Eucalyptus Oil Market Assessment, By Product Type [Eucalyptus Globulus Oil, Eucalyptus Radiata Oil, Eucalyptus Dives Oil, Eucalyptus Citriodora Oil], By Application [Food Preservatives, Cosmetics & Personal Care Ingredient, Pharmaceuticals, Aromatherapy,

Eucalyptus Oil Market Assessment, By Product Type [Eucalyptus Globulus Oil, Eucalyptus Radiata Oil, Eucalyptus Dives Oil, Eucalyptus Citriodora Oil], By Application [Food Preservatives, Cosmetics & Personal Care Ingredient, Pharmaceuticals, Aromatherapy, Others], By End-use Industry [Food & Beverage, Cosmetics & Personal Care, Medical & Healthcare, Others], By Distribution Channel [Online, Offline], By Region, Opportunities, and Forecast, 2016-2030F

Global Eucalyptus Oil Market size was valued at USD 155.9 million in 2022, which is expected to grow to USD 276.02 million in 2030 with a CAGR of 7.4% during the forecast period between 2023 and 2030. The increasing consumer preference for the deployment of organic ingredients in cosmetics & personal care products, along with the surge in the demand for eucalyptus oil in various pharmaceutical applications such as ointments and cough syrup are several main determinants accelerating the market growth.

Shift in the focus of men's personal care products, the inclusion of skin-friendly ingredients in cosmetics products, and increasing e-commerce sales of body care products are propelling the growth of the cosmetics & personal care market. Likewise, the increasing international regulations to restrict the use of toxic additives in pharmaceutical products coupled with the recent launch of new pharmaceutical products with natural plant-based oil ingredients are favoring the healthcare industry growth. Henceforth, the flourishing end-use industries, including cosmetics & personal care, healthcare, and others are driving the demand for eucalyptus oil to boost the anti-inflammatory and anti-bacterial properties in end products, which is augmenting the market growth.

Eucalyptus oil is known for its soothing, refreshing ad cooling properties and is widely used as an essential oil in aromatherapies and also as a holistic respiratory care product. When used as a vaporizer or diffuser, it also helps detoxify the air in the room. Its aroma helps in destressing and promotes feeling of relaxation. Growing popularity of aromatherapy and holistic healing tends to boost the market demand for eucalyptus essential oils.

The Booming Cosmetics & Personal Care Industry is Fueling the Market Growth

Eucalyptus oils such as eucalyptus globulus oil and eucalyptus radiata oil are frequently utilized in skincare & haircare products to maintain the effective moisture content. Eucalyptus oil is ideal for cosmetics & personal care products, including hair oil, perfumes, creams, and lotions. The vital variables spurring the cosmetics & personal care industry growth include the increasing purchasing power of people and the rising trend for high-end luxury cosmetics products.

For instance, according to the recent statistics published by the Cosmetic, Toiletry and Perfumery Association (CTPA), in 2022, the global cosmetics & personal care industry was valued at USD 9,419.31 million (EURO 8,944.80 million), an annual growth rate of 5.4% as compared over 2021. Therefore, the prospering cosmetics & personal care industry at the global level is boosting the demand for eucalyptus oil to soothe acne-prone and congested skin, thereby supplementing the market growth.

The Increasing Preference for Online Sales Channels among Eucalyptus Oil Manufacturers is Fostering Market Growth

The online sales channel provides a method of distribution for eucalyptus oil manufacturers to sell the products through company-owned websites or e-commerce websites. The growth of the online sales channel is attributed to factors such as quicker comparison of multiple products & their prices, ease of buying process, and superior flexibility in ordering. As a result, various eucalyptus oil manufacturers are offering their products in the online sales channel.

For instance, NOW Foods, a United States-based manufacturer of essential oil is among the several producers of eucalyptus oil that provide a wide of products for online purchase through the company website along with various e-commerce sites such as Amazon, Flipkart, and eBay. Thus, the increasing availability of eucalyptus oil in online sales channels, owing to the easy access of products is a prime factor propelling the market growth.

The Prominent Share of the North America Region is Driving the Adoption of Eucalyptus Oil

The recent trends for the increasing consumer preference for organic products in the North American region are driving the adoption of 100% organic essential oils. As a result, the adoption of eucalyptus globulus oil and eucalyptus citriodora oil is increasing in the North America-based end-use industries since eucalyptus oil is a type of essential oil, which contains plant-based antioxidants, tannins, and volatile oil.

For instance, according to the recent report published by the Cosmetics Europe - The Personal Care Association, in 2022, the United States was the leading market for cosmetics and personal care products valued at USD 102.14 billion, with a year-on-year growth rate of 21.25%. Hence, the robust growth of the cosmetics & personal care industry in North American countries such as the United States and Canada is boosting the adoption of eucalyptus oil to strengthen the skin's natural moisture barrier, this, in turn, is proliferating the market growth.

Future Outlook Scenario

In line with the revenue expansion of the pain relief medication market in the upcoming years, the eucalyptus oil industry will register growth as it is deployed as a pain repellent in conditions such as osteoarthritis and rheumatoid arthritis. For instance, according to the recent data published by IQVIA Inc., a biopharmaceutical company, the global pain relief medication market will register a growth rate of about 3% to 6% during the forecast period of 2023 to 2027.

The ease of consumer convenience along with changing lifestyle habits will foster the growth of online grocery retail sales in India in the upcoming years. For instance, according to Invest India, the Indian retail grocery sector will reach USD 10 billion to USD 12 billion by 2025. Thus, the increasing traction from the online grocery sector will create a lucrative opportunity for the eucalyptus oil market growth during the forecast period.

The future anticipated growth of the online sales channel will increase the presence of eucalyptus oil products in the market. For instance, according to Shopify, a global e-commerce site, approximately 21.2% of total retail sales will be conducted online through company-owned websites and third-party e-commerce sites by 2024. Hence, the bolstering online sales channel will fuel the demand for eucalyptus oil as end-use industries can procure the oil in bulk quantity after comparing the multiple manufacturer's prices, thereby creating a prominent potential for market growth.

Key Players Landscape and Outlook

The major players in the eucalyptus oil market are Symrise, Sensient Technologies Corporation., dōTERRA, and NOW Foods. The above players involved in the manufacturing and supply of eucalyptus oil, such as eucalyptus globulus oil and eucalyptus radiata oil are investing in strategies, including technology innovation, acquisitions, product innovations, and facility development to increase their market revenue & volume share in the eucalyptus oil industry.

For instance, in February 2021, Mohawk Group Holdings, Inc. acquired Healing Solutions, LLC, a provider of eucalyptus oil. The prime focus of the acquisition was to increase the overall revenue of Mohawk Group Holdings, Inc. in the upcoming years.

In October 2023, Naturally Australian Products partnered with a visionary essential oil producer in Eswatini, Africa to source eucalyptus essential oils. The partnership aims to employ the local residents and generate profits to fund the orphan care.