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Analysts say argan oil is the leading ingredient in skincare and haircare.
August 19, 2026
By: Lianna Albrizio
The vegetable oils in beauty and personal care market is estimated to be $5.84 billion in 2026 and is projected to reach $7.72 billion by 2031, per MarketsAndMarkets.
Analysts say increasing consumer preference for natural and plant-based beauty products is driving growth. This, along with rising demand for clean-label and sustainable ingredients, growing adoption of vegetable oils in skincare and haircare formulations and expanding applications of multifunctional oils across beauty and personal care products worldwide.
The demand for vegetable oils in the beauty and personal care market is expected to increase significantly, with a consumer group that is increasingly becoming more aware of the benefits of natural, plant-based lipids for skin and hair health. Unlike synthetic mineral oils or silicones, natural vegetable oils rich in essential fatty acids, vitamins and antioxidants offer superior biological affinity and biocompatibility that mimic human skin.
Vegetable oils can be added to creams, lotions, hair serums and color cosmetics to enhance moisturization, barrier repair and overall product efficacy. Popular botanical sources like coconut, sweet almond, jojoba and argan oil are widely favored, said the report.
The increasing acceptance among a growing number of health-conscious consumers, as well as the rising popularity of products based on clean-label formulations and sustainable sourcing, is likely to further boost the outlook for the vegetable oils in beauty and personal care market.
By type, argan oil segment to exhibit fastest growth rate during forecast period. The argan oil segment is projected to witness the highest CAGR in the vegetable oils in beauty and personal care market, supported by its premium positioning, multifunctional skin- and hair-care applications, and rich composition of unsaturated fatty acids, tocopherols, sterols and other bioactive compounds. Scientific research has reported moisturizing, antioxidants, skin-barrier-supporting, and conditioning properties of argan oil, supporting its incorporation into facial creams, moisturizers, serums, hair oils, shampoos, conditioners and other premium beauty formulations.
The segment’s growth is further supported by increasing incorporation of natural and plant-derived ingredients into premium beauty formulations. Research has demonstrated that topical argan oil can improve skin hydration and reduce trans epidermal water loss, providing a functional basis for its use in skin-care products. Its combination of fatty acids and antioxidant compounds also differentiates it from conventional vegetable oils and supports its positioning in moisturizing, anti-aging, nourishing and hair-conditioning applications.
By application, hair care segment to record highest CAGR during forecast period, analysts say. Hair care is a significant application for vegetable oils in the beauty and personal care market because of their proven benefits, including improved lubrication, manageability, deep conditioning, and damage protection. Research published in the International Journal of Trichology highlights that specific oils, like coconut oil, possess a high affinity for hair proteins (due to lauric acid) and can penetrate the hair cortex to significantly reduce protein loss in both damaged and undamaged hair. These unique protective and strengthening capabilities, combined with the wide availability of botanical emollients like sunflower, jojoba, macadamia and moringa, drive their extensive adoption across shampoos, conditioners, hair oils, and leave-in treatments.
Happi International Top 30 Company L’Oréal, for one, utilizes coconut oil across its hair care formulations, including shampoos, leave-in products and vegetable dyes, leveraging its affinity for hair proteins to penetrate the hair fiber and protect it from damage while delivering nourishment, shine, suppleness, strength and detangling properties.
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