Jojoba Oil Market size will likely grow at a significant CAGR over 2023–2032. Jojoba oil is predominantly found in hot and arid areas such as Northern Mexico, California, and Arizona. It has free fatty acids and high nutritional properties and is significantly used in the cosmetic, personal care, and pharmaceutical industries.
Consumers across the globe prefer jojoba oil over any other organic products due to its unique traits, which has led pharmaceutical companies to invest heftily in research and development projects in the market.
Jojoba oil market growth from the cosmetics and personal care segment is projected to grow considerably in the next 10 years. Jojoba oil prevents aging and provides skin protection. Jojoba oil is used widely in lotions, sunscreens, skin creams, lipsticks, moisturizers, and balms. The product is also used as an electric insulator, foam control agent, transformer oil, factice, plasticizer, and adhesive.
Based on the distribution channel, the online retail segment will depict strong growth over the forecast period owing to the rapid growth of smartphone users across the globe. As per credible reports, the number of smartphone users worldwide in 2023 is estimated to depict a 4.2% annual increase, reaching 6.8 million units.
In addition, the presence of giants such as Walmart and Amazon, coupled with lower pricing compared to offline stores, an easy return policy, secure payment, attractive offers, discounts, and doorstep delivery are some of the key factors slated to enhance the sales of jojoba oil through online platforms.
North America jojoba oil market is expected to exhibit notable CAGR between 2023-2032. High per capita income in North America, along with jojoba production concentrated in this region, has attributed to the largest regional market share.
Key market players in the jojoba oil industry include Jojoba Company, Desert Whale Jojoba Company, Shell (Ecooil), Purcel Jojoba International and Inca Oil SA. The market is consolidated owing to a limited number of manufacturers. These companies are investing huge capital in research & development projects.
Besides, several other companies are investing in emerging markets to gain a competitive advantage and expand their market presence. Jojoba oil market key players include Kendo Holdings Inc. (LVMH), Eve Taylor London, U.S. International Trading Corporation, Creative Nail Design. Inc., Innocosma Organics and Logocos Naturkosmetik AG.
The lack of commercialization of jojoba oil will likely restrain product demand in the coming years. The production yield of jojoba seeds highly depends on farming methods. The demand and supply gap is the biggest hurdle to the growth of the jojoba oil industry. Besides, the insufficient supply of jojoba oil and increasing prices owing to the Russia-Ukraine conflict are anticipated to restrain the development of the global jojoba oil industry.