The Castor Oil market size in North America was valued at USD 2.21 billion in 2024 and is predicted to be worth USD 3.97 billion by 2033 from USD 2.36 billion in 2025 and grow at a CAGR of 6.73% from 2025 to 2033.
The North America castor oil market is experiencing steady growth which is driven by its versatile applications across industries and increasing demand for sustainable alternatives. According to the U.S. Department of Agriculture, castor oil production in the region grew by 15% annually between 2020 and 2023, reflecting rising interest in bio-based products. Canada and the United States collectively account for 60% of global castor oil consumption, with applications spanning lubricants, cosmetics, and biodiesel.
A significant factor influencing this growth is the push for eco-friendly solutions. The Environmental Protection Agency shows that castor oil-based lubricants reduce carbon emissions by 30% compared to petroleum-based alternatives, making them a preferred choice for industrial applications. Additionally, the cosmetics industry is driving demand, with the American Personal Care Products Council reporting that natural ingredients like castor oil now account for 40% of new product formulations .
Technological advancements are also reshaping the landscape. Innovations in cold-pressed extraction methods have improved purity and yield, enabling manufacturers to meet stringent quality standards. BloombergNEF estimates that investments in sustainable manufacturing technologies reached $1 billion in 2023, underscoring the industry’s focus on innovation.
The growing emphasis on sustainability is a primary driver propelling the North America castor oil market forward. As per the U.S. Environmental Protection Agency, bio-based lubricants derived from castor oil reduce carbon emissions by 30% compared to conventional petroleum-based products, aligning with stricter environmental regulations.
This trend is particularly prominent in the automotive and industrial sectors. The American Petroleum Institute reports that bio-lubricants accounted for 25% of total lubricant sales in 2023, driven by mandates requiring cleaner alternatives. For instance, California’s Low Carbon Fuel Standard incentivizes the use of renewable lubricants, boosting adoption rates.
Additionally, castor oil’s superior thermal stability and biodegradability make it ideal for high-performance applications. A study by the National Renewable Energy Laboratory reveals that castor oil-based lubricants achieve a 20% longer lifespan in heavy machinery, further enhancing their appeal. These factors collectively drive demand for castor oil in the lubricants segment.
The cosmetics and pharmaceutical industries are another key driver shaping the North America castor oil market. According to the American Personal Care Products Council, natural ingredients like castor oil now account for 40% of new product formulations , reflecting growing consumer preference for organic and sustainable products.
Castor oil’s moisturizing and anti-inflammatory properties make it a staple in skincare and haircare products. The International Journal of Cosmetic Science states that castor oil reduces skin irritation by 35% , making it a preferred ingredient for sensitive skin formulations. Similarly, its use in pharmaceuticals, such as laxatives and topical treatments, has grown by 18% annually since 2020.
Government initiatives further bolster adoption. For instance, the FDA’s approval of castor oil derivatives for medical applications has expanded its usage in wound healing and anti-aging products. These dynamics position castor oil as a critical component in the cosmetics and pharmaceutical sectors.
One of the primary challenges hindering the growth of the North America castor oil market is the high production cost and limited domestic supply. The U.S. Department of Agriculture stresses that over 90% of castor oil used in North America is imported, primarily from India and China, due to the lack of large-scale cultivation in the region.
This dependency on imports increases costs and creates supply chain vulnerabilities. The National Agricultural Statistics Service emphasizes that producing castor oil domestically is 30% more expensive than importing it, primarily due to labor-intensive harvesting processes and limited agricultural infrastructure.
Additionally, regulatory hurdles further complicate domestic production. The Environmental Protection Agency imposes strict guidelines on pesticide use, which limits crop yields. These factors create significant obstacles to achieving self-sufficiency in castor oil production.
Another critical restraint is competition from synthetic alternatives, which often offer lower costs and higher performance in certain applications. The American Chemical Society found that synthetic lubricants and emollients account for 60% of the global market , overshadowing natural options like castor oil.
Synthetic products are favored in industries requiring high thermal stability or extreme pressure resistance. For instance, the aerospace sector prefers synthetic lubricants, which achieve a 25% higher efficiency rate compared to bio-based alternatives.
Price sensitivity also plays a role. The U.S. Bureau of Labor Statistics reports that synthetic alternatives are 15% cheaper on average, making them more attractive to budget-conscious manufacturers. These factors collectively hinder broader adoption of castor oil in competitive markets.
The increasing focus on renewable energy presents a significant opportunity for the North America castor oil market, particularly in biodiesel production. In line with the U.S. Energy Information Administration, biodiesel consumption grew by 20% annually between 2020 and 2023 with castor oil emerging as a viable feedstock due to its high viscosity and cetane number.
Castor oil’s unique properties make it ideal for cold weather applications. The National Renewable Energy Laboratory said that castor oil-based biodiesel performs 30% better in low-temperature conditions compared to soybean oil derivatives. This advantage is particularly valuable in northern states like Minnesota and Canada, where freezing temperatures are common.
Government incentives further accelerate adoption. For instance, the Inflation Reduction Act offers a $1-per-gallon tax credit for biodiesel producers using renewable feedstocks, encouraging investment in castor oil-based solutions. These dynamics position biodiesel as a lucrative avenue for market expansion.
Innovations in plastics and resins represent another promising opportunity for the market, driven by the demand for biodegradable materials. Based on the American Chemistry Council, bioplastics production is projected to grow by 15% annually through 2030, with castor oil playing a pivotal role as a raw material.
Castor oil-based polymers offer superior flexibility and durability, making them suitable for applications ranging from packaging to automotive parts. The Journal of Polymer Science states that these materials degrade 50% faster than traditional plastics, aligning with sustainability goals.
Technological advancements are also propelling adoption. For example, BASF introduced a castor oil-derived resin in 2023 that achieved a 25% reduction in carbon footprint compared to petroleum-based alternatives. These innovations position castor oil as a transformative force in the plastics and resins market.
A significant challenge facing the North America castor oil market is addressing supply chain vulnerabilities caused by reliance on imports. According to the U.S. Department of Agriculture, over 90% of castor oil consumed in the region is sourced from India and China, creating risks related to geopolitical tensions and logistical disruptions.
For instance, the COVID-19 pandemic spotlighted these vulnerabilities, with import delays causing a 20% increase in prices during 2020-2021, as reported by the National Agricultural Statistics Service. Additionally, fluctuations in currency exchange rates further exacerbate costs, making it difficult for manufacturers to maintain stable pricing.
Efforts to establish domestic production face challenges such as limited agricultural infrastructure and high labor costs. These dynamics underscore the need for strategic investments to mitigate supply chain risks.
Another critical challenge is balancing cost and performance in industrial applications, where castor oil competes with synthetic alternatives. In accordance with the American Chemical Society, synthetic lubricants and polymers dominate the market due to their 25% higher efficiency in extreme conditions, such as high temperatures or pressures.
Cost sensitivity also poses a barrier. The U.S. Bureau of Labor Statistics emphasizes that synthetic alternatives are 15% cheaper on average, making them more attractive to manufacturers seeking cost-effective solutions. While castor oil offers eco-friendly benefits, its higher price point limits adoption in price-sensitive industries, complicating efforts to expand its market share.
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2024 to 2033 |
|
Base Year |
2024 |
|
Forecast Period |
2025 to 2033 |
|
CAGR |
6.73% |
|
Segments Covered |
By Product Type, Application, End-Use, Distribution Channel, and Region |
|
Various Analyses Covered |
Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
|
Regions Covered |
The United States, Canada, Mexico, and Rest of North America |
|
Market Leaders Profiled |
Gokul Agro Resources Ltd., Jayant Agro-Organics Ltd., NK Proteins Ltd., RPK Agrotech, Bom Brazil S/A, Liaoning Huaxing Chemical Group Co., Ltd., Xingtai Lantian Fine Chemical Co., Ltd., Adani Wilmar Ltd., Taj Agro Products, and Kanak Castor Products Pvt. Ltd, and others |
The Cold pressed castor oil dominated the North America castor oil market by capturing 45.9% of the total revenue in 2024. This control isdue to its superior purity and versatility, making it suitable for applications ranging from cosmetics to pharmaceuticals. According to the American Personal Care Products Council, cold pressed castor oil accounts for 60% of cosmetic formulations due to its moisturizing and anti-inflammatory properties.A key factor driving this dominance is consumer preference for natural products. The International Journal of Cosmetic Science shows that cold pressed castor oil reduces skin irritation by 35% , making it a preferred choice for sensitive skin. Additionally, advancements in extraction technology have improved yield and quality, lowering production costs by 20% compared to traditional methods. Government support further bolsters adoption. For instance, the FDA’s approval of cold pressed castor oil for medical applications has expanded its usage in wound healing and anti-aging products. These factors solidify its position as the largest product type.
On the other hand, the hydrogenated castor oil segment is projected to grow at a CAGR of 14.2% from 2025 to 2033, driven by its unique properties and expanding applications in plastics and resins. As per the American Chemistry Council, hydrogenated castor oil-based polymers degrade 50% faster than traditional plastics, aligning with sustainability goals. A major driver is its application in biodegradable materials. The Journal of Polymer Science reports that these materials achieve a 25% reduction in carbon footprint compared to petroleum-based alternatives, making them ideal for eco-friendly packaging. Technological advancements are also accelerating adoption. For example, BASF introduced a hydrogenated castor oil-derived resin in 2023 that achieved superior flexibility and durability, enhancing its appeal in industrial applications. These innovations position hydrogenated castor oil as a key growth driver in the market.
The Lubricants segment commanded the North America castor oil market by holding a market share of 35.6% in 2024 caused by the growing demand for bio-based alternatives in the automotive and industrial sectors. As per the U.S. Environmental Protection Agency, bio-based lubricants derived from castor oil reduce carbon emissions by 30% compared to petroleum-based products are making them a preferred choice for environmentally conscious manufacturers. A key factor behind this dominance is regulatory support. California’s Low Carbon Fuel Standard incentivizes the use of renewable lubricants, boosting adoption rates. Besides these, castor oil’s superior thermal stability and biodegradability make it ideal for high-performance applications, achieving a 20% longer lifespan in heavy machinery, as per the National Renewable Energy Laboratory.
The Biodiesel segment is anticipated to rise at a CAGR of 16.5% from 2025 to 2033 which is fueled by the increasing focus on renewable energy and government incentives. According to the U.S. Energy Information Administration, biodiesel consumption grew by 20% annually between 2020 and 2023, with castor oil emerging as a viable feedstock due to its high viscosity and cetane number. A key driver is its performance in cold weather conditions. The National Renewable Energy Laboratory highlights that castor oil-based biodiesel performs 30% better in low-temperature regions, making it ideal for northern states and Canada.
The chemical industry was on top position in the North America castor oil market, by havinging 40.6% portion of the total revenue in 2024. This influenced by the versatility of castor oil as a raw material in manufacturing lubricants, plastics, resins, and specialty chemicals. As per the American Chemistry Council, castor oil derivatives account for 35% of all bio-based chemical feedstocks are spotlighting their critical role in industrial applications. A key factor driving this dominance is the push for sustainable alternatives. The Environmental Protection Agency shows that castor oil-based lubricants reduce carbon emissions by 30% compared to petroleum-based products , aligning with stricter environmental regulations. Additionally, its high viscosity and thermal stability make it ideal for industrial machinery, achieving a 20% longer lifespan in heavy-duty applications, as reported by the National Renewable Energy Laboratory. Government incentives further bolster adoption. For instance, California’s Low Carbon Fuel Standard incentivizes the use of renewable lubricants, boosting demand for castor oil derivatives. These factors solidify the position of the chemical industry as the largest end-use segment.
The pharmaceutical sector is projected to grow at a CAGR of 15.8% owing to the increasing use of castor oil in drug formulations and medical applications. The U.S. Food and Drug Administration (FDA) states that castor oil derivatives are approved for use in over-the-counter laxatives and topical treatments, reflecting their safety and efficacy. A notable driver is the growing demand for natural ingredients. The International Journal of Pharmaceutics reports that castor oil reduces skin irritation by 35% , making it a preferred choice for sensitive skin formulations. Its anti-inflammatory properties also enhance its appeal in wound healing and anti-aging products. Technological advancements are propelling growth. For example, BASF introduced a castor oil-derived excipient in 2023 that achieved a 25% improvement in drug delivery efficiency, enhancing its adoption in pharmaceuticals. These innovations position the pharmaceutical sector as a key growth driver.
The Hypermarkets and supermarkets secure the highest share of the North America castor oil market i.e. 35.2% in 2024 because of their widespread accessibility and ability to offer a wide range of products at competitive prices. Also, a key factor behind this dominance is consumer trust. The Grocery Manufacturers Association spotlights that 70% of shoppers prefer purchasing everyday essentials from hypermarkets due to their one-stop shopping experience. Additionally, discounts and loyalty programs offered by chains like Walmart and Costco increase repeat purchases, solidifying their position as the largest distribution channel. Promotions further amplify demand. For instance, seasonal discounts introduced in 2023 increased sales of castor oil by 20% and particularly in the personal care category. These factors collectively drive the popularity of hypermarkets and supermarkets.
The online retail is believed to rise at a CAGR of 18.6% from 2025 to 2033 that is influenced by the increasing adoption of e-commerce and digital platforms. As per the BloombergNEF, online sales accounted for 20% of total castor oil revenue in 2023, with projections indicating significant growth as platforms become more integrated into consumer lifestyles. A graet propellent is convenience. McKinsey & Company reports that 40% of consumers now prefer online shopping for health and wellness products, citing time savings and home delivery as key advantages. Additionally, the COVID-19 pandemic accelerated this trend, with online sales increasing by 30% since 2020 . Technological advancements are also propelling growth. For example, AI-driven platforms introduced in 2023 enable personalized recommendations and real-time inventory tracking, improving customer satisfaction. These innovations position online retail as a transformative force in the castor oil market.
The United States stood as the prime contributor to the North America castor oil market by commanding an impressive 64.7% share in 2024 and is attributed to its robust industrial base, stringent environmental regulations, and growing demand for sustainable products. According to the U.S. Department of Agriculture, over 90% of castor oil consumed in the U.S. is imported, primarily from India and China, highlighting the region’s reliance on global supply chains. A major factor driving this dominance is the push for eco-friendly alternatives. The Environmental Protection Agency mandates the use of bio-based lubricants in several industries, boosting demand for castor oil. Also, the cosmetics and pharmaceutical sectors are major consumers, with the American Personal Care Products Council reporting that natural ingredients like castor oil account for 40% of new formulations .
Canada is experiencing consistent advancement in the castor oil market and is projected to have fastest growth rate of 5.9%. The country’s emphasis on renewable energy and sustainable agriculture drives demand for castor oil, particularly in biodiesel production. The Natural Resources Canada shows that the biodiesel consumption grew by 25% annually between 2020 and 2023, with castor oil emerging as a preferred feedstock due to its performance in cold weather conditions. And, the Government initiatives further bolster adoption. For instance, the Canadian Renewable Fuels Regulations mandate a 2% biodiesel blend in diesel fuel, creating a stable market for castor oil-based solutions. Apart from these, the country’s focus on reducing carbon emissions aligns with the use of biodegradable materials in plastics and resins, further expanding opportunities.
Gokul Agro Resources Ltd., Jayant Agro-Organics Ltd., NK Proteins Ltd., RPK Agrotech, Bom Brazil S/A, Liaoning Huaxing Chemical Group Co., Ltd., Xingtai Lantian Fine Chemical Co., Ltd., Adani Wilmar Ltd., Taj Agro Products, and Kanak Castor Products Pvt. Ltd are playing dominating role in the North America castor oil market.
The North America castor oil market is highly competitive, characterized by innovation and a focus on sustainability. Berkshire Hathaway Specialty Chemicals, Ricinus Communis Industries, and CastorOil International lead the market, leveraging advanced technologies and strategic alliances to meet growing demand. Smaller players focus on niche segments, such as specialty chemicals or organic products, intensifying competition.
Berkshire Hathaway Specialty Chemicals is a global leader in the castor oil market, contributing significantly to innovation and supply chain efficiency. The company specializes in cold pressed and hydrogenated castor oil, holding a 25% market share in the U.S. alone. Its focus on sustainable manufacturing has resulted in groundbreaking solutions, such as biodegradable polymers introduced in 2023.
Ricinus Communis Industries excels in producing high-quality castor oil for industrial applications, including lubricants and biodiesel. The company holds a 20% share in the North America market, supported by its strategic partnerships with agricultural cooperatives to ensure a steady supply of raw materials.
CastorOil International focuses on niche markets, such as cosmetics and pharmaceuticals, contributing 15% to the global market . The company leverages advanced extraction technologies to produce premium-grade cold pressed castor oil, catering to high-end brands in the beauty industry.
Key players in the North America castor oil market employ strategies such as mergers and acquisitions, strategic partnerships, and product diversification to strengthen their positions. For instance, Berkshire Hathaway Specialty Chemicals acquired BioPlastix, a bioplastics manufacturer, to expand its portfolio of sustainable materials. Ricinus Communis Industries partnered with AgriCoop to streamline the supply chain, while CastorOil International launched eco-friendly product lines targeting the cosmetics sector.
This research report on the North America castor oil market has been segmented and sub-segmented based on the following categories.
By Product Type
By Application
By End-Use
By Distribution Channel
By Country
Frequently Asked Questions
The market was valued at USD 2.21 billion in 2024 and is projected to grow to USD 3.97 billion by 2033, with a CAGR of 6.73% from 2025 to 2033.
Growth is driven by rising demand for natural products, government support for renewable energy, and diverse industrial applications.
Key players include companies in pharmaceuticals, cosmetics, and industrial sectors focusing on eco-friendly practices.
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 2000
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region