Argan Oil Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Conventional, Organic), By Application (Food, Personal Care, Medical, Others), By Distribution Channel (Offline, Online), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 0.44 Billion
CAGR (2026-2031)	8.31%
Fastest Growing Segment	Personal Care
Largest Market	North America
Market Size (2031)	USD 0.71 Billion

Market Overview

The Global Argan Oil Market will grow from USD 0.44 Billion in 2025 to USD 0.71 Billion by 2031 at a 8.31% CAGR. Argan oil is a premium plant oil extracted from the kernels of the Argania spinosa tree, which is indigenous to Morocco and utilized extensively in culinary and cosmetic formulations. The market is primarily propelled by the escalating global demand for natural and organic ingredients in personal care products, specifically those targeting skin aging and hair health. Furthermore, robust government initiatives promote sustainable cultivation to meet international standards. According to the National Agency for the Development of Oasis Zones and Argan (ANDZOA), in 2024, cumulative public investment in the argan and oasis zones reached MAD 153 billion, reinforcing the sector's infrastructure and production capacity.

Despite these growth factors, the market faces a significant impediment regarding supply chain rigidity due to the geographical exclusivity of the argan tree. The limited production area in southwestern Morocco creates vulnerability to climatic variations and restricts the ability to scale output rapidly in response to surging global demand. Consequently, price volatility and the risk of product adulteration remain persistent challenges that could hinder broader market expansion.

Key Market Drivers

The surge in consumer demand for natural and organic personal care formulations is fundamentally reshaping the market landscape, as major beauty conglomerates and niche brands aggressively integrate botanical ingredients to meet clean label expectations. This trend is driven by a growing preference for products free from synthetic additives, with argan oil being prized for its high Vitamin E and fatty acid content that delivers proven hydration and anti-aging benefits. The commercial success of this shift is evident in the performance of groups dedicated to natural beauty. According to L'Occitane International, June 2024, in the 'Annual Results for FY2024', the group recorded net sales of €2.54 billion, representing a 24.1% growth at constant rates, underscoring the robust global appetite for premium natural personal care products. This consumption pattern has solidified the oil's status as a staple ingredient in sophisticated formulations ranging from hair serums to skin rejuvenators.

Simultaneously, the global shift towards clean beauty and ethically sourced ingredients acts as a critical value driver, compelling brands to validate their supply chains through transparent and socially responsible practices. Consumers are increasingly motivated by the socio-economic impact of their purchases, particularly the support of rural communities involved in traditional harvesting. According to Morocco World News, May 2024, in the article 'Morocco's Argan Sector: Confronting Obstacles to Sustainable Growth', the industry currently supports more than 850 women's cooperatives, which are essential for maintaining fair trade standards and ensuring authentic production. This ethical framework not only enhances brand equity but also sustains the local economy. According to Morocco World News, in 2024, the argan sector generated a turnover of over USD 100 million in 2022, highlighting the significant financial scale achieved through these sustainable and community-focused production models.

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Key Market Challenges

The primary impediment hindering the expansion of the Global Argan Oil Market is the inherent supply chain rigidity caused by the geographical exclusivity of the Argania spinosa tree. This botanical resource is endemic solely to the calcareous semi-desert valley of southwestern Morocco, a region increasingly susceptible to severe climatic fluctuations and prolonged droughts. Unlike other oilseed crops that can be cultivated globally to match rising consumption, argan production is geographically fixed and cannot be rapidly scaled. This dependence on a single, environmentally vulnerable source creates a bottleneck where supply consistently struggles to keep pace with the surging international interest in natural cosmetic ingredients.

Consequently, this supply-demand imbalance drives significant price volatility and incentivizes the circulation of adulterated products, which threatens consumer confidence. The inability to increase yield in response to market signals directly restricts revenue growth for legitimate stakeholders. According to the Fédération Interprofessionnelle de la Filière de l’Argane (FIFARGANE), in 2024, the sector’s total annual production capacity was limited to approximately 4,000 tons, a volume insufficient to absorb the escalating global orders from the personal care and food industries. This structural limitation forces manufacturers to compete aggressively for raw materials, keeping input costs high and dampening broader market adoption.

Key Market Trends

The adoption of argan oil in pharmaceutical and dermatological applications is accelerating as research validates its therapeutic properties beyond cosmetic enhancement. Manufacturers are increasingly formulating clinical-grade products that leverage the oil's tocopherol and squalene content to treat chronic skin conditions like eczema and burns. This medicalization allows stakeholders to position their portfolios in the high-margin healthcare sector, differentiating from saturated beauty markets. Scientific validation is a key catalyst for this transition. According to Morocco World News, May 2024, in the article 'Argan Oil: Health Benefits That Transcend Skin-Deep Beauty', studies indicate that the oil's polyphenolic compounds can decrease the growth of cancer cells by 50 percent, creating potential for its inclusion in preventative oncology formulations.

Simultaneously, the expansion into men's grooming and beard care products is widening the consumer base. Brands are launching dedicated lines utilizing argan oil's non-greasy qualities for beard conditioning, effectively moving the ingredient out of the exclusively female domain. This demographic shift creates a lucrative revenue stream as men increasingly invest in premium routines. The scale of this change is evident in spending habits. According to The Guardian, January 2024, in the article '"I can see change spreading": why male grooming is booming', spending on male beauty products increased by 77% year-on-year, underscoring the immense opportunity for argan-based formulations tailored to male grooming.

Segmental Insights

The Personal Care segment represents the most rapidly expanding area of the Global Argan Oil Market due to heightened consumer demand for natural cosmetic ingredients. This growth is underpinned by the oil's high concentration of antioxidants and essential fatty acids, which are increasingly utilized in hair and skin care formulations for their hydration and restorative properties. As consumers actively avoid synthetic additives, manufacturers are prioritizing argan oil in products ranging from shampoos to facial serums. This trend aligns with broader industry shifts toward clean label products and ensures sustained demand within the personal care sector.

Regional Insights

North America commands the leading position in the Global Argan Oil Market, driven by substantial demand for natural and organic personal care ingredients. Consumers in the United States and Canada actively seek products with anti-aging and moisturizing benefits, prompting manufacturers to incorporate argan oil into diverse skincare and haircare portfolios. This market expansion is reinforced by strict quality standards, where certifications from the United States Department of Agriculture (USDA) validate product authenticity and organic claims. Consequently, the region benefits from established retail infrastructure and a high concentration of key industry players focused on bio-based product development.

Recent Developments

• In October 2025, Gisou, a beauty brand known for its bee-derived ingredients, announced the launch of a limited-edition "Glazed Scents Trio" for its Honey Infused Hair Perfume line, which prominently features argan oil as a key nourishing ingredient. The new collection introduced three gourmand-inspired fragrances—Vanilla Glaze, Sticky Toffee, and Milky Mocha—formulated to provide hydration and shine to hair. This product development highlights the company's continued utilization of argan oil in conjunction with its signature honey blend to create multifunctional hair fragrance products that cater to evolving consumer scent preferences.
• In August 2025, Moroccanoil, a leading company in the global argan oil market, significantly expanded its retail footprint through a strategic partnership with Ulta Beauty. This collaboration involved the launch of the brand's comprehensive assortment of argan oil-infused haircare, body care, and fine fragrances across 800 retail locations nationwide and on the retailer's e-commerce platform. The expansion strategy aimed to broaden consumer access to the company's premium product portfolio while reinforcing its professional salon heritage through educational initiatives and in-store services provided by the retailer's stylists.
• In February 2024, the clean beauty brand Josie Maran executed a comprehensive rebranding initiative titled "The Remix," which emphasized sustainability and environmental responsibility within the argan oil market. The relaunch featured the introduction of refillable glass packaging for the company's core argan oil products, including its signature 100% Pure Argan Oil and Whipped Argan Oil Body Butter. This strategic shift was designed to reduce plastic waste and align with the growing consumer demand for eco-conscious beauty solutions while maintaining the sourcing of pure argan oil from Moroccan cooperatives.
• In February 2024, Cécred, a new haircare brand founded by a global music icon, entered the market with the launch of its Foundation Collection, which includes a Nourishing Hair Oil infused with argan oil. The formulation utilizes a blend of thirteen oils and plant-based extracts, including argan, baobab, and moringa, to seal in moisture and reinforce the hair's lipid barrier without the use of silicones. The inclusion of argan oil in this high-profile brand launch underscores the ingredient's enduring status as a premium component for hydration and shine in modern haircare formulations.

Key Market Players

• OLVEA
• ARGANisme
• Pure Argan Co.
• DSM
• Malakbio
• Lipidine
• Argane Aouzac
• Organica Group Ltd.
• Arganfarm Sarl. Au.
• Zidrop Argan Oil

By Type	By Application	By Distribution Channel	By Region
Conventional Organic	Food Personal Care Medical Others	Offline Online	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Argan Oil Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Argan Oil Market, By Type:

• Conventional
• Organic

• Argan Oil Market, By Application:

• Food
• Personal Care
• Medical
• Others

• Argan Oil Market, By Distribution Channel:

• Offline
• Online

• Argan Oil Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE