Global Lemongrass Oil Market Size, Share, And Business Benefit By Grade (Therapeutic, Food Grade), By Application (Cosmetics and Personal Care, Food and Beverages, Pharmaceuticals, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

The Global Lemongrass Oil Market is expected to be worth around USD 140.3 million by 2034, up from USD 63.8 million in 2024, and is projected to grow at a CAGR of 8.2% from 2025 to 2034. Europe’s strong demand for natural oils supported its 34.80%, USD 22.2 Mn lead.

Lemongrass oil is a natural essential oil distilled from the fresh leaves of the lemongrass plant, known for its clean citrus scent and strong antibacterial properties. It is widely used in aromatherapy, herbal medicine, household cleaners, and personal-care formulations because of its calming aroma and natural antimicrobial activity.

The Lemongrass Oil Market reflects rising demand for plant-based ingredients in wellness, skincare, and home-care products. As consumers shift toward natural solutions, manufacturers are using lemongrass oil for perfumes, soaps, herbal balms, and organic insect repellents. This growing adoption is helping the market expand across both industrial and retail segments.

One major growth factor is the increasing use of aromatherapy and natural mood-enhancing products. People prefer essential oils that help with stress relief and sleep support, and lemongrass oil fits well into this trend. Its soothing properties make it a key ingredient for candles, diffusers, and massage blends.

Demand is also supported by rising interest in clean-label personal-care products. Brands look for natural fragrances and preservatives, and lemongrass oil offers both aroma and functional benefits. In rural clusters, small farmers are expanding cultivation as demand grows.

A clear opportunity comes from stronger supply chains. According to industry reports, Koraput farmers recently supplied 300 kg of lemongrass oil to a firm, showing how organized sourcing can boost rural income while supporting consistent industrial demand.

Key Takeaways

• The Global Lemongrass Oil Market is expected to be worth around USD 140.3 million by 2034, up from USD 63.8 million in 2024, and is projected to grow at a CAGR of 8.2% from 2025 to 2034.
• The Lemongrass Oil Market is dominated by therapeutic grade, holding a strong 65.9% share globally.
• The Lemongrass Oil Market sees cosmetics and personal care leading with a dominant 41.3% share.
• Europe recorded a market value of USD 22.2 Mn overall.

By Grade Analysis

Therapeutic-grade lemongrass oil drives the Lemongrass Oil Market with a 65.9% share.

In 2024, Therapeutic held a dominant market position in the By Grade segment of the Lemongrass Oil Market, with a 65.9% share, driven by a strong preference for pure and high-quality essential oils in wellness, aromatherapy, and natural healing applications. This grade is widely chosen for massage blends, diffusers, and relaxation therapies because it offers better consistency, stronger aroma, and higher bioactive content.

Consumers looking for clean and natural ingredients continue to push demand for therapeutic-grade oils in both home-use and professional spa settings. Its expanding role in stress-relief products, herbal formulations, and mood-enhancing blends further strengthens its lead, making it the preferred choice across premium natural-care categories in 2024.

By Application Analysis

Cosmetics and personal care dominate the Lemongrass Oil Market with 41.3% share.

In 2024, Cosmetics and Personal Care held a dominant market position in the By Application segment of the Lemongrass Oil Market, with a 41.3% share, supported by rising demand for natural fragrances and plant-based ingredients in everyday beauty products. Lemongrass oil has become a preferred choice for soaps, creams, hair oils, and deodorants because of its clean citrus scent and gentle antibacterial properties.

Consumers increasingly look for formulations that avoid synthetic chemicals, and this shift pushes brands to incorporate more essential oils. Its ability to act as both a natural scent enhancer and a functional ingredient strengthens its adoption, allowing Cosmetics and Personal Care to maintain its clear lead within the application landscape in 2024.

Key Market Segments

By Grade

• Therapeutic
• Food Grade

By Application

• Cosmetics and Personal Care
• Food and Beverages
• Pharmaceuticals
• Others

Driving Factors

Growing Preference for Natural Wellness Ingredients

One of the top driving factors for the Lemongrass Oil Market is the fast-rising consumer shift toward natural wellness products. People today look for plant-based ingredients that feel safe, clean, and gentle on the body. Lemongrass oil fits this demand because it offers a fresh scent, antimicrobial benefits, and a calming effect that works well in aromatherapy, skincare, and home-care products.

As more households avoid synthetic chemicals, manufacturers are increasing the use of lemongrass oil in soaps, diffusers, balms, and herbal blends. Wellness routines, spa therapies, and natural stress-relief products are also expanding quickly. This steady movement toward nature-inspired living continues to strengthen the overall demand for lemongrass oil.

Restraining Factors

Fluctuating Raw Material Supply Limits Growth

A key restraining factor for the Lemongrass Oil Market is the frequent fluctuation in raw material supply. Lemongrass farming depends heavily on weather conditions, soil quality, and cultivation practices, which can vary from one region to another. When rainfall is irregular or crop yield drops, the availability of lemongrass leaves decreases, causing instability in oil production.

Small farmers often face challenges such as limited irrigation, high input costs, and low access to modern distillation equipment. These issues make the supply chain inconsistent, leading to price swings and delayed deliveries for manufacturers. As a result, companies sometimes struggle to maintain stable production volumes, which slows market growth despite rising demand.

Growth Opportunity

Rising Demand for Natural Cosmetic Formulations

A major growth opportunity for the Lemongrass Oil Market comes from the expanding use of natural ingredients in cosmetic and personal-care products. Many consumers now prefer skincare, haircare, and hygiene items made without synthetic fragrances or harsh chemicals. Lemongrass oil fits this shift perfectly because it provides a fresh citrus scent, gentle antibacterial benefits, and a clean-label appeal.

Brands are adding it to face cleansers, toners, deodorants, and herbal creams to meet this rising interest in plant-based beauty. Its dual role as a natural fragrance and functional ingredient creates room for innovative product launches. As global demand for safe, nature-inspired cosmetics grows, lemongrass oil is positioned to capture significant new opportunities across premium and everyday categories.

Latest Trends

Increasing Use of Lemongrass in Aromatherapy Blends

One of the latest trends in the Lemongrass Oil Market is the growing use of lemongrass oil in customized aromatherapy blends. More people are turning to natural methods to reduce stress, improve sleep quality, and refresh indoor spaces. Lemongrass oil, with its clean citrus aroma, is being mixed with lavender, eucalyptus, and other essential oils to create calming, uplifting, and energizing blends.

Wellness centers, spas, and home-care brands are offering ready-to-use diffuser oils, roll-ons, and room sprays featuring lemongrass as a core ingredient. This trend is rising because consumers want simple, plant-based solutions for everyday relaxation. As aromatherapy becomes a mainstream wellness habit, demand for lemongrass oil continues to move upward.

Regional Analysis

Europe held a 34.80% share in the lemongrass oil market during 2024.

In 2024, Europe dominated the Lemongrass Oil Market with a 34.80% share, valued at USD 22.2 Mn, supported by strong consumer preference for natural personal-care ingredients and a steady shift toward herbal wellness products. The region’s established aromatherapy culture and mature cosmetic industry help maintain its leading position.

North America follows with healthy demand driven by growing interest in clean fragrances, natural home-care oils, and plant-based formulations, though it remains behind Europe due to smaller production volumes.

Asia Pacific continues to strengthen its presence as lemongrass cultivation is well-established in several countries, supporting regional manufacturing and improving supply consistency. The Middle East & Africa show gradual growth through rising spa culture and natural beauty trends, while Latin America benefits from expanding herbal product adoption.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Essential Oils of New Zealand continues to be recognized for its strong focus on natural extraction and clean, high-purity oils. The company benefits from New Zealand’s reputation for botanical richness, helping it meet rising global demand for therapeutic-grade lemongrass oil used in wellness, personal care, and aromatherapy applications. Its emphasis on sustainable harvesting supports long-term market stability.

Reho Natural Ingredients strengthens its position through its commitment to supplying consistent, high-quality plant-based ingredients. The company caters to cosmetic, food, and wellness manufacturers seeking natural fragrance and functional benefits. Its expanding essential oil portfolio, including lemongrass oil, aligns with the shift toward clean-label formulations, helping Reho build trust among natural-product brands.

The Leburmuth Company holds a strong presence in the fragrance and flavor sectors, and its experience in blending natural oils supports greater adoption of lemongrass oil across perfumes, home-aroma products, and personal-care formulations. Its long-standing industry relationships and formulation expertise make it a reliable supplier for companies looking to create consistent, nature-inspired scents. Together, these players help shape market quality and support ongoing global demand.

Top Key Players in the Market

• Essential Oils of New Zealand
• Reho Natural Ingredients
• The Leburmuth Company
• Young Living Essential Oils
• Falcon
• Sydella Laboratoire
• doTERRA
• Ultra International
• Eden Botanicals
• Plant Therapy

Recent Developments

• In February 2024, Ultra International announced a partnership with Ecospice Ingredients Pvt. Ltd (based in India). The press release states that Ultra brings its global sourcing and essential oil expertise, while Ecospice brings local cultivation and extraction capacity — together they aim to create a “new portfolio of products” including essential oils and botanical raw materials.

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