Marula Oil Market

Market Snapshot

As per the latest marula oil industry analysis by Persistence Market Research, Europe currently dominates the global market accounting for 38.5% value share. The personal care and cosmetics industry accounts for 77.8% share in the use of marula oil due to modern consumers’ preference for natural ingredient-based product lines. Overall, the global marula oil market is projected to top a valuation of US$ 89 Mn by 2031.

Key Market Insights Offered in Marula Oil Industry Survey:

• Market estimates and forecast 2016-2031
• Key drivers and restraints impacting market growth
• Segment-wise, country-wise, and region-wise analysis
• Competition mapping and benchmarking
• Brand share and market share analysis
• Key product innovations and regulatory climate
• Covid-19 impact on marula oil sales and how to navigate
• Recommendation on key winning strategies

2016-2020 Sales Analysis for Marula Oil Vs 2021-2031 Market Outlook

From 2016-2020, sales of marula oil increased at the rate of 4.4%. Market expansion greatly depends upon the availability of the product and its timely demand and supply characteristics. Due to the seasonal nature of the marula fruit and its seasonal availability, oil manufacturers are opting to provide more and more shelf-stable products to maintain the supply chain.

As an edible oil, marula oil has been traditionally used in preparing a number of traditional cuisines in Southern Africa, and is also used for preserving meat due to its high antioxidant count. Marula oil is a good alternative to olive oil as it has more antioxidants than the latter.

However, utilization of this oil is less globally as an edible oil and is used majorly as an essential oil in making cosmetics and personal care products.

Apart from these major end-use industries, this oil can also be used in physiotherapy. The versatile nature of this oil and its seasonal stability is what is acting as a demand accelerator for this oil in the global market, with the industry slated to expand at 6.3% CAGR through 2031.

What Benefits Offered by Marula Oil are Aiding Market Growth?

Naturally obtained marula oil derived from the nut and kernels of the marula fruit is a much sought-after ingredient due to its versatility, light texture, and beautifying benefits for cosmetics. It contains a considerable amount of fatty acids and 60% more antioxidants than any other oil, which accounts for its anti-aging and sun damage prevention properties.

It also shows anti-microbial properties, making it an ideal choice for repairing irritated and acne-prone skin. Health benefits offered by the oil include reduction of dryness, irritation, and inflammation. It can be applied directly on the face, hair, and nails, or can be used in shampoos, hair conditioners, moisturizers, skin lotions and nail treatments.

All these benefits are increasing the use of marula oil across various end-use industrial products.

What are the Factors Restraining the Growth of Marula Oil Suppliers?

The main factor is the seasonal nature of the marula fruit from whose kernels the oil is derived. The fruit is available for harvesting for only 2-3 months, and the rest of the year, a high dependence on the nuts derived during the harvesting season are apparent. The fruit is also prone to various diseases and natural calamities, which can hinder the supply of marula oil to a great extent.

Furthermore, the market is less commercialized and requires immediate attention. The marula cultivation and harvesting sector is not organized enough to be considered viable for commercialization. Over-reliance of marula oil producers on manual labor for harvesting, drying, and sometimes even de-nutting has slowed down the commercialization pace.

Which Regional Markets Will Be Beneficial for Marula Oil Manufacturers?

Demand for marula oil is likely to increase in developing nations apart from major developed markets such as Europe. Asia Pacific countries are anticipated to increase the utilization of this oil in varied applications over the coming years.

The market in East Asia is anticipated to be worth US$ 12.7 Mn by the end of 2031.

Country-wise insights

Why is Demand for Marula Oil Increasing across the U.S.?

The United States holds a major share of 68.2% in North America, and is anticipated to enjoy a market value of US$ 16.6 Mn by the end of the forecast period.

Demand for natural ingredient-based cosmetic products is high in this part of the world. Furthermore, the cosmetics and personal care products markets in the country is also among the biggest markets in the world.

The ideality with which marula oil fits in various cosmetic products is ascertaining its utilization to a great extent. Most of the population is literate and demands products that suit their lifestyles, and they aim at opting for products that are naturally derived.

Furthermore, a major demand accelerator for the market is the oil’s utilization in various body care products. Looking at this trend, major cosmetic manufacturers are aiming to provide marula oil-rich products in the U.S.

Why Does France Enjoy the Largest Share in the European Market for Marula Oil?

The market share of France is around 16% and is anticipated to show growth at 4.1% CAGR.

France is a lucrative location for marula oil manufacturers as far as demand is concerned. The country has a major share in the overall personal care and cosmetics industry, with the world’s biggest brands such as L’Oréal Paris and others operating here.

The fact that products based on marula oil are valued more than other products not containing marula oil makes cosmetic players utilize it more in their products, and hence, demand in France is more.

Category-wise insights

How is Availability of Various Marula Oil Types Providing Opportunity for Processors?

The cold pressed virgin oil market is anticipated to be worth US$ 62.7 Mn by the end of 2031. Oil processors are providing marula oil according to the standard benchmarks set by various end-use industries. If one type is suitable for personal care and cosmetics the other is suitable as an edible grade.

Different manufacturers of end products want their oils to be either cold pressed virgin or cold pressed, and depending upon the requirements, oil processors are providing different type of marula oil.

For instance, some manufacturers prefer to refine their oil according to their refining processes, and hence, in such instances, unrefined or cold pressed oil is provided to them. This provides a customization opportunity for end-use industries, and is offering optimistic business growth to oil processors.

What is the Impact of the COVID-19 Crisis on Sales of Marula Oil?

Due to less commercialization, the marula oil producing sector majorly depends upon manual labor for de-nutting and drying of the kernels, which are then collected and sent for further processing. The fact that there has been restrictions during the COVID-19 pandemic did make things a bit more complicated than they were before.

Moreover, the labor that is available also to restrict themselves in following the norms laid down to contain the spread of the virus. Management of labor has been a challenging task for oil processors.

But as things are gradually going back to normal, the oil producing sector is anticipated to work at full potential as before. This has also created opportunities for processors to look for ways and invest in technology that can drastically reduce the dependence on manual labor.

Competitive Landscape

Major market players are looking forward at international collaborations and long-term business agreements for the supply of natural marula oil to major personal care & cosmetic product manufacturers. These partnerships are not only aimed at financial benefits but also for collaborative research & development.

• Marula Natural Products (Pty) Ltd. is looking for collaborations with various cosmetics experts to expand its oil business. It is seeking collaborative arrangements with commercial companies that have expertise in commercializing novel and active ingredients for the cosmetics industry.
• Natural Sourcing LLC works in close collaboration with reputable and eco-conscious natural ingredient processors around the world with an eagerness to bring exotic natural ingredients to its customers, majorly in the skin care industry. For achieving this, the company intends to build strong, mutually profitable business relations with suppliers and customers.
• Rokit Botanics has integrated internationally accepted testing laboratories or third-party laboratories for ensuring the high quality of its products. Each barrel or IBC of marula oil that leaves its facility comes with its own 'Certificate of Analysis' from an outside, 3rd-party laboratory to ensure both, quality and safety.
• SVA Organics has acquired the highest possible level of certifications from various international organizations to make its products globally acceptable. These certifications include USDA organic, GMP certified, ISO approved, Kosher certified, no MOQ, no harmful pesticides, and non-GMO.

Marula Oil Marker Report Scope

Key Segmentation of Marula Oil Industry Research

Nature:

• Organic Marula Oil
• Conventional Marula Oil

Type:

• Cold Pressed Oil
• Cold Pressed Virgin Oil

End Use:

• Marula Oil for Food Processing Industry
• Marula Oil for Foodservice Industry
• Marula Oil for Cosmetics & Personal Care
• Marula Oil for Retail/Household

Distribution Channel:

• Business to Business Sales of Marula Oil
• Business to Consumer Sales of Marula Oil
  • Hypermarkets / Supermarkets
  • Specialty stores
  • Online Retail
  • Other Retail Formats

FAQs Answered in Market Study

• How much is the global marula oil market valued at present?

  The global marula oil market is currently valued at over US$ 48 Mn.

• What are the main factors driving demand for marula oil?

  Increasing demand for use in cosmetics, hair care, and skin care products, rising demand for cruelty-free beauty brands, and growing preference for premium ingredients with longer shelf life are driving demand for marula oil.

• At what CAGR did demand for marula oil increase over the past 5 years?

  From 2016 to 2020, demand for marula oil increased at a CAGR of 4.4%.

• What will be the demand outlook for marula oil through 2031?

  Sales of marula oil are projected to increase at 6.3% CAGR and be valued at over US$ 89 Mn by 2031.

• What is the market share of the top 5 manufacturers of marula oil?

  Top 5 players in the market include Marula Natural Products (Pty) Ltd., The Marula Company, Rokit Botanics, Gustav Heess, and DLG Naturals, enjoying a market share of 30%-40%.

• What is the market stance of France for marula oil in Europe?

  The market for marula oil in France holds the largest market share of 16% in Europe.

• Which are the top 5 countries driving most of the demand for marula oil?

  Germany, the U.K., France, Spain, and the U.S. are major demand centers for marula oil.

• Which countries are key producers of marula oil?

  South Africa, Botswana, Nigeria, and Zambia are key producers of marula oil.

• How is the marula oil market shaping up in Japan and South Korea?

  Through 2031, the market in Japan and South Korea is expected to expand at 7.9% and 7.2% CAGRs, respectively.

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