Argan Oil Market

Argan Oil Market Outlook (2022-2032)

Worldwide sales of argan oil are estimated to increase at a noticeable CAGR of 9.6% from 2022 to 2032. The current valuation of the global argan oil market is US$ 320 million, which is projected to reach US$ 800 million by the end of 2032.

Demand for cosmetic-grade argan oil will remain high over the coming years and account for over 80% market share.

Report Attributes	Details
Argan Oil Market Size (2022)	US$ 320 Million
Estimated Market Value (2032)	US$ 800 Million
Growth Rate of Global Market (2022-2032)	9.6% CAGR
Market Share of Cosmetic Grade Argan Oil (2032)	80.1%
Key Companies Profiled	Beauty Quest Group Inspired Beauty Brands Sivan SM Earthly Body Cooperative Toudarte

Argan Oil Demand Analysis (2016-2021) Vs. Market Predictions (2022-2032)

In recent years, there has been a noticeable increase in the demand for many premium beauty products that are infused with argan oil. A rapid shift in consumers’ preference from artificial chemical products to organic products is likely to bolster demand for argon oil.

In the past decade, argan oil penetrated the personal care industry rapidly; the emergence of skin care products and cosmetics with argan oil is anticipated to shape the growth opportunities in the market over the decade.

Argan oil is generally extracted from the fruits of argan tree kernels, either through mechanical or manual processes. Earlier, the oil used to be obtained from a manual process; however, with technological advancements, market players can ensure quality production of the oil in lesser time.

There is an increased preference for argan oil, majorly across the cosmetics and personal care industry due to its advanced properties; for instance, high levels of anti-inflammatory, antioxidants, and other noticeable benefits for haircare and skincare. Many grooming products for men, such as waxes, skin creams, hair and beard oils, and shower gels, come with argan and some other types of essential oils.

According to analysts from Fact.MR team, the food & beverage market is expected to stimulate the most demand for argan oil over the coming years. Demand for argan oil is anticipated to progress at a significant CAGR of 9.6% from 2022 to 2032.

Key players serving in the market are investing a noticeable amount and deploying resources to increase their production capacities of argan oil. They are also paying attention to strengthening their sales as well as distribution channels.

How are the Growth Opportunities in the Argan oil Market Evolving?

“Significant Demand for Argan Oil from Cosmetics & Personal Care Industry”

The expansion opportunities for argan oil are explained by increasing product demand from various end-use industries; for instance, medical, cosmetics, and food & beverages sectors. Among these industries, the cosmetics and personal care sector is estimated to emerge as the most popular segment driving the sales prospects of argan oil as a cosmetic oil.

In the past few years, there has been a noticeable increase in the use of men’s care products. Waxes, hair & beard oils, and shower gels include essential and argan oils. Many potentially dangerous compounds are completely absent from organic argan oil, which further drives the sales opportunities in the market.

Consumers, in recent years, have become more conscious about their looks and are investing a handsome amount in healthy skin and youthful-looking. This trend is likely to contribute to the demand for personal care and natural cosmetics items. Even items from the scented oil market have also been experiencing a noteworthy demand in recent years.

Due to its anti-aging effects, argan oil is becoming popular in different cosmetic formulations; for example, face oils, lipsticks, lip balms, serums, and so on. Cosmetic product lines that are based on argan oil are produced by some popular manufacturers such as Sephora, Lakmé, and L'Oréal. Further, the increasing popularity of organic and natural ingredients of argan oil is likely to boost the demand opportunities in the industry.

“Increasing Consumer Awareness about Benefits of Argan Oil”

Growing demand for argan oil is explained by its cutting-edge qualities, which include anti-inflammatory content and antioxidant. In addition, there are various noteworthy advantages of this oil for haircare and skincare. Based on these advantages, the global market is predicted to expand at a noteworthy pace in the years ahead.

Rising consumer awareness related to the various benefits of these products compared to synthetic equivalents is expected to contribute to market growth impetuses.

“Growing Demand for Argan Oil from Food Industry”

There is increased demand for argan oil in snacks, sweets, frozen desserts, and confectionaries to add flavor to these food items. In recent years, people are giving preference to different flavored items.

Growing use of argan oil as a cooking oil in many food items is projected to contribute to its sales opportunities over the coming years.

Which Factors Can Restrict Sales Opportunities for Argan Oil Suppliers?

“Adulteration and Inappropriate Labeling to Limit Market Growth Opportunities”

The market for argan oil is highly fragmented. We can see the presence of many players that are indulged in inappropriate labeling and adulteration. It is likely to serve as one of the noteworthy concerns that can restrict the growth avenues in the global market.

Local manufacturers have encountered multiple cases of adulteration. The products from the sunflower oil market are used commonly for adulteration due to their relatively low cost and easy availability.

Although many certifications and standardization authorities have been becoming strict in certain regions, the adverse effects of adulteration activities are likely to remain in the years ahead.

“Use of Traditional Processing Techniques to Result in Less Productivity of Argan Oil”

Some conventional techniques are still used by manufacturers to produce argan oil. Extraction of argan oil is completed with intensive human efforts. There is a limited number of industry players who are involved in the mechanical processes to extract argan oil.

At present, pre-processing still depends on traditional intensive human efforts that further result in less productivity and efficiency. Thus, these factors are predicted to curtail expansion opportunities in the market.

Which Region Holds a High Share in the Global Argan Oil Market?

“Increased Consumer Inclination towards Beauty Products Creating Growth Opportunities in North America”

North America is projected to serve as the dominant region in the global market over the coming years. People in North America are expected to use beauty products at an increased rate.

Usage of argan oil for aromatherapy is estimated to improve the mind, body, and own personal spirit. Aromatherapy massages are popular among the regional population. This therapy is helpful to fight different infections and helps maintain a balance in the human body, thus propelling the demand for argan oil as a massage oil in the regional market.

Further, the Middle East & Africa region is prominent for the production of argan oil at a commercial scale.

Country-wise Insights

Which Country is a Key Producer of Argan Oil?

“Morocco a Prominent Supplier of Argan Oil”

As per the production prospects, Morocco is likely to lead in the global market owing to its key role in the manufacturing of argan oil over the decades. There has been massive demand for argan oil from the country in the past few years.

Morocco alone produces more than 4,450 tons of argan oil on an annual basis. Out of this, around 71% is exported to other countries.

Which Factors are Driving Growth Opportunities for Argan Oil Manufacturers in Israel?

“Expanded Production Potential in Agriculture Sector across Israel”

Israel is strategically taking efforts to match the difference between demand and supply for argan oil. The country is capable of producing 4,450 tons on an annual basis. On the other hand, demand for argan oil is around 20,000 tons per year.

Israel has expanded its potential in agriculture and can produce more argan as compared to other countries over the coming years.  

Category-wise Insights

Which Form of Argan Oil is Attracting Consumers’ Attention?

“Growing Use of Argan Oil Blends in Cosmetic Industry”

Based on form, the argan oil market is segmented into absolute, concentrate, and blends. Among these verticals, the blends are likely to experience increased demand in the coming years.

Argan oil is blended with essential and vegetable oils which are considered blended argan oil. This blended form is commonly used for home product cleaning, formulations, and food recipes.

Consumers from Moroccan are inclined to use products that are produced traditionally. Rising customer requirements for these blends across topical applications and increasing use of argan oil blends across the cosmetics sector are estimated to drive segment growth in the coming years.

Which Grade of Argan Oil Contributes Largely to Market Demand?  

“Wide Applicability of Cosmetic-Grade Argan Oil”

Based on grade, the argan oil market is bifurcated into cosmetic grade and culinary grade. Between these two, the cosmetic grade of argan oil is likely to account for the highest demand in the years ahead.

This oil is used primarily to nourish skin and prevent psoriasis, dry skin, acne, eczema, and healing scar tissues. It is enriched with essential fatty acids, vitamin E, and vitamin A.

Which Product Type is Leading the Argan Oil Industry?

“Immense Popularity of Organic Products Owing to their Purest Form”

According to nature, the argan oil market is divided into organic and conventional verticals. Organic is the purest form of argan oils and it is characterized by the use of various bio-based fertilizers, for instance, green manure and bone meal. This product is sold as a luxury product in the global market and gaining immense popularity.

The conventional type is rich in essential fatty acids and some other important nutrients. It is harvested from kernels of the argan tree and used to manufacture home cleaning products, food, aromatherapy, pharmaceuticals, and personal care & cosmetics products.

Which Packaging Format Holds a Significant Market Share?

“Growing Consumer Preference to Buy Directly from Businesses Creating Growth Avenues for B2C Channel”

By application format, the argan oil market is classified into bulk (B2B) packaging and B2C packaging format. Business to Consumer (B2C) is related to the practice of selling different goods directly to end users or consumers through retail outlets, for instance, door-to-door sales, internet marketplaces, specialized shops, department stores, and grocery stores. Consumers around the world are giving preference to this channel to get benefits and better knowledge about these products.

Competitive Landscape

Key manufacturers of argan oil are taking a lot of efforts to generate novel growth opportunities in the industry. Mergers & acquisitions, novel product launching, portfolio expansion, partnerships, collaborations, and others are adopted by these players. Some of the prominent market players are Beauty Quest Group, Inspired Beauty Brands, Sivan SM, Earthly Body, and Cooperative Toudarte.

For instance :

• Namaste Beauty, on May 03, 2022, launched a high-quality and cruelty-free vegan product collection for rejuvenating the skin, highlighting innate beauty, and replenishing the spirit of ancient India.

Key Market Segments

• By Form :

  • Absolute
  • Concentrate
  • Blends

• By Grade :

  • Culinary Grade 
  • Cosmetic Grade

• By Nature :

  • Organic
  • Conventional

• By Packaging Format :

  • Bulk (B2B) Packaging
  • B2C Packaging Format

• By Application :

  • Cosmetic Products 
  • Edible Products 

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific 
  • Middle East & Africa