. The spa and cosmetics sector is one of the major consumers of vetiver oil. Considering the pandemic situation, the spas and other wellness centers were temporarily closed during the lockdown in order to curb the COVID-19 outbreak. Even after the lockdown, people were not frequently opting for such types of services in order to remain safe, which in turn negatively impacts the market demand for vetiver oil. However, the demand for personal and home cleaning products has been increased during this period, where vetiver oil is used because of its antimicrobial nature, which in turn stimulates the demand for the studied market.

Key Highlights

• Over the short term, the increasing demand for flavor fragrances in the spa and relaxation segment and 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 hindrer the market's growth.
• The growing application of vetiver oil in the medical industry is expected to offer various lucrative opportunities for the growth of the market.
• By application, the spa and relaxation segment is expected to dominate the market owing to the increase in the usage of personal care and cosmetics products and the growing trend of aromatherapy.
• The Asia-Pacific region dominated the market across the globe with the largest consumption from countries, like China and India.

Key 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 has created major requirements for stress-relieving therapies, thereby, increasing the demand for spa and relaxation and, consequently, increasing the demand for vetiver oil.
• 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.
• Vetiver oil has a soothing and stabilizing scent owing to which it is widely used in making fragrances for body perfumes, oils, room coolers, and fresheners and soap.
• The global spa and relaxation segment is projected to witness a CAGR of over 5% during the forecast period, which may create lucrative opportunities for the vetiver oil market to grow in the near future.
• As of Cosmetics Europe, the European Cosmetics and personal care industry was valued at about USD 95.32 billion in 2019, with a growth rate of about 1.5% compared to the previous year.
• According to the Brazilian Association of the Personal Hygiene, Perfumery and Cosmetics Industry, the Brazil hygiene, perfumery and cosmetics industry accounted a 5.8% growth in revenue ( ex-factory sales ) during January to September 2020 , when compared to the same period in 2019. During the same period, the personal care segment accumulated a 4.3% growth and the cosmetics segment remained stable with growth of 0.1%. Furthermore, the face skin care products category grew by 28.7% during Janurary to September 2020, when compared to the same period in 2019, which in turn stimulates the market demand for the vetiver oil.
• Therefore, the aforementioned factors are expected to show significant impact on the market in the coming years.

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-use industries like fragrances, cosmetics, and pharmaceuticals, the demand for vetiver oil has increased in the region.
• Vetiver oil is used in massage oil to relieve stress owing to properties such as it reduces neurotic behavior, dispels anger, irritability, and hysteria.
• 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 which the demand of 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 is projected further to drive the vetiver oil market in the region.
• China is one of the major consumers of cosmetics. In March 2019, the retail trade revenue of cosmetics in China was amounted to about USD 4.33 billion and reached about USD 3.85 billion in March 2020, with a decline rate of about 11% mainly due to the COVID-19 impact, which in turn decreases the consumption of vetiver oil from the cosmetics segment of the country.
• According to estimates, the Thailand's beauty and personal care market was valued at about USD 6.7 billion in 2019 and is estimated to reach about USD 8 billion in 2022, with a CAGR of about 6%.
• In India, the professional beauty and wellness industry, include salons, spas, parlours, barber shops and clinics, is currently valued at about USD 3.45 billion and is expected to grow in the coming years, which in turn stimulates the demand for vetiver oil market from the spa and wellness segment.
• Some of the major companies operating in the Asia-Pacific region are - Aromatic Herbals Private Limited, Green Essence Extraction Private Limited, and UniKode S.A..
• Therefore, the aforementioned factors are expected to show significant impact on the market in the coming years.

Competitive Landscape

The vetiver oil market is highly fragmented with top players accounting for a marginal share of the market. Major companies in the market include Aromatic Herbals Private Limited, UniKode S.A., Albert Vieille, Rajkeerth Aromatics and Biotech Pvt Ltd., and Imperial Extracts, among others.

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• The market estimate (ME) sheet in Excel format
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