The global eucalyptus oil market is expected to grow at a compound annual growth rate of 4.68% over the forecast period to reach a market size of US$1,329.912 million in 2025 from US$1,010.851 million in 2019.Eucalyptus OilMarket will grow at a decent rate in the coming years. With the surge in demand for natural and organic food products and the enhancement of eucalyptus oil fragrances and flavors in food products, cosmetics, personal care are imperative for the eucalyptus oil market growth. Eucalyptus oil is formed from the leaf of Eucalyptus tree, which is mainly found in Asia Pacific Regional countries such as Australia, Indonesia and Philippines. Eucalyptus Tree is native to Australia. With the increasing demand of Eucalyptus oil, it is now cultivated worldwide. Eucalyptus oil has a higher cineole content, with some of its types like Eucalyptus kochii and Eucalyptus polybractea have a cineole content of around 80-85%, far above the standard cineole content. Eucalyptus globalus has a substantial share in the market. Eucalyptus Oil has antioxidant properties, enhances immunity and is beneficial for respiratory circulation.
Demand for Natural Products
Due to the rise in income among consumers and with the substantial rise in the number of health-conscious people worldwide, the demand for Eucalyptus Oilwill continue to surge. Eucalyptus Oilpopularity will continue to soar among consumers despite its higher price range. Consumers are shifting away from processed and refined food products. There has been a substantial increase in the knowledge and awareness of a consumer regarding the harmful artificial preservatives, flavors and colors. The consumers are diversifying their purchasing options when it comes to food and beverage products. Technology has been playing an imperative role in enhancing the awareness and knowledge among the consumers. A consumer can now locate the source of the food to ensure safety of the product. Consumer demands and preferences have been constantly changing with time. There are a lot of people that are suffering from various harmful diseases and are not comfortable with artificial Products. This has led to the surge in the demand for Eucalyptus Oil. It has a plethora of properties that are beneficial for human skin. It has removed all barriers and resolves side- effects related to conventional drugs and medicines. There has been a significant surge in the demand for pharmaceutical products and medicinal medical supplements that contains eucalyptus oil because of its antiseptic properties. It helps to regulate high blood pressure and is beneficial for a consumer with respiratory problems. It is also in demand because of its properties as biopesticide and an insect repellent. It is becoming popular in industrial applications because it prevents the separation of ethanol and petrol fuel blends. The eucalyptus oil has a lot of challenges but with the varying consumer preferences, it is expected to register a moderate and decent growth in the coming years.
Challenges in the global Eucalyptus Oilmarket
Expanding Retailing Business
Currently, store-based retail business has the majority of the share in the global Eucalyptus Oilmarket. Supermarkets and convenience stores are surging the retail growth of Eucalyptus Oilbased products. Online retail is also gaining a lot of traction. With a substantial number of users engaged on the internet and with surge in the demand for smartphones, online retail will generate a significant growth in the coming years. It is easily available in retail stores; therefore, offline retail business is expected to hold the majority of the share in the future.
Asia Pacific will register a significant growth
Asia Pacific holds the majority of the global market share and is followed by North America and Europe. Australia is the major exporter of eucalyptus oil. China has a significant and substantial share in the Eucalyptus Oilmarket, the reason is because of the surge in the number of health-conscious consumers in Asia Pacific. Europe and North America will register a significant growth because of the presence of major cosmetic and pharmaceuticals companies in Europe. There is a major challenge for European and North American regions because of the lesser presence of eucalyptus plant in the region, they are dependent on imports from Asian Countries. This has a huge impact on the revenue and sales because of the surge in the prices.
There are some of the major players in the Eucalyptus Oilindustry: Green Fields Oil Factory, Plant Therapy Essential Oils Maretai Organics, Lionel Hitchen Essential Oils , Aromaaz International, IL Health & Beauty Natural Oils Co. Inc , Aksuvital , Shaanxi Guanjie Technology Co, Young Living Essential Oils LC Natural India, Biolandes, Greenleaf Extractions Pvt Ltd. These key players are investing a lot of capital in the research and development. Furthermore, major players are focusing on collaborations with the local industry, acquiring small companies to enhance their production capacity, continues to improve their distribution channel by mergers and joint ventures.