The Global Onion Oil Market size is expected to reach $100.5 million by 2027, rising at a market growth of 8.7% CAGR during the forecast period.
Oil extracted from onion through steam distillation process is called onion oil. Majority of the onion oil is extracted from red onion due to its various antimicrobial and antifungal properties. Nowadays, busy lifestyle, increasing pollution, and use of a variety of hair products and appliances ultimately lead to hair breakage, reduction in the level of essential protein in hair follicles. These issues can be cured by using onion oil that helps in maintaining complete health of hair.
Increased hair issues, awareness among customers about the benefits of onion oil, and rising usage of onion oil by male population are estimated to expand the demand for onion oil in the market. In addition, the hair benefit of onion oil and its easy availability in supermarket, pharmacy, online stores, and other distribution channels are resulting in increased population of onion oil users.
Onions are also used as an insect repellent because its smell may flee insects. Onion oil manufacturers are increasingly investing in R&D activities to blend onion oil with some other herbs or ingredients so that it can offer better results.
Pollution is something everyone has to deal with daily which in the end results in hair damage even after trying to protect them through various products. Not only this, but even the polluted water also makes the strands weak and soaks the stickiness of the hairs which leads it to breakage. It is impossible to avoid contact with pollutants but hair-related issues can be controlled by taking more care. There are many customers who are shifting towards the usage of home remedies and natural products to prevent hair damage.
COVID-19 Impact Analysis
The pandemic has negatively affected the onion oil market due to the disruption caused in supply chains like material suppliers and distributors and producers. Restrictions over import and export imposed by many states and countries across the world to control the COVID-19 have negatively affected the growth of the onion oil market. Many companies stopped production because of the lesser availability of the workforce.
The food and beverage industry faced challenges like cancellation of food technology events, and shut down of manufacturing units which resulted in the reduction of production as well as demand for onion oils. However, as things are getting back on track, the onion oil market is estimated to do well in the coming years.
Market Growth Factors:
Increasing usage of onion oil in aromatherapy
Aromatherapy refers to an entire healing treatment that uses natural extracts. It is also known by the name of essential oil therapy which uses aromatic essential oil to improve the health of mind, body, and spirit along with enhancing physical and mental health. Onion oil is one of the major essential oils used in aromatherapy to cure depression, stress, and anxiety, and also improve sleep, provide relief from various types of pains including the kidney stone pain. It is also used to overcome some side effects of cancer treatments such as pain and nausea.
Various health benefits of onion oil
Onions are the rich source of insulin, which is used for treating cough, congestion, bronchitis, and other metabolism infections for ages. Also, onion consists of a compound that controls loss of bone density and thus keeps the bones healthy. This is commonly used by women who are at risk of osteoporosis as they go through menopause. Onion consists of many sulfides in it that protect neoplasm growth. In addition, onion decreases the risk of cancers such as renal cell cancer, esophageal cancer, breast cancer, laryngeal cancer, and prostate cancer if used regularly.
Market Restraining Factor:
Pungent odor
The pungent odor of onion oil may restrict consumers from its usage. This smell can linger overnight which can displease the customer using it. Onions release enzymes called alliances that convert the sulfoxides present in onions into sulfenic acids, which is the reason behind the unpleasant smell of onion oil. Some people notice the pungent smell of onion oil even after washing their hair.
End User Outlook
Based on end-user, the onion oil marketed is classified into men and women. In 2020, the women segment dominated the onion oil market by acquiring the maximum revenue share. Onion oil is becoming very famous among women because of belief that it helps in re-growing hair, solving scalp issues, and many other hair-related issues Women are becoming more concerned about their skin beauty and healthy hair, which is highly contributing to the demand for onion oil and hence, fuels the growth of the segment.
Distribution Channel Outlook
Based on the distribution channels, the onion oil market is fragmented into hypermarket/supermarkets, specialty stores, and online stores. In 2020, the supermarket/ hypermarket segment procured the highest revenue share in the onion oil market. Supermarket/hypermarkets are becoming the most common choice of the consumers for shopping because of the availability of a wide variety of goods at the same place. Also, the rise in the working-class population, increasing urbanization and competitive prices offered by supermarkets is expected to motivate consumers to buy onion oil through this distribution channel since they can check the products first hand.
Nature Outlook
Based on nature, the onion oil market is segmented into conventional and organic. In 2020, the conventional segment acquired the largest revenue share in the onion oil market and is estimated to continue this trend over the forecast period. Onions grown through conventional farming are cultivated by using fertilizers. These fertilizers are made from chemicals and inorganic compounds extracted from petroleum byproducts like ammonium nitrate, potassium sulfate.
Regional Outlook
Based on region, the onion oil market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. In 2020, Asia-pacific acquired the maximum revenue share in the onion oil market. Increased numbers of beauty-conscious consumers in China, Australia, and India have fuelled the demand for onion oil in this region. Also, India is one of the largest onion producers, which is expected to attract onion oil manufacturers to enter this region for the wide availability of raw materials.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include AU Natural Organics, Meena Perfumery, TNW International Pvt. Ltd., Hindustan Hills, Mamaearth (Honasa Consumer Pvt. Ltd.), and Soulflower Co. Ltd.
Scope of the Study
Market Segments Covered in the Report:
By End User
- Men
- Women
By Distribution Channel
- Supermarket/ Hypermarket
- Specialty Store
- Online and
- Other Distribution Channels
By Nature
- Conventional
- Organic
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- AU Natural Organics
- Meena Perfumery
- TNW International Pvt. Ltd.
- Hindustan Hills
- Mamaearth (Honasa Consumer Pvt. Ltd.)
- Soulflower Co. Ltd.
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Table of Contents
Companies Mentioned
- AU Natural Organics
- Meena Perfumery
- TNW International Pvt. Ltd.
- Hindustan Hills
- Mamaearth (Honasa Consumer Pvt. Ltd.)
- Soulflower Co. Ltd.
Methodology
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