04 March 2021
Visiongain has published a new report on Babassu Oil Market Report to 2031: Forecasts By Type of Babassu Oil (Red Babassu Oil, White Babassu Oil, Fractional Babassu Oil, Others), By Application (Food Industry, Pharmaceuticals & Medical, Personal Care & Cosmetics, Others), By Distribution Channel ((Online Channels, Offline Channels (Organized Retail (Supermarkets & Hypermarkets, Convenience Stores, Departmental Stores, Others), Unorganized Retail)) PLUS Profiles of Leading Babassu Oil Manufacturing Companies and Regional and Leading National Market Analysis, PLUS COVID-19 Recovery Scenarios.
Global Babassu Oil market was valued at US$ XX million in 2020 and is projected to reach at a market value of US$ XX million by 2031. Increasing concerns regarding healthy eating is driving the demand for babassu oil throughout the forecast period.
COVID-19 Impact on Babassu Oil Market
Babassu oil witnessed slow-down in demand during the coronavirus pandemic situation due to reduction in the demand from products from end-use industries. The supply chain has been severely impacted with the industry experiencing shortage of raw material leading to shortage in production of the end product. Moreover, companies are facing various setbacks owing to the government regulations that shoved the manufacturing companies to follow social distancing norms and safety regulations to prevent the spread of diseases. The slowdown in the economy and stalled cross border trade for a brief period of time has further added to the challenges faced by companies in the market space.
Wide applications of babassu oil is proliferating the demand
Babassu oil is used highly in the skin and hair care treatment, cooking, in healing minor wounds and other medicinal purposes. Babassu oil contains a blend of myristic acid, lauric acid, stearic acid, palmitic acid and oleic acid which are excellent for health and the oil can be used as a substitute for coconut oil. Babassu oil is has large number of antioxidants, and can combat inflammation very effectively making it appropriate to treat the skin conditions like eczema. In hair care it is used to seal the split ends and as a hair conditioner to ease the hair dryness. Additionally, the oil is a good source of vitamin E, which is useful in treating diseases such as eye disorders and improves glycemic control in people suffering from diabetes among others.
Extensive use of babassu oil in the skin and hair care industry
Middle income countries have experienced a significant rise in the income levels over a period of ten years. This has resulted into changing consumer lifestyle such as rising focus on personal care with a trend of using natural and organic products. Babassu oil acts as a deep conditioner of hair and skin emollient, and also strengthens the skin and reduces water loss keeping the skin hydrated. The global beauty industry generates sale of US$ 500 Bn annually and is primarily driven by the rise in consumer preference for natural and organic ingredients in their cosmetic products. Approximately 83% of the Generation Z population purchased natural and organic skin care products and most of them are willing to pay premium price for these products. Cosmetic manufacturing companies are investing in the development of natural cosmetic products to address the rising demand for organic and natural products from the consumers, which is driving the market for babassu oil.
Increasing demand for biofuels to reduce greenhouse emission and boost the renewable energy source
Babassu oil is used to produce biodiesel with high percentage of saturated fatty acids, primarily composed of lauric (51.8%) and myristic (22.2%) fatty acids that makes the biodiesel stable towards oxidation and resulting in good low temperature properties. Biofuels are increasingly being used across various end-use industries owing to the rising awareness about increasing levels of greenhouse emission and use of renewable energy sources, and cost benefit among others. Governments are investing in research and development of biofuel to tap the untapped market opportunities. For instance,in 2019, the U.S. Department of Energy (DOE) selected 35 projects to provide funding of US$ 73 Mn for R&D in field of bioenergy. The primary aim of DOE in funding the R&D projects is to produce biofuels that are affordable and compatible with the existing infrastructure and vehicles for various transportation modes. Additionally, loans and grants are provided to the companies in the biofuels market space to encourage the development of biofuels. The increasing pool of investments in the development of biofuels is expected to fuel the demand for babassu oil during the forecast period.
Technological developments in the manufacturing of babassu oil
With the advent of technological advancement the babassu oil industry is also experiencing developments in the field of manufacturing process. Technologies such as artificial intelligence and machine learning are widely being used across various industrial sectors. Studies are being conducted for application of these technologies for production and high yield generation. Additionally, using these technologies will help in the manufacturers of babassu oil to reduce cost, enhance operational efficiency and improve the productivity. However, automation is widely being used in the industrial sector to reduce human errors, save time, labor and cost, and to safeguard human life. Use of these technologies are creating opportunities for stakeholders in the babassu oil value chain to develop technologies to further boost the market demand.
Some of the companies profiled in the report include Henry Lamotte Oils GmbH, THE BODY SHOP INTERNATIONAL LIMITED, PERSE BEAUTY INC., Hallstar Corporate, Gustav Heess GmbH, Aboissa, and PARAS PERFUMERS among others. The players in the babassu oil market are adopting strategies such as new product launch, partnerships, and joint ventures among others to grab the high potential babassu oil market. For instance, in August 2020, The Body Shop launched a range of vanilla and pumpkin products including a shower gel, hand cream and body cream. The Vanilla Pumpkin Hand Cream contains free traded babassu oil for smother and nourished skin.
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