Jojoba Oil Market size is likely to grow at a healthy CAGR over the projected timeframe. Jojoba oil is made from seeds of jojoba. It is predominantly found in hot and arid areas such as Northern Mexico, California and Arizona. Jojoba Oil has free fatty acid and high nutrient properties. The product is significantly used in cosmetic, personal care and pharmaceutical industry. Consumers across the globe prefer jojoba oil over any other due to its unique traits which has led pharmaceutical companies to invest heavily in research and development activities for jojoba oil market.
In pharmaceutical industry, jojoba oil is used as antibiotics stabilizer, appetite depressant and carrier for medicine formulae. In cosmetics, Jojoba oil is employed to prevent aging and to provide skin protection. It has resulted in increasing jojoba oil usage in lotions, sunscreens, skin creams, lipsticks, moisturizer and balm. The product is also used as electric insulator, foam control agent, transformer oil, factice, plasticizer and adhesive.
Rise in jojoba oil applications in herbal medicine and huge demand across cosmetics market will drive the Jojoba oil market over the forecast timeframe. High industrial growth rate in emerging economies is likely to support jojoba oil market size growth in the coming years. Additionally, guidelines from regulatory bodies is another factor which has changed consumer preferences and will continue to do so in coming years. Jojoba oil offers long shelf life. It does not oxidize and does not break down under high pressure and temperature. These characteristics make it ideal to use in various industries.
However, the lack of commercialization of jojoba oil is likely to restrain the product demand in the coming years. Production yield of Jojoba seeds highly depends upon farming methods, the seeds take five years to become accessible which is major drawback for the jojoba oil industry. Demand and supply gap is the biggest hurdle in the jojoba oil market growth.
In 2016 North America accounted for the highest market share in global jojoba oil market. High per capita income in North America, along with jojoba production concentrated in this region has attributed to the large market share of North America in jojoba oil market and it shall continue to do so in the forecast period. Asia pacific is likely to witness stupendous growth rate during the forecast period. Increasing consumer preference towards natural products in Asia Pacific is likely to boost the growth of jojoba oil market growth in the next few years. Further, increasing disposable income and rising concerns regarding personal healthcare will surge product demand in coming years in this region. The product is extensively used in Japan.
Key market players in jojoba oil market includes Jojoba company, Desert Whale Jojoba Company, Ecooil, Purcel Jojoba International and Inca Oil SA. The market is consolidated owing to limited number of manufacturers. Competition in Europe and North America jojoba oil market is likely to increase as companies are investing huge capital in research & development projects. Several other companies are investing in emerging markets to gain competitive advantage and expand market presence. The cosmetic companies which use jojoba oil in their products includes Kendo Holdings Inc., Eve Taylor London, U.S. International Trading Corporation, KimchiKristy, Creative Nail Design. Inc., Innocosma Organics and Logocos Naturkosmetik AG.
The key manufacturers in jojoba oil market such as Jojoba Israel and The jojoba Company are investing heavily in production to meet the required demand. They have integrated across the value chain. Many countries have started encouraging their farmers for jojoba cultivation. For instance, African countries and India (Rajasthan) have begun jojoba farming in recent times, this is likely to reduce the gap between demand and supply of jojoba seeds in coming years, which will eventually propel jojoba oil demand over the projected timeframe.