Babassu Oil Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Babassu Oil Market is segmented By Product (Organic, Conventional), By Distribution Channel (Beauty Salon, Food Industry, Personal care and cosmetics, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Babassu Oil Market Overview

[180 Pages Report] The Babassu Oil Market is expected to grow over a CAGR of 5% during the forecasting period (2024-2031). The Global Babassu Oil report analyses the global Babbasu oil market and its application and the demand growth across different regions across the world. Competitive rivalry intensifies with Shareg Co. Ltd., Guemo Co. Ltd., Aboissa Representacoes S/S Ltd., Gateway Ltd., Al-Amin Oils Ltd., Greenpuma Ltd., ETHEREAL INGREDIENTS PRIVATE LIMITED, SHRI HARI AROMATICS, ANUSHKA FRAGRANCIA, Y & R International (Wuhu) Industrial Limited and COSMO PUBLISHING LLC, among others .

Babassu oil is obtained from the seeds of the babassu tree. It is produced widely in Brazil and is considered as a key economic and industrial Product for the region. It has similar characteristics as coconut oil and is gradually being used as a substitute for coconut oil. The oil consists of nearly 70% lipids, with no chemicals and is cold-pressed from the kernel. It is commonly used in soap making and food cooking. It mixes properly with most other oils, such as other essential oils, including coconut oil, olive oil, and others.

Babassu Oil Market - Strategic Insights

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Babassu Oil Market Dynamics

The major factors propelling the growth of the babassu oil market are the growing demand for babassu oil in several Distribution channels, ranging from food to pharmaceutical, pertaining similar property as coconut oil. Moreover, the rapid urbanization and rising disposable income are further rising the awareness regarding babassu oil; therefore, the adoption of babassu oil as a substitute for coconut oil in numerous Distribution channels including baking, and cooking, is increasing across the globe.

Increasing Distribution channel of babassu oil in the various Distribution channel industry

Babassu oil is used as a skin moisturizer in the cosmetic segment and as biodiesel in numerous industrial Distribution channels. Rising demand for food on a large level with rising industrial activities in various regions is expected to increase the babassu oil market in the future. With rising health awareness amongst consumers globally, especially in Asia Pacific countries, including China, India, and Malaysia is expected to impede the coconut oil market. This, in turn, is augmenting the growth of babassu oil demand during the forecast period. It has a Distribution channel in the food industry, such as non-drying oil in foods, skin products, and cleaners are supporting the growth of the market.

Lack of awareness among the population

Lack of awareness concerning the health advantages of babassu oil among individuals is a key factor expected to curtail the growth of the global market over the forecast period. Moreover, the easy availability of coconut oil, compared to babassu oil in emerging countries is another factor expected to hinder the growth of the total market in the near future.

COVID-19 Impact Analysis

The outbreak of COVID-19 has negatively impacted the growth of the babassu oil market globally. The disruption in the supply chain has majorly impacted the growth of the market amidst the pandemic. The companies, such as Mountain Rose Herbs, has claimed that due to the COVID-19 pandemic, the company’s mission and vision have moved back in almost 2 weeks. Therefore, the COVID-19 pandemic has hampered the market value of the babassu oil market in 2020.

Babassu Oil Market Segmentation Analysis

Based on the product, the babassu oil market has been classified into organic babassu oil and conventional babassu oil

The conventional babassu oil segment is projected to be the dominant segment in the market during the forecast period.

Conventional babassu oil dominated the global market in 2019, whereas organic babassu oil is expected to present considerable growth in the near future. Babassu oil is much appropriate in terms of getting rid of numerous hair and skincare problems. Therefore, the increasing usage of organic babassu oil in organic cosmetics products manufacturing is expected to propel segmental growth in the near future.

Babassu oil is segmented on the basis of distribution channel, which includes a beauty salon, pharmacy/drugstores, a speciality outlet and online retailing.

Pharmacy/drugstore is expected to dominate the babassu oil market.

Pharmacy/drugstore held the dominant position in the global market during the forecast period. Consumers recognize babassu oil as a hair and skin treatment solution, which is supporting the segment growth during the forecast period. Moreover, online retailing is expected to project a considerable CAGR during the forecast period. Increasing internet penetration coupled with rising consumer inclination towards convenient shopping is expected to propel the segment growth in the near future.

Babassu Oil Market Geographical Share

Based on geography, the study analyzes the babassu oil market in the global market, including North America, Europe, Asia-Pacific, South America, and the Middle East & Africa.

North America is expected to dominate the global babassu oil market

North America is holding a dominant position in the global babassu oil market in 2019. In North America, the U.S. is expected to represent continue its dominance during the forecast period. In the U.S., babassu oil is becoming a favourable element to support or enhance the smooth and soften skin and hair. Moreover, Latin America is expected to represent significant growth in terms of value during the forecast period. Easy availability of raw material at a comparatively lower cost is expected to propel the market growth across the region. Babassu oil market for the Asia Pacific is expected to observe rapid growth over the forecast period, backed by the growth of the commercial oil industry, especially in India and China. Moreover, increasing population and rising demand for coconut oil, owing to increasing demand for babassu oil due to its similar properties to coconut oil is gaining traction in emerging economies, such as China and India, is expected to augment the growth of the Asia Pacific babassu oil market.

Babassu Oil Market Companies and Competitive Landscape

The babassu oil market is highly competitive, owing to the presence of big food brands. The key babassu oil players which are contributing to the growth of the global market include Shareg Co. Ltd., Guemo Co. Ltd., Aboissa Representacoes S/S Ltd., Gateway Ltd., Al-Amin Oils Ltd., Greenpuma Ltd., ETHEREAL INGREDIENTS PRIVATE LIMITED, SHRI HARI AROMATICS, ANUSHKA FRAGRANCIA, Y & R International (Wuhu) Industrial Limited and COSMO PUBLISHING LLC, among others. The major players are adopting new product launch and expansion strategies for global growth in the babassu oil market.   

Nature In Bottle (Ethereal Ingredients (P) Ltd.):

Nature In Bottle is a wholesale brand of Ethereal Ingredients (P) Ltd. Through Nature In Bottle, the company offer a range of premium quality organic personal care ingredients that finds its Distribution channel in skincare, hair care, massage, spa, aromatherapy, herbalism and soap making. The other products offered by the company includes a wide range of wholesale quantities and sizes to allow its customers to purchase as much or as little as they need.

Product Portfolio: The Company’s portfolio comprises essential, body butters, absolutes, hydrosols, traditional attars and among others.