Lemongrass Oil Market Size - By Type, By Application, By Distribution Channel, Forecast, 2025 - 2034

Lemongrass Oil Market Size

The global lemongrass oil market size was estimated at USD 56.3 million in 2024 and is projected to grow at 9.7% CAGR from 2025 to 2034. The expansion of the market relies greatly on oil extraction for cosmetics and personal care products such as lemongrass oil. With this oil, there are claimed features of being an effective antibacterial, antifungal and anti-inflammatory agent which makes it a favorable and well affordable component in cosmetics and skincare lines. The need for organic lemongrass oil beauty products is increasing due to people’s growing interest in green beauty which drives the supply of plant extracts.
 

Cleansers, toners and moisturizers designed for skin use lemongrass oil as it helps to control excess oil secretion, reduce acne and rejuvenate skin. Antioxidants in anti-aging creams are also said to protect the skin from free radicals and slow down skin damage. Lemongrass oil in shampoos and conditioners help to nurture the scalp, fight dandruff and strengthen hair follicles. In addition for body washes and deodorants, it is popular because of the refreshing lemon scent.
 

The total market value of essential oils in 2022 was USD 27.49 billion, due to the increased popularity of natural and functional ingredients. Among the oils in this sector, lemongrass oil is steadily gaining market share due to its versatile use in aromatherapy, food and beverages, as well as cleaning, which adds to the continuous growth in this segment.
 

As people look for more plant based and chemical free alternatives to oil, lemongrass oil has experienced and increase in demand which can also be contributed to the clean beauty movement. To stay relevant to the environmental and wellness trends, large cosmetics companies are starting to incorporate this essential oil into their product lines. The key factor for the industry is the expansion of sales of lemongrass oil for cosmetics and other self-care products, resulting from the herbal consumers and global awareness of beauty care needs.
 

Lemongrass Oil Market Trends

• The growing food and beverage industry has intensified the growth of the lemongrass oil market, which undergoes constant transformation. From lemongrass oil’s signature distinct citrus aroma to its refreshing flavor, this oil is popular as a natural ingredient in various food and beverage applications. More consumers are shifting toward natural and organic products which increases the demand for lemongrass oil, as this oil offers both flavor enhancement and health benefits.
   
• Lemongrass oil is dominantly known for its application in herbal teas and flavored waters. In addition, the oil is also an important part of functional drinks because of its vast restorative qualities such as being an antioxidant and antimicrobial. The increasing popularity of wellness and functional beverages that are marketed towards relieving stress and promoting digestive health has increased the demand for lemongrass oil. Lemongrass oil to be an alternative oil for consumers looking for healthy replacements for artificial flavorings.
   
• Lemongrass oil is also widely used in dressings, sauces, and soups, and is a common ingredient in baked goods. Food manufacturers already face high consumer demands for convenience foods. Adding lemongrass oil into food formulations will not only help ease these demands but also provide food manufacturers with a means to cater to growing demand for regionally inspired foods incorporating lemongrass oil and Asian cuisine.
   
• True lemongrass is grown and harvested commercially. The oil content in the herb ranges from 0.3% to 0.5%. It contains 75–85% of citral and as such is vastly superior to oils extracted from other varieties wherein it has good alcoholic solubility and is therefore ideal for direct application in perfumes.
   
• The shift of consumers of different nations towards healthy eating alongside an increasing demand for plant-based and natural ingredients has resulted in lemongrass oil emerging as an important ingredient in the food and beverage sector. As consumers learn more about health-promoting and flavoring properties of lemongrass oil, its use across diverse categories of food and beverages will grow tremendously. These factors will stand as a major reason for the increase in consumption of food and beverages, which serves as one of the main factors leading the growth within the lemongrass oil market globally.
   

Lemongrass Oil Market Analysis

Competition from synthetic products is stiff, and it undermines the value of lemongrass oils. Synthetic oils are produced at a much lower price; therefore, they can be sold at more competitive prices. In addition, synthetic oils outperform natural oils in terms of quality consistency and shelf-life. Because of these reasons, lemongrass oils are not ideal for use in cosmetics, foods, personal care items, and beverages.
 

Cultivating, harvesting, and extracting oils from lemongrass is a time sensitive and extremely laborious process. This process requires a significant investment of money and resources, which renders real lemongrass oils extremely volatile. Therefore, Synthetic oils are preferred because they are cheaper, offer a wider and more constant supply, and are produced with little investment. Moreover, With the rise of essential oil experts, many manufacturers are taking advantage and swapping natural oils for cheaper synthetic alternatives.
 

In 2024, the lemongrass oil market was segmented by type into conventional and organic. Conventional segment accounted for 74.1% of total market, thus playing vital role in boosting market growth.
 

• The traditional farming of lemongrass oil caters to the needs of aromatherapy, cosmetics, food, and pharmaceuticals due to the lack of special organic practices, making it easily available at low prices. Such users are able to procure it from India, China, and Indonesia which are the leaders in production. The unwavering demand for lemongrass oil from these countries has enabled them to develop robust supply chains to the rest of the world.
   
• Conventional lemongrass oil is also used in fragrances, insect repellents, and flavoring because of its high citral content, earning it a spot on the preferred list of manufacturers. These factors in conjunction with its constant quality have made it a staple for those looking for affordable and versatile essential oils.
   

In 2024, the lemongrass oil market in application is primarily distributed in food & beverages, personal care & cosmetics, pharmaceuticals, aromatherapy, household cleaning products. Market is currently dominated by food & beverages, holding a significant 29.1% market share, followed by pharmaceuticals which is rising at rapid pace in comparison and registered 10.6% higher growth than others.
 

• The constant increase in consumer preferences for natural taste and health-promoting ingredients makes food and beverage industry one of the important drivers of lemongrass oil market. The refreshing and zesty lemon grass oil has antibacterial properties that facilitate its usage in herbal teas, soups, sauces, and confectionaries. Apart from its natural citral content providing a citrus flavor, it also possesses digestive and antioxidant benefits.
   
• Health aware consumers are driving its incorporation in wellness drinks and, functional beverages. Responses from the manufacturers to plant based clean-label ingredient preferences of consumers are being seen on the rise in important regions like Asia-Pacific and North America.
   

In 2024, based on distribution channel, the lemongrass oil market is segmented into online retail, supermarkets/hypermarkets, specialty stores, direct sales, others. Supermarkets/hypermarkets hold a dominant market share of 29.6% in the market.
 

• In the distribution of the essential oils, lemongrass oil is sold at supermarkets and hypermarkets which are essentially retail outlets nowadays. Consumers have increased access to a variety of essential oils. These retailers stock reputable brands and as such, their products are genuine and of good quality. These stores stock lemongrass oil owing to its heightened demand for the natural medicine, aromatherapy, and even food. To further meet the needs of health-conscious customers.
   
• Supermarkets and Hypermarkets also sell pure and blended culinary, household, and wellness oils. The shift toward urbanization, as well as a consumer inclination toward physically checking the products, cement these large stores as the primary sales point for these oils.
   

The India lemongrass oil market was valued at USD 4.9 million in 2024. Lemongrass is one of the most widely grown essential oil plants in the tropics and subtropics of India, Indonesia, Madagascar, and countries in Africa and South America.
 

• Lemongrass essential oil production is currently limited to the tropics and subtropics. The United States and European countries are major importers of the essential oil.
   
• Guatemala and India are the two-leading exporters of  lemongrass oil while the United States of America and Russia are the two leading importers, importing over 77 tons per year each.  
   
• According to CISR-CIMAP, about 1000 tonnes of lemongrass essential oil are produced every year. Out of it, 300–400 tonnes are exported to United States, England, Germany, Australia, and Japan. During the Covid-19 pandemic, the demand for disinfectants raises, significantly increasing the demand for lemongrass essential oil worldwide.
   

Lemongrass Oil Market Share

NOW Foods, a leader in natural products, supplying Lemongrass oil of superior quality for Aromatherapy, Cooking, and personal care. The Firm markets itself to the health conscious and, in doing so, cares about cost while ensuring quality is not compromised.
 

Aura Cacia also sells Lemongrass oil that is frequently used in their essential oil blends for home care and relaxation. Their dedication to ethical sourcing supports small farmers across the globe.
 

Lemongrass Oil Market Companies

Some of the eminent market participants operating in the lemongrass oil industry include:

• AG Organica
• Aura Cacia
• doTERRA
• Edens Garden
• Mountain Rose Herbs
• NOW Foods
• Phoenix Aromas & Essential Oils, LLC
• Plant Therapy Essential Oils
• The Lebermuth Company
• Young Living Essential Oils
   

doTERRA, a leading name in essential oils know for its Wellness and therapeutic grade lemongrass oil, influences focusing on health and sustainability adore their products.
 

Edens Garden is known for their 100% pure lemongrass oil which has a strong scent and is commonly used for aromatherapy, cleaning, and skin care. The company focuses on eco friendly and customer friendly practices.
 

Mountain Rose Herbs ensures their lemongrass oil is organic and sourced ethically to cater to environmentally conscious consumers. Their oils are frequently used for herbal medicines, cooking, and cosmetics.
 

Trade Impact:

The imposition of tariffs on cosmetics product like lemongrass oil, under the Trump administration has had significant ramifications for the global beauty industry. These tariffs have affected manufacturers, consumers, and international trade dynamics. As the debates on possible levies on cosmetics escalate, worries in the lemongrass oil are mounting. President Trump’s changes to U.S. Trade Policy that included Trump’s 10 percent baseline tariff on imported goods mounted complexity to international trade relations.
 

South Korea ranked first in exporting cosmetics and beauty products to the U.S., exporting over USD 1.7 billion worth of products in 2024. Skin care products accounted for more than 78% of the total, thus lemongrass oil used in skin care might get more expensive. Social media K-Beauty brands such as Laneige, Cosrx, Beauty of Joseon, and Peach and Lily are likely to increase in price because of the 10% tariff on South Korean goods.
 

France is also leading exporter of skincare and beauty products into the US in 2024. Over 76% of France’s beauty exports was skincare, which amounted to USD 1.3 billion. Import of lemongrass oil products from Canada will have little impact in U.S. as tariff from Canada & Mexico are likely exempt because they are protected under the U.S.-Mexico-Canada Agreement.
 

Rising costs due to tariffs will invariably trickle their way down the supply chain till they reach the lowest tier- the consumer. The immediate effect of tariffs will always be an increase in prices. With consequences further amplified in the beauty industry, coming out of a pandemic fueled brand and retail boom. Consumers are price-sensitive, so following post relevant inflation trends, even the slightest markup will change the consumer psychology and purchasing habits. This leads to opting out of their previously loyal brands and turning to more affordable local or private label options.
 

Lemongrass Oil Industry News:

• In October 2023, haircare firm Modern Original People Care (MOP) launched the new lemongrass volume collection for salons which is a premium line of custom haircare products. The shampoo and conditioner add volume and moisture to the hair with the use of lemongrass and chamomile extracts.
   
• In August 2023, popular supermarket chain Trader Joe‘s showcased a new product, the “Lemongrass Moisturizing Shampoo” in the beauty aisle. The newest addition to their catalog is a shampoo using argan oil and other essential oils like lemongrass, vitamin E, and is free of sulfates and parabens.
   
• In June 2023, the government of Kandhamal district in Orissa has implemented a mobile oil extraction unit for harvesting lemongrass on agricultural fields in R Udayagiri block.
   
• In January 2021, DoTERRA made the announcement of their market entry in India. Such a move would enable the company to establish a broader customer reach along with the potential for higher sales revenues.
   

The lemongrass oil market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Million from 2021 - 2034 for the following segments:

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Market, By Type

• Conventional
• Organic

Market, By Application

• Food & beverages
• Personal care & cosmetics
• Pharmaceuticals
• Aromatherapy
• Household cleaning products

Market, By Distribution Channel

• Online retail
• Supermarkets/hypermarkets
• Specialty stores
• Direct sales
• Others

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Russia
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America 
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa 
  • Saudi Arabia
  • South Africa
  • UAE