Global argan oil market size is slated to proliferate commendably over 2021-2027, as a result of the shifting preference from synthetic to natural ingredients across the cosmetic and personal care and other end-use industries, coupled with the escalating presence of ingredients exporters in developing economies. Manufacturers in Europe, the largest cosmetic industry, have been rapidly replacing synthetic chemicals with natural ingredients to accelerate the move towards sustainable raw material production.
Argan oil is a natural oil that is extracted from the kernels of argan trees, native to Morocco. The product has high fatty acid and antioxidant content, resulting in its widespread adoption in skincare as an anti-ageing solution. Apart from its cosmetic and culinary purposes, it also has been used as a medicinal product to treat diabetes and high blood pressure.
Strong awareness about argan oil benefits on health, coupled with the increasing product demand for haircare and skincare applications, is projected to stimulate overall argan oil market trends over the estimated timeline. The product is also gaining widespread popularity as an anti-acne ingredient. It has a rich concentration of omega fatty acids, linoleic acids, and Vitamin E, thus leading to the mounting usage of argan oil for hair care. In 2021, for instance, Atulya launched a new range of products, Veg Keratin and Wheat Protein, including hair shampoo, hair oil, hair conditioner, and hair mask, made from natural ingredients such as argan oil.
With regards to the application spectrum, the medical application segment is expected to hold a significant share by 2027, on account of its capability to control cholesterol levels and multiple other health benefits such as reduction in the risk of heart diseases. In addition, high Vitamin E concentration makes it an effective treatment for boosting the immune system. The segmental growth will further be escalated by the ability of the argan oil compounds to slow down the growth of cancer cells.
From a regional perspective, the Middle East & Africa (MEA) region, particularly Morocco, will account for a notable chunk of the argan oil market share in years ahead, which is attributable to the accelerating product adoption in luxury haircare and skincare products in the region for centuries. The regional industry expansion is also been expedited by the considerable job creation prospects, especially for women in rural areas, through the extraction of argan oil of Morocco.
Prominent players in the argan oil industry include Argane Achifae, Argamine, Natubelle, Tiwarga, Mabioma, Zineglob, BioAdorates, Amorre, Malak Bio, Vima Souss, Marogonia, and Sidi Yassine, among others. These companies are incorporating varied efforts such as product portfolio expansion to drive their geographical presence across the globe.
For instance, in March 2021, Dabur India expanded its Vatika haircare portfolio with the launch of a premium range of shampoos, Dabur Vatika Select, which includes Moroccan Argan Oil shampoo, Coconut Milk Extract shampoo, and other products. Meanwhile, Moroccanoil introduced two new styling products namely Moroccanoil All in One Leave-in Conditioner and Moroccanoil Volumizing Mist, which consist of argan oil and other ingredients, designed with an aim to boost its product offerings during the holiday season.
The massive societal and economic impacts of the coronavirus pandemic have been witnessed across the beauty sector. Consumers are rapidly shifting their buying patterns, needs, and online channel activity. Considerable production halts and slowdown of import-export activities were observed across industries. These immediate disruptions of the COVID-19 pandemic to the beauty retail landscape are likely to create challenges to the growth of the argan oil industry over the upcoming years.
However, reports suggest that the shoppers are prioritizing skincare and haircare products during the outbreak, with the industries suffering a low decline and relatively rapid rebounds on the back of regional re-openings. These factors, along with the strong awareness about the argan oil health benefits and the gradual relaxation of COVID-19 restrictions across various countries, may help the industry regain traction in years to come.