PUBLISHER: Grand View Research | PRODUCT CODE: 1790222
PUBLISHER: Grand View Research | PRODUCT CODE: 1790222
Essential Oils Market Summary
The global essential oils market size was estimated at USD 25.86 billion in 2024 and is projected to reach USD 56.25 billion by 2033, growing at a CAGR of 9.0% from 2025 to 2033. The market is driven by rising demand across food and beverages, personal care, cosmetics, and aromatherapy.
Growing consumer preference for natural ingredients, clean-label products, and wellness trends fuels adoption. Expanding applications in pharmaceuticals, household care, and spa treatments further boost market growth worldwide. Increasing consumption of beer and other alcoholic beverages is anticipated to fuel the growth of the flavors market. Essential oils contain complex, volatile chemical compounds renowned for their antifungal, antibacterial, anti-inflammatory, and antiviral properties. Unlike many conventional medicines and drugs, these oils generally do not have significant side effects. These factors are expected to be major drivers of market growth. Conventional medicines and pharmaceuticals are also incorporating pleasant-smelling aroma compounds to mask unpleasant chemical odors. Moreover, essential oils are gradually replacing various chemicals, drugs, and medicines due to their health benefits and reduced risk of side effects.
The rising demand for convenience and ready-to-eat meals, along with health and wellness foods, coupled with technological advancements, is expected to propel the growth of the food flavors market. Rapid industrialization and growing disposable incomes in emerging economies such as China and India are also projected to support the global food flavors market during the forecast period.
Essential oils such as rose, sandalwood, Melissa, and German chamomile, which are extensively used in aromatherapy, are costly due to the complex extraction processes involved. The high prices of these key oils pose a challenge to the growth of the aromatherapy industry in developing countries like India and Malaysia, compared to developed nations like the UK, France, and the U.S. However, increasing GDP and numerous untapped market opportunities in the Asia Pacific region are encouraging aromatherapy companies to expand their operations in emerging economies such as India, China, and Indonesia.
Large areas of forests have been cleared to extract small quantities of oil, and extensive arable land has been converted into monoculture farms dedicated to cultivating specific plants for oil production. This cultivation is often carried out by large multinational corporations that neglect environmental sustainability and threaten ecosystems. As a result, it is becoming increasingly challenging to grow sufficient plants to produce even a pound of oil.
Global Essential Oils Market Report Segmentation
This report forecasts volume & revenue growth at a global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2033. For this study, Grand View Research has segmented the global essential oils market report based on product, application, sales channel, and region: