Global Argan Oil Market Size, By Type (Conventional and Organic), By Form (Absolute, Blend, and Concentrate), By Application (Personal care & cosmetics, Medical, Aromatherapy, Food, and Other Applications), By Distribution Channel (B2B and B2C), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: Sep 2023
- Report ID: 13678
- Number of Pages: 384
- Format:
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Quick Navigation
- Report Overview
- Key Takeaways:
- Driving Factors
- Restraining Factors
- Growth Opportunities
- Latest Trends
- Type Analysis
- Form Analysis
- Application Analysis
- Distribution Channel Analysis
- Global Argan Oil Market Segments Includes:
- Geopolitics and Recession Impact Analysis
- Regional Analysis
- Market Share & Key Players Analysis
- Report Scope:
Report Overview
The Global Argan Oil Market size is expected to be worth around USD 896.50 Million by 2032 from USD 310.1 Million in 2022, growing at a CAGR of 11.20% during the forecast period from 2023 to 2032.
Introduction
Argan oil is a plant-based oil extracted from the kernels of the argan tree (Argania spinosa), which is endemic to Morocco. This natural resource is highly valued for its various health as well as cosmetic benefits. Rich in essential fatty acids, vitamin E, and antioxidants, argan oil has a myriad of uses, ranging from skin and hair care to culinary applications.
Argan oil is a potent moisturizer that can be applied directly to the skin. Its essential fatty acids help maintain the skin’s natural barrier, while vitamin E provides an antioxidant boost to combat free radicals and environmental damage. In Morocco, argan oil is traditionally used as a cooking oil. It has a distinctive, nutty flavor that is great for salad dressings, for drizzling over foods, and even as an ingredient in some baked goods.
Actual Numbers Might Vary in the Final Report
Key Takeaways:
- In 2022, the global argan oil market was valued at US$ 310.1 Million.
- By type, the convectional argan oil segment dominated the market with the largest market revenue share of 57% in 2022.
- By form, the absolute segment held a major market share of 53% in 2022.
- By application, the personal care & cosmetics segment held a major market share of 50.3% in 2022.
- By distribution channel, the B2C segment held a major market share of 55% in 2022.
- In 2022, North America dominated the market with the highest revenue share of 33%.
- Argan oil is traditionally sourced from Morocco, where the argan tree is native. This has made Morocco the leading producer and exporter of argan oil.
- Argan oil is widely used in cosmetics for its moisturizing, anti-aging, and antioxidant properties.
- Apart from cosmetic uses, argan oil is gaining traction in the culinary world.
- The antioxidant properties of Argan oil are making it increasingly popular in the pharmaceutical industry, particularly in skincare solutions and as an anti-inflammatory agent.
- As the demand increases, there are concerns about overharvesting and the sustainability of Argan forests in Morocco.
- Companies are investing in technology to expedite the extraction process, improve oil quality, and increase production.
- The top key players in the global argan oil market are OLVEA Morocco, ARGANisme Cosmetics S.A.R.L., Essence Of Argan, and Argan Diva, among other key players.
Driving Factors
Rising Demand in Cosmetic and Personal Care Products Drives Market Growth
One of the primary reasons behind the global growth of the argan oil market is the rising awareness among consumers about its numerous health and beauty benefits. People are increasingly concerned about the harmful effects of synthetic chemicals present in many cosmetic products. As a result, they are turning to natural and organic alternatives, with argan oil being a popular choice due to its perceived safety and effectiveness.
Argan oil is widely used in cosmetics and personal care products such as skin creams, hair serums, and shampoos due to its moisturizing, anti-aging, and hair-nourishing properties. The trend towards natural and organic beauty products has further fueled the demand for argan oil in the cosmetics industry. In 2012, the Moroccan government aimed to boost argan oil production from 2,500 tonnes to 4,000 tonnes by the year 2020. To ensure quality, they began random tests on Argan oil shipments for purity.
Restraining Factors
Limited Geographic Distribution and Seasonal Nature of Production Restraining the Market Growth
Argan oil is primarily produced in Morocco, with the argan tree being native to this region. This limited geographic distribution can pose challenges in terms of supply chain logistics, transportation costs, and potential geopolitical issues that may impact the availability of this oil. Argan oil production is highly seasonal, as the argan tree produces fruit only once a year. This seasonality can lead to fluctuations in supply and prices, making it challenging for manufacturers to maintain a steady production schedule as well as meet market demands consistently.
Growth Opportunities
Traditionally, argan oil has been a staple in Moroccan cuisine. Its unique flavor profile and health benefits are beginning to catch the attention of chefs and food enthusiasts worldwide. As the global populace becomes more adventurous in culinary tastes, argan oil could find its way into mainstream grocery shelves beyond being just a specialty or gourmet item. Early research indicates argan oil’s potential health benefits, such as anti-inflammatory properties and cardiovascular benefits.
If future studies substantiate these claims, the oil could find application in the pharmaceutical industry, thereby broadening its market scope. Argan oil is already a popular ingredient in cosmetics and personal care products. With increased consumer awareness about the benefits of natural and organic products, argan oil’s inclusion in skincare, haircare, and even health supplements is likely to continue. New research into its health benefits could further solidify its place in the health and wellness sector.
Latest Trends
Sustainability and Ethical Practices are Shaping the Argan Oil Market
The trend of ethical consumerism and sustainability has had a noticeable impact on the argan oil market. Consumers increasingly demand proof of sustainable and ethical sourcing practices. This has led to the emergence of various certifications for argan oil, ensuring that the production process is sustainable and beneficial to local communities.
Big players in the beauty and personal care industry have started to include argan oil in their product lines, which has made the market more competitive. The rise of private labels and boutique brands specializing in argan oil products has also contributed to market diversification.
Type Analysis
The Conventional Segment is Dominant in the Global Argan Oil Market
Based on type, the global argan oil market is segmented into conventional and organic. The conventional segment dominated the market with the largest market revenue share of 57% in 2022. Conventional argan oil is generally less expensive to produce than its organic counterpart.
This cost advantage often gets passed onto consumers, making it an attractive option for those who are price-sensitive. Conventional argan oil is widely used in various sectors like cosmetics, culinary uses, and pharmaceuticals. Its diverse application can drive higher sales volumes, contributing to its larger market share.
Form Analysis
The Absolute Argan Oil Segment Dominate Market with Largest Market Share of 53% in 2022
Based on the form, the global argan oil market is classified into absolute, blend, and concentrate. The absolute form segment dominated the market with the largest market revenue share of 53% in 2022. Consumers increasingly seek natural and pure products, particularly when it comes to personal care and food. The “absolute” form of argan oil, which is typically the purest, aligns well with this consumer sentiment, driving its larger market share.
The absolute form can be used for various applications such as cosmetic, culinary, and medical. This makes highly versatile products appealing to a broader audience and, thereby, driving its market share. The blend argan oil segment is expected to grow at the fastest CAGR. Pure Argan oil is relatively expensive due to its labor-intensive extraction process and the limited geographical region where the argan tree grows (mainly in Morocco). Blended argan oil products can be offered at a more accessible price point, which appeals to a broader range of consumers.
Application Analysis
Personal Care & Cosmetics Segment is Dominant in the Global Argan Oil Market
Based on application, the global argan oil market is segmented into personal care & cosmetics, medical, aromatherapy, food, and other applications. The personal care & cosmetics segment dominated the market with the largest market revenue share of 50.3% in 2022. Argan oil is highly versatile and can be used for skin, hair, and nails, making it a staple in personal care and cosmetics.
Its moisturizing, anti-aging, and anti-inflammatory properties make it a popular ingredient in a wide range of products, including lotions, shampoos, conditioners, and makeup. Increasing consumer awareness regarding the benefits of natural and organic ingredients has fueled demand for Argan oil in personal care & cosmetics. Consumers are more willing to invest in premium products that offer multiple benefits and are free from harmful chemicals.
Distribution Channel Analysis
The B2C Segment is Dominant in the Global Argan Oil Market
Based on the distribution channel, the global argan oil market is segmented into B2B and B2C. The B2C segment dominated the market with the largest market revenue share of 55% in 2022. In a B2C setting, argan oil reaches the end consumer directly through retail or e-commerce platforms. Increased consumer awareness about the multifaceted benefits of argan oil in cosmetics, cooking, and health supplements likely contributes to the segment’s dominant position.
Consumers prefer direct interactions and purchasing experiences, making the B2C channel more effective. B2C channels often offer more convenience to consumers through easy-to-navigate online platforms, quick delivery services, and customer-friendly return policies. Consumers are also able to choose from various brands and types, often with the ability to read reviews and perform price comparisons, further driving B2C sales.
Global Argan Oil Market Segments Includes:
By Type
- Conventional
- Organic
By Form
- Absolute
- Blend
- Concentrate
By Application
- Personal care & cosmetics
- Medical
- Aromatherapy
- Food
- Other Applications
By Distribution Channel
- B2B
- B2C
Geopolitics and Recession Impact Analysis
- Morocco’s Dominance: The Argan tree grows almost exclusively in southwestern Morocco, making the country the world’s primary producer of Argan oil. Morocco has, therefore, geopolitical leverage, as many global industries depend on a steady supply of this resource.
- International Partnerships: Because of the global demand for beauty and health products containing Argan oil, Morocco has established trade relations with countries around the world. This interconnectivity can either strengthen or strain diplomatic ties, depending on various geopolitical factors such as trade disputes or changes in import-export policies.
- Regulations and Certification: Given the oil’s growing popularity, there are concerns over quality and authenticity. Countries importing Argan oil often impose standards and certifications, affecting Morocco’s export strategies and influencing geopolitics at the level of international standardization bodies.
- Demand Fluctuation: Economic downturns usually lead to decreased consumer spending on non-essential items. High-end cosmetics and luxury food items, often containing Argan oil, could see a drop in demand, affecting the Argan oil market globally.
- Supply Chain Disruptions: In a recession, disruptions in international trade could affect the Argan oil market. For instance, increased tariffs or trade restrictions could make it more difficult for Morocco to export Argan oil, thus affecting its economy and possibly leading to geopolitical tensions.
- Price Sensitivity: During a recession, cost-cutting measures could see manufacturers switching to cheaper alternatives to Argan oil. This shift could impact Morocco’s export revenues and potentially force a reconsideration of its geopolitical strategies and trade partnerships.
Regional Analysis
North America Dominates the Global Microwave Oven Market
North America is the largest market for the global argan oil market, with a market share of 33% in 2022. One of the significant drivers is the growing awareness of health and wellness among North American consumers. As people become more educated about the benefits of natural and organic products, argan oil stands out due to its range of health benefits. Its high vitamin E and fatty acid content make it a go-to product for skin and hair care, and it is also used for its potential health benefits, like reducing inflammation and cholesterol levels.
The cosmetic and personal care industry is booming in North America. Argan oil is a coveted ingredient in a myriad of products, such as shampoos, conditioners, skin moisturizers, and makeup items. Companies are actively marketing products with argan oil as a premium component, which has helped elevate its status among consumers.
Europe region is expected to grow at the fastest CAGR during the forecast period. Europe has stringent regulations concerning cosmetic and food products, which makes the certification of natural products like Argan oil a crucial driver. Products that meet EU guidelines for organic and natural ingredients are more likely to be trusted by consumers, thereby driving demand.
Key Regions and Countries Covered in this Report:
- North America
- The US
- Canada
- Europe
- Germany
- France
- The UK
- Italy
- Spain
- Russia & CIS
- Rest of Europe
- APAC
- China
- Japan
- South Korea
- India
- ASIAN
- Rest of APAC
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC
- South Africa
- United Arab Emirates
- Rest of the Middle East & Africa
Major players in the argan oil market spend significantly on branding and positioning to make their products stand out. They partner with celebrities, influencers, and dermatologists to endorse their products. Companies invest in R&D to refine their extraction methods, ensuring that the Argan oil is of the highest quality and nutritional value.
Innovations also include creating new product formulations that incorporate Argan oil, such as cosmetics and hair care products, to appeal to broader consumer needs. As consumers are increasingly concerned about product authenticity and quality, obtaining certifications like USDA Organic, ECOCERT, or Fair Trade can make a product more appealing.
Market Key Players:
- OLVEA Morocco
- ARGANisme Cosmetics S.A.R.L.
- Essence of Argan
- Argan Diva
- ARGANBULK
- Josie Maran Cosmetics
- Nadifi Argan
- Argan Liquid Gold
- Zineglob
- Zidrop Argan Oil
- Saadia Organics
- Arganfarm sarl. Au.
- Other Key Players
Recent Developments
- In January 2023, OLVEA Morocco unveiled a range of organic argan oil products, from pure argan oil to argan oil-based skincare and haircare products.
- In February 2023, ARGANisme Cosmetics S.A.R.L. introduced its range of argan oil-based beauty products, including lipstick, foundation, and eyeshadow made of this precious oil.
Report Scope:
Report Features Description Market Value (2022) US$ 310.1 Million Forecast Revenue (2032) US$ 896.5 Million CAGR (2023-2032) 11.2% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Type: Conventional and Organic; By Form: Absolute, Blend, and Concentrate; By Application: Personal care & cosmetics, Medical, Aromatherapy, Food, and Other Applications; By Distribution Channel: B2B and B2C Regional Analysis North America: The US and Canada; Europe: Germany, France, The UK, Italy, Spain, Russia & CIS, and the Rest of Europe; APAC: China, Japan, South Korea, India, ASEAN, and the Rest of APAC; Latin America: Brazil, Mexico, and Rest of Latin America; Middle East & Africa: GCC, South Africa, United Arab Emirates, and Rest of Middle East & Africa. Competitive Landscape OLVEA Morocco, ARGANisme Cosmetics S.A.R.L., Essence of Argan, Argan Diva, ARGANBULK, Josie Maran Cosmetics, Nadifi Argan, Argan Liquid Gold, Zineglob, Zidrop Argan Oil, Saadia Organics, Arganfarm sarl. Au., Other Key Players. Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User license (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
Q: What are the segments covered in the Argan Oil market report?A: Market.US has segmented the Argan Oil market by geography (North America, Europe, APAC, South America, and the Middle East and Africa). By Type, the market has been segmented into conventional and organic. By Form, the market has been further divided into absolute, blend, and concentrate. By Application, the market has been further divided into personal care & cosmetics, medical, aromatherapy, food, cleaning and home, other applications.
Q: Who are the key players in the Argan Oil market?A: АRGАNіѕmе, Віоѕ Аgаdіr, Віорur, Nаdіfі Аrgаn, ZіnеGlоb ЅАRL, АRGАТLАЅ, Каntа Еntеrрrіѕеѕ, Моuntаіn Duѕt, ОLVЕА, and Other Key Players
Q: Which region is more attractive for vendors in the Argan Oil market?A: North America accounted for the highest revenue share of 32% among the others. Therefore, North America Argan Oil market is expected to garner significant business opportunities for the vendors during the forecast period.
Q: What are the key markets for Argan Oil ?A: Key markets for Argan Oil are the US, Canada, UK, Japan, South Korea, China, India, Germany, France, etc.
- OLVEA Morocco
- ARGANisme Cosmetics S.A.R.L.
- Essence of Argan
- Argan Diva
- ARGANBULK
- Josie Maran Cosmetics
- Nadifi Argan
- Argan Liquid Gold
- Zineglob
- Zidrop Argan Oil
- Saadia Organics
- Arganfarm sarl. Au.
- Other Key Players
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