Global Lemongrass Oil Market to Reach US$86.4 Million by 2030

The global market for Lemongrass Oil estimated at US$54.7 Million in the year 2024, is expected to reach US$86.4 Million by 2030, growing at a CAGR of 7.9% over the analysis period 2024-2030. Conventional Type, one of the segments analyzed in the report, is expected to record a 6.4% CAGR and reach US$48.6 Million by the end of the analysis period. Growth in the Organic Type segment is estimated at 10.1% CAGR over the analysis period.

The U.S. Market is Estimated at US$14.9 Million While China is Forecast to Grow at 12.1% CAGR

The Lemongrass Oil market in the U.S. is estimated at US$14.9 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 12.1% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 4.1% and 7.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.2% CAGR.

Global Lemongrass Oil Market – Key Trends & Drivers Summarized

Why Is Lemongrass Oil Gaining Popularity in Wellness and Aromatherapy?

Lemongrass oil has become a highly sought-after essential oil due to its diverse applications in aromatherapy, personal care, food and beverages, and medicinal formulations. Extracted from the lemongrass plant through steam distillation, lemongrass oil is known for its refreshing citrus aroma and therapeutic benefits. It is widely used in aromatherapy for stress relief, relaxation, and mental clarity, making it a staple in spas, wellness centers, and home diffusers. Additionally, its antimicrobial, antifungal, and anti-inflammatory properties have driven its adoption in natural skincare, haircare, and pharmaceutical formulations. The growing consumer preference for plant-based and organic products has further accelerated demand for lemongrass oil in cosmetics and personal care items. In the food and beverage industry, lemongrass oil is used as a natural flavoring agent in herbal teas, confectionery, and Asian cuisine, enhancing the sensory appeal of various products. The increasing popularity of herbal medicine and holistic health practices has also contributed to the rising use of lemongrass oil in alternative medicine and natural remedies. With expanding applications across multiple sectors, the lemongrass oil market is experiencing steady growth.

What Are the Emerging Trends Shaping the Lemongrass Oil Industry?

Several emerging trends are influencing the evolution of the lemongrass oil market, driving innovation and market expansion. One of the most significant trends is the increasing demand for organic and sustainably sourced lemongrass oil, as consumers seek purity and ethical production methods. The rise of aromatherapy and home wellness routines has fueled demand for lemongrass essential oil in diffusers, massage blends, and personal care formulations. Another major trend is the growing use of lemongrass oil in natural insect repellents, as consumers shift away from chemical-based alternatives. The expansion of herbal and Ayurvedic medicine has also increased the incorporation of lemongrass oil in herbal teas, dietary supplements, and detox formulations. The cosmetic industry is witnessing a surge in lemongrass-infused skincare and haircare products, particularly for its antimicrobial and oil-balancing properties. Additionally, the food industry is exploring new applications of lemongrass oil in plant-based beverages, functional foods, and gourmet seasoning blends. The development of eco-friendly and biodegradable packaging for essential oils has further supported the market`s growth, aligning with sustainability goals.

What Challenges Are Impacting the Growth of the Lemongrass Oil Market?

Despite its rising demand, the lemongrass oil market faces several challenges that could impact its expansion. One of the primary concerns is the fluctuating availability of lemongrass due to seasonal variations, weather conditions, and agricultural constraints. The labor-intensive process of steam distillation and extraction contributes to high production costs, making pure lemongrass oil relatively expensive compared to synthetic alternatives. The presence of counterfeit or adulterated essential oils in the market has raised concerns about quality and authenticity, prompting stricter regulations and certification requirements. Additionally, sensitivity and allergic reactions in some individuals may limit the use of lemongrass oil in personal care and medicinal applications. The need for compliance with food safety and pharmaceutical regulations further adds complexity to its integration into different industries. To overcome these challenges, the market requires advancements in sustainable lemongrass farming, improved quality control measures, and greater consumer education about the benefits of pure essential oils.

What Is Driving the Growth of the Lemongrass Oil Market?

The growth in the lemongrass oil market is driven by increasing consumer interest in natural wellness solutions, expanding applications in personal care and aromatherapy, and rising demand for plant-based ingredients in the food and beverage industry. The shift toward clean-label products has further encouraged the adoption of lemongrass oil in skincare, haircare, and therapeutic formulations. The growing trend of herbal teas and functional beverages has also boosted demand for lemongrass oil as a natural flavor enhancer. Additionally, the expansion of e-commerce and direct-to-consumer brands has made pure essential oils more accessible to global consumers. With continuous innovation and the increasing shift toward holistic health, the lemongrass oil market is expected to see sustained growth in the coming years.