Why the Argan Oil Market Is Projected to Grow at 12.4 Percent CAGR by 2032

The global argan oil market is undergoing a rapid transformation driven by increasing consumer demand for natural, organic, and multifunctional products across various industries. Once considered a niche product sourced exclusively from Morocco, argan oil has now become a global sensation, finding applications in cosmetics, personal care, food, and pharmaceutical sectors. Its versatility, combined with powerful health and beauty benefits, has made it a preferred ingredient among both consumers and manufacturers.

A surge in consumer awareness regarding clean beauty, sustainable sourcing, and plant-based wellness is further propelling the popularity of argan oil. With its rich composition of essential fatty acids, antioxidants, and vitamin E, argan oil is revered for its moisturizing, anti-aging, and nourishing qualities. This growing recognition is positioning argan oil as a cornerstone ingredient in premium product formulations worldwide.

According to Persistence Market Research, the global argan oil market size is likely to be valued at US$ 368.6 Mn in 2025 and is expected to grow at US$ 835.5 Mn in 2032 with a staggering CAGR of 12.4 percent during the forecast period from 2025 to 2032.

Key Drivers Fueling Market Expansion

1. Cosmetics and Personal Care Dominate Market Share

The largest driver of argan oil market growth is its extensive use in the cosmetics and personal care industry. Consumers today are leaning toward skincare and haircare products that are both effective and derived from natural sources. Argan oil is now a go-to solution due to its hydrating, anti-frizz, and anti-aging properties. It is a staple in moisturizers, shampoos, conditioners, and serums, helping users achieve healthier skin and stronger, shinier hair.

2. Rise of Organic and Clean Beauty Trends

The clean beauty movement is playing a pivotal role in shaping argan oil consumption. Organic argan oil, which is cold-pressed and chemical-free, is highly sought after for its purity and safety. It aligns perfectly with consumer values around sustainability, wellness, and ethical consumption. Certifications such as USDA Organic and ECOCERT further boost consumer confidence and brand credibility.

3. Functional Food and Vegan Supplement Innovation

Beyond cosmetics, the food and dietary supplement sectors are emerging as promising arenas for argan oil. With growing demand for vegan alternatives to fish oil, argan oil’s high omega 6 and omega 9 content presents a compelling solution. Its inclusion in soft gels, capsules, fortified beverages, and nutrition bars taps into the health-conscious consumer segment seeking plant-based, heart and brain-friendly supplements.

Restraints Hindering Market Potential

1. Limited Geographic Availability and Climate Risk

Despite its surging popularity, the argan oil market faces significant constraints due to its limited geographic origin. Argan trees are endemic to the Argan Biosphere Reserve in Morocco. Each tree produces a relatively small yield, and the oil extraction process is labor-intensive. Environmental challenges such as drought and desertification have already impacted production. In 2022, Morocco faced a severe drought that reduced argan fruit output by 30 percent, leading to a 20 percent spike in global prices. This makes the market vulnerable to supply chain disruptions and price volatility.

2. Dependency on a Single Country and Trade Risks

Political instability, water restrictions, and export limitations in Morocco further add to the unpredictability. Since global cultivation is still limited, the inability to diversify sourcing hinders scalability and increases pressure on existing resources. These factors pose risks for manufacturers who rely heavily on a consistent and affordable supply of raw argan oil.

Key Opportunities and Market Trends

1. Expanding Role in the Vegan Omega Supplement Segment

With increasing awareness of plant-based wellness, argan oil is set to become a major player in the vegan omega supplement market. Similar to algae-derived omega 3 products, argan oil capsules offer a natural, sustainable, and eco-friendly option. Brands can leverage its heart, skin, and brain health benefits to position argan oil supplements as premium wellness offerings.

2. Technological Innovation in Formulations

New product formulations are pushing the boundaries of argan oil’s applications. In July 2023, a new sustainable alternative called KAFFOIL was launched, offering comparable benefits while adhering to circular economy principles. Such innovations provide new dimensions to traditional argan oil usage and broaden the product landscape for conscious consumers.

3. Evolving E-commerce and Direct-to-Consumer Channels

The rise of e-commerce platforms and DTC business models is reshaping how argan oil products are marketed and sold. Smaller brands and cooperatives can now reach global consumers directly, building relationships based on transparency, ethical sourcing, and quality. This democratization of distribution supports local Moroccan producers and amplifies their market reach.

Market Insights by Application

Cosmetics and Personal Care Lead the Market

As of 2024, the cosmetics and personal care segment remains the largest application sector for argan oil, with an anticipated CAGR of 12.9 percent through 2032. The popularity of natural beauty products has fueled growth in hair serums, facial moisturizers, body butters, and anti-aging creams. Clean beauty standards and consumer demand for sulfate-free and cruelty-free products have encouraged brands to incorporate argan oil into their core lines.

Key Examples:

• Josie Maran Cosmetics expanded its argan oil-based offerings with a new scent for their popular Whipped Argan Oil Body Butter.
• OGX introduced the Extra Penetrating Hair Oil, enriched with essential fatty acids and antioxidants, addressing the need for deep nourishment in haircare.

Organic Argan Oil Gains Prominence

Organic variants of argan oil are outperforming conventional options due to growing consumer trust in certified, clean-label products. Luxury beauty lines from L'Oréal and Josie Maran exclusively use cold-pressed, USDA-certified organic oil in haircare and skincare. The food and beverage sector also favors organic formulations for their superior nutritional profile and absence of synthetic additives.

Regional Insights and Growth Drivers

Asia Pacific: K-Beauty and J-Beauty Drive Demand

The Asia Pacific region is experiencing rapid market expansion driven by beauty trends from Korea and Japan. The popularity of K-beauty and J-beauty, which emphasize plant-based and nourishing ingredients, has led to an increased demand for argan oil in skincare and cosmetics. Rising disposable incomes in countries like China, South Korea, and India further support growth in this region.

Europe: Ethical Sourcing and Sustainability in Focus

European consumers prioritize transparency, ethical sourcing, and environmental responsibility. This has led to a surge in demand for fair-trade and certified argan oil. Moroccan cooperatives such as Coopérative Targanine ensure fair wages for Berber women and comply with sustainability standards, making them preferred suppliers for European brands like The Body Shop and L'Oréal.

North America: Premium Skincare and Wellness Consumption

In North America, the market is flourishing due to high consumer awareness of wellness and natural beauty trends. Argan oil is widely used in facial oils, body lotions, and hair treatments. Josie Maran’s latest launch of the Golden Hour scented Whipped Argan Oil Body Butter in 2024 exemplifies the continued momentum of argan oil in the premium skincare market.

Competitive Landscape and Key Players

The argan oil market is highly competitive, with a blend of multinational corporations, Moroccan cooperatives, private labels, and e-commerce-driven brands.

Top Players Include:

• OLVEA
• Arganisme EU
• Essence of Argan
• ZINEGLOB
• Biopurus
• Josie Maran
• MOROCCANOIL
• L'Oréal
• Arganic Ltd

Cooperatives play a vital role in maintaining supply, ensuring traceability, and upholding fair-trade principles. Strategic acquisitions and product launches are helping global brands secure their positions and enhance brand equity.

Recent Developments:

• OLVEA launched a luxury line of organic argan oil products targeting high-end skincare.
• Brenntag Specialties acquired a Moroccan argan oil cooperative to gain supply chain control and improve traceability.
• Kaffe Bueno introduced KAFFOIL, an innovative eco-conscious alternative to traditional argan oil.

Future Outlook

With rising demand across beauty, wellness, and food sectors, the argan oil market is poised for sustained growth. Brands that focus on ethical sourcing, clean formulations, and innovation are well-positioned to capture emerging opportunities. While supply-side challenges remain, strategic partnerships with Moroccan cooperatives and advancements in sustainable agriculture could pave the way for a more resilient and inclusive global argan oil industry.

As consumers continue to prioritize health, sustainability, and natural ingredients, argan oil will remain a powerful and versatile ingredient with widespread appeal.

Explore more related market insights and reports by visiting our website.

·          Ankle Boots Market

·          Candles Market