The global citronella oil market size surpassed USD 130.12 million in 2023 and is projected to crosd around USD 222.69 million by 2033, growing at a CAGR of 5.52% from 2024 to 2033.
Key Points
- Asia Pacific dominated the global market with the major market share of 35% in 2023.
- North America is observed to witness a significant rate of growth in the upcoming period.
- By product type, the java citronella oil segment has held the largest market share of 57% in 2023.
- By product type, the Ceylon citronella oil segment is the fastest growing during the forecast period.
- By grade type, the food grade segment dominated the market with the biggest market share of 49% in 2023.
- By grade type, the aromatherapy segment is observed to be the fastest-growing during the forecast period.
- By application type, the perfume segment is expected to grow at the fastest rate during the forecast period.
The citronella oil market is witnessing steady growth driven by increasing demand for natural insect repellents and aromatherapy products. Citronella oil, derived from various species of Cymbopogon grass, is known for its insect-repellent properties and pleasant citrus aroma. It finds extensive application in the production of mosquito repellents, candles, soaps, and cosmetics. The market is influenced by consumer preferences shifting towards natural and eco-friendly products, particularly in the personal care and household sectors.
Growth Factors
Several factors contribute to the growth of the citronella oil market. Rising awareness about the harmful effects of chemical-based insect repellents and the growing preference for natural alternatives have boosted demand for citronella oil. Additionally, the expanding applications of citronella oil in aromatherapy, spa products, and pharmaceuticals due to its relaxing and stress-relieving properties are driving market growth. Furthermore, the increasing use of citronella oil in food and beverage products as a flavoring agent is opening new avenues for market expansion.
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Region Insights
The citronella oil market is globally distributed, with key production hubs in regions conducive to growing Cymbopogon grass varieties. Southeast Asia, particularly Indonesia, China, Vietnam, and Sri Lanka, are major producers and exporters of citronella oil. These regions benefit from favorable climate conditions and extensive cultivation of citronella grass. North America and Europe are significant consumers of citronella oil, driven by the demand for natural insect repellents and essential oils in personal care and home fragrance products.
Citronella Oil Market Scope
Report Coverage | Details |
Growth Rate from 2024 to 2033 | CAGR of 5.52% |
Citronella Oil Market Size in 2023 | USD 130.12 Million |
Citronella Oil Market Size in 2024 | USD 137.30 Million |
Citronella Oil Market Size by 2033 | USD 222.69 Million |
Largest Market | Asia Pacific |
Base Year | 2023 |
Forecast Period | 2024 to 2033 |
Segments Covered | By Product Type, By Grade Type, and By Application Type |
Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Citronella Oil Market Dynamics
Drivers
Several drivers propel the growth of the citronella oil market. Increasing awareness about the adverse effects of synthetic chemicals on health and the environment is boosting demand for natural alternatives like citronella oil. The rise in outdoor recreational activities and travel to tropical regions also fuels the demand for insect repellents containing citronella oil. Moreover, the growing trend of incorporating natural ingredients in cosmetics and personal care products further drives market growth.
Opportunities
The citronella oil market presents promising opportunities for manufacturers and suppliers. Diversifying product offerings to include value-added derivatives such as citronella-based candles, diffusers, and organic skincare products can capitalize on the rising demand for natural and eco-friendly consumer goods. Expanding distribution networks into emerging markets with growing awareness about natural wellness products creates avenues for market expansion. Additionally, ongoing research into new applications of citronella oil in pharmaceuticals and food products presents untapped opportunities for industry players.
Challenges
Despite its promising growth trajectory, the citronella oil market faces certain challenges. Fluctuations in raw material prices due to weather conditions and agricultural factors can affect production costs and supply chain stability. Quality control and ensuring consistent product standards pose challenges, especially with variations in citronella oil sourced from different species of Cymbopogon grass. Moreover, regulatory constraints related to labeling, safety, and import/export regulations can impact market dynamics, requiring compliance measures to navigate effectively.
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Citronella Oil Market Recent Developments
- In April 2022, the first outdoor candle collection was launched by Yankee Candle. Citronella oil and essential oils are used in these candles due to their environmental-relaxing properties.
- In July 2023, the non-alcoholic hand sanitizer gel from citronella essential oil was developed by the PKM D3 pharmacy.
- In February 2024, an initiative to protect lives from diseases that are due to mosquitoes, Bior Guard Mos Block Lotion, ran on sale in Singapore and expanded by Kao. This lotion is made from citronella oil and can be used anytime, anywhere. It protects from mosquitoes that have mosquito-repellent properties.
Citronella Oil Market Companies
- Agro Products and Agencies
- Allied Oil LLC
- Aromatic and Allied Chemicals
- Augustus Oils Ltd
- Bhagat Aromatics Limited
- Bhoomi Natural Products and Exports Pvt Ltd.
- Bontoux S.A.S
- Citrus and Allied Essences Ltd
- Greenf Fields Africa
- India Essential Oils
- Lamberti Spa
- Lakshmi Life Sciences
- Merk KGaA
- Mountain Rose Inc.
- Mokh Lifestyle Products
- Reho Natural Ingredients
- Sydney Essential Oil CO.
- Symrise AG
- Van Aroma
- Vigon International
Segments Covered in the Report
By Product Type
- JAVA Citronella Oil
- Ceylon Citronella Oil
By Grade Type
- Food Grade
- Aromatherapy
- Others
By Application Type
- Perfume
- Food
- Pharmaceutical
- Detergent
- Cosmetic
- Others
By Geography
- North America
- Asia Pacific
- Europe
- Latin America
- Middle East & Africa
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