Essential Oils Global Market Report 2024

Essential oils are concentrated plant extracts retaining the natural flavor, essence, and aroma of their source. Mainly used in aromatherapy, essential oils offer a range of therapeutic benefits.

Essential oils are categorized into various types, including orange oil, lemon oil, lime oil, peppermint oil, cornmint oil, citronella oil, spearmint oil, geranium oil, clove leaf oil, and eucalyptus oil. Orange essential oil, derived from the sweet orange's rind (Citrus sinensis), is a notable example. Different extraction methods are employed for obtaining essential oils, such as distillation, carbon dioxide extraction, cold press extraction, solvent extraction, and various other techniques. Essential oils find diverse applications in the food and beverage industry, aromatherapy, cosmetics and toiletries, pharmaceuticals, cleaning and home care, animal feed, and the fragrance industry.

The essential oils market research report is one of a series of new reports from The Business Research Company that provides essential oils market statistics, including essential oils industry global market size, regional shares, competitors with essential oils market share, detailed essential oils market segments, market trends and opportunities, and any further data you may need to thrive in the essential oils industry. These essential oils market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The essential oils market size has grown rapidly in recent years. It will grow from $15.46 billion in 2023 to $17.57 billion in 2024 at a compound annual growth rate (CAGR) of 13.7%. The growth observed in the historical period can be attributed to factors such as the demand for both traditional and alternative medicine, trends in aromatherapy, the increasing demand for natural and organic products, growth in the cosmetic and personal care industry, flavoring in the food and beverage sector, and the rising awareness of health benefits.

The essential oils market size is expected to see rapid growth in the next few years. It will grow to $31.25 billion in 2028 at a compound annual growth rate (CAGR) of 15.5%. The anticipated growth in the forecast period can be attributed to factors such as the prevalence of wellness and self-care trends, the incorporation of natural fragrance in home products, the expansion of beauty and personal care markets, a focus on sustainable and ethical practices, and global exploration of unique flora. Major trends expected in the forecast period include expansion into emerging markets, innovative blending and formulations, an increased emphasis on sustainability and ethical sourcing, the growing popularity of aromatherapy, and a rising demand for organic and natural products.

The global growth of the spa industry is expected to significantly contribute to the expansion of the essential oils market. Essential oils play a crucial role in aromatherapy, a form of alternative medicine that promotes health and well-being. There is a rising consumer preference for natural and organic oil products on a global scale. As reported by The Global Wellness Institute, a US-based nonprofit organization, in 2022, the spa industry comprised more than 181,000 establishments, generating revenues totaling $105 billion. Furthermore, projections indicate that spa revenues will surpass pre-pandemic levels by 2023, reaching an estimated $156 billion by 2027. Consequently, the burgeoning spa industry worldwide is a key driver for the growth of the essential oils market.

The growth of the essential oils market is expected to be propelled by the increasing consumer preference for natural products. Natural products, derived from living organisms such as plants, animals, and microorganisms, are favored over synthetic or artificially created compounds. The rising awareness and preference among consumers for natural and organic products contribute to the growing demand for essential oils, which are extracted from plant sources. In August 2022, the New Hope Network, a US-based media company, reported that sales of natural and organic products in the United States experienced a projected growth of 7.7% in 2021, reaching approximately $272 billion. Sales are anticipated to continue this upward trajectory, with forecasts indicating a surpassing of $300 billion by 2024 and reaching $400 billion by the year 2030. Hence, the increasing consumer preference for natural products is a significant factor driving the growth of the essential oils market.

Major companies in the essential oils market are focusing on the development of innovative solutions, with a notable example being essential oil diffusers. These devices are designed to disperse essential oils into the air, creating a pleasant and aromatic ambiance. In December 2022, Young Living Essential Oils, LC, a Utah-based essential oil company, announced the launch of two new products: the 'Duet Diffuser' and 'sprout the Puppy Diffuser.' These essential oil diffusers incorporate advanced technologies, providing two ideal diffusion options suitable for users of all ages. The Duet Diffuser utilizes atomizing technology, allowing the diffusion of essential oils without the need for water. This results in increased oil diffusion and minimizes potential mess. On the other hand, Sprout the Puppy introduces an endearing companion for young oil enthusiasts in their aromatic journey. This special edition diffuser features five calming sound choices, 10 LED light presentations, and a BPA-free, heat-free design, making it an ideal and secure addition to any child's bedroom. The incorporation of these advanced features showcases the companies' commitment to innovation within the essential oils market.

Major companies in the essential oils market are directing their efforts towards developing innovative solutions, with a notable focus on microencapsulated essential oils. This technology involves the encapsulation of individual essential oil molecules within tiny particles, often on a microscale. For example, in August 2023, Botanical Innovations, an Australia-based supplier of flavors, fragrances, and aromas, introduced 'Botanical's Breath Microencapsulated Essential Oils.' The design of microencapsulation technology allows for a controlled and prolonged release of essential oil compounds over time. The introduction of a variety of microencapsulated essential oil powders is reshaping sensory experiences and elevating the effectiveness of products within the market. This signifies a commitment by these major companies to innovative solutions in the essential oils industry.

In October 2023, Anima Mundi Herbals, a US-based apothecary offering company, successfully acquired Floracopeia for an undisclosed sum. This strategic move is set to bring more than 20 essential oils from Floracopeia into Anima Mundi's portfolio. The acquisition is intended to facilitate the expansion of Anima Mundi's geographical presence. Floracopeia, the acquired company, is a US-based essential oil manufacturer with a specialization in providing botanical medicine.

Major companies operating in the essential oils market report are Cargill Incorporated, Koninklijke DSM N.V., DuPont de Nemours Inc., International Flavors & Fragrances Inc., Essential Oils New Zealand Limited, Givaudan SA, Symrise AG, Mane SA, doTERRA International LLC, Sensient Technologies Corporation, Robertet SA, Firmenich International SA, Ungerer Limited, Aromatics International LLC, Young Living Essential Oils LC, Mountain Rose Herbs, Falcon Essential Oils, The Lebermuth Company Inc., BIOLANDES SAS, Rocky Mountain Oils LLC, Edens Garden, Plant Therapy LLC, Florihana, Aromaaz International, Stillpoint Aromatics LLC, Wyndmere Naturals Inc., Aromatherapy Associates Limited, Farroti Essential Oils Pvt. Ltd., Indian Essential Oils, Oshadhi Ltd., Floracopeia Inc.

North America was the largest region in the essential oils market in 2023. Asia-Pacific is expected to be the fastest-growing region in the essential oils market during the forecast period. The regions covered in the essential oils market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the essential oils market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The essential oil market consists of sales of essential oil products such as lavender, roman chamomile and hyssop. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Essential Oils Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on essential oils market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for essential oils ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The essential oils market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Type: Orange Oil; Lemon Oil; Lime Oil; Peppermint Oil; Cornmint Oil; Citronella Oil; Spearmint Oil; Geranium Oil; Clove Leaf Oil; Eucalyptus Oil
• 2) By Method of Extraction: Distillation; Carbon Dioxide Extraction; Cold Press Extraction; Solvent Extraction; Other Method Of Extraction
• 3) By Application: Food & Beverage; Aromatherapy; Cosmetics & Toiletries; Pharmaceuticals; Cleaning & Home Care; Animal Feed; Fragrances
• Companies Mentioned: Cargill Incorporated; Koninklijke DSM N.V.; DuPont de Nemours Inc.; International Flavors & Fragrances Inc.; Essential Oils New Zealand Limited
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.