The global jojoba oil derivatives market size was valued at USD 28.39 million in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 7.1% from 2020 to 2027. The growing inclusion of jojoba oil derivatives, especially esters and wax, in skincare and hair care products is estimated to generate demand from developed economies with robust cosmetics manufacturing bases, including the U.S., France, Italy, and the U.K. The personal care and cosmetics industry is preferring plant-sourced and renewable alternatives to paraffin waxes, petrolatum, and mineral oils. Jojoba oil derivatives have been identified as natural products meeting these criteria and fulfilling demand from a large customer base in the industry.
Additionally, the favorable regulatory scenario in North America and European countries, along with the mounting demand for organic and natural cosmetic products, is estimated to trigger the market growth in the near future. State-of-the-art production processes, harvesting, and leading-edge irrigation techniques assist manufacturers to produce these derivatives with strict international quality standards.
However, with the unprecedented outbreak of COVID-19, which has led to the closure of factories and manufacturing sites globally, there has been a significant decline in the demand for active ingredients and raw materials. Several plants have been shut down and many are running at reduced capacities, which may result in a supply-demand gap.
Jojoba esters accounted for the largest revenue share of more than 40.0% in 2019 and are anticipated to maintain their lead over the forecast period. These derivatives possess no trans isomers and are also utilized as elements of extremely pigmented cosmetic systems, wherein they enable uniform pigmentation, surface wetting, and pigment dispersion on application to the skin. Jojoba esters are widely utilized in the formulation of personal care and cosmetic products as they contribute to the moisturizing effect of several cosmetic formulas, which can otherwise be usually “drying” once used on the skin.
Jojoba butter emerged as the second-largest product segment in 2019. It comprises approximately 80.0% of jojoba oil, along with vegetable oil and beeswax, which augments the product’s capability to nurture the skin and leave it supple, silky, and soft. Jojoba butter is utilized in the formulation of several personal care and cosmetic products owing to its characteristic of getting rapidly absorbed by the skin and non-sticky nature. The product can also be utilized in combination with fragrances and active substances, which can create unique cosmetic blends. In addition, the growing preference for the product in pharmaceutical formulations to promote blood circulation and the body’s metabolism is anticipated to drive the product demand.
The personal care and cosmetics application segment accounted for the largest revenue share of above 90.0% in 2019 and is anticipated to maintain its lead over the forecast period. Jojoba is a natural antioxidant and a natural carrier of vitamin E. Consequently, its derivatives are extensively used in the formulation of skincare and hair care products. According to Cosmetics Europe, skincare has emerged as the largest segment in the European personal care and cosmetics market, followed by toiletries and hair care products. Moreover, high demand for products from color cosmetics formulations, such as eye shadows, lipsticks, make-up products, foundations, and eyeliners, is anticipated to boost the product demand over the forecast period.
Jojoba oil derivatives are used in the treatment of skin conditions and as a carrier for medicines that need to penetrate the skin. Jojoba oil derivatives are also utilized in topical creams and ointments to treat delicate skin conditions, with no negative side effects or reported allergic reactions. Additionally, growing apprehensions concerning the side effects of synthetic and chemical additives used in the food and beverage sector, coupled with the high nutritional value of jojoba oil, are anticipated to boost the demand for jojoba oil derivatives in the food and beverage sector.
Jojoba oil derivatives are majorly used in candle making to increase the shelf life of the product. These derivatives also find applications in several other products, such as detergents, disinfectants, surfactants, and paints. The extensive utilization of disinfectants during the COVID-19 pandemic across the globe to maintain hygiene and clean surroundings at both residential as well as commercial places is estimated to have a positive impact on the product demand in these applications over the forecast period.
Moreover, the growing inclusion of jojoba oil derivatives in the formulations of antifoaming agents, driers, emulsifiers, protective coatings, plasticizers, and resins is projected to contribute to the market growth over the forecast period. However, the major rise in demand is anticipated from the personal care industry, which has been growing significantly due to the increasing demand for essential products.
North America accounted for the largest revenue share of over 30.0% in 2019 and is anticipated to maintain its lead over the forecast period. In North America, significantly evolving industries, coupled with constant R&D activities among the manufacturers and formulators to incorporate natural and organic ingredients, have positively influenced the market growth in the region. The 1971 ban on whale oil in the U.S. has increased the penetration of the product in the personal care and cosmetics applications. Currently, the product consumption is mostly driven by the U.S. market owing to the inclination of the U.S. consumers toward bio-based ingredient products.
The European market is primarily driven by the mature personal care and cosmetics, pharmaceuticals, and food and beverage industries. France remains one of the strongest pillars of the personal care and cosmetics production and export industries in Europe. The growth in the region is expected to be further augmented by its major focus toward the development of a bio-economy, which supports the application of natural and biobased ingredients across the manufacturing industries. A significant contribution in R&D for the optimization of production and diversification of application is expected to boost the market growth.
The manufacturers of jojoba oil derivatives are inclined toward backward integration by harvesting seeds in their own farms, extracting oil, and further producing derivatives. The prices of raw material are volatile due to the irregular availability of seeds and adverse climatic conditions. However, the manufacturers, who are integrated backward, have a competitive edge in terms of pricing, and lower overall operational costs.
Key manufacturers in the market are also focused on expanding their geographical presence, technological optimization, and new product development. For instance, Vantage Specialty Chemicals has enlarged its product portfolio and it offers application-specific products. The company offers jojoba esters in several forms, such as esters 15, 20, 30, 60, and 70, which are suitable for different applications. Some prominent players in the global jojoba oil derivatives market include:
- Desert Whale Jojoba Co.
- Inca Oil SA
- JD Jojoba Desert
- LaRonna Jojoba Company
- Nutrix International LLC
- Purcell Jojoba
- The Jojoba Company Australia
- Vantage Specialty Chemicals
This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this report, Grand View Research has segmented the global jojoba oil derivatives market report on the basis of product, application, and region:
- Product Outlook (Volume, Tons; Revenue, USD Million, 2016 – 2027)
- Jojoba Butter
- Jojoba Alcohol
- Jojoba Esters
- Jojoba Proteins
- Jojoba Wax
- Application Outlook (Volume, Tons; Revenue, USD Million, 2016 – 2027)
- Personal Care & Cosmetics
- Hair Care
- Skin Care
- Color Cosmetics
- Sun Care
- Body Care
- Food & Beverage
- Personal Care & Cosmetics
- Regional Outlook (Volume, Tons; Revenue, USD Million, 2016 – 2027)
- North America
- Asia Pacific
- Central & South America
- Middle East & Africa
- Saudi Arabia
- North America