Onion Oil Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Nature (Conventional, Organic), By Sales Channel (Supermarkets/Hypermarkets, Convenience Stores, Online, Others), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 59.31 Million
CAGR (2026-2031)	9.95%
Fastest Growing Segment	Online
Largest Market	Asia Pacific
Market Size (2031)	USD 104.79 Million

Market Overview

The Global Onion Oil Market will grow from USD 59.31 Million in 2025 to USD 104.79 Million by 2031 at a 9.95% CAGR. Onion oil is a concentrated essential oil derived primarily from the bulbs of Allium cepa through steam distillation, valued for its potent antimicrobial properties and sulfur-rich composition. The market is fundamentally driven by the structural expansion of the personal care sector, particularly the integration of natural extracts into therapeutic hair growth formulations, and the rising industrial utilization of concentrated natural flavorings in food processing. These drivers are distinct from temporary consumer trends, as they represent a shift in core manufacturing ingredients toward functional plant-based inputs.

A significant challenge impeding broader market expansion is the inherent volatility of raw material prices, as onion cultivation is highly sensitive to climatic irregularities, creating unpredictable cost structures for oil manufacturers. Highlighting the scale of the processing sector that underpins this supply, according to the Agricultural and Processed Food Products Export Development Authority (APEDA), in the fiscal year 2023-24, exports of dehydrated white onions from the key processing hub of Gujarat reached 83,452 tons, underscoring the robust industrial capacity available for producing value-added derivatives.

Key Market Drivers

The rising consumer preference for natural and organic personal care formulations is the primary catalyst propelling the onion oil market, as users increasingly reject synthetic chemicals in favor of botanical ingredients. This shift is reshaping product development strategies, with brands pivoting toward "hero ingredients" like Allium cepa for their perceived safety and efficacy. Illustrating the commercial viability of this clean-label focus, according to Honasa Consumer Limited, May 2024, in its 'Audited Financial Results for FY 2024', the company achieved a consolidated revenue of INR 19.2 billion, a performance largely anchored by the continued dominance of its flagship onion-based natural product range. This trend confirms that natural sourcing is no longer a niche value proposition but a dominant driver of revenue in the broader personal care landscape.

Simultaneously, the increasing prevalence of hair loss and scalp-related concerns has solidified onion oil’s position as a critical therapeutic agent, owing to its high sulfur content which effectively minimizes breakage and thinning. As lifestyle stressors and pollution exacerbate hair health issues, the demand for targeted, onion-infused treatments has surged, moving beyond traditional remedies into organized retail solutions. Evidence of this growing reliance on onion-based therapies is highlighted by Emami Limited, which noted in its November 2024 'Investor Presentation', that the volume market share for its Kesh King Onion Oil increased by 30 basis points to reach 29.5% during the second quarter of the fiscal year. However, manufacturers must navigate raw material fluctuations to sustain this demand; according to the Ministry of Agriculture and Farmers Welfare, in 2024, India’s total onion production for the 2023-24 crop year was estimated at 24.2 million tonnes, a significant decline from previous levels that signals potential supply-side constraints for oil extractors.

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Key Market Challenges

The inherent volatility of raw material prices stands as a formidable barrier to the growth of the global onion oil market. Since the steam distillation process requires a substantial volume of fresh bulbs to yield a relatively small amount of concentrated oil, manufacturers are exceptionally vulnerable to fluctuations in agricultural output. When climatic irregularities disrupt crop yields, the cost of procuring raw onions spikes unpredictably, eroding profit margins and disrupting the cost-stability that industrial buyers in the personal care and food sectors require. This financial uncertainty discourages manufacturers from expanding capacity and deters potential clients who may opt for more price-stable synthetic alternatives.

Validating this instability with recent industry data, According to the Agricultural and Processed Food Products Export Development Authority (APEDA), in 2024, wholesale onion prices in key processing regions fluctuated drastically, reaching a range of Rs. 1,230 to Rs. 2,578 per quintal between April and July, which marked a sharp increase compared to the Rs. 693 to Rs. 1,205 per quintal recorded during the same period in 2023. Such acute variation in input costs directly hampers the ability of oil producers to maintain competitive pricing, thereby stalling broader market adoption and industrial scalability.

Key Market Trends

The formulation of hybrid blends with active ingredients such as biotin, collagen, and Redensyl is reshaping the global onion oil market, as manufacturers seek to elevate product efficacy beyond traditional botanical benefits. This trend, often termed the 'skinification' of hair, involves synergizing onion extract's natural sulfur with clinical actives to target specific scalp concerns like follicle dormancy, thereby allowing brands to command premium pricing tiers. Validating this shift toward high-performance ingredients, according to Nykaa, September 2024, in the 'Beauty Trends Report 2024', the rising consumer adoption of ingredient-led formulations—specifically identifying onion oil combined with Redensyl as a trending solution—is a primary factor expected to drive the Indian premium beauty market to a projected valuation of USD 3.0-3.2 billion by 2028.

Simultaneously, the expansion of product portfolios into men’s grooming represents a critical structural shift, as brands repurpose onion oil’s hair growth properties for beard maintenance and male-pattern baldness. This diversification allows companies to tap into a high-growth demographic that was previously underserved by traditional hair oils, reducing reliance on the saturated female personal care segment. Illustrating the commercial success of this strategy, according to FashionNetwork India, November 2024, in the article 'Beardo reports 62.4% growth in FY24', Marico’s male grooming subsidiary Beardo achieved a revenue of INR 173.2 crore in the 2024 fiscal year, a 62.4% increase driven by its robust portfolio of specialized beard and hair growth products.

Segmental Insights

The online segment is recognized as the fastest-growing distribution channel in the global onion oil market due to the increasing adoption of e-commerce platforms. This growth is primarily supported by the convenience of home delivery and the ability for consumers to access a wide variety of niche brands that may not be available in physical stores. Furthermore, aggressive digital marketing strategies and the expansion of direct-to-consumer sales models have improved product visibility significantly. These elements encourage higher consumer engagement with online retail, establishing it as a critical avenue for market expansion.

Regional Insights

The Asia Pacific region maintains a commanding lead in the Global Onion Oil Market, a position supported by extensive agricultural production in major economies like China and India. Trusted industry analysis indicates that this dominance is driven by the substantial availability of raw onion varieties and their integral role in regional culinary practices. Additionally, the market is propelled by a robust shift toward natural personal care formulations. Increasing consumer preference for botanical ingredients in hair care products, particularly for promoting hair growth and scalp health, firmly anchors the region’s market leadership.

Recent Developments

• In November 2025, O&3, a supplier of natural oil ingredients, highlighted the transformative potential of its Onion Oil portfolio as a key trend for the haircare industry in 2026. The company detailed its range of onion-derived ingredients, such as Onion Essential Oil, Cold Pressed Onion Seed Oil, and Onion Oleoresin, emphasizing their functional benefits for scalp health and hair strengthening. This initiative was aimed at supporting formulators and brands in creating innovative, plant-powered haircare products, responding to the surging interest in onion extract driven by social media trends and consumer preferences for efficacious natural solutions.
• In November 2024, Fenufit expanded its natural beauty offerings by launching a new Fenugreek and Onion Hair Oil, designed to address hair thinning and promote scalp health. The company formulated this product to leverage the synergistic benefits of its key ingredients, utilizing the high sulfur content of onion extract to improve blood circulation and the protein-rich properties of fenugreek to strengthen hair follicles. This product introduction reinforced the brand's focus on toxin-free, nature-inspired formulations and targeted consumers seeking effective, chemical-free alternatives for hair growth and maintenance.
• In November 2024, Soulflower, a farm-to-face beauty brand, reported achieving a dominant position in the premium hair oil segment through its strategic partnership with the quick-commerce platform Blinkit. The company secured a leading revenue share in the category, attributed to the successful distribution of its natural products, including its Onion Hair Oil enriched with Redensyl. This collaboration allowed the brand to leverage rapid delivery networks to meet consumer demand in key metropolitan areas, highlighting the growing effectiveness of quick-commerce channels for scaling premium personal care brands.
• In May 2024, WOW Skin Science announced a significant expansion of its retail footprint through a collaboration with Walmart, introducing its Red Onion Black Seed Oil product line to 400 stores across the United States. The launch featured the brand's popular hair care solutions, including hair oil, shampoo, and conditioner, which are formulated with red onion seed oil extract to strengthen hair strands and reduce breakage. This strategic move aimed to make the company's plant-powered, vegan products more accessible to American shoppers, capitalizing on the rising demand for natural ingredients in the global personal care market.

Key Market Players

• Authentic Oil Co
• AU Natural Organics
• Luxura Business Private Limited
• Hindustan Hills
• Honasa Consumer Pvt. Ltd.
• Alphanso Products Private Limited
• Meena Perfumery
• Soulflower India Private Limited
• TNW International Pvt. Ltd.
• Essentially Australia

By Nature	By Sales Channel	By Region
Conventional Organic	Supermarkets/Hypermarkets Convenience Stores Online Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Onion Oil Market, By Nature:

• Conventional
• Organic

• Onion Oil Market, By Sales Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• Online
• Others

• Onion 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