Lemongrass Oil Market - Forecasts from 2025 to 2030

The Lemongrass Oil Market is expected to grow from USD 75.446 million in 2025 to USD 112.612 million in 2030, at a CAGR of 8.34%.

Lemongrass oil, extracted from the lemongrass plant, is a versatile essential oil with a lemon-like aroma and numerous medicinal properties, including antiseptic, antifungal, anti-inflammatory, and antioxidant effects. Rich in vitamins (B1, B2, B3, B5, B6) and minerals (potassium, magnesium, phosphorus, calcium, zinc), it supports digestion, stress relief, cholesterol reduction, and neurological health. The global lemongrass oil market is expanding due to growing consumer preference for natural remedies, increasing adoption in aromatherapy, and its diverse applications in food, cosmetics, pharmaceuticals, and personal care. Challenges such as limited awareness in some regions and production constraints may hinder growth, but advancements in extraction methods are driving market potential.

Market Trends

The lemongrass oil market is propelled by rising consumer awareness of its health benefits, aligning with the global shift toward natural and holistic wellness solutions. Its use in aromatherapy, supported by the growing popularity of diffusers, candles, and oils, is a significant trend, particularly in developed markets. In the food and beverage industry, lemongrass oil enhances flavors in Asian-inspired dishes, baked goods, and candies, capitalizing on its zesty profile. Its antimicrobial properties make it valuable in cosmetics, perfumery, and pharmaceuticals, where it serves as a natural preservative and bioactive ingredient. Recent studies highlight its anti-inflammatory, antioxidant, antibacterial, and insect-repellent properties, expanding its applications in functional foods and personal care products like skincare and nail treatments. However, market growth may be tempered by limited consumer awareness in certain regions and challenges in scaling production to meet rising demand.

Growth Drivers

Advancements in Oil Extraction Methods

Improved oil extraction techniques are a key driver of the lemongrass oil market. Investments in research and development for efficient, cost-effective distillation methods are enhancing product accessibility. For example, collaborative efforts by TU Delft and Amrita University in Kerala, India, have focused on developing low-cost oil distillation machines using renewable energy, boosting production efficiency. These advancements, coupled with growing consumer demand for high-quality, natural products, are accelerating market growth by making lemongrass oil more viable for commercial applications.

Rising Consumer Awareness of Health Benefits

Increasing public knowledge of lemongrass oil's therapeutic benefits is driving demand. Its aldehydes support gastrointestinal health when added to food or beverages, while its calming and stimulating scent makes it ideal for aromatherapy and massage. In skincare, lemongrass oil's purifying and toning properties promote clean, healthy skin and strengthen nails. This versatility, combined with consumer preference for natural ingredients, fuels adoption across food, cosmetic, and personal care sectors, supporting market expansion.

Market Restraints

The lemongrass oil market faces challenges related to production scalability and consumer awareness. While demand is rising, the availability of high-quality lemongrass oil is constrained by limited cultivation and processing capacities in some regions. Additionally, awareness of its benefits remains uneven, particularly in emerging markets, which may slow adoption. High production costs and the need for advanced extraction technologies could also pose barriers for smaller producers, limiting market growth.

Geographical Outlook

Europe

Europe is projected to remain the leading market for lemongrass oil, driven by strong demand for natural and premium products. The region's focus on technological advancements in production, well-equipped manufacturing facilities, and skilled professionals ensures high-quality output. The growing popularity of aromatherapy in key markets like the United Kingdom, Germany, and France further boosts demand, with consumers embracing lemongrass oil in diffusers, candles, and personal care products. Europe's established infrastructure and consumer preference for holistic wellness position it as a dominant market shareholder.

North America

North America is expected to experience significant growth in lemongrass oil sales, fueled by rising demand for natural ingredients in cosmetics and personal care products. The region's health-conscious consumers are increasingly seeking premium, all-natural goods, driving adoption in skincare, aromatherapy, and functional foods. The United States, in particular, is a key market, supported by growing interest in natural remedies and wellness trends.

The lemongrass oil market is poised for growth, driven by consumer demand for natural remedies, advancements in extraction technologies, and expanding applications in aromatherapy, food, cosmetics, and pharmaceuticals. Europe leads the market with its robust infrastructure and focus on quality, while North America shows strong growth potential due to rising demand for natural products. Challenges such as production scalability and limited awareness in some regions must be addressed. Industry stakeholders should invest in efficient extraction methods, promote consumer education, and leverage the wellness trend to capitalize on market opportunities.

Key Benefits of this Report:

• Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, and other sub-segments.
• Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
• Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape future market developments.
• Actionable Recommendations: Utilize the insights to exercise strategic decisions to uncover new business streams and revenues in a dynamic environment.
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Report Coverage:

• Historical data from 2022 to 2024 & forecast data from 2025 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
• Company Profiling (Strategies, Products, Financial Information, and Key Developments among others.

The Global Lemongrass Oil Market is segmented and analyzed as follows:

By Type

• Pure Oil
• Blended Oil

By Grade

• Therapeutic Grade
• Food Grade

By Packaging

• Glass Jars
• Bottles
• Tubs
• Tubes
• Others

By Application

• Food and Beverage
• Fragrances
• Personal Care and Aromatherapy
• Pharmaceuticals and Medicinal Formulations

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Others
• Middle East & Africa
• Israel
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Thailand
• Taiwan
• Indonesia
• Others