Popularity of Herbal Cosmetics Shapes Future of Global Tea Tree Oil Market
Tea tree oil, derived from the leaves and terminal branchlets of tea tree, is a volatile essential oil native to Australia. Amongst the various types, the oil standardized by ISO 4730: 2017 and the AS 2782: 2017 is commercially used. The benefits and potential of tea tree oil have been recognized for more than 70 years ever since it was used as traditional medicine. The global tea tree oil market has gained excellent prominence in recent times as the oil possesses antiviral, anti-bacterial, acaricidal, and anti-yeast properties. As a result, it is widely used as an antiseptic ingredient across the globe. It finds strong application in cosmetic industries where it is primarily used in skincare, hair care, and toiletries. It also acts as an insect repellent and helps to relieve inflammation and pain caused by bites and stings.
In recent years, media influences, access to medical literature, and quick changing beauty norms have made consumers conscious of harmful effects of synthetic cosmetic products. This has, in turn, created a huge opportunity for tea tree oil products that offer therapeutic and medicinal properties and are made from natural ingredients. The shifting trend to invest in products that are labelled as natural or herbal is expected to bode well for the global tea tree oil market. According to the World Health Organization (WHO), the global herbal market is expected to reach nearly US$5 trillion by the year 2050, which indicates consumer behaviour that is expected to encourage the growth of the global tea tree oil market as well.
To keep up with the trend, personal care product manufacturers are focused on adding new products to the range that are made with herbal ingredients such as tea tree oil. For instance, in May 2021, Bio Veda Action Research Co., the brand owner of Biotique, launched a wide range of tea tree oil products for skincare. This 100% vegan range includes skin-clearing gel, skin-clearing face mask, and skin clearing day gel SPF30. Similarly, Moksha Beauty, a natural cosmetic brand, launched a tea tree oil lavender shampoo to target consumers who prefer to purchase anti-dandruff shampoo infused with herbal ingredients.
Tea Tree Oil Market Capitalizes on Cosmetics Segment With Promise of Skin Improvement
The global tea tree oil market is segmented on the basis of application, sales channel, and region. By application, the market is segmented into cosmetics, pharmaceutical, and animal care. The cosmetic segment is further sub-segmented into skincare, hair care, aromatherapy, and toiletries. The cosmetic segment is expected to lead with the largest share on the pie in terms of value as skincare becomes an imperative part of grooming amongst boomers, millennials, and Generation Z. The high demand for skincare products that commit to reversing signs of ageing, restoring radiance, and rehydrating is expected to boost sales for tea tree oil.
The cosmetic segment is also expected to soar in the coming years as tea tree oil products tackle acne, first by preventing it and next by treating it. Prolonged use of tea tree oil for skin care is known to yield exceptional results, which has lured in a younger population towards it. Analysts anticipate that the haircare segment will follow suit as tea tree oil shampoos and other hair care product treat and prevent dandruff and other fungal infections on the scalp.
According to The European Medicines Agency (EMA) tea tree oil can be used for treating superficial wounds, insect bites, small boils, symptomatic treatment of inflammation of the oral mucosa, etc. According to the WHO, clinical data supports the use of tea tree oil in topical applications for symptomatic treatment of common skin disorders. Analysts predict that these validations will give the global tea tree oil market an excellent opportunity with pharmaceutical products, encouraging the segment to see growth over the forecast period.
Australia to Emerge as One of the Largest Global Producer and Exporter
Australia is one of the largest producers of quality tea tree oil across the globe. In 2019, the country had more than 4,500 hectares under plantation for extraction and production of tea tree oil. Currently, the country exports its larger part of the produced oil, nearly 80%, to other regions. In 2019, a few of the prime export destinations for the country were the U.S., Europe, and Asia. The other tea tree oil-producing countries primarily include China, South Africa, Kenya, Indonesia, and Thailand.
In terms of consumption, North America and Europe are expected to account for a relatively high share during the forecast period. Natural essential oils and aromatherapy products are experiencing robust growth in the European region as consumers seek out alternative therapies and healing methods to conditions, diseases, disorders, and injuries. The primary healing nature of essential oils along with antibacterial and antiviral qualities has thus gained popularity in the region, triggering the demand for tea tree oil.
Global Tea Tree Oil Market: Key Players
The key players operating in the global tea tree oil market are Gelair Tea Tree Oil, Australian Botanical Products, New Zealand Coromandel Mountains Tea Tree Oil Company Ltd, Naturally Australian Tea Tree Oil Pty Ltd., Jenbrook Pty Ltd, ConnOils LLC, Organic Netra, Blue Dog Agriculture, Australian Bodycare Cont, and Lemon Oil Manufacturers.
Global Tea Tree Oil Market is Segmented as Follows:
By End User
Key Elements Included In The Study: Global Tea Tree Oil Market
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