Vetiver Oil Market is Predicted to Observe a Tremendous Growth, With a CAGR of 9.4% From 2020 To 2027: Grand View Research Inc.

 

The global vetiver oil market size is expected to reach USD 88.0 million by 2027, expanding at a revenue-based CAGR of 9.4%, according to a new report by Grand View Research, Inc. The market is expected to witness surging product demand owing to its increasing applications in pharmaceutical, food and beverage, and fragrance. The growing use of the product in the fragrance industry is expected to boost market growth over the forecast period. It also has widespread usage in varied fragrance products including perfumes, deodorants, cosmetics, lotions, soaps, and scented toiletries. R&D related to the synthesis of the molecules present in the product particularly is expected to provide a unique odor to this product and thereby increase its usage in the fragrance industry.

Vetiver oil has widespread usage in medical applications such as the treatment of gout, arthritis, muscle aches, cramps, and rheumatism, which is further expected to favorably impact market growth. Furthermore, this essential oil sedates nervous irritations, convulsions, and emotional outbursts such as epileptic, restlessness, and hysteric attacks. The product is also used to ease inflammation of the nervous as well as circulatory systems.

The increasing use of vetiver oil as a flavoring agent in the food and beverage segment including ice creams, milkshakes, and several other cool drinks is expected to favorably impact market growth over the forecast period. Furthermore, vetiver oil is also used in certain canned foods such as asparagus as well as peas, wherein the product is used to reinforce natural odor as well as taste.

The growing use of vetiver oil in medical applications is expected to fuel market growth over the forecast period. Vetiver oil offers benefits such as cooling and soothing effect that helps soothe all sorts of inflammation. It provides relief from inflammation in both circulatory and nervous systems and thus, is used for treating the irritation caused by dehydration and sunstroke. Vetiver oil helps patients suffering from muscular aches, arthritis, gout, and rheumatism.

The demand for vetiver oil is rising among fragrance manufacturers owing to its smoky and woody aroma. The chemical composition of the product and its solubility in alcohol is expected to improve its miscibility, thereby, making it a unique ingredient in perfumes. Vetiver oil is used to develop products such as lotions, cosmetics, perfumes, and deodorants. It is also used in making fragrant materials such as potpourri, which is a mixture of spices and dried flower petals kept in a jar for fragrance. Key players such as Guerlain, Ermenegildo Zegna, and Adolfo Dominguez produce vetiver fragrances, namely Haitian Vetiver by Zegna and Vetiver Bourbon by Miller Harris.

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Raw materials required for the production of vetiver oil and derived fragrances are highly susceptible to natural disasters, disease outbreaks, changing agricultural practices, and political upheaval. Vetiver cannot be synthesized artificially in laboratories and needs to be sourced from actual plant matter. In addition, stringent regulations related to farming coupled with the severe environmental impact of these operations have restricted farming activities and decreased the supply of raw material for vetiver oils production.

Further key findings from the report suggest:

• The vetiver oil market is anticipated to reach 748.4 tons by 2027 in terms of volume, at a volume-based CAGR of 7.8% from 2020 to 2027
• In terms of revenue, the food and beverages application segment is projected to ascend at a CAGR of 9.8% over the forecast period
• In terms of volume, spa and relaxation emerged as the largest application segment in 2020 owing to increasing consumption of personal care and cosmetics products in developing economies
• Asia Pacific is projected to witness a remarkable growth rate of 8.9%, in terms of volume, in the near future, owing to the increasing consumption of personal care and cosmetic products in the region
• Some of the key companies present in the industry are UniKode S.A.; Fleurchem, Inc.; Aromatic Herbals Private Ltd.; Frager S.A.; Manohar Botanical Extracts Pvt. Ltd.; Imperial Extracts; Falcon; and Van Aroma.

Key market participants include Aromatic Herbals Private Limited, Unicode S.A, Frager SA, Manohar Botanical Extracts Pvt. Ltd., Rajkeerth Aromatics and Biotech Pvt. Ltd., Imperial Extracts, and Amphora Aromatics Ltd. Key players such as Frager SA emphasize on processing and harvesting of plants in compliance with sustainable farming techniques. The company emphasizes strategies such as low operating costs, direct distribution, and technological advancements, which enables it to cater to demand from emerging economies such as China and Brazil.

Rajkeerth Aromatics and Biotech Pvt. Ltd., are engaged in manufacturing the product through processes such as solvent extraction process, functional distillation, hydro and steam distillation, perfume compounding, and resinoid benzoin. The company manufactures the product which has widespread usage in erosion control, perfumery and aromatherapy, medicinal use, and in-house uses. For instance, in South Asia, vetiver roots are utilized for the replacement of wood or straw shaving pads in evaporative coolers.

Key market participants are engaged in R&D activities focusing on product differentiation by launching various grades and folds. In addition, these participants are expanding in terms of production capacity and infrastructure with the aim to cater to the growing product demand. Increasing participation in the value chain from medium and small-scale manufacturers is expected to reduce the production lead time and increase the cost-effectiveness of the production process.