Essential Oil Market Size
|Fastest Growing Market:||Asia-Pacific|
*Disclaimer: Major Players sorted in no particular order
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Essential Oil Market Analysis
The global essential oil market is projected to register a CAGR of 8.6% during the forecast period.
- After the pandemic, the essential oils market experienced positive growth. Essential oils have antimicrobial, antioxidant, and anti-infective properties; thus, they treat various health conditions, including stress, immunity disorders, sleep disorders, and depression. Therefore, due to the rise in awareness regarding the benefits of essential oils, the essential oils market has grown rapidly after the pandemic.
- There has been an increase in consumers' awareness of natural and organic products, both in personal care products and food and beverage products. One of the major forces impacting the global essential oils market has been the shift from synthetic products to natural products, which has caused manufacturers to focus on natural products. Essential oils are expected to be in high demand due to their health benefits in pharmaceuticals and medical applications in the forecast period.
- The increased demand for aromatherapy is fueling the market expansion for essential oils. Market expansion is accelerated by rising demand from key end-use industries, including food and beverage, personal care and cosmetics, and aromatherapy, as well as increasing consumer desire for organic products. Regulations that support the use of environmentally friendly ingredients in cosmetics, food, and beverages also positively impact the market.
- Additionally, the sales of essential oils through retail outlets are growing steadily. However, the prominence of Internet-based online sales is poised to increase over the coming years, as most importers and wholesalers launch websites for online sales in addition to the existing over-the-counter sales. The market is majorly driven by the health benefits offered by essential oils.
- There is a strong upward trend in the essential oil market, as it is now being used in almost every industry due to the many health benefits, it offers, from the food and beverage industry to medicines and animal feeds, along with their presence in personal care products and other areas. Furthermore, the increasing R&D activities and innovation in extraction techniques are expected to bolster the market's growth in emerging economies.
Essential Oil Industry Segmentation
Essential oils are concentrated plant extracts that maintain the original flavor and aroma of the source and are produced by mechanical pressing or distillation.
The essential oil market is segmented by type, application, and geography. Based on type, the market is segmented into orange oil, corn mint oil, spearmint oil, cedarwood oil, lemon oil, eucalyptus oil, lemongrass oil, clove oil, citronella oil, and other types of oil. Based on application, the market is segmented into food and beverages, pharmaceuticals, aromatherapy, perfumery, personal care & cosmetics, home care products, and other applications. Based on geography, the market is segmented into North America, Europe, Asia-Pacific, South America, the Middle East and Africa.
For each segment, the market sizing and forecasts have been done based on value (in USD Million).
|Other Types of Oil|
|Food and Beverages|
|Personal Care & Cosmetics|
|Home Care Products|
Essential Oil Market Trends
This section covers the major market trends shaping the Essential Oil Market according to our research experts:
Multiple Applications for Essential Oils and Increasing Demand for Organic Products Contribute to the Market's Expansion.
- Growing consumer interest in natural and organic food, drink, and personal care products have compelled producers to switch their attention from synthetic to natural products, which significantly impacts the global essential oil market. The rising demand for organic products is another aspect that affects consumers' behavior.
- People's desire to purchase products derived from natural components has been stimulated by the continued implementation of rules encouraging the use of environmentally friendly ingredients in the food, beverage, and cosmetics industries. Manufacturers from several industries are creating creative ways to include healthy and natural ingredients in their formulas to deliver maximum consumer benefits.
- As natural additions and flavoring agents in preserving and conserving food products, including candies, confections, meat, pickles, and soft drinks, essential oils are increasingly gaining popularity. These oils are also used in creating chemical preservatives, repellents, edible film coatings, and odorants in paints and detergents. Additionally, active packaging systems are now being used to protect food products from microbial contamination due to the growing demand for preservative-free products with prolonged shelf lives. This is anticipated to expand the use of essential oils to promote quality and safety.
- Essential oils are expected to be in high demand for pharmaceutical and medical applications due to several health benefits. The demand for essential oils witnessed a significantly increasing trend, owing to the benefits they possess, such as eliminating harmful bacteria, relieving muscle spasms, relieving flatulence, disinfecting and soothing inflamed skin, especially when resulting from a venomous, itchy bug bite, promoting speedy healing of irritated and scarred skin, and relieve muscle tension when used during a massage.
- In hair care, essential oils are known to be an anti-septic that effectively eliminates lice, nits, and dandruff when rubbed into the scalp.
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Europe Hold the Significant Market Share
- Europe accounts for the largest share of the global market. Organizations like the European Federation of Essential Oils (EFEO) have had a good impact on the market for essential oils by defending the interests of stakeholders, which will aid in the entry of new companies. However, increased consumer awareness of hygiene and health has helped the market.
- In developed regions, such as the United Kingdom, the stress levels among people increased in recent years, owing to the fast-paced lifestyle, thus, increasing the growth of the essential oil market. Additionally, due to the rising disposable income of consumers, especially in developing regions, consumers are willing to spend a premium amount on natural, healthy, and nutritional products.
- In addition, the number of recreational and lifestyle users in the European region has constantly increased in recent years, further increasing the demand for essential oils in the spa, relaxation, and aromatherapy industries. Furthermore, the region has seen an increase in the demand for energy and health drinks in recent years, which has resulted in an increase in the use of essential oils in beverages.
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Essential Oil Industry Overview
The global market for essential oil is fragmented, owing to the presence of large regional and domestic players in different countries. Emphasis is given to the merger, expansion, acquisition, and partnership of the companies, along with new product development, as strategic approaches adopted by the leading companies to boost their brand presence among consumers. Some major players include Fakhry & Co. Lebermuth, Inc. Herbal Family, KATO Flavors & Fragrances (KFF), Robertet, Biolandes, Sydney Essential Oils Co. Pty Ltd, Young Living Essential Oils, Farotti SRL, Food Base Kft, and Givaudan SA.
Essential Oil Market Leaders
KATO Flavors & Fragrances (KFF)
Food Base Kft
*Disclaimer: Major Players sorted in no particular order
Essential Oil Market News
- 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.
- 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.
- April 2022: Phoenix Flavors and Fragrances, a leading developer and compounder of high-performance flavors and fragrances, announced the acquisition of Innovative Fragrances Inc., an Atlanta-based developer and compounder of fragrance compounds serving a diverse set of end markets including home fragrance, personal care, candles, and other air fresheners. The acquisition of IFI aligns with the Company’s vision of creating a market-leading developer of high-performance flavors and fragrances, supported by a strong team of perfumers and regulatory experts to meet customer-specific requirements and needs.
Essential Oil Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION ( Market Size by Value- USD Millions)
5.1 Product Type
5.1.1 Orange Oil
5.1.2 Cornmint Oil
5.1.3 Spearmint Oil
5.1.4 Cedarwood Oil
5.1.5 Lemon Oil
5.1.6 Eucalyptus Oil
5.1.7 Lemongrass Oil
5.1.8 Clove Oil
5.1.9 Citronella Oil
5.1.10 Other Types of Oil
5.2.1 Food and Beverages
5.2.5 Personal Care & Cosmetics
5.2.6 Home Care Products
5.2.7 Other Applications
5.3.1 North America
220.127.116.11 United States
18.104.22.168 Rest of North America
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
188.8.131.52 Rest of Asia- Pacific
5.3.4 South America
184.108.40.206 Rest of South America
5.3.5 Middle East and Africa
220.127.116.11 South Africa
18.104.22.168 Saudi Arabia
22.214.171.124 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Key Strategies Adopted
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 KATO Flavors & Fragrances (KFF)
6.3.2 Herbal Family
6.3.4 Food Base Kft
6.3.6 A. Fakhry & Co.
6.3.7 Lebermuth, Inc.
6.3.8 Givaudan SA
6.3.9 Sydney Essentials
6.3.10 Phoenix Aromas & Essential Oils, LLC
6.3.11 Doterra Holdings, LLC
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Essential Oil Market Research FAQs
What is the study period of this market?
The Essential Oil Market is studied from 2017 - 2027.
What is the growth rate of Essential Oil Market?
The Essential Oil Market is growing at a CAGR of 8.6% over the next 5 years.
Which region has highest growth rate in Essential Oil Market?
Asia-Pacific is growing at the highest CAGR over 2017-2027.
Which region has largest share in Essential Oil Market?
Europe holds highest share in 2021.
Who are the key players in Essential Oil Market?
KATO Flavors & Fragrances (KFF), Herbal Family, Food Base Kft, Robertet Group, Biolandes SA are the major companies operating in Essential Oil Market.
Essential Oil Industry Report
Statistics for the 2023 Essential Oil market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Essential Oil analysis includes a market forecast outlook to (2023to2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.