The global demand for eucalyptus oil remains an all-time high as applications like cosmetics, and drug manufacturing continue to rise. The global eucalyptus oil market is expected to grow at a notable 5.6% CAGR during 2017-2025, and reach a valuation of US$64.6 million in 2025.

Apart from its core applications like cosmetics, and drugs, the market is also expected to witness major growth in emerging region of Asia Pacific. The increasing push for innovation in pharmaceutical products, and rising disposable income in the region, making way for risk-taking, and experimentation is expected to make way for significant growth.

Additionally, the global eucalyptus market is also riding growth on the back of increasing demand for natural products. The increasing health concerns and rising transparency with the advent of social media are expected to drive growth for the eucalyptus oil market. The large quantities of cineole content in eucalyptus oil promises major opportunities for growth as its medicinal value, and awareness continue to spread globally.

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Rising Popularity of Gluten-free Products to Create New Opportunities

While demand for aromatherapy remains the major application for players in the eucalyptus oil, the rising demand for natural flavours in food and beverage have also created new opportunities for growth. Products like gluten free rice are increasingly preferred by vegans, thanks to their increased importance to health. Products like these are especially appealing to a large number of blue collar workers, whose routine consists of sedentary lifestyle, which results in a wide range of illnesses like bronchitis, pneumonia, and blood pressure among others. Moreover, the rising risk associated with meat products like red meat, also make this large group of working class people extremely wary of conventional foods with more fats, salts, and processed flavors.  The natural quantities of eucalyptus oil, and increased familiarity with its taste will likely drive more growth for players in the eucalyptus oil market.

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North America and Europe to reach over $ 40 million in Valuation

The global market for eucalyptus oil remains in its infancy stages. However, the promising aspect to the story is, the market is growing at a brisk pace in some of the most challenging and lucrative regions. The demand for eucalyptus oil remains a key prospect in North America, and Europe, especially for new entrants. The market reached a valuation of $41.7 mn in 2017, growing at a CAGR of 5.6%. Moreover, the market has also shown promising growth in Asia Pacific, wherein rising disposable income, and conventional trends like herbal medicine, continue to drive demand for natural ingredient-based products.

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