Argan Oil Market

The global Argan Oil Market was valued at USD 264.5 Billion in 2022 and is projected to reach a value of USD 552.6 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 11.1% between 2023 and 2030.

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The argan tree kernels, native to Morocco and southwestern Algeria, are used to make Argan Oil, a type of plant oil. Argan Oil is used in Morocco as a breakfast dip for bread and a drizzling sauce for couscous or spaghetti. The global Argan Oil market will grow rapidly during the forecast period due to various driving factors. Growing food, health care, and cosmetics demand will propel market expansion. Due to customers' increasing understanding of the value of improving their general appearance and manner of life, the personal care and cosmetics industry is rising. People are switching from synthetic to natural personal care products due to increasing skin and hair disorders such as acne, dermatitis, dry and damaged hair, and skin aging problems.

The Loreal Annual Report estimates that the global market for cosmetics will reach more than 200 billion euros by 2020. Due to the development of numerous Argan Oil-infused products, including hair serums and gel creams, by big manufacturers like L'Oréal and Lakme, the organic skincare market is expanding in nations like the United Kingdom, France, and Germany. Men's grooming products, including hair oils, shower gels, beard oils, skin creams, and waxes that contain Argan Oil and other essential oils, are becoming increasingly popular, assisting the industry's growth. Collecting and producing Argan Oil takes much time and effort. The rapidly developing cosmetics industry provides several ideal conditions in the United States for the growth of the domestic Argan Oil market. According to the American Society of Plastic Surgeons (ASPS), Americans spent more than $16.5 billion on cosmetic plastic surgery in 2018, a 4% rise from the previous year.

The increased demand for frozen foods, desserts, confections, snacks, and sweets will boost the market because it offers flavor to these goods. The rise in beauty consciousness and the expanding market for oil as a pharmaceutical for the treatment of diabetes and heart disease are additional macroeconomic variables that are positively affecting the market. It can be applied topically or taken as a supplement tablet for various health benefits, such as treating acne issues, and skin irritation, advancing aging indications, and hydrating the skin. As a result, the oil can be found in various high-end personal care products, including moisturizers, soaps, and conditioners. Studies show that throughout the outbreak, customers favored skincare and haircare products. These factors, together with the widespread knowledge of the product's health benefits and the progressive easing of COVID-19 rules in many countries, may help the industry regain momentum in the years to come.

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Economic Insights

Based on various probability models, several financial experts have forecast that the US will likely enter a recession over the next 12 months. This forecast is based on the federal rate increase implemented by the government to combat inflation and rising prices. It is anticipated that the final quarter of 2022 and the first quarter of 2023 will both show negative GDP growth rates, indicating the onset of a recessive situation. Throughout the projected period, it is anticipated that the ongoing war between Russia and Ukraine will adversely affect the worldwide geraniol market. In response to Russia's unjustified march into Ukraine, its neighbors imposed severe economic sanctions beginning in February 2022.

Top Market Trends

1. Rising Utilization of Organic Products in the Cosmetics Industry: A range of end-use industries, including the food and beverage, cosmetics, and medical sectors, are driving up product demand, which explains the expansion. It has become one of the most well-liked products, especially in the personal care and cosmetics industries. This is explained by their innovative properties, which include a high concentration of antioxidant and anti-inflammatory compounds and other remarkable benefits for skincare and haircare. Organic products entirely lack any possibly harmful substances. Customers are paying more attention to how they look and value having healthy-looking and youthful skin. The demand for natural cosmetics and personal care products is predicted to rise due to this trend, which will help the Argan Oil market.

2. Increasing Focus on Distribution Channels: Business to Consumer (B2C) is the term used to describe selling products directly to consumers or end users through retail establishments such as supermarkets, department stores, specialty stores, online marketplaces, and door-to-door sales. Consumers worldwide choose to buy Argan Oil straight from the company to learn more about the product's advantages. It is anticipated that sales through supermarkets and hypermarkets will rise dramatically in Europe, the Middle East, and North America. On the other hand, the online sales of the product are projected to soar in Asia Pacific and Central and South America due to a straightforward customer buying experience.

3. Rising Benefits of Argan Oil: Argan Oil's antioxidant qualities and the lipids it contains make it a crucial component of therapeutic goods. High levels of antioxidants in this oil, including linoleic and oleic acids, can slow the aging process by scavenging free radicals that harm cells. Vitamin E, present in this oil, enhances the body's immunity. Eczema, psoriasis, acne, skin infections, and other skin disorders can be treated with Argan Oil. Fatty acids help lower bad cholesterol and raise good cholesterol in the body, which lowers the chance of developing heart disease. Because of this oil's antiproliferative, hepatoprotective, anti-diabetic, anti-sebum, and anti-aging qualities, producers have started using it in cosmetic and beauty products.

Market Segmentation

The global Argan Oil market can be categorized on the following: Type, Form, Application, and Region. Based on Type, the market can be categorized into Conventional and Organic. Furthermore, based on Form, the market can be further split into Absolute, Blend, and Concentrate. Moreover, based on Application, the market can be segmented into Personal Care & Cosmetics, Medical, Aromatherapy, and Food. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Type

Conventional to Account for the Largest Market Share Owing to Rising Interest in Cosmetics

During the forecast period, the Conventional segment will dominate the global Argan Oil market. A significant proportion of this market can be ascribed to consumers' growing desire for argan-based cosmetics. Traditional Argan Oil is a valuable source of vital fatty acids and other nutrients and is produced from the kernels of the argan tree. Typically, Argan Oil is refined into edible and cosmetic grades. Conventional harvesting uses irrigation water, synthetic fertilizers, and chemical pesticides to grow high-yielding cultivars and produce increased oil content. Food, medications, aromatherapy, personal care & cosmetics, and household cleaning products strongly depend on this category. Natural or edible Argan Oil is made from lightly toasted kernels and is a copper-colored liquid with a faint hazelnut flavor. Organic Argan Oil is one of the cleanest varieties available and is frequently used in aromatherapy. Biobased fertilizers, including bone meal, green manure, and compost manure, increase crop yield when extracting organic Argan Oil.

Based on Form

Absolute Form to Accommodate Largest Market Share Owing to Rising Demand from Aromatherapy & Medical Application

The segment of absolute form will dominate the global Argan Oil market during the forecast period. The rising demand for the product's pure forms in cosmetics, aromatherapy, and medical applications can be blamed for the expansion of this market. It is made from plant kernels using solvent extraction techniques, and it is a highly concentrated version. To create this form, the kernels are ground into a powder before being suspended in a solvent. After these processes, the solvents are evaporated to produce the product. The oil is at its purest when it is in argan concentrate. A labor- and the time-intensive process is required to create product concentrates. Moreover, this form is exclusively suitable for skincare applications because of its high flavonoid and antioxidant concentration. Rising consumer demand for Argan Oil in topical and food products will drive the segment's revenue growth.

Based on Application

Personal Care & Cosmetics to Account for the Largest Market Share Owing to Rising Utilization of Skincare Products

During the forecast period, the global Argan Oil market will be dominated by the Personal Care & Cosmetics segment. This is ascribed to the use of skincare and hair care products, including, but not limited to, lip balms, shampoos, conditioners, hair serums, moisturizers, environmental defense products, and anti-aging creams. The demand for Argan Oil in cosmetics is driven by the rising number of women working and the aging population. Manufacturers are growing their product portfolios with improved solutions to meet consumer expectations. Environmental defense skincare solutions that shield the skin from germs and damaging UV radiation are in increasing demand. Due to UV radiation and dust, the skin is prone to becoming dry and dull from frequent exposure to the sun and rising pollution. The medical segment will grow with the fastest-growing CAGR during the forecast period owing to the rising consumption of pharmaceuticals.

Based on Region

North America to Dominate Global Scale Due to Rising Usage of Bio-based Cosmetics and Personal Care Products

The region of North America will dominate the global Argan Oil market during the forecast period. The rise in the popularity of bio-based cosmetics, personal care items, and aromatherapy products was cited as the cause. It is utilized in aromatherapy treatments to support physical, mental, and spiritual well-being. The body is balanced, tension is reduced, and many body functions are assisted in fighting ailments by aromatherapy massage. As a result, aromatherapy products are readily accessible in specialist stores and internet shopping hubs throughout North America. Due to growing innovation in hairstyle methods and consumer awareness of attractive looks, particularly in developed economies like North America, hair care products are anticipated to be in high demand. Because more consumers, particularly women, are becoming more mindful of their looks, skincare products are predicted to have a high market penetration. The prevalence of skin problems is on the rise worldwide, which has prompted people to switch from synthetic to natural personal care products.

The region of Europe will grow with the fastest-growing CAGR during the forecast period. The European Federation of Pharmaceutical Industries and Associations (EFPIA) estimates that the European Union's pharmaceutical market reached over USD 200 million in 2018, making it the second-largest pharmaceutical market in the world, behind Germany, France, Italy, the United Kingdom, and Spain, which make up the top 5. In Europe, the markets are dominated by the personal care and cosmetics industries.

Competitive Landscape

Due to the presence of several companies, the Argan Oil industry is highly competitive and fragmented. Businesses like Lakme, OLVEA, St. Botanica, and others have released several Argan Oil-based skin care products. Key players in the hair care business, such as L'Oréal and Unilever, have seen a steady increase in product demand; as a result, all these factors are anticipated to result in increased product consumption due to expanding customer demand. Industry companies are attempting to expand their operations in undeveloped regions to improve their market share and competitive advantage.

The key players in the global Argan Oil market include - OLVEA (India), ARGANisme (Morocco), Pure Argan Co. (UK), Malakbio (Morocco), Argane Aouzac (U.S.), Organica Group Ltd (Peru), Zidrop Argan Oil (Morocco), ARGANBULK (Morocco) among others.

Recent Market Developments

· May 2022: To care for skin and hair by reviving skin, renewing the soul, and accentuating natural beauty, Namaste Beauty produced a selection of high-quality, vegan products that are both cruelty-free and vegan. Argan Oil's inclusion in various beauty product lines is anticipated to boost sales.

· January 2022: Argan Apothecary, the first OTC-approved product from Josie Maran, the inventor of Argan Oil-powered beauty. Due to the inclusion of this oil in the product, this vegan, cruelty-free, and clean cosmetic collection guarantees an anti-aging solution, pore-tightening characteristics, and a fight against acne.

Segmentation of the Global Argan Oil Market