Jojoba Oil Market Size, Share & Trends Analysis Report By Type (Cold Pressed, Refined), By Application (Cosmetics & Personal Care, Pharmaceutical, Industrial), By Sales Channel (B2B, B2C), And Segment Forecasts, 2020 - 2027

Report Overview

The global jojoba oil market size was valued at USD 133.2 million in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 8.4% from 2020 to 2027. Rising consumer expenditure and improving lifestyle drive the demand for personal care and cosmetic products, such as shampoo, conditioners, and moisturizers, which, in turn, is fostering the market growth. Commercially, the product is sold in two major types, including cold-pressed and refined. The majority of players operating in the market have adopted cold-pressed techniques due to the growing demand for naturally sourced ingredients from cosmetics and personal care manufacturers.

Cold-pressed extraction is the most commonly used method to obtain jojoba oil. The production technique is ecological and simple, with minimal use of chemicals as well as heat. This helps to retain the original nutritive properties, flavor, and aroma of the product. Hence, the cold-pressed jojoba oils have high demand among personal care manufacturers. However, the low productive output is a major setback for the technique as the oil yield is low and the product standard is relatively difficult to obtain.

Moreover, several players are now turning towards upgrading their production processes to gain better results. Artificial intelligence and automation are now finding their way in the market. For instance, Jojoba Desert, a major market player, has automated its entire production process from the extraction of oil to the final packaging of the product to obtain contaminant free and high purity oil.

Type Insights

Cold-pressed accounted for the largest revenue share of over 60.0% in 2019 and is anticipated to maintain its lead over the forecast period. Cold-pressed, compared to the refined type, exhibits high purity and quality due to its chemical-free and temperature-controlled extraction process. The extraction process of cold-pressed oil does not use harmful chemical solvents, thereby posing a lesser threat to the environment and consumers' health.

Moreover, the use of controlled temperature processing (not more than 49 degrees) helps jojoba oil retain its original properties, including its flavor, fragrance, and nutritional value. However, several aspects of cold-pressed oil, such as shorter shelf life compared to refined type, strong scent, and longer extraction time, are anticipated to pose a major threat to market growth.

Sales Channel Insights

B2B sales channel emerged as a major distribution channel in 2019 and accounted for 64.5% share in terms of volume. From a sales perspective, B2B marketing in the market helps the players establish a platform for relationships with oil businesses, benefiting from the company's products or services. Lead generation can be a major challenge as finding leads is difficult and time-consuming. Hence, it is recommended to use lead lists supplied by established third-party vendors. With jojoba oil business going online in record numbers, it is becoming increasingly important for B2B sellers to develop online sales strategies.

B2C sales channels include retail channels, online sales, and private label manufacturing. The growing popularity of the product as a carrier for other essential oils has resulted in augmented sales through online portals. Growing consumer awareness, specifically in working-class women regarding appearance and skin health, is driving the product consumption, resulting in the growth of direct purchases through retail and online sales.

Application Insights

The cosmetics and personal care application segment accounted for the largest volume share of approximately 70.0% in 2019 and is anticipated to maintain its lead over the forecast period. The product is used as an emollient and moisturizer in skin care products, including the face, hand, eye, and skin lightening creams. In facial formulations, it helps remove excess oil from the facial skin and regulate the skin's natural oil production. Thus, it can be used for all skin types.

In addition, it is used in sunscreens and anti-tan lotions due to its anti-inflammatory and soothing properties. Furthermore, it is used as a base in several perfumed cosmetics owing to its natural fragrance. Its antioxidant property helps improve skin elasticity and minimize wrinkles, thus imparting youthful glow and reversing skin aging.

Growing consumer awareness regarding the harmful effects of chemicals used in cosmetics has compelled various manufacturers to turn toward natural and organic sources. Key players such as L'Oréal S.A., Estée Lauder Companies, Murad LLC, and Deborah Group S.r.l. are majorly focusing on the inclusion of natural ingredients in cosmetics and personal care products. This is expected to drive product consumption in developing various cosmetic formulations. However, jojoba oil is highly prized in the cosmetics industry as it exhibits high stability and properties similar to sebum.

Regional Insights

North America accounted for the largest volume share of over 39.0% in 2019. North America is one of the prominent producers and consumers of jojoba oil. Rising demand from the cosmetics, personal care, and pharmaceutical industries is anticipated to further drive the product demand over the forecast period. The region is home to some of the major cosmetic markets, including the U.S., Canada, and Mexico.

Mexico is one of the major producers of jojoba oil owing to the availability of raw materials. Favorable climatic conditions have proven to be positively contributing to production in the country. This has ensured a continuous supply of raw materials for players operating in the market. The majority of the oil produced is mainly supplied to cosmetics and personal care manufacturers, followed by the pharmaceutical industries.

Key Companies & Market Share Insights

Leading manufacturers have been present in the jojoba oil industry for a very long time and have huge production capacities. Key players operating in the market are focusing on upgrading their production processes in order to achieve better results. For instance, JD Jojoba Desert, a major industry player, has automated its entire production system. This ensures precise and error-free results as well as a lower risk of contamination. Some of the prominent players in the jojoba oil market include:

• Jojoba Naturals

• JD Jojoba Desert

• Ecooil

• Gustav Heess Oleochemical Products GmbH;

• Inca Oil SA

• Purcell Jojoba

• Vantage Specialty Chemicals, Inc.

Jojoba Oil Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global jojoba oil market report on the basis of type, application, sales channel, and region:

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

  • Cold Pressed

  • Refined

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

  • Cosmetics & Personal Care

  • Pharmaceutical

  • Industrial

  • Others

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

  • B2B

  • B2C

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

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • The U.K.

    • Germany

    • France

    • Spain

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Thailand

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia