The global argan oil market is anticipated to witness a 19.6% CAGR in terms of volume, over the forecast period (2016-2024). It had a market size totaling 3 kilotons (KT) in 2015. Rising applications in the medical sector and demand for argan-based beauty products will drive the market over the estimated period. This industry will generate over USD 2 billion by 2024. Positive regulatory scenario will foster market growth. Furthermore, technological innovations to improve microbiological & chemical quality will fuel demand.
The global industry is segmented by applications and regions. Major applications are medical, food, and cosmetics. Cosmetics dominated the argan oil market with over 40% demand in 2014. This sector should experience substantial growth in the coming years. The expanding personal care industry can positively influence overall demand. Argan oil prevents skin dryness and makes it supple. It is a key ingredient used in anti-ageing products. Such a trend would thus, propel the market for anti-ageing products to expand at a 7.5% CAGR from 2016 to 2024.
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The food & health care segments will experience robust growth in the forthcoming years. Medicinal properties of the oil to reduce cholesterol levels and provide additional energy will boost these segments. It has the potential to keep cancer, inflammatory problems, and indigestion at bay.
On the basis of regions, the argan oil market is fragmented into Middle East & Africa (MEA), Central & South Africa, North America, Asia Pacific, and Europe. In volume terms, MEA leads the global industry. This region is further anticipated to register the highest growth over the aforementioned period. Morocco is a prime producer of the product in this region with a capacity of nearly 4 KT annually. It exports 700 tons every year. The Moroccan industry is poised to enhance its production capacity to 10 KT by 2020. This owes to the growing demand for organic products in North America and Europe.
North America will expand at a CAGR of over 20% in the forecasting horizon due to high demand for health & beauty care products. However, the Asia-Pacific (APAC) region exhibits a high growth potential due to widespread application in health care and food industries. The rising geriatric population in Japan, South Korea, and China can also augment regional demand.
Major players within the argan oil market are Nadifi Argan Oil, Zineglob SARL, Sidi Yassine, and OLVEA Group. Due to limited production, only a few refiners in this market supply the products through sellers, traders, and distributors. Some of these players function as retailers while others function as distributors. For instance, Sidi Yassine has its retail branches in Switzerland, while Marogonia manufactures for the OLVEA Group.
The OLVEA Group has branches in Morocco and has recently opened a branch in Burkina Faso, Africa. The production facility in Burkina Faso operates in an eco-friendly set-up with most of the equipment powered to process Shea kernels. This will aid women workers engaged in the cultivation of Shea nuts for their livelihood. Shea butter, a product made from shea kernels, is an important component in chocolates, margarine, and cooking oil. But the quality of the crop and long processing hours hinder its market prospects.