Tea Tree Oil Market Size, Share, Industry, Forecast and outlook (2024-2031)

Tea Tree Oil Market is Segmented By Grade (Cosmetics Grade, Therapeutic Grade, Pharma Grade), By Application (Cosmetics and Toiletries, Therapeutic, and Others), By Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Convenience Stores, Online Sales Channel), and By Region (North America, South America, Europe, Asia Pacific, Middle East & Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031 

Market Overview

The Global Tea Tree Oil Market is estimated to grow at a CAGR of 6.12% during the forecast period 2024-2031

Tea tree oil is produced by processing the leaves of the tea tree. Tea tree oil is generally known as melaleuca oil and these trees are mostly grown on the swampy southeast coast of Australia. Australia's indigenous people have long utilized tea tree oil as an herbal remedy and antiseptic (germ killer). According to the National Center for Complementary and Integrative Health, tea tree oil can be used externally for a variety of diseases, including bug bites, lice, nail fungus, wounds, and athlete's foot. This oil is pale yellow and the diluted tea tree products are used for personal care, and households including shampoos and face creams.

Market Summary

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Market Dynamics

The usage of tea tree oil for the treatment of various diseases fuels the market growth

Tea tree oil has many health benefits and this oil is rich in antiseptic properties. Because of its antibacterial properties, it is used to treat pain and red pimples on the skin's surface. Tea Tree oil is an approved anti-inflammatory that acts to reduce the pain and swelling in the skin. According to the Australian Tea Tree Oil Research Institute about 5% of dandruff can be prevented and used to soothe the cradle cap on an infant’s scalp. This oil is not used in pure form but in combination with other antifungal therapies to treat Nail fungus. Athletes' foot symptoms can be effectively treated with a cream containing tea tree oil when used twice daily for a month. Lice eggs have been successfully treated with tea tree oil when combined with lavender oil.

In addition, to that it is also used in household cleaners, fresh wound dressing to kill bacteria (first aid), and so on. The primary reason why doctors advise this oil is that it is readily soluble in water with nonpolar solvents and has a relative density between 0.885 and 0.906. These factors fuel the market.

Market Segmentation Analysis

The cosmetics and toiletries segment accounted for the highest share of the global tea tree oil market

The cosmetics and toiletries segment accounted for a dominant share of the market over the forecast period. Tea tree oil is used in numerous applications such as cosmetics manufacturing and toiletries. For instance, in August 2022 Blossom Kochhar Aroma Magic launched “NEEM & TEA TREE TONER” which is a Niacinamide (5%), with hazel leaf water, and aloe vera juice added. This product is majorly used for beauty purpose because it soothes and calm the skin, unclogs and tighten pores, brightens and soften skin, and has antioxidants and antibacterial properties. Tea tree oil has antibacterial, antiviral, and antifungal properties, making its undiluted form the most popular. Additionally, it helps with the treatment of skin conditions like fungal infections, lice, insect bites, skin rashes, boils, acne, and boils. Tea tree oil is also used as an all-purpose cleaner like sanitizes surfaces, washing, and so on.

Market Geographical Share

Asia Pacific is the dominating region during the forecast period

Asia Pacific is projected to be the dominating region due to the increasing demand for various health benefits from major countries such as Australia, China, South Africa, and Kenya. According to The Australian Tea Tree Industry Association Australia is the world's top producer of tea tree oil, with a nearly 80% global production share. Tea tree oil is also produced in large quantities in China. On 11th Nov 2021, Agri Futures Australia confirmed that Australian tea tree oil is a safe constituent for personal care products. In 2018–19, tea tree production was valued at $45 million, with huge exports. Around 140 tea tree growers and 4,800 hectares of plantations were active in Australia in 2020. A significant (25%) decrease in production as a result of fire, drought, and frost events. With 1,100 tons of oil produced on average yearly, industry growth has stabilized. Plant Health Australia states that tea tree oil, which is exported in bulk form, is used to create products with added value in the healthcare, cosmetic, pharmaceutical, veterinary, and aromatherapy industries. Through a well-established supply chain, 90% of the oil is exported to over 70 nations, primarily in North America and Europe, and the domestic consumption is estimated at 95,000 kilograms per year, with much of this also destined for the export market as value-added cosmetic goods such as soap, shampoo, burn dressings, and tea tree oil.

Companies and Competitive Landscape

There are several established participants in the industry and local manufacturers; hence, the market is fragmented. Some major key players such as G.R. Davis, Maria River Plantation, Cassegrain Kalara, Coromandel Mountains, Fuyang Biotechnology, and Oribi Oils, among others, are actively working to increase their tea tree oil sales globally. With the help of new technology, these key players are producing large quantities (tons) of production and expanding their business. For instance, Maria River Plantation is producing 70,000 kgs to 100,000 kgs per annum. More than 0.114 billion U.S. consumers are facing hair health issues, which is cited as a high beauty concern for human beings to address this problem, on 7th May 2022 Unilever acquired a majority stake in Nutrafol, a leading provider of hair wellness products. In addition to that Oshea Organic has launched its Tea Tree Pure Essential Oil which is greater in size than the heavens of Tea Tree to address several skin and hair problems. According to Ultra International B.V., tea tree oil production in Australia with Quantities estimated to have reached around 700 MT per year. This is due to an increasing market as more and more applications, brands and markets accept tea tree as a marketing ‘active’ which holds original properties. On Sep 8th, 2022 Blossom Kochhar Aroma Magic launched the Neem & Tea Tree range. This range includes different types of products like natural gel, Tea Tree body wash, face pack, face wash, and toner these products are used for personal care.

COVID-19 Impact on Market

Positive impact on the global tea tree oil market

The tea tree oil market has been positively impacted due to covid-19 as the product is used in most pharmaceutical products owing to its properties such as anti-bacterial, anti-inflammatory, and antiviral among others. According to a study published in June 2022, tea tree oil is used in hand sanitizers, hand wash, protective hand cream, facial creams, oil diffusers, linen wash, HVAC filter impregnation, surface spray, and HVAC Systems among others. As these suggested product applications take advantage of the scientific evidence during covid as these are necessary for personal care, and home care so the demand for tea tree oil increased and sales boomed in the market.