Eugenol Market

Global Eugenol Market Outlook

The global eugenol market is estimated at USD 549 Million in 2022 and is forecast to surpass USD 1,012 Million by 2032, growing at a CAGR of 6.3% from 2022 to 2032.

Report Attributes	Details
Base Year Value (2021A)	USD 523 Million
Estimated Year Value (2022E)	USD 549 Million
Projected Year Value (2032F)	USD 1,012 Million
Global Growth Rate (2022-2032)	CAGR 6.3%
East Asia Market Share in 2021	~51%
East Asia Growth Rate (2022-2032)	CAGR 7.9%
Collective Value Share (USA, Indonesia,  and China) 2022: Top 4 Countries	~63.4%
Top 5 Companies Market Share in 2021	~26%
Key Companies Profiled	Van Aroma Nile Chemicals Sigma-Aldrich Nusaroma Indonesia Essential Oil Berjé CV. Indaroma Extrasynthese Penta Manufacturing Company Vigon International  Boc Sciences. Other Key Players

Fact.MR- a market research and competitive intelligence provider, foresee a moderate growth of 6.0% CAGR in demand of eugenol oil over the next decade. The global eugenol market is estimated to be USD 549 Million in 2022 and likely surpass the market value of USD 1 Billion by the end of FY-2032.

The eugenol market is evaluated to corner roughly 25% of market share in global herbal oil market. Moreover, global herbal oil market is estimated to be around USD 4 Billion in 2022.

Asia Pacific Including East Asia and South Asia & Oceania is presumed to be the most lucrative region over the coming years owing to expanding food & beverage industry and high clove production yield.

Further, as per the recent analysis, Indonesia is responsible for more than 75% of cloves production wherein India and China is the most prominent region for both prospects including consumption and production. However, due to established end-use industry in North America and Europe region is creating economy of agglomeration and providing strength to retain market share.

The demand trajectory of eugenol oil is presumed to be preserved by positive network externalities created by the pharmaceutical, personal care and food & beverage industry.

2017-2021 Global Eugenol Market Outlook in Comparison to 2022-2032 Growth Forecast

Historically, the market value of the eugenol industry seen a growth of 3.5% CAGR during 2017 to 2021. The global eugenol market has created an absolute dollar opportunity of more than USD 83 Million in the same period. It is likely to offer an absolute dollar opportunity of nearly USD 206 Million and 326 Million amid (2022-27) and (2022-2032) separately.

Additionally, the global eugenol oil market has exhibited a growth of nearly 2.2% CAGR in the past half-decade amid covid-19. Around -6.1% Y-o-Y decline in 2020 has been registered which hinders the overall demand equilibrium and left a lasting impact on the growth curve of the market.   

However, Fact.MR – consumer goods team has evaluated the key factors impacting the growth, market indicators and consumer behavior analysis to forecast the eugenol oil market potential for the coming next decade. It is envisioned that the global market will illustrate growth of 6.3% CAGR and create more than USD 460 Million of absolute $ opportunity. 

Emerging economies of Asia Pacific including Indonesia, Malaysia, Thailand, South Korea are scrutinized to navigate the demand trajectory over the evaluation period. Wherein China and India are presumed to be a prominent pillars for the market. East Asia is likely to portray a growth of 6.7% CAGR whereas South Asia & Oceania is estimated to exhibit a growth of more than 7.9% CAGR by 2031.

Fact.MR projects the eugenol market is expected to witness exhibiting growth at 6.3% CAGR amid 2022 and 2032 in contrast to a CAGR of 3.5% with which it grew from 2017 and 2021.

How Attenuation Clove Prices and Increasing Production Influencing Businesses?

Global clove production amounted to 190 thousand tons in 2020, rising by ~+5% against the previous year level. A drastic plunge in production, while prices remain stable, recommends that the cloves shortage is not there in Indonesia. The globally clove harvested area amounted to ~600 thousand ha in 2020, which was ~1% more than the last year, the total clove harvested zone reached on its peak in 2021 and is likely to remain its expansion in coming term, following increasing demand for globally.

Clove prices have dropped on the international market due to decreased demand, but that's not expected to impact clove oil prices in the short to medium term, as global supply has been increased due to increased demand, pushing prices up for both the essential oils and the spices. The increased demand for eugenol in Europe and North America has resulted in an increase in clove production.

However, these factors are notably contributing to rising demand of eugenol across multitude established industries.

How Medicinal Aids Creating Growth Prospects in the Pharmaceutical Sector?

Clove oil has a variety of uses, including enhancing blood circulation and lowering inflammation, as well as promoting gum health and treating acne. The most well-known use of clove oil is to relieve discomfort linked with dental disorders.

Clove oil is an excellent addition to DIY personal care items such as deodorant and toothpaste. It's also a strong antibacterial agent that can be used in DIY cleaners. The rising demand for eugenol in the pharmaceutical industry has created numerous potential for the eugenol market to expand.

How Bio Pesticides Becoming Evolution Lever of market?

Bio pesticides account for about $3-4 percent of the $100 billion pesticide business. The development of bio pesticides is expected to exceed that of chemical pesticides. Through acquisitions and license agreements, large agrichemical businesses are getting involved in bio insecticides. Eugenol's anti-fungal effects have been shown to prevent and control several fungal infections on plants. It can be used as a termiticide, mosquito repellent, roach repellent, and fungicide.

Increasing FDA regulations on chemical pesticides will upsurge the demand of bio pesticides resulting in increasing the growth of eugenol in the agricultural sector.

Market Expansion and Consolidation are becoming the significant Trends

There has been an upsurge in the number of consolidations in the eugenol manufacturing industry during the last five years. This is mostly due to companies' efforts to address expanding demand for eugenol, gain access to growth markets in Asia Pacific, and strengthen their footholds in regions such as North America and Europe.

Country-wise Insights

What is the North America Eugenol Market Scenario?

The current situation in North America has all of the hallmarks of a Goldilocks economy. Most economic indices, particularly GDP, indicate that economic activity in North America will be mild. Despite a variety of pressures, inflation and deflation remain under control, and unemployment has not increased.

The manufacturing activity in the U.S. is showing spurt, with production increasing at a faster rate than the overall economy. In Canada, encouraging fiscal policy, coupled with gains in household wealth, are likely to revive business investment.

Further, surcharges on export to the U.S., especially on lumber, are projected to lead to losses worth $10 billion; however, rebound in commodity prices can offset these challenges. The focus of the federal government under Trudeau has led to improvement in the employment scenario. The spurt in federal investment, especially in education and housing sector, are expected to sustain the growth of economy.

However, the eugenol market in North America is likely to observe growth in coming years. It is projected to gain 62 BPS and likely to hold nearly 1/6th global market share by the end of 2032.

Which Region holds for Higher Demand for Eugenol Market?

The Asia Pacific region has been segregated into two parts including East Asia and South Asia & Oceania. East Asia eugenol market is the important market from the growth viewpoint. It has gained more than 13% market share of the global eugenol market in the last half-decade.

The South Asia & Oceania region is a potential goldmine for attracting foreign investment into local businesses. The manufacturing and services sector remains lucrative for foreign direct investment in India, while sustained industrial development in Indonesia owing to advancements in technology has brought in good foreign direct investment into the country.

Further, companies based in the region are heavily reliant on governmental reforms and initiatives for continued business growth. An improved business environment is likely to boost regional exports in the coming years. Measures to augment the demand in the domestic market will spur growth in imports as private sector investment picks steam.

The Indonesian eugenol market accounts for ~1/3rd of the South Asia & Oceania eugenol market in 2022. It is likely to create an absolute $ opportunity of USD 273 million amid 2022 & 2032.

Category-wise Insights

Which Source Type of Eugenol is The Largest Contributor to the Eugenol Market?

Clove oil finds prominence in the pharmaceutical industry, applications ranging from reducing inflammation, improving blood circulation to boosting gum health and to helping acne. The well-known clove oil usage is to decrease the pain related to dental problems.

Clove oil is an excellent addition to DIY personal care items such as deodorant and toothpaste. It's also a strong antibacterial agent that can be used in DIY cleaners. The rising demand for eugenol in the pharmaceutical industry has provided a variety of chances that may aid in the expansion of the worldwide eugenol oil market.

However, clove segment is expected to continue its dominance in eugenol market over the assessment period which accounted for 4/5th value share in 2022. Additionally, the segment is predicted to increase at a CAGR of 5.8% and lose nearly 76 BPS by the end of 2032.

Which End-Use Industry is Poised to Show Lucrative Growth in Eugenol Market?

Eugenol demand is growing steadily because of its rising demand in food and pharmaceutical industry. It is used as a flavoring agent in a variety of foods and pharmaceutical products and also used in dental cement preparations.

However, the food industry has acquired more than 1/3rd market share in end-use industry segment. It is projected to rise at a CAGR of 5.5% during the forecast period. This is likely to create an absolute dollar opportunity of nearly USD 143 Million to the eugenol market over the forecast period of 2022-2032. 

Competitive Landscape: Top Companies in Eugenol Market

Majority of companies discussed in the report have focused on product development and expansion of manufacturing units across developing regions. Strategies include innovation, collaborations with key players, partnerships, strategic alliances, and strengthening of regional and global distribution networks.

Also, the key companies have adopted numerous strategies including merger & acquisition partnership, etc. product development is the key strategy to upscale their market presence among consumers.

Fact.MR has provided detailed information about price points of top manufacturers of eugenol market positioned across regions, sales growth, production capacity, and speculative technological expansion in the recently published report.

For instance: On 23rd April 2021, Bukoola Chemical Industries, an Uganda based agro-chemical distributing company became partners with the ACN (Anti-Counterfeit Network) to unveil a campaign with an aim to create awareness among people related to fake agro-chemical inputs available in the market.

Global Eugenol Market Segments

• By Source Type :

  • Cloves
  • Cinnamon
  • Nutmeg
  • Basil
  • Other Source Types

• By End-Use :

  • Food Industry
  • Pharmaceutical Industry
  • Personal Care
  • Other End Use Industry

• By Application :

  • Base Ingredient
  • Stabilizers & Antioxidants
  • Antiseptic & Anaesthetic
  • Perfumeries, Flavorings, Essential Oils
  • Other Applications

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA