Cosmetic Oil Market size was USD 62.7 billion in 2024 and is estimated to reach USD 125.6 billion by the end of 2037, expanding at a CAGR of 5.5% during the forecast period, i.e., 2025-2037. In 2025, the industry size of cosmetic oil is evaluated at USD 66.1 billion.
The health and wellness trends are major growth drivers augmenting the sales of various types of cosmetic oils. Consumers are becoming aware of what goes in their products, which is boosting the consumption of organically produced cosmetic oil. Even being premium, natural oils such as olive, almond, jojoba, avocado, and rosehip are gaining traction. The effective results of these oils are a prime contributor to their sales growth.
For instance, in July 2024, the analysis by the U.S. Bureau of Labor Statistics estimated that the export price index of essential oils and resinoids accounted for 146.7 in June of the same year. Furthermore, the USDA Foreign Agriculture Service reveals that around 1.12 million metric tons of almonds were produced in the U.S., in 2024. The country accounts for 70% of the global almond production, while Australia captures 11%. The high production of almonds in these economies directly influences their essential oil sales. The abundance of raw materials appeals to several key market players to grab high-earning niche opportunities.
In October 2024, Coty, Inc., a leading beauty & cosmetic product company revealed the estimated FY25 adjusted EBITDA outlook for +9-11% YoY growth. The company calculates a high EBITDA margin in the financial year 2025. The fragrance category of the company is outperforming both in volume and price/mix, further augmenting its revenue growth.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
5.5% |
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Base Year Market Size (2024) |
USD 62.7 billion |
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Forecast Year Market Size (2037) |
USD 125.6 billion |
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Regional Scope |
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Product (Almond Oil, Olive Oil, Coconut Oil, Essential Oil, Others)
The essential oil segment is poised to dominate around 26.4% cosmetic oil market share by the end of 2037. The rising mental health awareness trend is augmenting the use of essential oils in aromatherapies. Aromatherapy service providers are major consumers of several types of essential oils as they effectively aid in treating insomnia, depression, and anxiety. A study by the National Institutes for Health (NIH), reveals that the prevalence rate of insomnia is around 10% to 30%, globally. This underscores that the adoption of aromatherapy for insomnia treatment has a strong potential to fuel essential oil consumption. Also, the rising home wellness trend is accelerating the use of essential oils in daily routines. Europe is estimated to hold the largest share of the essential oil market while Asia Pacific and North America are tying for the second position. Furthermore, in 2023, the U.S. totaled USD 20.09 billion and the U.K. calculated USD 7.6 billion in essential oil imports.
Application (Hair Care, Skin Care, Lip Care, and Others)
The hair care segment in cosmetic oil market is anticipated to hold a dominating position throughout the projected period. The rising focus on scalp health coupled with home care remedies is fueling the adoption of cosmetic oils such as jojoba, olive, and tea tree. The antibiotic and anti-inflammatory properties of these oils are driving their consumption in haircare routines. Apart from this home hair care use, many pharma companies are formulating medicated shampoos, conditioners, and hair oils using cosmetic oils as a base. These cosmetic oil-based hair care products effectively aids in treating issues such as dandruff, hair loss, and even psoriasis. For instance, the Repositório da Produção USP report reveals that 5% use of tea tree oil in shampoo can effectively reduce dandruff.
Our in-depth analysis of the global cosmetic oil market includes the following segments:
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Product |
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Nature |
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Application |
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Asia Pacific Market Forecast
In cosmetic oil market, Asia Pacific region is expected to hold more than 33.7% revenue share by 2037. The widespread use of essential oils, strong adoption of holistic treatment approaches such as aromatherapy, and high demand for wellness and spa centers are pushing the sales of cosmetic oils in the region.
In India, celebrity endorsement strategies are aiding the key players to boost their sales and revenue growth. The traditional Ayurvedic influence is positively augmenting the consumption of cosmetic oil in the country. For instance, the report by the India Brand Equity Foundation reveals that the country exported around USD 1.24 billion of Ayush and herbal products between 2021 and 2023. This highlights that India is a high-potential marketplace for cosmetic oil market.
Similar to India, the strong use of natural and plant-based solutions for face, hair, and body care is making China a profitable marketplace for cosmetic oil producers. The expansion of essential oil use in cooking and bakery is further opening potential doors for leading companies to earn high profits. For instance, the import value of essential oils and resinoids in the country was calculated at USD 17.6 billion, in 2023.
North America Market Statistics
The North America cosmetic oil market is poised to increase at the fastest pace from 2025 to 2037. The growing use of essential oils in food & beverages, the strong presence of a client base that spends on premium personal care products, and the existence of industry giants are fueling the regional cosmetic oil market growth.
In the U.S., the organic trend particularly for skin care is increasing the consumption of essential oil-based products. The demand for herbal oils such as tea tree, jojoba, and rosehip is widely used for hydration and antiaging skin care. For instance, the Observatory for Economic Complexity estimates that the essential oil export was calculated at USD 693 million in 2022.
In Canada, the clean beauty trend coupled with holistic health and wellness approaches is fueling the focus of individuals on natural beauty products including various cosmetic oils. The strong presence of Asian and Middle Eastern immigrants in the country is also contributing to the cosmetic oil market growth. The country held USD 4.9 million of essential oil export value in 2022, reveals the Observatory for Economic Complexity report.
Leading companies in the cosmetic oil market are implementing strategies such as innovations in formulations, new product launches, strategic collaborations & partnerships, digital marketing, sustainability, and regional expansion to earn high profits. New oil blends and formulations enable companies to cater to a broader consumer base. Targeted marketing and rise in the e-commerce activities are positively fueling the sales of cosmetic oil products. Cosmetic oil manufacturers are directly entering the e-commerce space by introducing their platforms to interact with consumers in a B2C manner.
The high-profile celebrity endorsement and collaborations are an all-time win-win strategy for cosmetic oil manufacturers. The majority of consumers' mindset to follow what celebrities or influencers use augments the demand for endorsed cosmetic oil solutions, boosting both revenue growth and brand visibility. Furthermore, regional expansion tactics aid them in grabbing high-profit opportunities from untapped markets.
Some of the key players are in cosmetic oil market:
Author Credits: Rajrani Baghel
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