Lemongrass Oil Market by Product Type (Aromatherapy, Personal Care), Purity Type (100% Pure, Blended), Extraction Process (Steam, Cold-Pressed), Distribution Channel (Retail, Online, D2C), End Use, Sales Format, By Region - Industry Forecast 2025-2032

Global Lemongrass Oil Market size was valued at USD 57.2 Million in 2023 and is poised to grow from USD 61.2 Million in 2024 to USD 106.05 Million by 2032, growing at a CAGR of 7.1% in the forecast period (2025-2032).

The global lemongrass oil market is experiencing noteworthy growth, driven by a rising preference for plant-based wellness ingredients, particularly in aromatherapy, home care, and clean-label food products. The Asia-Pacific region, notably India, Sri Lanka, and Vietnam, dominates production, contributing over 70% due to favorable cultivation conditions. While producers enhance efficiency through AI-steam distillation to optimize citral extraction, North America and Europe increasingly favor green-certified lemongrass oil that offers traceability and authenticity. Innovative distribution methods, like subscription boxes and online wellness platforms, are reshaping the market landscape. However, challenges remain, such as high organic certification costs for smallholders and concerns over adulteration, highlighting both the opportunities and constraints in expanding lemongrass oil from a niche product to a mainstream wellness commodity.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Lemongrass Oil market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Lemongrass Oil Market Segments Analysis

The lemongrass oil market is segmented by product type, purity type, extraction process, distribution channel, end use, sales format, and region. Based on product type, the market is classified into aromatherapy and personal care & cosmetics. By purity type, segments include 100% pure and blended. In terms of extraction process, the market comprises steam distillation and cold-pressed extraction. Distribution channel segments consist of retail stores, online platforms, and direct-to-consumer (D2C). By end use, the market includes households, clinics & wellness centers, and FMCG manufacturers. Sales format is divided into mass market and premium. Regionally, the market is analyzed across North America, Asia-Pacific, Europe, Latin America, and Middle East & Africa.

Driver of the Global Lemongrass Oil Market

The global market for lemongrass oil is being driven by escalating demand within the personal care and wellness sectors. Premium retail locations, such as upscale pharmacies, luxury spas, and high-end supermarkets, are prioritizing shelf space for essential oils, allowing lemongrass oil to emerge as a popular choice for clean-label and natural solutions in aromatherapy, skincare, and household products. The growing preference for plant-based offerings enhances this trend, with North American and European health retailers emphasizing traceability and purity. Meanwhile, Asian markets are experiencing rapid expansion in herbal skincare and aromatherapy venues, facilitating the incorporation of lemongrass oil into daily consumer habits and significantly boosting its market growth.

Restraints in the Global Lemongrass Oil Market

A significant obstacle in the global lemongrass oil market is the high expense and limited supply of certified organic lemongrass oils. Smaller producers from regions such as Southeast Asia and Latin America often lack the resources to secure global organic certification or to invest in climate-resilient farming equipment. As a result, production costs soar, and export volumes remain low, which in turn leads to the exclusion of premium, traceable organic oils favored by consumers in North America and Europe. Consequently, the elevated price of certified organic products acts as a deterrent for entry into low-margin segments like aromatherapy and personal care.

Market Trends of the Global Lemongrass Oil Market

The Global Lemongrass Oil market is experiencing a significant shift towards sustainability and transparency, driven by heightened consumer demand for eco-friendly and ethically sourced products. Industry stakeholders are increasingly investing in biodegradable packaging and origin certification, alongside implementing blockchain technology for traceability, which fosters trust and accountability. Major retailers in North America and Europe are enhancing the product experience by incorporating QR codes, allowing consumers to verify product sources and sustainability claims. This commitment to environmental innovation not only aligns with consumer preferences for clean-label products but also reinforces a market strategy centered on transparency and ethical sourcing, shaping the future of the industry.