Guaiacwood oil is extracted through steam distillation of the wood of the Bulnesia sarmientoi tree species found in South American countries. It has woody, warm and spicy aroma and finds increasing popularity as a substitute for the expensive oud oil. The oil provide relaxation, relieve stress and muscular pain making it an ideal ingredient in massage oils and sleep formulations.
The Global Guaiacwood Oil Market is estimated to be valued at US$ 3.18 Billion in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players: Key players operating in the guaiacwood oil market are International Flavors & Fragrances, Hermitage Oils, Hysses, Health And Beauty Natural Oils, Lotus Garden Botanicals, Plantlife, Vigon International, Symrise, Group Robertet, Sas Albert Vieille, Treatt, Global Ultra B.V., The Lebermuth Co Inc, Plantlife Inc, Ernesto Ventos S.A., India Aroma Oils and Company, and Chemical Bull Pvt Ltd.
International Flavors & Fragrances is one of the largest producers and suppliers of guaiacwood oil globally. Other major players are expanding their production capacities and distribution footprints to cater to the rising demand.
Growing demand: The growing popularity of aromatherapy and increasing consumer preference for natural ingredients in personal care products is fueling the demand for guaiacwood oil around the world.
Global expansion: Leading producers are focusing on territories like North America, Europe and Asia Pacific with new plantations, collaborations and acquisitions to strengthen their global supply networks and market presence.
Market key trends
Emerging applications in natural medicines is one of the key trend in the Guaiacwood Oil Market Size. There is ongoing research evaluating the anti-inflammatory, antioxidant and other therapeutic properties of the oil. Its inclusion in herbal formulations to tackle joint pain, respiratory issues and memory disorders could promote larger consumption in the coming years. The industry is also witnessing innovations in natural preservative solutions using guaiacwood oil for food products extending its end-use scope.
Porter’s Analysis
Threat of new entrants: The Guaiacwood Oil Market Size and Trends has moderate threat of new entrants due to high capital requirement for setting up production facilities.
Bargaining power of buyers: Buyers have moderate bargaining power in the guaiacwood oil market due to the presence of multiple manufacturers.
Bargaining power of suppliers: Suppliers have moderate to high bargaining power due to limited source of raw materials and environmental regulations related to extraction.
Threat of new substitutes: Threat of substitutes is low as guaiacwood oil provides distinct aroma and flavor that are difficult to substitute.
Competitive rivalry: The guaiacwood oil market experiences high competitive rivalry due to large number of players globally.
Geographical Regions
By value, North America accounts for the largest share of the guaiacwood oil market owing to high demand from end-use industries such as perfumes, cosmetics and aromatherapy.
The Asia Pacific region is expected to witness fastest growth in the guaiacwood oil market during the forecast period. Growing personal care and cosmetics industry along with rising awareness about therapeutic benefits of essential oils drives the demand in the region.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
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