Babassu oil derived from the seeds of the babassu tree. Babassu oil produced widely in Brazil and is measured a key economic and industrial resource for the region. Babassu follow similar properties as coconut oil and is rapidly being used in a substitution of coconut oil. Babassu oil consist of around 70% lipids and is cold pressed from the kernel and is produced without chemicals additives. Babassu oil is commonly used for in making soap and cooking. Babassu mixes well with most all other oils, like other essential oils such as coconut oil, olive oil, and others.
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The major factors driving the growth of babassu oil market are growing demand of babassu oil in a wide range of applications ranging from food to pharmaceutical, similar property as coconut oil, increasing urbanization, and rising disposable income. In addition, babassu oil is considered as a substitute for coconut oil in numerous applications including baking, and cooking. Due to this, rising cholesterol among consumers attributed to the use of coconut oil is expected to grow babassu oil market in coming years. Further, babassu oil is also used as a skin moisturizer in the cosmetic segment and as a biodiesel in several industrial applications. Rising demand for food on a large scale with increasing industrial activities in several regions is expected to fuel babassu oil market in coming years.
With rising health awareness among consumers across the world especially in Asia Pacific countries including China India, and Malaysia is expected to hinder the coconut oil market. This in turn is boost the growth of babassu oil demand over the forecasted years. Babassu oil application such as non- drying oil in foods skin products, and cleaners are also boosting the growth of the market. On the other hand, higher availability of coconut oil as compared to babassu oil is the major factor that is expected to restrain babassu oil market demand. In addition, lack of awareness on the health benefits of babassu oil among consumers are likely to restrict is market especially in developing countries over the forecast years.
Regarding geography, babassu oil market has been categorized into five seven key regions including North America, Western Europe, Eastern Europe, APEJ, Japan, Latin America, and the Middle East & Africa. Babassu oil market is expected to register healthy CAGR during the forecast period. Asia-Pacific represents the significantly high market share and grow with comparatively high CAGR in forecast period.
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North America is experiencing the rapid increase in the production capacity of babassu oil owing to increasing demand of babassu oil use in growing end-use industries including foods, cosmetics pharmaceutical, and personal care industries. Babassu oil market is projected to register healthy growth due increasing end-user application across globe. Babassu oil market for Asia Pacific is also expected to witness rapid growth during the forecast period primarily attributed to the growth of commercial oil industry, especially in China and India. Moreover, increasing population and rising demand of coconut oil, owing to increase demand for babassu oil due to its similar property in emerging economies of China and India is expected to boost the growth the APEJ babassu oil market.