Morocco’s argan oil industry eyes China’s zero-tariff market

Editor's note: This series examines how China’s zero-tariff policy for 53 African countries, set to take effect May 1, is creating new export opportunities across the continent. In this episode, Morocco’s argan oil industry looks to the Chinese market for growth, as producers seek to expand exports while balancing rising global demand with environmental conservation.

In the sun‑scorched hills of southern Morocco, women sit in cooperatives cracking hard argan kernels by hand, a centuries‑old ritual tied to one of the world’s most prized oils. Now, with China preparing to implement zero‑tariff access for African exports, Morocco’s argan industry is positioning itself for what producers hope will be a major commercial breakthrough.

Often called “liquid gold,” argan oil has long been woven into daily life in Morocco, used in cooking and traditional medicine before becoming a global beauty commodity prized for its anti‑aging and restorative properties.

The oil’s journey from tree to export market remains labor-intensive. Argan fruit is dried under the sun, peeled, crushed and ground before the oil is extracted, increasingly through a blend of traditional techniques and electric machinery designed to meet rising global demand.

“Demand for argan oil is rising, both for food and beauty products. We produce it using a mix of traditional methods and modern electric extraction machines,” said Alhanid Boubaker,  an argan oil producer.

That demand has transformed the industry. While argan oil still flavors dishes across Morocco, the cosmetics sector has pushed prices sharply higher. Locally, a litre can sell for between $30 and $50. On international shelves, packaged in luxury cosmetic bottles, the same quantity can fetch up to $250.

Exporters say the industry’s reputation for quality has helped maintain strong customer loyalty worldwide. But China’s new tariff policy, set to lower entry barriers for African goods, now opens the possibility of a vast additional consumer base.

“The argan tree is more than an ecosystem - it is both a natural buffer and a driver of economic resilience,” said university professor, Hanae Aitoutouhen. “From climate change to prolonged drought and water scarcity, it has shown remarkable strength. Now, a key shift is emerging through its growing partnership with China. Adjusted tariff policies could unlock new export opportunities, boosting the sector while generating shared economic benefits for both sides.”

Most of Morocco’s argan oil is produced by cooperatives run by Amazigh-speaking Berber women in regions surrounding Agadir, Essaouira and Taroudant. There, the industry has become both an economic lifeline and a symbol of cultural preservation, blending ancestral knowledge with modern production systems.

“Despite climate challenges, argan oil has preserved its quality. Customer loyalty remains strong, with repeat buyers returning regularly, both in the domestic market and in export markets,” said Mohamed Aït Haj, an argan oil trader.

Yet the industry’s expansion also exposes a growing environmental dilemma. Years of drought, overgrazing and water scarcity have steadily reduced Morocco’s argan forests, threatening an ecosystem that underpins both local livelihoods and export revenues.

“Surging exports of argan oil-fuelled by demand from China’s cosmetics sector, are increasing pressure on this vital resource,” said environmental expert, Mustapha Aissat. “That makes conservation efforts more urgent, alongside targeted government policies.”

Authorities are now expanding cultivation efforts under Morocco’s “Argan and Oasis” program, including plans to plant additional hectares of argan trees in southern regions to protect long-term production.

Industry data from Grand View Research projects Morocco’s argan oil market will grow from $90.1 million in revenue in 2025 to $212.2 million by 2033, with an annual growth rate of 11.4%. Morocco already controls more than 90% of the world’s commercial argan oil supply.

As China’s zero‑tariff policy comes into force, producers see an opportunity not only to expand exports, but to secure the future of an industry rooted in both nature and tradition. Whether that growth can be balanced with environmental protection may determine how long Morocco’s “liquid gold” continues to flow.