In correlation with consumer demand for natural ingredients, lavender is a high value, low maintenance, multi-purpose plant with a great return on investment. There are many uses for this perennial crop, making lavender easy to sell. The only problem with today’s lavender market — demand is outpacing supply.
Uses of Lavender
Lavender derives from the Latin root “lavare,” which means “to wash.” The earliest recorded use of lavender dates back to ancient Egypt, as lavender oil played a role in the mummification process. In later times, lavender became a bath additive in several European and Asian regions, where these cultures believed that lavender helped purify the body and mind.
Today, lavender is most commonly used for aromatherapy. The plant’s oil produces a fragrance that is believed to help promote calmness and wellness, reduce stress and anxiety, and even reduce mild pain. According to the principles of aromatherapy, breathing in the scent of lavender essential oil or applying lavender essential oil to the skin transmits messages to the limbic system, a brain region known to influence the nervous system and help regulate emotion. You can sprinkle a few drops of lavender essential oil onto a cloth or tissue and inhale its aroma, or add the oil to an aromatherapy diffuser or vaporizer.
In past times, people who suffered from insomnia and other sleep disorders put lavender flowers in their pillows, as the scent is said to help with sleep. Today, many companies offer pillows infused with lavender oil to produce the same affect. Applying lavender oil to the skin can function as both a calming agent and sleep aid, when applied correctly.
When applied topically, lavender oil is known to help with eczema, acne, sunburns, diaper rash, and other skin irritations. One popular approach involves combining lavender oil with a carrier oil (such as jojoba or sweet almond). Once blended with a carrier oil, lavender essential oil can be massaged into your skin or added to your bath.
Food & Beverage
Over the years, the application of lavender extract, oil, and essence in food and beverage products has increased to a substantial level. Floral and savory flavors are driving food and beverage innovations in 2019, according to Food Business News. Flavor trends from flowers, like lavender, are influenced by consumer demand for healthier lifestyles, multicultural food experience, and different tastes. Technavio research data shows floral flavors are projected to increase with a CAGR of nearly 10% from 2018 to 2022.
Lavender Market Outlook
Lavender production can be a rewarding and economically profitable farm enterprise given the hundreds of applications. Persistence Market Insights reported that more than $76 million worth of lavender oil was consumed worldwide in 2016. The report also states the global lavender oil market is expected to reach $124.2 million, reflecting a CAGR of 6.2% between 2016 and 2024. Lavender oil application in food and beverage products is expected to create an opportunity of $7.65 million between 2016 and 2024. It’s expected that lavender infused personal care products will contribute nearly $45.1 million to the global lavender market by the end of 2024.
The global lavender market has experienced a resurgence in recent years due to findings into its therapeutic benefits. The market is projected for 63% global growth in the next 5 years, with the U.S. being a virtually untapped market. Next to Europe, North America is the 2nd largest consumer of lavender oil, yet the U.S. is responsible for less than 2% of the global lavender production. With ample room for growth in the U.S. and booming consumer demand, lavender is an alternative investment worth researching to help diversify and grow your portfolio.