The surge in demand from the perfumery industry is the prime impetus driving the growth of the patchouli oil market. Patchouli oil is an essential oil extracted from leaves of the patchouli plant, also known as pogostemon cablin, a species from the Lamiaceae family. This oil has a heavy and strong scent and can blend with many other essential oils, adding long-lasting aroma to the blend. Thus, the eminent components of the oil, namely, patchoulol and norpatchoulenol, are widely used as important ingredients in perfumes, body lotions, shaving lotions, incense sticks, paper towels, detergents, and air fresheners. There is increasing popularity for perfumes among the people, irrespective of their economic class. On the back of modernization coupled with incessantly emerging fashion trends across the world, perfumes became an eminent part of our lifestyle. The rising popularity is mainly attributed to the fact that perfumes are perceived as an approach to creating a beautiful and aesthetically pleasing atmosphere, thereby instigating pleasant human relationships.
Moreover, the globally rising demand for perfumes can be further fathomed from the statistics provided by the International Trade Centre (ITC) according to which the trade value of perfumes and toilet waters was evaluated at $19.4 billion in 2018. Additionally, the trade had witnessed substantial growth at an annual growth rate of 7%. Thus, the proliferating demand for perfumes and scented products are catapulting the growth of the patchouli oil market.
As of 2018, the global patchouli oil market was estimated to attain a value of $67 million, and the prospects are poised to propel at a CAGR of 2.8% during the forecast period 2019-2025.
Patchouli Oil Market Leveraging Aromatherapy Industry—
The growing trend of the use of cosmeceuticals and aromatherapy is augmenting the demand for patchouli oil. The health benefit properties possessed by the patchouli oil, such as antidepressant, antifungal, antiseptic, and anti-inflammatory, have facilitated it with a prominent place in the aromatherapy treatments. Moreover, the rising incidence rate of depression and anxiety disorders among consumers is anticipated to impart towards the increasing demand for essential oils, including patchouli oils from the aromatherapy industry. The increasing number of people showing a propensity towards aromatherapy coupled with the rising awareness towards health benefits of essential oils is estimated to provide up-thrust to the market. Thus, the growth in the essential oils market is also instilling momentum in the patchouli market. According to the International Trade Centre (ITC), the trade value of essential oils and resinoids; perfumery, cosmetic or toilet preparations was evaluated at $143 billion in 2018. The trade had witnessed a substantial growth at a growth rate of 12% year on year. A significant fraction of this trade is attributable to the import and export of essential oils due to the demand from end-user industries. Thus, the growing demand for essential oil will further create opportunities in the patchouli oil market.
Increasing Demand for Organic Products Fortifying Patchouli oil Market—
Based on nature, the organic patchouli oil segment is considered to be the key segment generating maximum revenues to the patchouli oil market. The consistently expanding awareness regarding clean label products among the millennial population has instigated the manufacturers of food and beverages as well as consumer products to adopt the usage of organic and natural ingredients in the goods they produce. The paradigm shift towards natural and organic ingredients in the food products is upheaving the demand for organic and natural patchouli oils in the global market. Additionally, the increasing popularity of eco-perfumes is also creating an unprecedented endorsement for organic patchouli oils, consequently propelling the sales of patchouli oil in the global market. Thus, the key application segment is anticipated to propel at a CAGR of 3.3% through to 2025.
Emerging Economies Enticing Maximum Revenues to the Asia Pacific Patchouli Oil Market—
Geographically, Asia Pacific is considered to be the prominent marketplace having a substantial share of 56.1% in the global demand share as of 2018. The region is anticipated to secure its dominance during the forecast period. The growth in this region is mainly attributed to the presence of huge consumer base along with propitiously growing end-user industries such as food and beverage. Patchouli oil is mainly preferred by the food industry, as it imparts smell and taste to the food and induces antioxidant, antifungal, and notably antibacterial properties into the food. Thus, the rapidly growing end-user industries in the emerging economies such as China, India, and Japan have rendered maximum region share to this region. For instance, the food processing industry in India is expected to propel at a CAGR of 14.6% to attain a value of $543 billion by 2020, according to the Invest India.
Moreover, owing to the therapeutic properties of patchouli oil, there is an increase in adoption by the pharmaceutical industry. Therefore, the burgeoning pharmaceutical industry in this region, which can be fathomed from the statistics provided by India Brand Equity Foundation (IBEF), according to which, the Indian the pharmaceutical sector, in 2017, clocked a revenue of $33 billion and it is expected to propel at a CAGR of 22.4% to attain $55 billion by 2020, is proliferating the regional patchouli oil market growth. Thus, the factors mentioned above are considered to be the prime impetus that has rendered Asia pacific with the maximum market share.
Patchouli Oil Market Company’s Strategies—
Major companies that are striving to build their brand in the global patchouli oil market are Berjé Inc., Givaudan SA, Firmenich S.A., Nusaroma PT, Eastern Agencies Aromatics Pvt. Ltd., Takasago International Corporation, PT Mitra Ayu Adi Pratama, Pt Indesso Aroma, PT Aroma Essence Prima, and Ultra International B.V. These companies are continuously engaged in research and development activities, product innovations, strategic partnerships, and profitable collaborations to carve a niche for themselves.
· Givaudan, in February 2018, with an aim to strengthen its sustainable patchouli oil sourcing and enhance the conditions for oil producers in Indonesia, started a multi-year project in partnership with an international non-governmental organization, Swisscontact, to set up patchouli distillation units in that area and train the patchouli producers and their families on good agricultural and distillation practices.
Talk to one of our sales representative about the full report by providing your details in the link below:
a) Essential Oils Market
b) Olive Oil Market
Any other custom requirements can be discussed with our team, drop an e-mail to [email protected] to discuss more about our consulting services.
To request for a proposal, provide your details in the below link:
Mr. Venkat Reddy
Email: [email protected]
Contact Sales: +1-614-588-8538 (Ext-101)
About IndustryARC: IndustryARC is a Research and Consulting Firm that publishes more than 500 reports annually, in various industries such as Agriculture, Automotive, Automation & Instrumentation, Chemicals and Materials, Energy and Power, Electronics, Food and Beverages, Information Technology, and Life sciences and Healthcare.