Eucalyptus Oil Market

Eucalyptus Oil Market Size and Share Forecast Outlook 2025 to 2035

The global eucalyptus oil market is projected to increase from USD 370 million in 2025 to USD 608.5 million by 2035, with a CAGR of 5.1% during the forecast period. Growth in the eucalyptus oil market is fueled by its rising use in pharmaceuticals and aromatherapy for antimicrobial and anti-inflammatory benefits. Demand for natural ingredients in cosmetics drives innovation, while improved extraction methods and sustainable farming strengthen supply consistency.

Quick Stats of Eucalyptus Oil Market

• Eucalyptus Oil Market Size (2025): USD 370 million
• Projected Eucalyptus Oil Market Size (2035): USD 608.5 million
• Forecast CAGR of Eucalyptus Oil Market (2025 to 2035): 5.1%
• Leading Product Type Segment of Eucalyptus Oil Market: Pharmaceutical
• Leading Distribution Channel Segment of Eucalyptus Oil Market: B2B Industrial
• Key Growth Regions of Eucalyptus Oil Market: Brazil, Australia, China, India
• Prominent Players in the Eucalyptus Oil Market: Young Living, doTERRA, Plant Therapy, NOW Foods, NHR Organic Oils, Others.

Metric	Value
Industry Size (2025E)	USD 370 million
Industry Size (2035F)	USD 608.5 million
CAGR (2025-2035)	5.1%

The global Eucalyptus Oil Market is projected to grow from USD 370 million in 2025 to USD 608.5 million by 2035, at a CAGR of 5.1%. In 2025 and 2026, growth is shaped by steady market entry activities and early product evaluations, setting a strong foundation for wider adoption.

Global eucalyptus plantations now cover approximately 25 million hectares, making Eucalyptus the most commonly planted forest genus worldwide. Brazil is the largest in terms of hectares of eucalyptus under cultivation, totalling approximately 7.6 million hectares, with close to 7 percent of the industrial GDP, and enjoying the advantage of fast-growing and versatile species suitable for manufacturing timber and biomass.

In Asia, especially India, a substantial plantation area exists. India alone houses roughly 4.82 million hectares of Eucalyptus species, mostly for non-industrial uses. Eucalyptus leaf yield for essential oil varies by species and extraction method. Hydro-distillation is reported to offer up to 1.32%, far higher than the performance of supercritical fluid techniques, which range at about 0.52%. Comparison of species shows yields between 1.2% and 3.0, E. cinerea and E. sideroxylon giving higher yields (~3%) whilst the rest, such as E. astrengens, give nearer yields of 1.2%.

Eucalyptus oil can be scaled up in high yields in plantations to serve pharmaceuticals, aromatherapy, disinfectants, and flavors, as indicated by the diverse phytochemical composition of oils in species like E. globulus and E. citriodora. Antimicrobial, anti-inflammatory, and aromatic benefits produced by key compounds such as eucalyptol (1, 8-cineole), 8-pinene, citronellal, and others contribute to the industrial and consumer demand.

There are opportunities and risks in climate and environmental dynamics. Although the eucalyptus plantations do better when under better management, there are future challenges, such as an increase in heat and water stress, especially in areas where climate variations pose a risk to the viability and distribution of trees, such as in Brazil. Alternating between species selection and climate-sensitive zoning is necessary to maintain long-term provision of essential oils.

Key Eucalyptus Oil Market Dynamics

The eucalyptus oil market is a growing business since the industries are using the oil in pharmaceuticals, personal care, and aromatherapy. The rise in consumer preference for plant-based products and natural ones is a positive stimulus that makes manufacturers incorporate eucalyptus oil in cosmetics, disinfectants, and wellness products. It has been further boosted by increasing health and hygiene awareness following the pandemic.

The market is struggling with the issue of providing constant oil production because of climate change, water scarcity, and reliance on a particular species of eucalyptus. The costs of production can be raised by fluctuating supply of the raw materials and the necessity to have sustainable plantation practices. Quality and safety standards imposed by the regulatory authorities also require consistent adherence, which defines the rate at which the broader market is penetrated.

Rising Demand for Natural and Plant-Based Products

The trend of increasing natural and plant-based products is influencing the market of eucalyptus oil, where the demand is shifting to non-synthetic chemicals. Antimicrobial and anti-inflammatory compounds may also be used in herbal medicines and wellness products, which is why essential oils such as eucalyptus are popular. This tendency is consistent with the fact that the world tends to choose clean-label and environmentally friendly versions.

Eucalyptus oil is now becoming popular in skincare, oral hygiene, and haircare sectors in personal care because it is a good cleaner and soothes the skin. The adoption of sustainable and chemical-free formulations is further encouraged by governments that advance the same. The trend is an indication of a change in lifestyle in which plant foods are expected to be safer and eco-friendly.

Expanding Applications in Pharmaceuticals, Cosmetics, and Aromatherapy

The oil of Eucalyptus is also experiencing increased usage in pharmaceutical fields through its natural components, including cineole, in cough syrup, inhalation, and the use of this as a topical analgesic. Its developed anti-bacterial and anti-inflammatory properties have made it an effective, reliable ingredient in the treatment of respiratory and analgesic conditions. This increases its usage as a natural alternative to the synthetic formula that is relied on.

Eucalyptus oil is applied to skin, hair, and tooth cleanser in cosmetics and aromatherapy. It is versatile in its wellness solutions as it is used in aromatherapy to relieve stress, enhance concentration, and purify the air. Such a variety of applications supports the need in the healthcare, beauty, and lifestyle industries.

Growing Consumer Focus on Health, Hygiene, and Wellness

The eucalyptus oil market is being fueled by increasing consumer awareness of health, hygiene, and wellness in general. There is a growing pressure among people to use natural ingredients to enhance immunity and respiratory health, as well as personal care regimen, making eucalyptus oil an ideal home remedy and over-the-counter wellness product.

The pandemic also increased the value of hygiene and preventive measures and increased the demand for products based on eucalyptus oil as antimicrobials and disinfectants. Its application in diffusers, inhalants, and topical preparations is consistent with the emerging trend in lifestyles where consumers are incorporating wellness in their daily routines, which will support long-term market expansion in the various consumer categories.

Climate Variability and Water Stress Affecting Yield

The market also faces water stress and climate variability, which are major problematic issues for the eucalyptus oil market. Eucalyptus trees need a certain climatic range and enough water supply to grow in optimal conditions, and alterations in precipitation patterns or sustained droughts may decrease the quality of leaves and the content of oils.

Areas that are highly reliant on natural rainfall experience erratic production cycles that may interfere with the supply and escalate the cost to the manufacturer. Climate change requires adaptation through the selection of climate-resistant species and management of irrigation so that the output remains constant, and these changes require investment and planning, restricting large-scale, low-cost production.

High Production Costs Linked to Sustainable Plantation Practices

There is a limitation to the growth of the market due to the high production costs of sustainable eucalyptus plantations. The introduction of environmentally friendly farming practices like controlled irrigation, organic manure, and certified harvesting makes the operations costly than the conventional farming practices.

Manufacturers are forced to meet the environmental standards and remain profitable, as sustainable solutions can sometimes demand extra workforce, technology, and controls. Such increased prices may constrain uptake by smaller manufacturers and influence the price in competitive markets, decelerating the expansion of markets overall in response to increased natural and ethically sourced eucalyptus oil demand.

Stringent Regulatory Standards for Quality and Safety Compliance

The eucalyptus oil market is regulated by strict quality and safety standards. Health authorities and governments mandate compliance with purity, composition, and labeling norms to ensure consumer safety, particularly in pharmaceutical and personal care applications. In the United States, eucalyptus oil is listed in the FDA’s OTC Active Ingredients Monograph under Section 21 CFR 310.545, which governs its use in lozenges and mouthwash. This regulation ensures that products meet strict safety, labeling, and composition standards before reaching consumers.

Adhering to these regulations requires rigorous testing, documentation, and certification, which can extend production timelines and raise costs. Small and medium producers often struggle to meet these requirements consistently, limiting market participation and slowing broader adoption despite growing consumer demand for natural and safe products.

Analyzing the Eucalyptus Oil Market by Key Regions

The Eucalyptus Oil Market in North America is subject to increased consumer favor of natural wellness and aromatherapy products. It is getting more widespread in personal care and healthcare in the U.S. and Canada, aided by government programs encouraging the use of plant-based ingredients and clean-label formulations.

In Europe, the market is growing because of stringent controls on synthetic chemicals in cosmetics and household items. The key consumers are countries such as Germany, France, and the U.K., which use eucalyptus oil in drugs, aromatherapy, and natural remedies, and sustainable sourcing is promoted throughout the region.

Eucalyptus plantations are rampant in the Asia-Pacific, where India, China, and Australia are experiencing rapid growth. The region enjoys low production costs, good weather conditions, and the increasing industries in pharmaceuticals and cosmetics. The increased knowledge of natural health solutions is also an advantage to the market.

Latin America and the Middle East & Africa are upcoming markets, and Brazil, South Africa, and the UAE are the countries with rising adoption of personal care, medicinal, and cleaning products. Local cultivation and increased export of products to international markets favor expansion.

Country-Wise Outlook

Country	CAGR (2025-35)
Brazil	6.4%
Australia	6.0%
India	5.5%
China	4.4%

Brazil Strengthens Eucalyptus Oil Market through Large-Scale Plantations and Export Opportunities

The largest global producer of eucalyptus is Brazil, which comprises approximately 7.6 million hectares of plantations, with about 30 percent being the worldwide plantations. This large-scale planting sustains a flourishing eucalyptus oil market, which is motivated by high demand in pharmaceutical, cosmetics, and aromatherapy markets.

The favorable climate for eucalyptus cultivation in Brazil, strong processing infrastructure, and high domestic and export demand for natural essential oils are key growth drivers. Government support, such as Brazil’s Bioinputs Law (Law No. 15,070/24), encourages sustainable agriculture and bioinput production. Rising consumer preference for organic and eco-friendly products further boosts market expansion.

Brazil trends indicate that there is an upward trend in Brazil in terms of investment in modern extraction techniques that enhance oil yield and quality to be used in pharmaceutical and cosmetic applications. Also, the introduction of eucalyptus oil into wellness, aromatherapy, and personal care products demonstrates the increase in health-conscious consumers in the country.

The market opportunities are to scale up the production of organic eucalyptus oil and to produce some value-added products like biofuels made out of eucalyptus. The growth is projected to continue as the export to foreign markets and the exploitation of natural resources available in Brazil continue in the years ahead.

• Brazil’s climate and large plantations make it the top global eucalyptus oil producer.
• Government support and consumer preference boost growth in natural products.
• Modern extraction and value-added products offer strong expansion opportunities.

Australia Expands Eucalyptus Oil Market with Emphasis on Quality Standards and Sustainable Production

Australia is one of the largest producers of eucalyptus oil, which is based on native flora and good climatic conditions. The industry is defined by a vast diversity of species of eucalyptus, which produce distinct oil profiles and are used in different applications in pharmaceuticals, cosmetics, and aromatherapy.

The Australian market for eucalyptus oil is driven by the international trend of natural and organic products. Consumers are increasingly attracted to essential oils because of their medicinal and environmental merits. Besides, the high-quality and sustainable agriculture practices in Australia contribute to the popularity of its eucalyptus oil in the foreign market.

The use of innovations in cultivation and extraction processes can be noted as one of the trends in the industry. Research into optimizing planting densities and harvesting techniques has led to improved oil yields and quality. As an example, one report mentioned that certain planting rates may have a considerable influence on biomass and oil yield, which would provide valuable insights for more effective application of farming methods.

Australia enforces strict standards for eucalyptus oil production and export to ensure purity and quality for both domestic and global markets. “In Essence Eucalyptus Pure Essential Oil” (ARTG ID 97405) is registered as a medicine under the ARTG, requiring compliance with TGA safety, labeling, and quality norms. This regulation helps maintain Australia’s reputation as a trusted supplier of high-quality essential oils.

• There is a wide variety of essential oils produced in Australia due to the diverse species of eucalyptus, which suit different market segments.
• The development of cultivation and extraction processes is resulting in more productive and sustainable production.
• Australian eucalyptus oil is of high quality and purity, which is guaranteed by strict regulation standards, which strengthens the image of the product in the world market.

India Strengthens Eucalyptus Oil Market Through Rising Natural Product Demand and Government Initiatives

The Indian market of eucalyptus oil is expanding tremendously in the wake of increased demand for natural and organic products. The Indian essential oil sector is steadily growing with growing demand for natural and plant-based products in the pharmaceutical sector, cosmetics, and wellness products.

With government help in programs such as the National Medicinal Plants Board (NMPB) under the Ministry of AYUSH, sustainable plant cultivation and quality are encouraged in medicinal plants, including eucalyptus. These policies are meant to improve production and export prospects within the country, and this is in line with international trends that prefer natural products.

With the aid of technological development in the extraction process, like steam distillation, oil yield and quality have been enhanced, and the Indian eucalyptus oil has become more competitive on the world market. Also, the emergence of wellness trends and the popularity of aromatherapy are broadening the market for eucalyptus oil products.

• Sustainable cultivation and standards of quality of eucalyptus are facilitated through government programs such as NMPB.
• The development of technology increases oil production and quality, and increases the competitiveness of the market.
• The increasing trend of wellness and the rise in the popularity of aromatherapy products increase the customer reach of the eucalyptus oil products.

China Strengthens Global Eucalyptus Oil Leadership Through Sustainable Forestry and Industrial Initiatives

China continues to dominate the international market of eucalyptus oils, the largest producer of the product in the world, of about 75 percent. In March of 2025, China exported 456,015 kg of essential oil of eucalyptus; this is contrasted with the quantity of the product that was exported the prior month, 666,650 kg.

The Chinese government has established measures to advance sustainable forestry activities and has increased the forest cover. The Industrial Base Development Program promotes timber planting (yields and fast growth); subsidies and discounted loans by the state banks are used. These are initiatives that are supposed to increase domestic production and export potential, as it has been among global trends that support natural products.

In China, eucalyptus oil is used in different fields, such as traditional Chinese medicine (TCM), day-to-day chemicals, and spices. Its diverse applications in pharmaceutical, cosmetic, and aromatherapy are due to the versatility and therapeutic nature of the oil. The demand is growing steadily because consumers are more favoring natural and plant-based solutions to be used in health, wellness, and personal care demands.

• The large-scale plantations of eucalyptus and the high level of distillation in China justify its position as the largest producer of the product in the world.
• The government regulations, including the Industrial Base Development Program, encourage sustainable farming of eucalyptus and increase the opportunities to export.
• The broad array of uses of Eucalyptus oil in TCM, in daily chemicals, and spices is a reason why the market value and demand are increasing.

Category-wise Analysis

B2B Industrial to Exhibit Leading by Distribution Channel

The pharmaceutical segment dominates the eucalyptus oil market, with it taking 31.45% of the total consumption. It grows because of the antimicrobial, anti-inflammatory, and respiratory properties of the oil that make it an important component of cough syrups, inhalants, and ointments.

The growing popularity of respiratory diseases and the growing need for natural remedies favor market growth. Pharmaceutical firms are striving to get high-quality eucalyptus oil sourcing to guarantee efficacy and health standards. Its use is further increased with the integration into over-the-counter medicines and therapeutic formulations.

• Eucalyptus oil is widely used in respiratory and topical pharmaceutical products.
• Rising preference for natural and plant-based medicinal ingredients fuels demand.
• Pharmaceutical companies focus on quality sourcing and regulatory compliance to enhance market presence.

Supermarkets/Specialty to Exhibit Rising Presence by Distribution Channel

The industrial B2B segment with a share of 29.5% prevails in the distribution of eucalyptus oil. This is encouraged by the fact that it finds extensive uses in pharmaceuticals, personal care, cleaning, and food flavoring industries. Firms like to engage in volume buying directly with the manufacturers to maintain quality consistency, cost-effectiveness, and reliability in the supply.

The segment has the advantage of long-term contracts and alliances between industrial buyers and oil producers. Besides, increasing the use of plant-based and natural ingredients in industrial formulations also increases adoption. Innovations in extraction and processing techniques also enhance product consistency for industrial applications.

• Bulk procurement ensures cost efficiency and consistent quality.
• Industrial demand spans pharmaceuticals, cosmetics, and food sectors.
• Long-term contracts strengthen supplier-buyer relationships and market stability.

Competitive Analysis

The eucalyptus oil market is getting more competitive as it includes the following important players: Young Living, doTERRA, Plant Therapy, NOW Foods Inc., and NHR Organic Oils. The companies are interested in strategic partnerships and acquisitions and in ongoing R&D to increase the range of products and enhance extraction and purification processes.

The increase in demand for natural and plant-based products by consumers and the proliferation of aromatherapy and pharmaceutical usage have heightened competition in the market.

Creativity in the formulation of products and in the development of applications offers a competitive advantage. Some of the competitive factors used by companies are high-purity oils, therapeutic-use blends, and certification, including organic, ISO, and GMP. Companies that invest in environmentally friendly and traceable sourcing of eucalyptus leaves are gaining a dominant position in the health and environment-conscious consumer end markets.

Important differentiators are distribution and reach around the world. Larger market shares can be taken by players that have broad B2B and B2C networks, such as online media, pharmacies, and specialty stores. Collaborations with global distributors and infiltration in the new markets offer great expansion opportunities.

Competitiveness is determined by marketing and brand recognition. Businesses that take advantage of educational campaigns, wellness initiatives, and partnerships with healthcare or cosmetic companies grow consumer confidence and their loyalty. Indeed, those who combine new high-tech extraction methods with regularity in the quality level remain at the top of the shifting landscape of the eucalyptus oil market.

Key Players in the Market

• Young Living
• doTERRA
• Plant Therapy
• NOW Foods
• NHR Organic Oils
• Avtar Oils
• Kancor Ingredients
• Plant Lipids
• Eden Botanicals
• S. H. Kelkar and Company

Recent Developments

• In January 2023, Yunnan Summit Biotechnology Co., Ltd. successfully passed the production record of eucalyptus oil traditional Chinese medicine, marking a significant milestone in the company's development.

Segmentation of Eucalyptus Oil Market

• By Product Type :

  • Pharmaceutical
  • Aromatherapy
  • Food & Beverages
  • Others

• By Distribution Channel :

  • B2B Industrial
  • Supermarkets/Specialty
  • Pharmacies/Drugstores
  • Online Retail
  • Others

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa