Argan Oil Market 2020 and Forecast 2021-2027

  • TBI578433
  • November 05, 2020
  • Global
  • 135 pages
  • IFF Market Research

Report Overview: Global Argan Oil Market

The global argan oil market size was valued at USD 112.8 million in 2020 and is expected to expand at a revenue-based CAGR of 09.7% from 2021 to 2027. The growth can be attributed to increasing product demand from several end-use industries such as food, cosmetics, and medical. Growing popularity of the product along with favorable regulatory policies in countries like U.K and U.S. are likely to play a key role in providing opportunities for new players entering the market. Argan oil is separated from the kernels of argan tree fruits, either manually or through a mechanical process. Earlier, oil was obtained from the kernels manually. However, the advancements in machines have helped save time and ensure high-quality production. Argan oil has become one of the most preferred products especially in the cosmetics and personal care industry. This is attributed to the advanced properties such as high level of antioxidants, anti-inflammatory, and other noteworthy benefits for skincare and haircare. Men’s grooming products such as shower gels, hair and beard oils, skin creams, and waxes that are infused with argan and other essential oils have also witnessed a rise in consumption over the last few years. Europe is one of the major consumers of argan oil in the world. The European market is lead by product application in personal care and cosmetics industry. Cosmetic grade is mostly processed in Europe by the solvent extraction of kernels and is mainly used for the preparation of moisturizers, shampoos, and anti-wrinkle cosmetic products. In addition, Europe has been majorly involved in biopharmaceutical research in recent years. For instance, over the past decade, pharmaceutical companies in the region have successfully manufactured biobased medicines for several diseases such as cancer, high blood pressure, diabetes, and cardiovascular diseases.

Type Insights: Global Argan Oil Market

Conventional type is harvested from the kernels of argan tree and is rich in essential fatty acids and other important nutrients. Argan trees are slow-growing trees exclusively endemic to the barren lands of Morocco. Harvesting conventional is characterized by the use of irrigation water, synthetic fertilizers, and chemical pesticides in order to cultivate high-yielding varieties and obtain increased oil content. This type is significantly used for manufacturing personal care and cosmetics, pharmaceuticals, aromatherapy, food, and home cleaning products. Organic is one of the purest forms of argan oil, which is used extensively as an ingredient for aromatherapy. Harvesting organic argan oil is characterized by the use of biobased fertilizers such as bone meal, green manure, and compost manure to increase the crop yield. This type is sold as a luxury product and is gaining increasing interest among international cosmetics companies. Form Insights Argan oil absolute is a concentrated form, which is separated from plant kernels through solvent extraction techniques. The production of this form involves pulverization of the kernels followed by their suspension in solvents, after which the solvents are vaporized to obtain oil. Absolute form finds application in perfumery, aromatherapy, and cosmetic products. The blended form includes blend of argan oil with vegetables and essential oils. Typically, the blended form is used for purposes such as food recipes, cleaning, and home product formulations. Moroccan consumers are highly inclined toward using traditionally produced products. Increasing consumer demand for blends in topical applications coupled with rising consumption of argan oil blends in the cosmetics sector is projected to drive this segment growth over the forecast period 2021-2027.

Application Insights: Global Argan Oil Market

Argan oil is gaining popularity in several medical applications owing to its anti-inflammatory, antioxidant, anti-proliferative, aphrodisiac, and analgesic properties. It is being used for treating infections such as chickenpox, skin-related conditions such as burns, eczema, and psoriasis, and diseases such as diabetes, epilepsy, osteoarthritis, and atherosclerosis. Due to its antibacterial property, the product is used for treating skin wounds, cuts, and abrasions at a faster rate. Aromatherapy massage is known to have numerous benefits. It helps harmonize, balance, and relax mind as well as body. In addition, it enhances the immune system to assist various bodily functions and fight infections. Argan oil is also available in food and cosmetic grades for commercial usage. Food grade product is generally referred to as culinary oil and differs from cosmetic grade in terms of production process. The production of culinary oil involves toasting the kernels to impart a nutty aroma and taste.

Distribution Channel Insights: Global Argan Oil Market

On account of limited production and supply, the argan oil market value chain is characterized by the presence of a well-established distribution network to ensure uniform product availability across the globe. Business to Business (B2B) includes selling, distributing, and trading the product through the Internet, wholesalers, and value-added distributors. Argan oil producers extensively distribute their products across the globe through transport and logistics partners. Business to Consumers (B2C) refers to the process of selling products to the consumers or end-users through supermarkets, departmental stores, specialty stores, online stores, or door-to-door sales. The sales through supermarkets/hypermarkets are anticipated to witness significant growth in Europe, MEA, and North America. On the other hand, online sales of the product are expected to grow significantly in Asia Pacific and Central and South America, supported by a convenient purchasing experience for the customers.

Regional Insights: Global Argan Oil Market

North America emerged as one of the significant consumers of argan oil owing to the increased consumption of biobased personal care, cosmetics, and aromatherapy products. The use of the product in aromatherapy healing improves health of the body, mind, and spirit. Aromatherapy massage harmonizes body balance, decreases stress, and assists various body functions in fighting infections. Thus, aromatherapy products have become fashionable in North America and are widely available in specialist shops and online shopping centers. Middle East and Africa is the only region in the world, which is involved in commercial-scale production. Argan trees are mainly grown around the arid and semi-arid region of Essaouira and Agadir in Morocco. Considering the benefits of argan oil, in recent years several NGOs and multinational cosmetics companies have come in to prevent deforestation and encourage the planting of argan trees in the region. For instance, L’Oréal along with BASF SE has set up a sourcing program to foster the supply chain.

Argan Oil Market Share Insights: Global Argan Oil Market

The market is significantly fragmented as the number of players with business operations in Morocco is fairly high. There are many cooperatives in Morocco, wherein women are engaged in producing and transporting the product to refineries for further processing. Key manufacturers include
  • ARGANisme
  • Zineglob
  • PURUS (Purus International)
  • Malakbio
  • Argane Aouzac
  • Organica Group LTD
  • Arganfarm
  • Kamakhya Bottlers
  • Zidrop Argan Oil
Exporting the product to high growth markets such as Europe and North America has resulted in a network of the manufacturer, trader, and distributor relationships. In order to combat the middlemens prices, manufacturers have themselves adopted business operations of import and export. In order to maximize product sales and increase their penetration into the consumer market, a significant number of players are selling through their own online retail stores and have developed into specialty retailers. This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis on the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this report, Trusted Business Insights has segmented the global argan oil market report on the basis of type, form, application, distribution channel, and region:

Type Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

  • Conventional
  • Organic

Form Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

  • Absolute
  • Blend
  • Concentrate

Application Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

  • Personal Care & Cosmetics
  • Medical
  • Aromatherapy
  • Food
  • Cleaning and Home
  • Others

Distribution Channel Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

  • B2B
  • B2C
  • Supermarket/Hypermarket
  • Specialty Retailer
  • Online Stores
  • Others

Table of Contents
Chapter 1 Methodology and Scope
1.1 Market Segmentation & Scope
1.2 Market Definition
1.3 Information Procurement
     1.3.1 Purchased Database(Statista, FactSet, Bloomberg, SDC Platinum)
     1.3.2 IFF Internal Database
     1.3.3 Secondary Sources
     1.3.4 Third Party Perspective
     1.3.5 Primary Research
     1.3.6 Primary Sources
1.4 Information Analysis
     1.4.1 Data Analysis Models  
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