Lemongrass Oil Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2024–2032

Lemongrass Oil Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2024–2032

The Global Lemongrass Oil Market was valued at USD 51.3 million in 2023 and is projected to grow at a robust CAGR of 9.9% from 2024 to 2032. Lemongrass oil, derived from the Cymbopogon plant, is in demand across various sectors, including pharmaceuticals, food & beverages, cosmetics, personal care, and aromatherapy. The increasing shift toward natural and organic products is fueling the market’s expansion. Data from the United Nations Comtrade shows that the global export value of essential oils, including lemongrass oil, reached USD 5.7 billion in 2020, highlighting the rising popularity of plant-based products worldwide.

In the U.S., organic food sales exceeded USD 50 billion in 2019, reflecting the growing demand for organic essential oils like lemongrass. This upward trend is mirrored in Europe, where the organic market expanded to €41.4 billion, according to the European Commission. These developments are part of a broader consumer preference for natural ingredients, which has significantly boosted the demand for lemongrass oil in regions such as Asia-Pacific, North America, and Europe. Additionally, its use in natural wellness solutions and eco-friendly cleaning products is contributing to the overall market growth.

The conventional lemongrass oil sector is set to reach USD 87.7 million by 2032, growing at a CAGR of 9.7%. This segment is widely popular due to its broad applications in multiple industries. In the food and beverage industry, lemongrass oil is used as a natural flavoring agent, while the personal care sector integrates it into products like lotions, soaps, and shampoos for its refreshing fragrance and antimicrobial properties.

The food and beverage segment of the lemongrass oil market is anticipated to grow at a 9.4% CAGR, reaching a market size of USD 33.7 million by 2032. Lemongrass oil’s unique citrusy flavor and aroma make it a preferred ingredient in many culinary products, including teas, sauces, marinades, and beverages, enhancing their overall taste and scent profiles.

In the Asia-Pacific region, the lemongrass oil market is projected to reach USD 40.9 million by 2032, with a 9.7% CAGR. This region plays a key role in both the production and consumption of lemongrass oil, with countries like India, Thailand, and Indonesia benefiting from ideal climates for developing high-quality lemongrass. The demand in Asia-Pacific is rising across varied sectors, particularly in food & beverages, personal care, and aromatherapy, further driving market growth.