Some trees do more than provide shade or timber. They hold a secret beneath their bark, in their seeds, or deep within their leaves—the ability to produce natural oils that power industries, nourish skin, and even flavor food. From small-scale farmers to large agribusinesses, growing oil-yielding trees is a smart move, balancing profit with sustainability.
But not all trees are worth the effort. Some take too long to mature, while others yield oil that’s hard to extract or lacks demand. The right ones, though, offer steady returns year after year with minimal maintenance. They thrive in diverse climates, support ecosystems, and, when managed properly, regenerate soil instead of depleting it.
Let’s explore some of the best trees for natural oil production—ones that offer both economic value and long-term environmental benefits.
Nut and Seed Oil Trees
Trees that produce oils from nuts and seeds are some of the most reliable for long-term profit. Their oils are widely used in cosmetics, cooking, and even biofuel.
Moringa (Moringa oleifera)
This tree is a powerhouse. Every part of it has a use, but its seeds stand out for their high-quality moringa oil, also called ben oil.
- Lightweight and non-greasy, making it ideal for skincare
- Rich in antioxidants, preventing oil from going rancid quickly
- Grows rapidly, producing seeds within a year or two
- Thrives in poor soil and drought conditions
Farmers love it because it keeps producing with little input, and since the leaves are also marketable as a superfood, it offers dual income streams.
Neem (Azadirachta indica)
Bitter but valuable, neem oil has been used for centuries in natural medicine and pest control.
- A natural pesticide that doesn’t harm beneficial insects
- Antibacterial, antifungal, and antiviral properties
- Long shelf life with no need for preservatives
- Trees are low-maintenance and drought-resistant
Neem oil isn’t for food use, but it’s essential in organic farming, pharmaceuticals, and personal care.
Tung Tree (Vernicia fordii)
This one’s an industry staple. Tung oil is famous for its use in wood finishing, waterproofing, and even marine applications.
- Dries into a hard, protective layer when exposed to air
- Resistant to water and UV damage
- High demand in furniture and boat-building industries
- Grows best in subtropical regions
Though not edible, the oil commands high prices, making tung tree plantations highly profitable.
Fruit Oil Trees
These trees produce oil from their fruit, offering both an edible and industrial advantage.
Olive (Olea europaea)
A classic. Olive oil is a staple in kitchens and skincare worldwide, and its market shows no signs of slowing down.
- High in monounsaturated fats, making it heart-healthy
- Used in everything from soap-making to pharmaceuticals
- Trees live for centuries, ensuring long-term income
- Resistant to drought, thriving in Mediterranean-like climates
Even lower-grade olive oils, like pomace oil, have industrial uses, proving that nothing goes to waste.
Avocado (Persea americana)
Beyond guacamole, avocado oil is gaining ground as a premium product.
- High smoke point, making it ideal for cooking
- Rich in vitamins A, D, and E, perfect for skincare
- Extracted from pulp rather than seeds, reducing waste
- Flourishes in warm, tropical climates
With increasing consumer demand, avocado orchards can be incredibly lucrative.
Oil Palm (Elaeis guineensis)
A controversial but undeniably productive tree. Palm oil is found in nearly half of all packaged goods, from snacks to soap.
- Highest oil yield per hectare compared to any other tree
- Versatile, used in food, cosmetics, and biofuel
- Thrives in humid, tropical climates
- Harvestable year-round, ensuring continuous income
However, unsustainable plantations have caused deforestation and habitat destruction. The key is responsible cultivation—integrating biodiversity, limiting monoculture, and ensuring ethical sourcing.
Aromatic and Medicinal Oil Trees
Essential oils from trees are booming in the wellness industry, commanding high prices in the global market.
Sandalwood (Santalum album)
One of the most valuable essential oils comes from sandalwood, a slow-growing tree with a long payoff.
- Deep, woody scent used in perfumery and meditation practices
- Antibacterial and calming properties for skincare
- Oil increases in value as the tree matures
- Best suited for semi-arid regions
Since wild sandalwood populations are heavily regulated, sustainable plantations are the way forward.
Eucalyptus (Eucalyptus spp.)
A fast grower with endless uses, eucalyptus oil is a household staple.
- Antiseptic, making it popular in medicine and cleaning products
- Decongestant properties, ideal for respiratory health
- Natural insect repellent
- Low maintenance and adaptable to various climates
Its rapid growth and ability to regenerate after harvesting make it an excellent choice for large-scale production.
Tea Tree (Melaleuca alternifolia)
Native to Australia, tea tree oil is famous for its antimicrobial power.
- Used in skincare, first aid, and household cleaning
- Naturally repels lice, mosquitoes, and fleas
- Grows well in swampy, wetland conditions
- Requires frequent pruning but yields oil-rich leaves year-round
It’s a solid investment, especially as demand for natural personal care products rises.
Trees With Rare and High-Value Oils
Some trees produce oils that are rare, difficult to extract, but highly profitable.
Argan (Argania spinosa)
Native to Morocco, argan oil is a luxury in the beauty industry.
- Rich in vitamin E, great for hair and skin
- Harvested traditionally by local cooperatives, creating jobs
- Drought-resistant and long-living
- Slow to bear fruit but commands high prices
Because authentic argan oil is rare, it retains its premium status.
Babassu (Attalea speciosa)
Less known but just as valuable, babassu oil is sometimes called the Brazilian coconut oil.
- Lightweight and non-greasy, perfect for skincare
- High lauric acid content, making it great for soap-making
- Harvested from wild palms, preserving ecosystems
- Sustainable alternative to traditional palm oil
Though not as mainstream as coconut oil, it’s gaining recognition for its sustainability and versatility.
Palo Santo (Bursera graveolens)
Sustainably harvested palo santo oil is prized for its spiritual and therapeutic properties.
- Known for its calming and grounding scent
- Used in aromatherapy, meditation, and perfumery
- Wild-harvested only from naturally fallen trees
- Limited supply increases its market value
Unlike other oil trees, this one isn’t grown for high-yield production but for ethical, small-scale harvesting.
Final Thoughts
The right natural oil tree can turn barren land into a sustainable source of income while supporting ecosystems and communities. Whether for food, skincare, medicine, or industry, these trees offer long-term rewards with the right management.
Farmers and entrepreneurs looking to invest in natural oil production should consider climate suitability, market demand, and ethical sourcing. A well-chosen tree can be more than just an asset—it can be a legacy, growing in value year after year.