New York - The global Argan oil market is expected to reach US $1.79 billion by 2022, according to a new study conducted by Grand View Research.
New York – The global Argan oil market is expected to reach US $1.79 billion by 2022, according to a new study conducted by Grand View Research.
“Argan Oil Market Analysis By Application (Cosmetics, Food & Medical) And Segment Forecasts To 2022” published this month by the California-based market research company, noted that North American and European markets’ health and cosmetic demands are driving the growth of the industry.
According to the report, the global Argan oil market is expected to reach 19,622.5 tons by 2022, compared to the 4,835.5 tons in 2014, recording a compound annual growth rate (CAGR) of 19.6 percent.
Argan oil is a vegetable oil produced from the kernels of the Argan tree native to Morocco. It is one of the most expensive plant oils for its limited supply and high demand.
This oily tree, scientifically known as Argania spinosa, from the Sapotaceae family of trees, only grows in the dry arid soil of Agadir and Essaouira in southwestern Morocco.
Argan trees can live from 150 to 200 years. Known for centuries by the Berber tribes for its gastronomic and cosmetic properties, Argan oil is produced by female-owned cooperatives in the Agadir region.
Its top applications include cosmetics, food and medical. The cosmetic sector has led the market with a 40 percent of the Argan oil demand in 2014.
To produce Argan oil for cosmetic use, freshly harvested kernels are pressed and filtered through an organic cotton sieve, to extract the aromatic oil. It is easily absorbed by the skin.
According to Grand View Research, the Western world’s trend for consumption of a low fat vegetable oil such as Argan oil and the growing needs in the ‘personal care’ industry are expected to boost sales of this Morocco endemic oil.
Due to its beneficial properties, Argan oil is also used in the treatment of several diseases such as “cancer, arthritis, obesity, acne and skin ailments,” the study revealed.
Morocco is the leader producer and consumer of Argan oil. Moroccans, mostly in rural areas, depend on it for nutrition as it is added to many traditional dishes, charcoal, livestock, wood and shelter among other cosmetic uses.
Argan oil’s top use in North America is cosmetic, where hair treatments and skin products containing a percentage of it can be found in almost every beauty department across the U.S.
According to the same forecast, North America will experience the highest CAGR of the Argan oil market expected at 20.2 percent from 2014 to 2022.
Among the top consumers of Argan oil, representing the global market are: U.S., Germany, China, Japan and Morocco.
Health and medical innovations in other regions such as countries in the Middle East, Africa, Asia Pacific, Southeast Asia, are expected to drive the fast growth of the global Argan oil industry.
According to Grand View, key manufacturers of Argan oil include OLVEA, Zineglob, Biopur and Nadifi Argan.
Considered and endangered species, Argan forests cover about 800,000 hectares in Morocco hosting approximately 21 million trees. In 2014, Argan trees were given UNESCO protection as a “biosphere reserve”.
Grand View Research, Inc. is an American market research and consulting firm in San Francisco that provides fact-based industry research.