Citronella Oil Market Report 2025 (Global Edition)

CURRENT SCENARIO OF THE CITRONELLA OIL  MARKET

Key Factors Driving the Citronella oil Market

• Surging Popularity of Aromatherapy for Therapeutic Purposes is driving the market

In recent years, aromatherapy has gained popularity as a kind of treatment at spas and wellness centers. These facilities are currently using items that are chosen with greater care. Because of this, money is being spent on research and development to create better goods, procedures, services, and technology. This is expected to have a positive effect on market expansion. Citronella oil is frequently used in aromatherapy to alleviate dread, hopelessness, and anxiety. It also boosts the worldwide market by acting as a tranquilizer and reviving the exhausted body and mind. 

These benefits will most likely encourage market growth. The market is being driven by citronella's therapeutic benefits, which include its antifungal, anti-antiseptic, and anti-inflammatory qualities. 

Increased consumer knowledge of essential oils' therapeutic benefits has prompted the industrial application of citronella. One important trend that encourages citronella oil manufacturing is the growing usage of the oil in aromatherapy. The industry is expanding as aromatherapy gains more traction as a therapeutic tool. Advances in extraction methods have helped farmers and consumers alike. Essential oils have replaced synthetic components in many cosmetic products because of their benefits and absence of adverse effects. 

Furthermore, accessibility to aromatherapy is improved by its incorporation into a range of consumer products, such as diffusers, candles, massage oils, and beauty products. The industry has seen the emergence of novel and practical delivery systems, which facilitate the integration of aromatherapy products into everyday routines. This versatility aids in the easy assimilation of aromatherapy into a variety of lifestyles. Additionally, the industry is impacted by the growing use of aromatherapy in conventional medical procedures. Aromatherapy has been used into treatments including massage therapy and mental health interventions as a result of healthcare practitioners' recognition of the potential therapeutic usefulness of essential oils in managing specific health conditions.

• Growing Awareness among Individuals about Natural Remedies to Treat Illnesses supporting the growth of market

Customers are shifting to natural repellents as they become more conscious of the possible hazards connected to chemical-based ones, and citronella oil stands out as a powerful and environmentally responsible option. Due to its potent aroma, which naturally repels insects, it is a well-liked option for anyone looking to protect themselves from pests. The rise of mosquito-borne diseases like dengue and malaria is blamed for the mosquito repellent industry's exponential expansion. 

There is a growing demand for citronella oil as a result of individuals using insect-repellent lotions and sprays due to growing health consciousness. Citronella oil is a well-liked option for those looking for an alternative to traditional therapy because of its many benefits. As more people look for natural ways to heal their ailments, citronella oil is growing in popularity. There are numerous ways that citronella oil might improve health; a few are as follows: Citronella oil can help to lessen pain and swelling. As an antibacterial agent, it can be applied to treat infections. Digestion and blood flow can both be improved by using citronella oil. 

The primary component of this oil, citronellal, has strong analgesic, anti-inflammatory, and pain-relieving properties. For this reason, it is commonly used to treat joint discomfort and arthritis by reducing pain and inflammation. 

According to World Health Organization (WHO), arteries disease affects about 6.5 million persons aged 40 and over in the US. 
(Source: https://www.cdc.gov/heartdisease/PAD.htm#:~:text=Approximately%206.5%20million%20people%20age,the%20United%20States%20have%20PAD.&text=Other%20health%20conditions%20and%20disorders,PAD%20is%20due%20to%20atherosclerosis.)

As a natural vasodilator with a warming effect, it is also used to treat neuralgia,
severe cramps, muscle spasms, and painful muscles. Each year, millions of Americans suffer from chronic pain as a result of arthritis. About one in four of the fifteen million people who have arthritis report feeling severe joint pain as a result of their condition. The pain usually manifests itself after extended common usages, like prolonged grasping or tight gripping.

Factors Hampering the growth of the market

• The competition from synthetic alternatives and chemical-based insect repellents as well as Variability in the quality and effectiveness of products restraints market growth

Insect repellents including chemicals and synthetic substitutes pose a serious threat to the citronella oil industry. These goods are frequently well-known and have features like long-lasting efficacy and occasionally a reduced price point. The apparent dependability of these solutions in terms of insect repellent may bring in customers. Additionally, a number of chemical-based repellents have strong marketing campaigns and well-known brands behind them, which helps to maintain their market share. The fierce rivalry poses a challenge to natural citronella oil, which is prized for its non-toxic and environmentally beneficial qualities.

The industry needs to concentrate on informing customers about the unique benefits of natural citronella oil in order to overcome this obstacle. This entails highlighting its environmental safety, pleasing aroma, and efficient pest deterrent properties. Research and development endeavors ought to focus on improving the efficaciousness and durability of citronella-based products by refining their composition and application techniques. Through emphasising these advantages and persistent innovation, the citronella oil industry may establish itself as a strong competitor against chemical-based repellents and synthetic substitutes.

The industry for citronella oil is further hindered by a noteworthy lack of consistency in the efficacy and quality of its products. This is due to the fact that citronella oil can be obtained from different lemongrass species and extracted in different ways, which may result in variations in its chemical makeup and overall effectiveness. Because of this, not every product containing citronella oil will have the same degree of insect repellent or strength of smell. Customers' confidence and happiness may be damaged by this inconsistent quality since they may receive goods that fall short of their expectations.

It also presents a problem for companies trying to provide dependable and consistent formulations of citronella oil. Strict quality control procedures and uniform production techniques must be adopted by the citronella oil sector in order to address this constraint. This would increase consumer confidence in the effectiveness of citronella oil-based remedies by ensuring that products fulfill specified standards for potency and purity. Furthermore, label transparency and unambiguous information regarding the sources and processing techniques of citronella oil can support customers in making knowledgeable purchases and promote consumer confidence in the market. To overcome this constraint and guarantee steady growth, the citronella oil sector might prioritize consistency and quality of product.

Opportunities

• Rising consumer preference for natural and eco-friendly products provides growth opportunities 

Citronella oil sales are expected to rise significantly due in large part to consumers' growing inclination for natural and environmentally friendly products. Demand for substitutes made from sustainable and renewable resources is rising as people become more aware of how their purchases affect the environment. This choice is well complemented by citronella oil, which is derived from lemongrass. When opposed to chemically-laden alternatives, it is thought of as a natural answer for insect repellent needs, providing an environmentally friendly choice.

Citronella oil's diverse range of uses in aromatherapy, personal care, and other sectors makes it even more appealing to customers looking for all-encompassing and eco-friendly products. Citronella oil has new prospects in the insect repellent industry as a result of this trend toward natural and environmentally friendly products. It also presents new challenges for creative product development and marketing approaches. Businesses who prioritize the environmentally friendly sourcing, manufacturing, and packaging of citronella oil stand to benefit from a competitive advantage in this rapidly expanding sector as they satisfy the demands of a growing number of environmentally conscious customers.

For instance, in September 2021, the MANE KANGOR Innovation Center, which focuses on developments in natural cosmetic components, natural colorants, culinary flavors, and nutraceutical goods, was established in Angamaly. 
(Source:https://www.mane.com/media/mane-kancors-new-innovation-centre-inaugurated-at-angamaly)

How did COVID–19 Impact the Citronella Oil Market?

Lockdowns, travel restrictions, and transit interruptions in different areas had an impact on the citronella oil supply chain, possibly resulting in shortages. The demand for non-essential items like fragrances and cosmetics containing citronella oil declined as a result of lockdowns and economic uncertainty. Consequently, the decline in COVID-19 instances and the industry is expected to increase as a result of government and non-government organizations using the following tactics.

Due to the lock down and Covid-19 safety precautions, the recent outbreak of the novel coronavirus disease temporarily disrupted the supply chain and made it more difficult to manufacture products using essential oils. However, manufacturing resumed as normal after the lockdown was lifted in the majority of the world. 

On the other hand, COVID-19 caused stress levels to rise globally, which in turn caused a rise in people's interest in essential oils for relaxation. Essential oils saw a spike in demand during the pandemic, and as a result, they have become increasingly popular. This is anticipated to propel the essential oils market in the upcoming years.

Post-pandemic - After the pandemic, the essential oils market experienced positive growth. Essential oils have antimicrobial, antioxidant, and anti-infective properties; thus, they treat various health conditions, including stress, immunity disorders, sleep disorders, and depression. Therefore, due to the rise in awareness regarding the benefits of essential oils, the essential oils market has grown rapidly after the pandemic.

The novel coronavirus (COVID-19) is causing distress among individuals worldwide. Hence, pharma and healthcare companies are increasing their R&D activities to develop vaccines and drugs that minimize the severity of the virus. As suggested by the FDA on March 6, 2020, essential oils hold promising potential to combat Coronavirus. 

Such revelations are creating incremental opportunities for companies in the India essential oils market. The import value of essential oils and resinoids in India amounted to 285.42 million U.S. dollars in 2021. There was a significant increase compared to previous year, where the import value was 228.23 million U.S. dollars.
(Source: https://www.statista.com/statistics/1286403/india-import-value-of-essential-oils-and-resinoids/#:~:text=The%20import%20value%20of%20essential,was%20228.23%20million%20U.S.%20dollars.) 

The U.S. being severely hit by to the COVID-19 crisis is using essential oils, owing to their proven antiviral properties. Due to a surge in the number of COVID-19 patients in India, companies in the India essential oils market are increasing their production capabilities to manufacture essential oils made from basil, clove, and eucalyptus globulus, amongst others. They are raising awareness about effective antivirus synergies that deliver protection against coronavirus. On the other hand, eucalyptus radiata is being highly publicized for powerful antibacterial and anti-infection properties.

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Citronella Oil Market is witnessing significant growth in the near future.

In 2023, the Java Citronella Oil segment accounted for noticeable share of global Citronella Oil Market and is projected to experience significant growth in the near future.

The Therapeutics segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies Anhui Great Nation Essential Oils Co. Ltd., Nanchang Yang Pu Natural Essence and Spice Co. and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

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