June 13, 2024
Ginger Oil Market

Ginger Oil Market Poised to Witness High Growth Due to Rising Health Awareness and Increasing Application in Industries

The ginger oil market has witnessed significant growth in recent years due to increasing demand for ginger and its various health benefits. Ginger oil is extracted from ginger through a carbon dioxide extraction process and contains compounds like gingerols and shogoals that are highly beneficial for soothing pains. It is broadly used in several industries like food and beverages, pharmaceuticals, personal care and cosmetics owing to its health-promoting properties and pungent aroma. Ginger oil is commonly used in ginger ale, ginger beer and several Asian cuisines for flavoring purposes. It also finds applications in dietary supplements, soaps, lotions and massage oils due to anti-inflammatory and analgesic properties.

The Global ginger oil market is estimated to be valued at US$ 14.54 Bn in 2024 and is expected to exhibit a CAGR of 3.5% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the ginger oil market are Katyani Exports, Universal Olioresins, AOS Product Pvt. Ltd., Phoenix Aromas (Nanjing) Co. Ltd., Alchem International Ltd., Kancor Industries, Frutarom, Chr. Hansen, Biomax Life Sciences Limited, Firmenich, A.G. Organica, Aadhunik Ayurveda, Hindustan Mint and Agro Products Pvt. Ltd., Avi Naturals, Anjum Aromatics, Moksha Lifestyle, Sidus Natural Products P Ltd., Rakesh Sandal Industries (Rakesh Group), Shubham Natural Fragrances, Fancy India Corp.

The key opportunities in the Ginger Oil Market Size include increasing focus on natural and organic ingredients in food and personal care products. There is also growing preference for Ayurvedic and herbal medicines which is fueling demand for ginger oil.

Technological advancements like supercritical CO2 extraction is helping manufacturers obtain higher quality ginger oil in lesser time. Companies are also developing nanoemulsions of ginger oil for enhanced stability and absorption in cosmetic formulations.

Market Drivers

The rising health awareness among consumers regarding the benefits of ginger is a major market driver. Ginger oil is considered effective for reducing inflammation, nausea, pains and improves digestion. Its wide application in culinary, pharmaceutical and personal care industries is also fueling market growth. Increasing demand for natural antioxidants and aromatherapy is further propelling the demand for ginger oil globally.

Current Challenges in Ginger Oil Market
The ginger oil market faces certain challenges currently including high production costs, fluctuations in ginger crop supply and prices, and rising competition. Ginger cultivation requires better agricultural practices which involve high labor costs. Also, the ginger crop is vulnerable to adverse weather conditions and pests which can threaten supply stability. The prices of ginger roots which are the raw material undergo volatility following the forces of demand and supply. This poses risks for downstream processors and formulators. Additionally, the market sees competitive pressures from substitute spices and essential oils which act as alternatives in various applications. Brand positioning and unique value propositions are needed to address the competition.

SWOT Analysis

Strength: Ginger oil has natural medicinal and therapeutic properties. It possesses antimicrobial, anti-inflammatory and antioxidant attributes due to the presence of compounds like gingerol, shogaol and zingerone. These benefits support its demand in pharmaceuticals, therapeutics and FMCG products.
Weakness: India faces quality consistency issues in ginger oil production due to varying agro-climatic conditions across different cultivating regions. High reliance on rain-fed farming aggravates these supply chain challenges.
Opportunity: Growing adoption of aromatherapy practices and rising health-consciousness are increasing ginger oil’s popularity in spa therapies and wellness applications. Its use in culinary products, confectionery, desserts and beverages is also expanding.
Threats: Strict quality control and food safety regulations in developed markets pose compliance difficulties for some small ginger oil producers and exporters. Fake and adulterated varieties are a threat as well.

Geographical Regions
In terms of value, Asia Pacific region accounts for the largest share of the global ginger oil market currently. India is the prime cultivator and exporter of ginger in the world. Other major ginger producing countries are China, Indonesia, Nigeria, Nepal, Bangladesh and Thailand. India and China together account for over 80% of total ginger production worldwide.

Fastest Growing Region
Europe is projected to witness the fastest growth in demand for ginger oil during the forecast period from 2024-2031. This can be attributed to growing popularity of Asian cuisines and flavours alongside increasing uptake of aromatherapy techniques among European consumers. Favourable regulations promoting natural ingredientsalso support the market expansion.

*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it