Jul 29, 2017
6 Key Takeaways from Fact.MR’s Forecast on Citronella Oil Market
by Team Fact.MR
According to the recent report published by Fact.MR, the global market for citronella oil is expected to grow at a sluggish pace, procuring just over US$ 70 Mn value by the end of 2022. Lack of awareness regarding the benefits of citronella oil in aromatherapy is expected to curb the growth of global market. The market is also expected to witness restraints due to rising adoption of remedies substituting aromatherapy, which is lowering the demand for essential oils such as citronella oil.
Key Insights from the Report include:
- In 2017, over two-fifth of global citronella oil market value will be accounted by sales of citronella oil in absolute form. On-shelf availability of citronella oil in absolute form is also expected to gain traction owing to relatively easier production compared to concentrates of citronella oil.
- Therapeutics, aromatherapy and production of food & beverage products are expected to remain the three most prominent applications of citronella oil. Through 2022, these three applications will account for more than half of the global citronella oil market value.
- In 2014, the European Commission announced the approval of herbicide made from citronella oil, specifying a few amends that mitigate potential risks to workers, residents, ground water and non-target organisms. The report projects that favorable government-supported sanctions as such will boost the growth of citronella oil market in Europe. In 2017 and beyond, Europe is expected to remain the largest market for citronella oil, expanding at a steady CAGR of 4.9%.
- The demand for citronella oil in North America is expected to remain low. Consumers in the US and Canada are less likely to be aware of benefits of essential oils such as citronella oil in aromatherapies. Higher inclination of consumers in North America towards instant therapeutic remedies is impeding the preference to citronella oil-based aromatherapy. Over the forecast period, the citronella oil market in North America is expected to reflect the lowest CAGR, becoming the least attractive region for market players.
- The report predicts that nearly eight out of ten citronella oil products sold in the global market will be sourced naturally. The demand for organically sourced citronella oil will remain relatively low, creating an incremental opportunity of just over US$ 2 Mn between 2017 and 2022.
- Modern trade outlets and franchise outlets will be observed as the two largest channels for distribution of citronella oil in the global market. However, revenues individually amassed from global sales of citronella oil through modern trade outlets and franchise outlets are expected to grow moderately, reflecting around 4% CAGRs throughout the forecast period.
IL Health and Beauty Natural Oils Co., Inc., Aromaaz International, Green Fields Oil Factory, Aksuvital, Plant Therapy Essential Oils, Linonel Hitchen Essential Oils Ltd., Shaanxi Guanjie Technology Co., Young Living Essential Oils LC, Synthite Industries Ltd., Bio Extracts private limited, D?TERRA International, Greenleaf Extractions Pvt Ltd, and Natures Natural India are profiled in the report as key players that will remain active in the expansion of global citronella oil market through 2022.