Argan Oil Market
Argan Oil Market By Form (Absolute, Concentrate, Blends), By Grade (Culinary Grade, Cosmetic Grade), By Nature (Organic, Conventional), By Packaging Format, By Application, By Region - Global Market Insights 2021 to 2031
Argan Oil Market Outlook
The global argan oil market is expected to surge at a CAGR of around 7% by value over the 2021 to 2031 assessment period. Cosmetic grade argan oil will hold bulk of the market share at around 80% through 2031.
Constantly increasing demand for premium beauty products is leading to overall high consumption of argan oil on a global level. Shifting preference of consumers from artificial chemical products to organic herbal products is also fueling demand for argan oil across regions. From the last decade, penetration of argan oil has drastically increased, and the emergence of argan oil-incorporated cosmetics and skin care products has shaped market expansion.
In a revised report by Fact.MR, insights regarding key factors fueling market growth have been offered from 2021 to 2031. The market has been tracked in 20+ high-growth countries, where the region of Europe tops the pecking order. The report also details what impact the COVID-19 pandemic is having on the global argan oil market across the world. This edition brings readers up-to-date with key market developments, providing analysis on how manufacturers and other stakeholders are reacting to change. Key industry metrics have been captured, and their impact on argan oil sales has been analyzed.
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Historical Performance Vs Future Market Outlook
Historical demand for argan oil has reported steady growth from 2016 to 2020 at a CAGR of 4.8%, along with visible growth in the overall market valuation from around US$ 130 Mn in 2016 to the US$ 147.9 Mn in 2020. According to extensive analysis by the team of Fact.MR having expertise in the food & beverage segment, demand for argan oil will remain on the higher side during the forecast period.
By 2031, the market is expected to witness a leap in CAGR at the rate of close to 7%. Prominent players in the market are extensively investing and deploying their resources with a vision to increase their production of cosmetic grade argan oil and strengthen their sales and distribution channels.
An Adaptive Approach to Modern-day Research Needs
What are the key challenges for argan oil manufacturers?
Some of the primary challenges that are being faced by market players and may adversely affect this space are:-
- The market is highly fragmented with a vast number of players indulging in adulteration and inappropriate labelling, which is is a major concern restricting growth.
- Multiple cases of adulteration have been seen by local manufacturers. Sunflower oil is majorly used for adulteration purposes because of its easy availability and relatively low cost.
- Although certification and standardization authorities are becoming strict in some prominent regions, the adverse effects of adulteration will remain over the forecast period.
- Traditional processing techniques still exist and are majorly utilized. Extraction of argan oil is done by intensive human effort. Usage of mechanical presses is adopted by prominent players for the extraction of argan oil. Pre-processing still relies on traditional intensive human efforts, resulting in less efficiency and productivity.
Which country is the prime producer of argan oil?
According to the production prospects of argon oil, Morocco has been one of the highest producers over the decades. Demand for argan oil has increased massively in the past five years. Morocco produces more than 4,400 tonnes of argan oil annually, of which, 70% is exported.
Why is demand for argan oil surging in Isreal?
Israel is strategically filling the gap between demand and supply. Morocco is only capable of producing 4,400 tonnes annually, while global demand is around 20,000 tonnes per year. Israel has exponentially expanded its agricultural potential and is capable of producing argan more than other countries.
Which grade of argan oil accounts for the highest demand?
Cosmetic grade of argan oil accounts for the highest demand, attributed to wide applicability. Argan oil is primarily utilized to nourish the skin prevent acne, eczema, healing scar tissues, dry skin, psoriasis, and many more. It is enriched with vitamin A, vitamin E, and essential fatty acids.
Who are the prominent end users of argan oil?
Argan oil is being utilized by both, cosmetic and edible ingredient manufacturers, in which, the edible segment accounts for around 20% and the cosmetic segment has 80% of the global market share. Argan oil has wide prospects in terms of application with a number of end users. Some of the prominent end users and applications are:-
- The cosmetics industry has vast usage of argan oil for premium cosmetics meant for skincare. Argon oil is enriched with some vital vitamins such as vitamin A and vitamin E, along with skincare-oriented properties.
- Argon oil is primarily used to cure skincare issues such as acne, eczema, scar tissues, dry skin, and psoriasis.
- Antioxidant and fatty acids properties of argon oil are good for nourishment of the hair, which keeps it moisturized and protected from damage due to free radicals. This results in less breakage and shedding.
- Argan oil is widely utilized in the food & beverage industry.
- Argan oil is rich in antioxidants, nutrients, and inflammatory components that are beneficial for treating chronic illnesses.
How is the cosmetics industry shaping growth of the argan oil market?
Argan oil has deep penetration in the cosmetics and skincare industry due to shifting preference of consumers from chemical-enriched products to organic and herbal substitutes. This is the most prominent reason propelling overall market growth. Argan oil is primarily used for nourishment of the skin, enriched with vitamin A, vitamin E, fatty acids, and anti-aging property. It helps cure some dermatological issues such as acne, eczema, scar tissues, dry skin, psoriasis, and many more.
Prominent players in the skincare and cosmetics market are taking initiatives and performing research & development on new products incorporated with argan oil. This a potential driving factor for the sales of argan oil, with demand expected to rise even faster over the coming years.
L’Oréal and Unilever have exported a major chunk of argon oil produced in Morocco in the past years for the manufacturing of different hair care products.
How has COVID-19 impacted sales of argan oil?
With the onset of novel coronavirus, almost every industry has faced a decline in their revenue bars. Lockdowns were imposed almost all across the globe to flatten the curve of daily increase in cases. Because of social-distancing measures, production was shut, resulting in adverse effects on the global economy. During this time, the supply chain was massively disrupted and hampered market growth.
The market was in a stagnant phase during the first two quarters of 2020. Global demand also reduced massively, resulting in a major fall in revenue.
However, it is expected that the market will regain its normal growth trajectory in the first quarter of 2021.
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Beauty Quest Group is one of the biggest players in the market with annual revenue of US$ 130 Mn. It is followed by the Inspired Beauty Brands, accounting for US$ 34 Mn of annual revenue.
Fact.MR provides detailed profiles of leading players in the global market who are primarily involved in the manufacturing of argan oil, with essential data points considering market prospects. Profiling of companies includes some key points such as recent developments, SWOT analysis, and key strategies that companies are adopting in the market.
Historical Data Available for
US$ Mn for Value & Tons for Volume
Key Regions Covered
North America, Latin America, Europe, and the Middle East & Africa
Key Countries Covered
Key Segments Covered
Key Companies Profiled
Key Market Segments
- Culinary Grade
- Cosmetic Grade
- Bulk (B2B) Packaging
- B2C Packaging Format
- Cosmetic Products
- Edible Products
- North America
- Latin America
- Asia Pacific
- Middle East & Africa
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Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
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Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
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