Essential Oils Market Forecasts to 2028 - Global Analysis By Product, Method of Extraction, Distribution channel, Source, Nature, Application and By Geography

According to Stratistics MRC, the Global Essential Oils Market is accounted for $21.79 billion in 2022 and is expected to reach $38.39 billion by 2028 growing at a CAGR of 9.9% during the forecast period. Essential oil is a liquid that is naturally filtered from the plant's stems, leaves, flowers, seeds, or roots. Antibacterial, antiviral, antifungal, and antimicrobial oils are available. They quickly bypass the digestive system and hence benefit patients with weak digestion/assimilation. Also, it has excellent oxygenation and is appropriate for newborns who cannot swallow tablets or capsules. Unlike most conventional treatments and drugs, these oils have no significant negative effects.

According to the Global Wellness Institute, in 2020 there were over 1,60,000 spas, earning $68 billion in revenue globally. Spa revenue was growing by 8.7% annually prior to 2020.

Market Dynamics:

Driver:

Increasing application in aromatherapy

Aromatherapy is also known as essential oil treatment. Customers have gotten more picky in their use of personal care products during the previous decade. Despite the fact that numerous similar products are accessible, high-quality products at competitive costs will please customers and increase product loyalty. As a result, growing spending on research & development of more effective products, processes, services, and technologies is expected to have a favourable impact on market growth. The tremendous growth incentive to the hotel and tourism sector has brought the benefits of aromatherapy closer to the common consumer. This tendency, combined with the rising use of natural active ingredients in pharmaceutical and cosmetic compositions, has pushed the essential oils market even further.

Restraint:

Limited availability of raw materials

Essential oils are taken from plants, and as the population, urbanisation, and industrialization expand, they are gradually depleted. To accommodate the growing population, an increasing number of trees are being cut down, resulting in deforestation. Essential oils are concentrated and have a low yield. For example, one pound of jasmine oil requires approximately 200 pounds of jasmine blossoms. As a result, a considerable amount of raw materials is utilized to make a little amount of high-quality essential oils, limiting market growth.

Opportunity:

Increasing demand for natural ingredients

In the context of growing concern about synthetic food additives and their long-term detrimental consequences, essential oils play an important role in the natural preservation of foods. Numerous clinical investigations employing ethereal oils at concentrations ranging from 0.5 to 20 microliters per gram have demonstrated antibacterial activity in foods such as meat products, seafood, fresh meat, milk, dairy products, and cooked rice. There has been a significant synergy formed when using preservation methods in conjunction with such oils. As a result, the increased push for research and development in ethereal oil integration as a food additive is expected to provide additional impetus to the essential oils market.

Threat:

High price of the product

These oils are an extremely potent substance. One pound of lavender oil now consumes almost 250 pounds of lavender flowers. The decline in aromatic plant supply poses a bigger risk to the expansion of the plant-based volatile oil market. Strong and expanding demand against finite supply is certain to result in high price scenarios, inhibiting its use across several application industries in developing nations.

Covid-19 Impact

The COVID-19 pandemic has had a favourable impact on the global market. There has been a significant growth in demand for essential oils, which promise to improve health and immunity. The pandemic has increased global awareness of the need to strengthen the body's immune system. Along from nutritious food and regular exercise, a healthy and quiet mind, including aromatherapy, can boost immunity. This is consistent with the growing popularity of holistic care and the use of organic products. During this pandemic period, there is a surge in demand for items such as tea tree oil, peppermint oil, and eucalyptus oil, which have aromatherapy potential as well as antibacterial and antiviral properties.

The orange segment is expected to be the largest during the forecast period

The orange segment is estimated to have a lucrative growth, due to its blood-dialing effect, it is used to improve low libido, lessen PMS-related health issues, and battle hypertension. Orange oil's high vitamin C content, combined with its antioxidant characteristics, aids in the reduction of dark spots and wrinkles, which is a significant driving factor in its demand in the personal care industry. The food and beverage industry is the most common application for plant-based volatile oils, which act as natural antimicrobials. Processed foods with savoury organoleptic qualities, such as meat, fish, cheese-based foods, soups, and sauces, can thus serve as appropriate food matrices for adding citrus-based oils.

The food & beverages segment is expected to have the highest CAGR during the forecast period

The food & beverages segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the rising demand for natural, harmless, & slightly processed food products through the globe. These oils' antimicrobial properties aid in the preservation of food and beverage goods for a longer period of time. Another significant effect encouraging the development of this application area is the increased emphasis of food and beverage businesses on increasing product shelf life without sacrificing quality. Food and beverages continue to be the most popular matrices for adding plant-based volatile oils. The addition of aetheroleum oils to food items improves the shelf-life, storage stability, and sensory properties of a variety of foodstuffs.

Region with highest share:

Europe is projected to hold the largest market share during the forecast period because of the large population and many undiscovered markets, significant players are anticipated to expand and create operations and distribution facilities in this region. The developed market of the European Union has officially registered some of the components of plant-based volatile oils such as carvacrol, carvone, cinnamaldehyde, and citral, p-cymene. European cosmetic manufacturers are strongly promoting the use of these oils in their formulas. Growing demand for aromatherapy in major markets like as Germany, France, and the United Kingdom is expected to boost sales of plant-based volatile oils.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, because of suitable weather, low labour cost, and raw material. Furthermore, changes in consumer taste and preferences towards healthy and nutritional food and drinks and other food products in China and India provide prospects for global market players in the Asia Pacific region in the Essential Oils Market. Many variables, such as increased worries about ageing, UV damage, and hair loss, are likely to stimulate expansion in this area. Furthermore, consumers in these regions are willing to spend large sums of money on personal care and cosmetics, which is expected to sustain the market's consistent expansion.

Key Players in the market

Some of the key players profiled in the Essential Oils Market include Cargill, doTERRA International LLC, VedaOils, Norex Flavours Private Limited, Falcon, Givaudan, VidyaHerbs, Ultra International, Symrise, LIFESTYLE PRODUCTS, Flavex Naturextrakte GmbH, BMV Fragrances Pvt. Ltd., ROBERTET GROUP, MOKSHA LIFESTYLE PRODUCTS, International Flavors & Fragrances Inc., Firmenich SA, Takasago International Corporation, Sensient Technologies Corporation, Moksha Lifestyle Products and West India Species, Inc.

Key Developments:

In October 2022, doTERRA announced the launch of new natural and sustainably sourced essential oils. The newly launched essential oils include eucalyptus essential oil and guaiac wood essential oil.

In September 2022, Robertette launched a brand-new online sales platform for essential oil. The platform offers a wide range of essential oils, vegetal oils, and floral waters, with absolute CO2 extracts and more planned for launch in the not-too-distant future.

Products Covered:

• Mace
• Mustard
• Tea Tree
• Vetiver
• Orange
• Palmarosa
• Nutmeg
• DMO
• Rosemary
• Spearmint
• Turmeric
• Neem
• Ciz-3 Hexanol
• Pepper Mint
• Clove
• Eucalyptus
• Davana
• Curry Leaf
• Cypriol
• Cumin Seed
• Dill Seed
• Cornmint
• Fennel
• Juniper Berry
• Ajowan
• Carrot Seed
• Lemon
• Frankincense
• Cardamom
• Holy Basil
• Black pepper
• Acorus Calamus
• Cinnamon
• Lavender
• Basil
• Lemongrass
• Citronella
• Cedarwood
• Ginger
• Lime
• Celery
• Cassia
• Other Products

Method of Extractions Covered:

• Distillation
• Carbon dioxide extraction
• Cold press extraction
• Solvent extraction
• Other Method of Extractions

Distribution channels Covered:

• Direct Selling
• Online Sales
• Other Distribution channels

Sources Covered:

• Flowers
• Herbs & Spices
• Fruits & Vegetables

Natures Covered:

• Organic Essential Oils
• Conventional Essential Oils

Applications Covered:

• Food & Beverages
• Medical
• Spa & Relaxation
• Cleaning & Home

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
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