The global cedarwood oil market size was valued at $303.8 million in 2020, and is projected to reach $587.3 million by 2030, registering a CAGR of 6.6%, from 2021 to 2030.
Cedarwood oil is an essential oil extracted from leaves, berries, needles, and barks of cedar trees. There are various types of cedars such as eastern red cedar, eastern white cedar, Spanish cedar, Alaskan yellow cedar, and western red cedar. The most popular type of cedar is the eastern red cedar, popularly known as the Juniperus Virginiana L. and it is an evergreen conifer.
The cedarwood oil is extensively used as an ingredient in a wide variety of products such as deodorants, shampoos, colognes, and insect repellents. Enormous health and beauty benefits offered by the cedarwood oil propels its demand across various industries such as personal care, pharmaceuticals, and foods & beverages. Components such as cedrol, cedrine, and thujopsene found in the cedarwood oil have certain properties such as antiseptic, anti-inflammatory, diuretic, anti-fungal, antispasmodic, and insecticidal properties, which propels its adoption as an ingredient for manufacturing various consumer products across the globe. Therefore, the aforementioned properties are expected to drive demand for the cedarwood oil across different industries during the forecast period.
Cedarwood oil is considered beneficial for treating dermatological or skin related problems such as acne and hair loss. Alopecia areata is a disease that results in hair loss. According to a study, Archives of Dermatology, the cedarwood oil is beneficial and effective to treat hair loss problems. It also cures scalp eczema and dandruff issues. Furthermore, the anti-microbial and anti-inflammatory properties of cedarwood oil provides effective treatment for acne. These benefits are expected to spur demand among young adults who are more concerned regarding their aesthetic appearances and spend more on grooming products. Thus, rise in demand for cedarwood oil in the cosmetics & skincare and pharmaceutical industries is anticipated to augment growth of the global cedarwood oil market.
Sedentary lifestyle, changing food habits, growing stress, and rise in consumption of alcohol and drugs is resulting in the rising prevalence of depression and anxiety disorder across the globe. According to the World Health Organization, around 280 million people in the globe have depression. The rising prevalence of depression is estimated to boost the adoption of cedarwood oil in the spa & relaxation industry. The rising expenditure of the consumers in the mental health and well-being is fueling the growth of the cedarwood oil market, as cedarwood oil can relieve stress, anxiety, and depression. Moreover, the rising popularity of wellness tourism is expected to drive the growth of the cedarwood oil market. The tourists seeks to indulge in leisure, recreational, and wellness activities during the holiday tours. This is a major reason behind the rapid growth of the spa & relaxation businesses across the globe.
The cedarwood oil can be used as an insect repellent. It helps to repel ticks, fleas, and moths from cloths, humans, and animals. This function of the cedarwood oil presents a promising growth to be used in the production of different repellent products. Moreover, the pet industry across the globe is growing rapidly. The tick and flea repellent is an important product in the pet industry and the growing usage of cedarwood oil for the manufacturing of tick and flea repellent products for different pet animals is expected to significantly boost the cedarwood oil market growth in the foreseeable future.
Steam Distillation segment held the major share of 84.9% in 2020
The market is segmented on the basis of technique, end use, industry, and region. By technique, the market is segregated into steam distillation, carbon dioxide distillation, and cold press. On the basis of end use, it is categorized into cosmetics & skincare, toiletries, aroma therapy, and others. Depending on industry, it is segmented into spa & relaxation, pharmaceuticals, and others. Region wise, the cedarwood oil market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, France, the Netherlands, Spain, Austria, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, and rest of LAMEA).
As per the cedarwood oil market forecast, based on the technique, the steam distillation was the dominating segment, garnering a market share of 84.8% in 2020. This is attributed to the increased adoption of the steam distillation technique for the production of the cedarwood oil, as this technique offers large scale production at industrial scale, helps to extract maximum oil from the raw material, and offers economies of scale.
By End Use
Aroma Therapy segment held the major share of 39.4% in 2020
According to the cedarwood oil market trends, the cosmetics & skincare is estimated to be the fastest-growing segment during the forecast period. The skin benefits such as acne treatment and hair loss treatment offered by the cedarwood oil is fueling its adoption in the production of skincare and cosmetic products across the globe.
Based on the industry, the pharmaceuticals is expected to be the most opportunistic segment. The various therapeutic and health benefits associated with the cedarwood oil such as antiseptic, anti-inflammatory, diuretic, anti-fungal, and antispasmodic is projected to boosts its utilization in the production of various medicines in the foreseeable future.
Spa & Relaxation segment held the major share of 67.8% in 2020
Based on the region, North America dominated the market, accounting for 37.5% of the cedarwood oil market share in 2020. U.S. is the leading producer and consumer of cedarwood oil in the globe. Increased consumer awareness regarding the availability of the cedarwood oil, increased expenditure on the health and wellness, and rising prevalence of various skin and mental disorders are the major factors that boosts the growth of the cedarwood oil market in the region.
The major players operating in the global cedarwood oil market are Essential Oils, Finetech Industry Limited, Foreverest Resources Ltd., Grayden Industries, Inc., Mother Herbs (P) Ltd., Orchid Chemical Supplies Ltd., Venus Enterprises Limited, A.G. Industries, Falcon Essential Oils, and SVA Organics.
North America segment held the major share of 37.5% in 2020
Key Benefits for Stakeholders
- The report provides an extensive analysis of the current and emerging cedarwood oil market trends and opportunities.
- The report provides detailed qualitative and quantitative analysis of the current trends and future estimations that help evaluate the prevailing cedarwood oil market opportunities in the market.
- The cedarwood oil market forecast is offered along with information related to key drivers, restraints, and opportunities.
- The market analysis is conducted by following key product positioning and monitoring the top competitors within the market framework.
- The report provides extensive qualitative insights on the potential and niche segments or regions exhibiting favorable growth.
Cedarwood Oil Market Report Highlights
By End Use
On the basis of opinion of the top CXOs, there has been a rapid surge in demand for essential oils in the market since 2015, especially in the U.S. The major reason behind this is increase in penetration of multi-level marketers such as Melaleuca, doTerra, and Young Living in the U.S. These MLM channels accounts for a major share of the revenue in the overall essential oils market in the U.S. Essential oils have witnessed an increase in application in homecare, air care, personal care, and a wider variety of consumer goods in the U.S. Increase in consumer expenditure on organic and health & wellness products, coupled with rise in awareness among consumers about health benefits of cedarwood oil and other essential oils have resulted in a significant surge in demand.
According to the co-founder and CEO of an essential oil company, consumers are shifting their preferences toward natural products and are highly attracted toward products that have natural scents. Growth in trend of self-care propels demand for essential oils as they replace the artificial and harmful synthetic scents and have the ability to improve well-being by affecting moods of people in a positive way. Moreover, baby boomers are the major consumers of essential oils, who accounts for around 45% of essential oil consumers.
Hence, rapidly growing demand for essential oils is expected to significantly impact sales of cedarwood oil in the future and the cedarwood oil market is estimated to gain a rapid traction across the global market.