PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1744798
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1744798
Global Onion Oil Market to Reach US$91.2 Million by 2030
The global market for Onion Oil estimated at US$53.7 Million in the year 2024, is expected to reach US$91.2 Million by 2030, growing at a CAGR of 9.2% over the analysis period 2024-2030. Conventional Onion Oil, one of the segments analyzed in the report, is expected to record a 8.0% CAGR and reach US$54.8 Million by the end of the analysis period. Growth in the Organic Onion Oil segment is estimated at 11.2% CAGR over the analysis period.
The U.S. Market is Estimated at US$14.6 Million While China is Forecast to Grow at 12.5% CAGR
The Onion Oil market in the U.S. is estimated at US$14.6 Million in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$18.2 Million by the year 2030 trailing a CAGR of 12.5% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 6.7% and 8.0% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 7.2% CAGR.
Global Onion Oil Market - Key Trends & Drivers Summarized
Is Onion Oil the Next Super Ingredient in Natural Hair and Skin Formulations?
Onion oil, derived primarily from steam-distilled extracts or maceration of Allium cepa bulbs, is rapidly gaining popularity as a potent active ingredient in personal care, wellness, and therapeutic formulations. Traditionally recognized in Ayurvedic and Unani medicine for its anti-inflammatory, anti-fungal, and antimicrobial properties, onion oil is now being widely incorporated into hair oils, scalp serums, beard oils, and skin rejuvenation products. Its richness in sulfur compounds, quercetin, and essential nutrients like vitamin C, B6, and folic acid supports follicle stimulation, dandruff control, and oxidative stress mitigation-making it a go-to ingredient in natural hair regrowth solutions.
Consumer demand for chemical-free, clean-label personal care products is catalyzing the adoption of onion oil-based formulations, particularly among millennials and Gen Z demographics. Hair fall, scalp infections, and premature greying-exacerbated by urban pollution and harsh cosmetic ingredients-are being addressed by onion oil as part of a growing “root-to-tip” care trend. Formulators are developing cold-pressed, organic-certified onion oil blends with complementary botanicals like argan, castor, and bhringraj to enhance efficacy while improving texture and fragrance, thereby overcoming onion oil’s pungent olfactory signature.
Why Is the Personal Care Industry Banking on Onion Oil’s Scalp-Centric Benefits?
The personal care industry is witnessing a paradigm shift toward scalp care, a sub-category now regarded as “skinification of hair.” This trend positions onion oil at the center of functional ingredient innovation due to its multi-pronged scalp care profile-stimulating blood circulation, unclogging follicles, and reducing microbial buildup. Product launches in premium and mass market segments-ranging from overnight hair masks to pre-wash serums-are capitalizing on onion oil’s evidence-based benefits in hair thickening and follicular health. Social media, influencer campaigns, and dermatology-led product endorsements are accelerating consumer awareness and trust in onion oil.
Beyond scalp health, onion oil is being explored for its dermo-cosmetic applications. Its antioxidant and anti-inflammatory profile makes it suitable for use in skin-healing balms, anti-acne serums, and scar reduction treatments. Several brands are integrating refined onion oil fractions with lower sulfur content to appeal to the sensitive skin care segment. Additionally, DIY enthusiasts and small-batch formulators are adopting onion oil as a hero ingredient for homemade beauty and grooming routines-further reinforcing its grassroots-to-premium market appeal.
How Are Extraction Methods and Certifications Enhancing Commercial Viability?
Advancements in steam distillation, cold pressing, and CO2 supercritical extraction are improving the purity, stability, and therapeutic strength of onion oil, allowing manufacturers to differentiate based on concentration, volatility, and sulfur retention. These innovations are essential for scaling up production while preserving the oil’s bioactive integrity. Furthermore, microencapsulation and nanodispersion technologies are being explored to stabilize onion oil in water-based emulsions for shampoos, gels, and lotions-broadening its application range beyond oil-only formats.
Certifications such as USDA Organic, COSMOS, and Ecocert are becoming critical purchase influencers, particularly in developed markets like the U.S., Europe, and Australia. Manufacturers are aligning sourcing and processing with clean beauty principles by ensuring pesticide-free onion cultivation, solvent-free processing, and traceable supply chains. Private-label manufacturers and D2C brands are increasingly contracting onion oil suppliers for customized formulations, reinforcing the need for scalable, standards-compliant ingredient processing infrastructure.
What’s Fueling the Soaring Demand in the Global Onion Oil Market?
The growth in the onion oil market is driven by the convergence of herbal beauty trends, the revival of traditional remedies, and the demand for proven, plant-based actives in hair and skin care. A major growth driver is the consumer pivot toward non-synthetic, holistic solutions for chronic scalp conditions like alopecia, seborrheic dermatitis, and hair thinning. With a high level of consumer trust rooted in centuries-old medicinal usage, onion oil enjoys a strong value proposition supported by anecdotal and emerging clinical evidence.
Additionally, the rise of e-commerce and D2C beauty brands has dramatically expanded onion oil’s market accessibility, allowing niche and artisanal brands to reach global audiences. The product’s inclusion in hair regrowth kits, anti-dandruff regimes, and “miracle oil” multi-use blends has made it a staple in beauty subscription boxes and influencer-led marketing campaigns. Regional brands across India, Southeast Asia, and Africa are also innovating with culturally resonant, cost-effective onion oil products for hyperlocal market penetration.
As ingredient transparency, minimalism, and efficacy continue to dominate consumer buying behavior, onion oil is poised to remain a top-tier botanical active. Its adaptability across hair, beard, and skin care categories ensures a wide addressable market, while continuing R&D and formulation refinement unlock new avenues in functional beauty innovation.
SCOPE OF STUDY:
The report analyzes the Onion Oil market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Nature (Conventional, Organic); Distribution Channel (Supermarkets / Hypermarkets, Specialty Stores, Online, Other Distribution Channels); End-User (Women, Men)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
Select Competitors (Total 48 Featured) -
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