Citronella Oil Market Size to Touch USD 222.69 Million by 2033

The global citronella oil market size was calculated at USD 130.12 million in 2023 and is predicted to grow around USD 222.69 million by 2033, growing at a CAGR of 5.52% from 2024 to 2033.

Key Points

Asia Pacific dominated the global market with the major market share of 35% in 2023.
North America is observed to witness a significant rate of growth in the upcoming period.
By product type, the java citronella oil segment has held the largest market share of 57% in 2023.
By product type, the Ceylon citronella oil segment is the fastest growing during the forecast period.
By grade type, the food grade segment dominated the market with the biggest market share of 49% in 2023.
By grade type, the aromatherapy segment is observed to be the fastest-growing during the forecast period.
By application type, the perfume segment is expected to grow at the fastest rate during the forecast period.

Citronella Oil Market Size 2024 to 2033

The citronella oil market is a segment of the essential oils industry that focuses on the production and distribution of citronella oil derived from various citronella plant species, primarily Cymbopogon nardus and Cymbopogon winterianus. Citronella oil is renowned for its insect-repellent properties and is widely used in the manufacture of insect repellents, candles, soaps, and aromatherapy products. The market’s growth is driven by increasing consumer awareness of natural products and rising demand for alternatives to chemical-based insect repellents.

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Growth Factors

The global citronella oil market is experiencing significant growth due to the expanding application scope of citronella oil in various industries, particularly in the cosmetics and personal care sectors. Growing concerns over the adverse effects of chemical insect repellents on human health and the environment are propelling the demand for natural alternatives like citronella oil. Additionally, the rising popularity of aromatherapy and herbal products is contributing to the market’s growth.

Regional Insights

The market for citronella oil is globally distributed, with key production regions including Southeast Asia, particularly Indonesia, China, India, and Vietnam. These regions are known for their large-scale cultivation of citronella plants and extraction of citronella oil. Southeast Asia dominates both production and export due to favorable climatic conditions for citronella cultivation.

Citronella Oil Market Scope

Report Coverage	Details
Growth Rate from 2024 to 2033	CAGR of 5.52%
Citronella Oil Market Size in 2023	USD 130.12 Million
Citronella Oil Market Size in 2024	USD 137.30 Million
Citronella Oil Market Size by 2033	USD 222.69 Million
Largest Market	Asia Pacific
Base Year	2023
Forecast Period	2024 to 2033
Segments Covered	By Product Type, By Grade Type, and By Application Type
Regions Covered	North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Citronella Oil Market Dynamics

Drivers

Several factors are driving the growth of the citronella oil market. These include the increasing demand for natural insect repellents and aromatherapy products, rising disposable incomes leading to higher spending on personal care products, and growing awareness about the benefits of using natural and organic ingredients in cosmetics and household products. Additionally, the expanding retail sector and e-commerce platforms are further boosting market accessibility and product visibility.

Opportunities

The citronella oil market presents numerous opportunities for expansion, especially in regions where awareness regarding natural products is increasing rapidly. Emerging markets in Latin America, Africa, and the Middle East offer untapped potential for citronella oil producers to enter and establish their presence. Furthermore, innovative product formulations and strategic partnerships with retailers can create new avenues for growth and market penetration.

Challenges

Despite its growth prospects, the citronella oil market faces challenges such as fluctuations in citronella plant supply due to climatic conditions, price volatility influenced by supply-demand dynamics, and the presence of counterfeit or synthetic alternatives in the market. Additionally, regulatory complexities related to product labeling, quality standards, and import-export regulations pose hurdles for market players seeking to expand globally. Addressing these challenges requires robust supply chain management and compliance with stringent quality and regulatory standards.

Citronella Oil Market Recent Developments

In April 2022, the first outdoor candle collection was launched by Yankee Candle. Citronella oil and essential oils are used in these candles due to their environmental-relaxing properties.
In July 2023, the non-alcoholic hand sanitizer gel from citronella essential oil was developed by the PKM D3 pharmacy.
In February 2024, an initiative to protect lives from diseases that are due to mosquitoes, Bior Guard Mos Block Lotion, ran on sale in Singapore and expanded by Kao. This lotion is made from citronella oil and can be used anytime, anywhere. It protects from mosquitoes that have mosquito-repellent properties.