GLOBAL BEAUTY OIL MARKET OVERVIEW AND DEFINITION

The global beauty oil market was valued at 5.48 Bn. USD in 2024 is expected to reach 8.10 Bn. USD by 2032, reflecting a CAGR of 5.01% over the forecast period .

The global beauty oils market is evolving rapidly, shaped by a blend of heritage traditions, wellness-driven innovation, and advanced digital personalization. Core plant-based oils like coconut, argan, jojoba, and olive remain consumer favourites, while premium and specialty oils such as marula, rosehip, squalane, and tea tree are gaining ground for their targeted skincare and haircare benefits.

Interest in Ayurvedic and botanical formulas is merging with modern developments like AI-powered customization, adaptogen-infused blends, and microbiome-supporting oils. This has pushed beauty oils beyond basic moisturization into the realm of holistic self-care. Skincare remains the leading use, followed by haircare and a fast-growing aromatherapy segment, showing how beauty and wellness are becoming intertwined in daily routines. 

Regionally, Asia-Pacific leads with its rich cultural traditions and herbal expertise, Europe stands out for its focus on sustainability and strict quality regulations, and North America is embracing multifunctional, experience-led products. With innovation, cultural relevance, and shifting consumer lifestyles all driving demand, beauty oils are expanding their global presence and shaping the future of natural, functional beauty.

MARKET DYNAMICS

Market Drivers

Rising demand for natural and Ayurvedic ingredients

More and more people have been choosing beauty oils made with natural and Ayurvedic ingredients. This shift is mainly because they see these products as safer and better for overall wellness. Oils like coconut, sesame, and jojoba are especially popular because they help keep the skin moisturized, protect it from damage, and provide antioxidants that support healthy skin. Herbal beauty products have also seen a sharp rise in demand worldwide. A 2022 study found that this growth is linked to people wanting long-term health benefits and avoiding harsh chemicals in their skincare. In South Asia, the trend is even stronger. For example, India’s Ayurvedic market grew from ₹300 billion in 2018 to nearly ₹500 billion in 2022. Social media has played a big role in this boom. Influencers and beauty enthusiasts often share videos of traditional remedies like Kumkumadi tailam (a saffron and rose oil blend) or cold-pressed plant oils, which have gained millions of views online. These trends have helped make natural and Ayurvedic beauty oils a mainstream choice, not just a niche option.

Wellness-oriented functional benefits

Beauty oils have shifted from being simple moisturizers to multi-purpose wellness products. Today’s blends often combine essential oils like lavender, bergamot, and ylang-ylang, which not only nourish the skin but also influence mood and well-being. Lavender oil, for example, is known to help with relaxation and better sleep, while bergamot can help reduce stress by lowering cortisol levels. Many brands now highlight these benefits, marketing their oils as mood boosters and stress relievers supported by research. The trend goes beyond stress relief. Some beauty oils are now promoted for improving focus and energy. Nutmeg and rosemary oils, for instance, have scents that can make you feel more alert and focused, making them popular in daily skincare and massage routines. This idea of functional fragrance blends the traditions of aromatherapy with modern lifestyle needs, offering products that combine beauty care with mental and emotional wellness.

Market Restraint

Adulteration and quality inconsistency

Several studies have found that many high-value beauty and cosmetic oils are not as pure as their labels claim, raising concerns about both safety and quality. For example, a 2019 analysis of six popular essential oils, tea tree, lavender, sandalwood, rose, eucalyptus, and lemongrass—found that all of them contained industrial solvents and plasticizers like Carbitol and diethyl phthalate, which were not listed on the labels. Adulteration like this creates big problems for consumers because the product’s quality, scent, and skin benefits can vary from batch to batch. Since cosmetic and essential oils often aren’t regulated as strictly as pharmaceuticals, companies and regulators have to rely on advanced testing methods, like chromatography, spectroscopy, and electronic sensors, to check authenticity. While this helps, it also increases costs and complicates the supply chain.

Market Opportunity

Expansion in men’s grooming

Men’s grooming has grown far beyond the old wash-and-shave routine into a complete self-care category, with specialized oils becoming a key product. Beard and facial-hair oils are no longer just about making hair softer or more manageable, they’re also designed to care for the skin underneath, helping to prevent dryness, flakiness, and irritation in one step. Direct-to-consumer brands and celebrity-led labels, from Harry Styles’ Pleasing to Travis Barker’s Barker Wellness, have helped make daily oil use a normal part of men’s grooming, boosting its popularity. Digital platforms have fueled this shift. Many products now feature multi-functional blends, like baobab for repairing the skin barrier, jojoba for balancing oil production, and sage or tea tree to calm irritation. Even traditional men’s care brands have launched oil-focused lines

Emerging Frontier in Adaptogenic & Microbiome-Friendly Beauty Oils

A growing opportunity in the beauty oils market is the rise of adaptogenic and microbiome-friendly formulations. These products combine traditional oils with stress-reducing herbs or skin-friendly microbes, appealing to consumers who want wellness benefits built into their beauty routines. Adaptogen-infused oils use herbs like ashwagandha, tulsi, and reishi mushroom, ingredients once found mainly in supplements. In hair care, scalp oils enriched with ashwagandha and amla have been shown to improve hair density and thickness. Microbiome-supporting oils bring pre- and probiotic ingredients into facial and body oils to help maintain a healthy skin microbiome. By presenting these blends supported by research and made with sustainably sourced ingredients, brands can stand out in a crowded market and create products that consumers want to make part of their daily self-care rituals.

Market Trends

Personalization via AI

AI-driven personalization in the beauty-oil category has moved far beyond static quizzes to dynamic, data-rich systems that tailor formulations in real time. Early platforms relied on consumer questionnaires to infer skin type and concerns, but modern solutions incorporate computer-vision analysis of selfies, detecting fine lines, redness, and hydration levels, to generate individualized oil blends on the spot. Building on this diagnostic layer, machine-learning algorithms then optimize ingredient ratios based on large datasets of user feedback and clinical results. For example, Il Makiage’s AI engine uses hyperspectral imaging and predictive modelling to recommend not only foundation shades but also ancillary skin-care oils that complement each user’s unique skin chemistry and environmental conditions. This closed-loop system of imaging, AI-driven formulation, and continuous feedback is the cutting edge of personalization, creating beauty-oil experiences that adapt to each user’s skin over time.

SEGMENTATION ANALYSIS

By Oil Type

Natural plant-based oils, like coconut, argan, jojoba, and olive, are at the heart of the beauty oil market. Coconut oil dominates the mass-market segment thanks to its rich lauric and medium-chain fatty acids, which provide strong moisturizing and antimicrobial benefits at a low cost.

In the premium category, argan and jojoba oils are standouts. Argan oil is packed with vitamin E (tocopherol) and essential fatty acids, making it a favourite for anti-aging serums and restorative hair treatments. Jojoba oil’s structure is similar to human sebum, so it hydrates without clogging pores and has proven anti-inflammatory effects that help strengthen the skin barrier.

Specialty oils, such as marula, rosehip, squalane, and tea tree, are growing quickly in targeted treatments for issues like hyperpigmentation and barrier repair. These oils are prized for their concentrated antioxidants and skin-regenerating properties.

By Application

Skincare is the largest use for beauty oils, with facial and body oils making up about two-thirds of global demand. Research shows they help lock in moisture, improve skin elasticity, and reduce inflammation.

Hair care is another major area, products like shampoos, conditioners, and scalp treatments featuring coconut, argan, or olive oil help reduce protein loss, fight frizz, and add shine, making them a go-to for style-conscious and wellness-focused consumers.

A smaller but fast-growing category is wellness and aromatherapy oils. These blends often include lavender, bergamot, or adaptogenic herbs to promote relaxation, improve mood, and create calming self-care rituals at home. Together, these different uses show how beauty oils now bridge both cosmetic and wellness needs in everyday routines.

REGIONAL INSIGHTS

Asia-Pacific stands out due to a strong heritage in plant-based beauty and a rapidly growing wellness culture. In India, people are embracing Ayurvedic traditions again, with oils like coconut, sesame, and specialized blends such as Kumkumadi being part of daily routines. Government-backed herbal programs and celebrity endorsements have helped fuel this revival. Beyond India, countries like Thailand, Indonesia, and Vietnam use local oils such as tamanu, moringa, and rice bran in both luxury spa treatments and everyday beauty products.

In Europe, strict regulations and a focus on sustainability drive the beauty-oil market. Imports of natural cosmetic ingredients, including vegetable and essential oils, have grown steadily in recent years as consumers demand transparency and eco-friendly sourcing. EU law requires all cosmetic oils to meet high safety and labelling standards. As a result, brands compete by offering certified-organic, high-performance formulations backed by third-party testing.

In the U.S. and Canada, beauty oils have expanded from basic skincare into targeted hair-growth and body-wellness products. Plant-based hair treatments, like banana and rosemary-infused sprays, are gaining popularity alongside dermatologist-recommended serums. Brazilian-inspired body oils, such as acerola cherry blended with quinoa oil, have also found success in North America, bringing exotic botanicals into mainstream self-care routines.

Latin America’s beauty oil market thrives on its rich biodiversity and strong DIY culture. Brazil leads the way, with superfruit oils like acerola, passionfruit and andiroba used in both homegrown and export brands. These ingredients are valued for their antioxidants and luxurious textures.

North Africa and the Middle East are home to iconic oils like argan, marula, and prickly-pear seed, all tied to centuries-old traditions. In Morocco, argan oil production faces challenges from overharvesting, drought, and land-use changes, threatening both the environment and the women’s cooperatives that depend on it. Government programs, including tree-planting initiatives and protected geographical indication certifications, are working to protect the resource. The region’s main challenge is balancing high global demand with long-term sustainability.

KEY INDUSTRY DEVELOPMENTS

In July 2025, actor Billy Porter launched Black Mona Lisa Beauty, a gender-free beauty brand aimed at promoting inclusivity and self-expression. One of its standout products is the Rose Gold Oil, formulated to hydrate and add a luminous glow to the skin. Priced at under $70, it’s positioned as an accessible luxury, encouraging people of all genders to explore skincare without the limits of traditional beauty norms.

In late 2024, Finally All Natural launched a face oil backed by scientific research showing it can significantly boost skin filaggrin levels, a protein essential for locking in moisture and supporting a strong skin barrier. Marketed as a “revolutionary” clean beauty essential, the product positions itself at the intersection of science and natural skincare, appealing to consumers looking for both proven results and safe, plant-based ingredients.

GLOBAL BEAUTY OIL MARKET REPORT SCOPE AND SEGMENTATION

MARKET REGIONAL COVERAGE

North America (United States, Canada)

Europe (France, Germany, United Kingdom)

Asia-Pacific (China, South Korea, India, Japan)

Middle-East & Africa (South Africa, Israel, UAE, Iran, Saudi Arabia, Qatar, Rest of Middle East and Africa)

Latin America (Brazil, Mexico, Colombia)

MARKET ACTIVE PLAYERS

Aveda
Moroccanoil
Josie Maran
Herbivore Botanicals
Drunk Elephant
Biossance
The Body Shop
L’Occitane
Kiehl’s
Sunday Riley
The Ordinary
Pai Skincare
OSEA
Tatcha
Dr. Bronner’s