The Morocco argan oil market size is expected to reach USD 262.4 million by 2025 progressing at a remarkable CAGR of 20.7% over the forecast period as per a new report by Grand View Research, Inc. Morocco is expected to witness an increase in the consumption of argan oil owing to high demand from medical industry. Rising demand for Morocco argan oil in cosmetics sector is directly contributing to growing product exports to different regions.
Furthermore, the market in Morocco is expected to develop on account of rising consumer preference for natural ingredients. Growing aging population in the U.S. is another major factor anticipated to drive the product consumption as it is used in anti-wrinkle creams. Other factors such as initiatives by medical research institutes to conduct argan oil-related studies are also projected to positively impact the overall demand over the forecast period.
Constant technological advancements are contributing to enhancing the chemical and microbiological qualities of the product. Ascending demand for argan oil in medical and food industries is pressurizing the key producing areas of Morocco to boost their production levels and bridge the demand-supply gap. However, this gap is expected to increase over the forecast period, thereby creating a need for the government to adopt initiatives and drive the overall production.
Manufacturers of personal care & cosmetic products are inclined toward increasing their argan oil consumption for advanced cosmetic solutions in order to ensure healthy skin and hair. Such initiatives are expected to drive the overall product demand in cosmetics application segment. The widening of product distribution channels has made these products easily accessible to consumers. Investments in R&D activities and technological advancements in the area of processing ingredients have been the key factors responsible for boosting the market growth in Morocco over the past few years.
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Further key findings from the report suggest:
- Organic segment is projected to ascend at the fastest CAGR of 22.0% over the forecast period with increasing demand for organic products in various sectors
- The government of Morocco adopted the auto-entrepreneur framework in 2014, which has proven to be beneficial for entrepreneurs by providing easier access to loans and several tax benefits
- The German Agency for International Cooperation (GIZ) GmbH is creating awareness among women cooperatives and emphasizing the need to preserve argan forests, which is restraining the market growth
- As argan oil is expensive, some vendors sell diluted argan oil by mixing it with other oils. This unfair practice of trade is likely to impact the product sales to a large extent, thereby affecting the entire market in Morocco.