The vegetable oils market in beauty and personal care is projected to grow from US$5.84 billion this year to $7.72 billion by 2031, according to MarketsandMarkets.
Demand for plant-based ingredients is supporting market growth. Manufacturers are also increasing the use of clean-label ingredients and sustainable sourcing practices.
Conventional oils are projected to account for 76.4 per cent of the market this year. Coconut oil is expected to hold the largest share during the forecast period, while argan oil is projected to record the highest growth rate.
Argan oil is gaining use in skin and hair care, particularly in the premium segment. Hair care is projected to be the fastest-growing application segment, with a CAGR of 6.7 per cent from 2026 to 2031.
Demand from this segment is supporting the use of vegetable oils and plant-based emollients in shampoos, conditioners, hair oils and other hair care products.
In Asia Pacific, the market is estimated to account for 33.4 per cent of the global market this year. It is projected to grow from $1.95 billion to $2.70 billion by 2031, at a CAGR of 6.7 per cent, compared with 5.8 per cent globally.
MarketsandMarkets said demand for plant-based ingredients and growth in the beauty market are supporting growth in Asia Pacific, which is also a source of vegetable oils used in the industry.
The market is shifting from conventional commodity oils to higher-value oils used in beauty and personal care products. Oils such as jojoba, argan, avocado, castor, almond, and grapeseed are expected to contribute to market value growth as demand shifts toward differentiated and value-added oils.
The market remains moderately fragmented. BASF SE, Cargill Incorporated, ADM, Vantage and Croda International plc are estimated to account for around 20–23 per cent of the market.
Companies are competing by expanding plant-based ingredient portfolios and securing supply, while also pursuing investment and acquisitions. Last year, Louis Dreyfus Company acquired Bunge’s former Viterra oilseed activities in Hungary and Poland, while Cremer Oleo took a controlling stake in Jiangsu Meiaisi Cosmetics in 2022. Sophim completed a €20 million funding round in 2023 to increase production capacity and support international expansion.
