Citronella oil is an essential oil extracted from the leaves and stems of the citronella plant. It is commonly used as a natural insect repellent due to its strong scent that masks other attractants to mosquitoes and other insects. The global market is driven by the increasing demand for natural and organic products, as well as the growing awareness about the harmful effects of synthetic chemicals used in insect repellents.
One of the major drivers of the citronella oil industry is its use in the manufacturing of natural insect repellent products. The product is widely used in the production of candles, soaps, lotions, and other personal care products due to its natural insect repellent properties. The demand for natural insect repellent products is increasing, particularly in regions where insect-borne diseases such as malaria and dengue fever are prevalent.
Another factor driving the market is the use of the oil in aromatherapy. The oil is believed to have several health benefits, including stress relief and relaxation, and is often used in aromatherapy products such as diffusers and massage oils.
The citronella oil market is broadly segmented into type, grade, and end-use. The type segmentation is done into java citronella oil and ceylon citronella oil. Segmentation on the basis of grade is done by food grade, aromatherapy, others. The end-user industry is segmented into perfume, food, pharmaceuticals, detergent, cosmetics, others.
The citronella oil market is competitive, with several key players operating in the market. Some of the prominent players in the market include Young Living Essential Oils, doTERRA International, Greenleaf Extractions Pvt. Ltd., Citronella Oil Manufacturing Company, and Yunnan Aroma Source Manufacturing Co. Ltd. These market players are investing heavily in the research and development of the product. For instance, in February 2022, the Indian Council of Agricultural Research (ICAR) announced that it had developed a new variety of citronella plant with high essential oil content. The new variety is expected to increase the yield of the oil and help farmers earn more income.
In recent years, there has been a growing trend of using the product as an ingredient in food and beverages, particularly in Southeast Asia. The oil is used to add flavor to dishes and beverages such as teas and cocktails. This trend is expected to drive the demand for citronella oil in the food and beverage industry, particularly in the Asia Pacific region.
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