VETIVER OIL MARKET ANALYSIS

Vetiver oil is an essential oil that is extracted through steam distillation of vetiver roots. The vetiver plant is found in India, Haiti, and Indonesia. It has a soothing and stabilizing scent, which increases its utilization in fragrances, and is further used as a major constituent in approximately one-fifth of all fragrances. The oil’s soothing and calming aroma has led to its increased adoption as a complementary treatment for anxiety, depression, and other mental health disorders, including Attention-deficit/hyperactivity disorder (ADHD) and Post traumatic stress disorder (PTSD). 

Global vetiver oil market was valued at US$ 73.76 Million in 2021 in terms of revenue, exhibiting a CAGR of 7.60% during the forecast period (2022 to 2030).

Drivers

According to Coherent Market Insights in 2021, among applications, the pharmaceutical segment is expected to be the fastest growing segment in the market, owing to its sedative, nervine, and antiseptic properties. Moreover, vetiver oil can be used as a pest repellant in conjunction with other essential oils. Increasing awareness among many individuals about the importance of maintaining a proper personal care routine are expanding the demand for personal care products on a large scale. Vetiver oil is being used majorly in personal care products due to its benefits such as relaxation, fragrance, and soothing effects. Concurrently, it is effective in reducing stretch marks, and wrinkles. It is also beneficial in the treatment of skin diseases. Subsequently, vetiver oil is also used in certain food and beverages which ultimately may augment the market growth. 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.

The COVID-19 pandemic has had an impact on the vetiver oil industry trends. Firstly, vetiver oil being a widely used ingredient in spas and wellness centers, the temporary closure of public facilities has led to a significant demand decline. Moreover, consumer spending on cosmetics and personal care products had also dropped, particularly during the initial few months of the pandemic, as consumers prioritized on purchasing only essential goods.

Figure 1. Global Vetiver Oil Market Value Share (%), By Region, 2021

Market Restraints

Low quality and quantity of raw materials used for the production of vetiver oil is the major factor restraining growth of the vetiver oil market. In addition, stringent regulations related to farming have restricted farming activities and decreased the supply of raw material for vetiver oils production.

Market Trends

Vetiver oil has a soothing and stabilizing scent owing to which it is widely used in making fragrances for body perfumes, oils, room coolers, and fresheners and soap. The global spa and relaxation segment is projected to witness significant  growth during the forecast period, which may create lucrative opportunities for the vetiver oil market. As of Cosmetics Europe, the European Cosmetics and personal care industry was valued at about US$ 95.32 billion in 2020, with a growth rate of about 1.5% compared to the previous year in 2019.

Vetiver oil is used in massage oil to relieve stress owing to properties such as it reduces neurotic behavior, dispels anger, irritability, and hysteria. Furthermore, the face skin care products category grew by 28.7% during Janurary to September 2020, when compared to the same period in 2019, which in turn stimulates the market demand for the vetiver oil.

 Figure 2. Global Vetiver Oil Market Value Share (%), By Application, 2021

Recent Developments

• In May 2021, Katyani Exports Pvt. Ltd., a group engaged in manufacturing natural essential oils, spice oils, carrier oils, mint oils and floral absolute launched an organic range of products including essential oils. These products are manufactured without the use of any harmful solvents and base solvent as vetiver oil.

Competitive Section

Major players operating in the global vetiver oil market include International Fragrance and Flavor Inc., Lluch Essence SL, UniKode S.A., Frager S.A., Robertet Group, Ernesto Ventos S.A., Floracopeia Inc., Fleurchem Inc., and Haiti Essential Oil Co. S.A.