Citronella Oil Market With Tariff Impact Analysis | USD 414.9 Mn

Overview

New York, NY – May 06, 2025 – The global Citronella Oil Market is growing fast due to rising demand for natural and eco-friendly products. In 2024, the market was valued at USD 249.9 million and is expected to reach USD 414.9 million by 2034, growing at a 5.2% CAGR.

In 2024, Natural Citronella Oil dominated the market, securing over 67.5% of the share. Its popularity stems from consumer demand for pure, minimally processed, and eco-friendly products. Java citronella oil commanded a 67.5% market share, driven by its potent insect-repelling properties and strong aroma. The pharmaceutical sector led the citronella oil market in 2024 with a 64.4% share, fueled by the oil’s anti-inflammatory and pain-relieving benefits. Offline retail accounted for 63.2% of the citronella oil market in 2024, driven by consumer preference for in-store purchases.

US Tariff Impact on Citronella Oil Market

President Trump said new tariffs will move forward on imports from Mexico and Canada, effective Tuesday (March 4). The tariffs, 25% on Mexican goods and 10% on energy products from Canada, will raise prices for a healthy share of US refinery feedstock, and we expect them to affect some flows at the margin to the US crude oil market.

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This means the major Gulf oil producers have got off relatively lightly, as all GCC states face the basic 10% levy, like Iran, far below the 34% on imports from China or the 20% on the EU. Other major petroleum-exporting states are harder hit: Iraq faces a 39% tariff, Libya 31%, Algeria 30%, Venezuela 15%. But since their main exports, oil and gas, are exempted, the direct impact is limited. Indeed, for that reason, the tariffs won’t achieve their alleged aim of eliminating bilateral trade deficits.

Key Takeaways

• Citronella Oil Market size is expected to be worth around USD 414.9 Mn by 2034, from USD 249.9 Mn in 2024, growing at a CAGR of 5.2%.
• Natural segment held a commanding position in the citronella oil market, with a market share surpassing 67.5%.
• Java type of citronella oil held a dominant market position, capturing more than a 67.5% share.
• The pharmaceuticals segment held a dominant market position in the citronella oil market, capturing more than a 64.4% share.
• Offline retail segment held a dominant market position in the citronella oil market, capturing more than a 63.2% share.
• Asia-Pacific (APAC) region, the citronella oil market held a dominant position in 2024, capturing a substantial 37.8% market share with a valuation of approximately USD 94.4 million.

Analyst Viewpoint

The region’s dominance, driven by robust cultivation in Indonesia, India, and China, offers opportunities for investors to tap into a growing supply chain for natural insect repellents, aromatherapy, and pharmaceutical applications. The rising middle class, with increasing disposable income, is fueling demand for organic and wellness products, making APAC a hotspot for scalable ventures.

For instance, partnering with local producers or investing in sustainable farming could yield strong returns, especially as global demand for eco-friendly alternatives surges. However, risks like volatile raw material prices due to weather fluctuations and competition from synthetic substitutes could challenge profitability. Ensuring product authenticity and navigating inconsistent quality standards across suppliers are hurdles investors must address to build consumer trust.

Consumer insights reveal a strong shift toward natural products, with citronella oil’s insect-repelling and therapeutic properties resonating deeply in health-conscious markets. Technological advancements, such as improved extraction methods and eco-friendly production processes, are enhancing oil quality and sustainability, which could lower costs and attract environmentally conscious investors.

Report Scope

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Key Market Segments

By Source

• In 2024, Natural Citronella Oil dominated the market, securing over 67.5% of the share. Its popularity stems from consumer demand for pure, minimally processed, and eco-friendly products. Valued for its efficacy and alignment with organic trends, natural citronella oil is a key player in health, wellness, and natural pest control applications, with sustained growth expected.

By Type

• Java citronella oil commanded a 67.5% market share in 2024, driven by its potent insect-repelling properties and strong aroma. Widely used in aromatherapy, personal care, and household products, its effectiveness and natural appeal ensure its continued dominance as consumers prioritize high-quality, natural solutions.

By Application

• The pharmaceutical sector led the citronella oil market in 2024 with a 64.4% share, fueled by the oil’s anti-inflammatory and pain-relieving benefits. Growing consumer preference for natural and alternative remedies has boosted its use in medicinal formulations, reinforcing its strong market position.

By Distribution Channel

• Offline retail accounted for 63.2% of the citronella oil market in 2024, driven by consumer preference for in-store purchases. Health stores, supermarkets, and specialty shops enable direct sensory evaluation of scent and quality, maintaining the segment’s critical role in distribution.

Regional Analysis

Asia-Pacific Leads Citronella Oil Market in 2024 with 37.8% Share

• The Asia-Pacific (APAC) region dominated the citronella oil market, holding a 37.8% share valued at approximately USD 94.4 million. This leadership is driven by extensive citronella cultivation in countries like Indonesia, India, and China, where favorable climates support robust production.
• High demand in APAC is fueled by increasing consumer awareness of the health benefits of natural and organic products, coupled with a growing middle class with rising disposable income. This demographic shift enables greater investment in health and wellness products.
• Supportive government policies in the region further boost the market by promoting natural ingredients in pharmaceuticals and cosmetics, enhancing local production and market penetration. As a global supply hub for citronella oil, APAC’s strong market position is expected to persist, driven by rising health consciousness and innovation in natural product applications.

Top Use Cases

• Insect Repellent: Citronella oil is widely used in natural insect repellents, like sprays, candles, and lotions, to ward off mosquitoes and other bugs. Its strong, lemony scent masks attractants, offering a chemical-free alternative. Popular in outdoor products, it appeals to families and eco-conscious consumers seeking safe, effective pest control solutions for homes and gardens.
• Aromatherapy: In aromatherapy, citronella oil is valued for its uplifting and calming effects. Used in diffusers or massage oils, it helps reduce stress and improve mood. Its fresh, citrusy aroma is a favorite in wellness centers and homes, catering to consumers embracing natural remedies for mental well-being and relaxation.
• Pharmaceuticals: Citronella oil’s anti-inflammatory and pain-relieving properties make it a key ingredient in natural medicinal products. Found in balms and creams, it soothes muscle aches and joint pain. Its growing use in alternative medicine reflects consumer demand for organic health solutions, boosting its presence in pharmaceutical formulations.
• Cosmetics and Personal Care: Citronella oil is added to soaps, shampoos, and skincare products for its refreshing scent and antibacterial properties. It helps cleanse skin and hair while appealing to those seeking natural, eco-friendly beauty options. Its versatility enhances product appeal in the growing clean beauty market, especially in Asia-Pacific.
• Household Cleaning Products: Citronella oil is used in natural cleaning sprays and wipes for its antimicrobial qualities and pleasant scent. It effectively cleans surfaces while leaving a fresh aroma, making it a popular choice for eco-conscious households. Its inclusion in green cleaning products aligns with the rising demand for sustainable home care solutions.

Recent Developments

1. Aromatic and Allied Chemicals

• Aromatic and Allied Chemicals has expanded its citronella oil production to meet rising global demand, focusing on sustainable sourcing from organic farms. The company has also introduced advanced distillation techniques to improve oil purity. Their citronella oil is widely used in insect repellents and aromatherapy products.

2. Augustus Oils Ltd

• Augustus Oils Ltd has launched a new high-quality citronella oil variant with enhanced fragrance stability for perfumery applications. The company is also investing in eco-friendly extraction methods to appeal to environmentally conscious buyers. Their products are popular in Europe and North America.

3. Bhoomi Natural Products and Exports Pvt Ltd.

• Bhoomi Natural has increased citronella oil exports to the U.S. and Europe due to growing demand for natural insect repellents. They have also obtained organic certification, strengthening their position in the organic essential oils market.

4. Bontoux S.A.S

• Bontoux has developed a patented citronella oil blend for long-lasting mosquito repellency. The company is collaborating with cosmetic brands to incorporate citronella oil into skincare products for its antibacterial benefits.

5. Citrus and Allied Essences Ltd

• Citrus and Allied has introduced a premium citronella oil range with higher citronellal content for better efficacy. They are also expanding distribution networks in Asia to capitalize on the rising demand for natural repellents.

Conclusion

The Citronella Oil Market is set for strong growth. Rising demand for natural insect repellents, aromatherapy products, and eco-friendly personal care items is driving this expansion. Companies are innovating with higher-quality extracts, organic certifications, and new applications in cosmetics and pharmaceuticals. Asia-Pacific remains a key production hub, while North America and Europe show high demand for organic variants. With increasing health awareness and preference for chemical-free solutions, the citronella oil market offers significant opportunities for manufacturers, exporters, and investors in the coming decade.

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