Market Trends of Asia Pacific Essential Oils Industry
This section covers the major market trends shaping the APAC Essential Oils Market according to our research experts:
Increasing Awareness Toward the Health Benefits of Essential Oil
Essential oil poses both antimicrobial and antifungal properties. Cosmetic preparations such as gels, creams, and ointments do not require an additional chemical preservative if they contain essential oil or a single compound as an active agent. It led manufacturers to incorporate essential oil, elevating the existing properties of ointment, gels, and creams. Essential oils have a broad set of incorporation in cosmetic products, perfumes, and related household products in line with their variety of properties but most notably due to their pleasant odor. There is a massive demand for organic products in the Asia-Pacific region owing to their health benefits and use of natural ingredients. Consumers want their products to be chemical-free and cruelty-free. Due to the demand, market players are also introducing new products made with organic and high-quality ingredients at affordable prices. For instance, in June 2021, Bella Vita Organic, India's all-natural ayurvedic brand, launched a range of luxury yet inexpensive essential oils. Nine essential oils were launched from floral or plant-based, ranging from too strong or mild. All of these are available online on the brand's website.
Japan is Expected to Witness High Growth Rate
The Japanese essential oil industry is growing owing to the demand for essential oils in various sectors like cosmetics, perfumes, and personal care products. Japan is famous for its variety of cosmetics. Demand for natural and organic cosmetics is growing in Japan. Therefore, the use of essential oil extracts in products is increasing instead of artificial ingredients. The regional players in Japan are innovating the products with the help of different essential oils. For instance, in November 2022, Japanese beauty and personal care brand Edobio launched a new hair and body care lineup. The products include shampoo, body soap, and conditioner. The products like conditioners are made by using camelia oil. Japanese people are also attracted to perfumes and fragrances. The use of essential oils in those perfumes is also driving the market as demand for clean-label, natural ingredients and skin-sensitive products is increasing. The market players are innovating products and enhancing people's experience with experts' help. For instance, in June 2021, skincare and fragrance company "Osaji" opened a new physical store called 'Kako Ikea.' Customers can make perfumes and fragrances in this store using various essential oils and products. Over the medium term, an increase in disposable income, demand for natural ingredients, and product innovation are expected to drive the market.
