Vetiver Oil Market: Variable, Trends & Scope
Vetiver Oil Market Lineage Outlook: Essential Oils
Increasing consumer awareness regarding natural and organic personal care products and food & beverages has forced the manufacturers to shift their focus from synthetic to natural products which has acted as one of the major forces impacting the global essential oils market.
Essential oils are majorly composed of terpenes and their oxygenated derivatives which usually includes monoterpenes, sesquiterpenes, etc. Essential oils are present in specialized cells/glands in various plants and the position of these glands varies depending upon the morphology, physiology of the plant.
During manufacturing process, these glands are ruptured by pressing or by application of heat, which emanates aroma. Essential oil is composed of aromatic compounds, which are volatile as well as hydrophobic in nature. Several overall health benefits related with essential oils are projected to drive the essential oils demand in pharmaceutical and medical applications.
Unlike most of the conventional medicines and drugs, essential oils have no major side effects. Such traits of essential oils are projected to be the major driving factor for market growth. Rising awareness regarding health benefits of naturally sourced oils, an increasing number of people are showing inclination towards aromatherapy.
Certain factors propelling the demand for essential oils include widespread popularity of aromatherapy, which is considered urban as well as stylish, media influence, etc. Another major factor is that aromatherapy is rapidly gaining momentum as a convenient
method of healing lifestyle diseases. It is also important to notice that sales are closely related to consumer education – the more consumers are informed regarding applications and usage of essential oils, greater is the sales.
The Vetiver OIl
Vetiver oil is obtained from the vetiver roots and is well-known for its medicinal and perfumery value since ancient times. Vetiver oils are recognized as one of the most complex blends of sesquiterpene alcohols and hydrocarbons.
The product is widely utilized by the fragrance industry owing to its pleasant smell along with slow evaporation rate. Its excellent solubility with alcohol is another major factor behind the significant consumption from the perfume industry. The product is extensively used in the manufacturing of varied fragrant materials such as potpourri, aromatic kaolin, aromatic soap, and aromatic wax.
The vetiver oil market has been segmented based on two parameters, namely application, and region. Based on the product, the vetiver oil market has been segmented into:
- Medical includes nutraceuticals and pharmaceuticals
- Food & beverages segment includes meat, processed food, frozen food, confectionery, savory, convenience food, bakery & dairy products and beverages.
- Spa & relaxation segment includes aromatherapy, massage oils, and personal care. Personal care segment is further divided into cosmetics, toiletries and fragrances.
- Cleaning & home segment includes soaps, detergents, toiletries, and cleaning agents
- Other essential oil applications include agriculture, animal feed additives, petroleum, etc.
On the basis of region, the market has been segmented as follows:
- North America: Includes the U.S., Canada and Mexico
- Europe: Includes UK, Russia, Norway, Western European countries such as Germany, France, Italy, & Spain, and Eastern & Central European countries
- Asia Pacific: Includes the markets of the Indian Subcontinent, China, Japan, Southeast Asian countries such as Malaysia, Indonesia, & Singapore, and Oceania
- Central America: Includes Guatemala, Costa Rica, El Salvador along with other countries.
- South America: Includes Brazil, Chile and Argentina along with other countries
- Middle East & Africa: Includes Gulf countries such as the UAE, Saudi Arabia, Qatar, Nigeria and countries in the African continent
Vetiver Oil have numerous medicinal and aromatic properties owing to which it is expected to gain significant opportunities in food & beverage and personal care industry.
Increasing demand for vetiver oil from fragrance industry owing to its aromatic characteristics coupled with growing perfumery applications is projected to drive the market growth over the forecast period. Vetiver oil market demand in 2019 was nearby 50,000 tons and is expected to reach 748.4 tons by 2027, in terms of volume, at a volume-based CAGR of 7.8% from 2020 to 2027
Vetiver oil has widespread usage in medical applications such as 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.
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In 2019, Europe emerged as the largest market for vetiver oil
Increasing consumer disposable income along with the rapid expansion of end-use industries are expected to bolster the demand for flavors and fragrances produced using vetiver oils. These fragrances provide stimulus in massages, aromatherapy, and other relaxation techniques.
Vetiver Oil Market Size Worth $88.0 Million By 2027 | CAGR: 9.4%
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. 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 synthesis of the molecules present in the product, particularly is expected to provide unique odor to this product and thereby increase its usage in the fragrance industry.
In 2019, Europe emerged as the largest market for vetiver oil, in terms of revenue. In this region, end-use industries such as personal care & cosmetics, food & beverage, and fragrance among others are expected to prosper on account of well-established technological base, availability of raw material, and consumer willingness to pay premium on the products. Subsidies and other benefits offered to various industries are also expected to fuel the market over the forecast period.
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.
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Haïti and the Vetiver Oil Market
The Vetiver Oil Market – Haiti is an important supplier of the vetiver oil, however the political unrest in the region has reduced the availability and the difficulties are arising owing to problems such as corruption, inflation, fuel availability as well as delayed shipments. The essential oil processors are falling shortage of fuel supplies and have been unable to move goods and receive the boiler fuels for the distillation processes.
These continuous delays have left the producers in an unwarranted situation as they are either unable to produce oil from fresh raw materials or move finished product. Moreover, the rains during the harvest period in Haiti have discouraged the farmers from harvesting, additionally also diminishing the yields from the roots that are harvested.
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 are 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.
Les Essences NIDO, the Inter-American Development Bank and Vetiver: A Commitment to Fair Trade
Revenues from Vetiver roots sales are so minimal that Haitian farmers are presently living below poverty level despite high sales volumes.
Les Essences NIDO, in association with Inter-American Development Bank and other partners, is working towards building a sustainable Vetiver chain in order to maintain a steady crop farming and oil production. This initiative should ensure a future price stability in the market worldwide and will benefit everyone along the chain: the growers, the distillers, and the purchasers.