Eucalyptus Oil Market value is projected to rise at an appreciable rate by 2023-2032, given the rising awareness of the role of eucalyptus essential oils in aromatherapy applications. Lemon eucalyptus oil can help treat cough, bronchitis, and various other conditions, owing to its immunoregulatory, anti-inflammatory, analgesic, and antioxidant properties. With consumers growing increasingly accepting of alternative age-old remedies and health treatments, the usage of essential oils in aromatherapy techniques is growing significantly.
Eucalyptus oil is derived from the oval-shaped leaves of eucalyptus trees. Eucalyptus polybractea, eucalyptus kochii, eucalyptus globulus, and other species of these leaves are steam distilled for oil extraction. Known for its woodsy scent, the oil offers a range of therapeutic benefits, from detoxifying air to banishing brain fog. These attributes are creating robust demand for eucalyptus oil products.
Growing demand for plant-based skin care products is one of the prominent factors influencing eucalyptus oil market trends. Due to the COVID-19 outbreak, personal care manufacturers have prioritized the expansion of digital channels to cater to more consumers. These trends will contribute to the production of eucalyptus oil for skin care applications, given the product’s ability to prevent cellular breakdown and skin inflammation due to UV exposure. Furthermore, the thriving food processing sector will create growth avenues for product developers as it can be utilized as a potential food preservative.
Pharmaceutical-grade eucalyptus oil market will register considerable gains by 2032, on account of the increasing government focus on diabetes treatment. For example, in May 2021, the World Health Assembly agreed on a Resolution to prevent and control diabetes through improved access to insulin and other medicines. This initiative will boost the adoption of pharma-grade eucalyptus oils to control blood sugar levels. This oil can also relieve joint pain and disinfect wounds, resulting in its widespread adoption in the healthcare sector.
In terms of application, the eucalyptus oil market share from the therapeutics & cosmetics application segment is poised to depict a high growth rate through 2032. The growing consumer awareness of natural ingredients and the desire to replace synthetic ingredients with natural substitutes are among the growth drivers, especially in the Europe market. Since eucalyptus has healing and anti-inflammatory properties, it is beneficial for the treatment of sunburned skin. Additionally, the capability to retain skin moisture will augment the development of eucalyptus oils for cosmetic applications.
Regionally, the Asia Pacific is set to account for a substantial revenue share in the eucalyptus oil market over the forecast period, which can be credited to the booming pharmaceutical sector. In recent years, Asia has become the epicenter of the global pharma industry, driving innovation and growth. Processed food exports have also gained momentum in the region.
According to the Directorate General of Commercial Intelligence and Statistics, the export of the APEDA (Agricultural and Processed Food Products Export Development Authority) products rose to USD 7,408 million in April-June 2022 from USD 5,663 million a year earlier. These factors will stimulate the use of eucalyptus oil as a food preservative in the regional food and beverages sector.
D-TERRA, Young Living Essential Oils, Sensient Technologies Corporation, PLANT THERAPY ESSENTIAL OILS, NOW Health Group, Inc. (Now Foods), NHR Organic Oils, Khadi Natural Healthcare, Kama Ayurveda (PUIG SL), Integria Healthcare, and Emu Ridge are some of the key companies functioning in the market. These firms are adopting mergers and acquisitions and other strategies to boost their presence in the global industry.
The food and beverage industry has been witnessing massive challenges, mainly due to the ever-increasing cost of groceries and other food items. Across the fragrance, hair, and cosmetics segments, products have also become more expensive as the inflation rate continues to grow. The escalating prices of beauty products and food items may result in reduced product sales and consequently, limit eucalyptus oil extraction for use in these end-use industries.