Eucalyptus Oil Market: Rising Use in Cosmetics & Therapeutics Industries to Boost Growth
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TMR pegged the global eucalyptus oil market at US$41.7 mn in 2017. Rising at a CAGR of 5.6% between 2017 and 2025, the market will reach US$64.6 mn by the end of 2025. Based on nature, the organic segment held lead in the market. According to TMR, among segments based on grade, the pharmaceutical grade segment held nearly 64.5% of the global market in 2017. Regionally, Europe and North America are likely to hold nearly 65% of the global eucalyptus oil market by the end of 2025.
Rising Use in Cosmetics and Therapeutics Industries to Boost Growth
Eucalyptus oil is exhaustively used as an important ingredient in cosmetics and therapeutics industries. Besides this, eucalyptus oil is often used in aromatherapy, the food industry, and fragrances. The rising inclination of consumers toward products made using natural ingredients will create an environment conducive to the growth of the global eucalyptus market. In addition, the market will gain from the rising demand for naturally prepared cosmetics products. Against this backdrop, a rising number of manufacturers are focusing to procure natural ingredients and additives. Spurred by these factors, the global eucalyptus oil market will exhibit impressive growth in the coming years.
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The use of essential oil and aromatherapy has increased worldwide thanks to the rising awareness about the healing properties of essential oils. People have also come to realize the ways in which aroma compounds help in enhancing physical well-being. Several researches have also showed how the use of essential oils can curb infections and the spread of certain diseases. Given the scenario, the application of essential oils is most likely to increase in aromatherapy and therapeutics. This will in turn create lucrative prospects for market players to capitalize on in the near future. Furthermore, the scope for application is increasing in medical field, which is expected to boost the global eucalyptus oil market in the near future.
Rising Level of Competition May Decrease Profit Margins thus Adversely Affecting Market
Eucalyptus oil has excellent anti-inflammatory, antifungal, and antibacterial properties, which are attributable to its rising use in novel pharmaceutical applications. Also, due to the presence of a considerable level of cineole content, which is an organic compound with several medicinal properties, the use of eucalyptus oil is likely to increase in the medical field. On the downside, the global eucalyptus market is restrained by the lack of vertical integration among manufacturers. In addition, the rising competition among key players pose threat of decreasing profit margin. This can have a negative effect on the global eucalyptus oil market.
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