Essential Oil Market Size and Share

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Compare market size and growth of Essential Oil Market with other markets in Food & Beverage Industry

Essential Oil Market Analysis by Mordor Intelligence

The essential oils market is estimated to be valued at USD 18.57 billion in 2025 and is projected to reach USD 28.67 billion by 2030, expanding at a CAGR of 9.08%. This growth trajectory reflects the convergence of therapeutic validation, technological extraction advances, and shifting consumer preferences toward natural alternatives across multiple industries. The FDA's expanded recognition of essential oils under Generally Recognized as Safe (GRAS) status for food applications has unlocked new revenue streams, while regulatory frameworks in Europe continue to tighten around synthetic alternatives FDA [1]U.S. Food and Drug Administration, “GRAS Notices Inventory,” fda.gov. Climate-related pressures on citrus production and concerns about synthetic aroma compounds have led companies to diversify their procurement sources and created premium pricing opportunities for certified-organic oils. Companies are implementing supply chain resilience strategies, including precision irrigation for drought-tolerant botanicals and relocating production to regions less affected by climate change. Additionally, the adoption of supercritical CO₂ and microwave-assisted extraction technologies has reduced processing times and improved yields.

Key Report Takeaways

  • By type, citrus oils led with 24.65% revenue share in 2024; eucalyptus oil is projected to expand at an 11.36% CAGR through 2030.
  • By source, fruits and vegetables held 38.15% of the essential oils market share in 2024, while herbs and spices are forecast to grow at a 12.21% CAGR to 2030.
  • By nature, conventional oils accounted for 65.12% of the essential oils market size in 2024; organic or certified-organic oils are advancing at a 13.15% CAGR to 2030.
  • By application, food and beverages commanded 42.15% of the essential oils market size in 2024; aromatherapy and wellness is rising at a 12.54% CAGR through 2030.
  • By geography, Europe captured 39.19% revenue share in 2024; Asia-Pacific is on track for the fastest expansion at an 11.65% CAGR to 2030.

Segment Analysis

By Type: Citrus Oils Dominate Volume While Therapeutic Grades Accelerate

Orange oil dominated the essential oils market in 2024 with a 24.65% share, driven by its extensive applications across beverages, confectionery, and cleaning products. The market value for orange oil reached USD 4.6 billion in 2024 and is projected to grow at a CAGR of 8.9%. This growth persists despite reduced production in Florida, which has led manufacturers to increase sourcing from Brazil and Mediterranean regions. The abundant availability of citrus peels, a by-product of juice processing industries, continues to provide significant cost advantages compared to synthetic alternatives. The growing consumer preference for natural ingredients in food and beverages further strengthens orange oil's market position.

Eucalyptus oil demonstrates strong market potential, supported by scientifically proven antimicrobial properties, and is expected to grow at a CAGR of 11.36%. This growth is primarily driven by increasing demand in pharmaceutical applications, particularly in sinus and respiratory treatments. The mint derivatives segment, including cornmint and spearmint, maintains a robust supply chain primarily centered in India. The country's export volumes have shown remarkable growth, indicating substantial production capacity and scalability potential. The rising adoption of mint derivatives in oral care products, aromatherapy, and traditional medicine applications further supports market expansion.

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Note: Segment shares of all individual segments available upon report purchase

By Nature: Certification Unlocks Premium Pricing

Conventional production accounts for 65.12% share of revenue in 2024, primarily due to household-cleaning formulators prioritizing cost efficiency and supply reliability. The organic and certified-organic oils segment is expected to grow at a 13.15% CAGR, driven by increased retailer focus on sustainability compliance. While certification increases production costs by 20-40%, German and French importers accommodate these additional expenses to meet consumer demand for chemical-free ingredients. The implementation of blockchain traceability has become a standard practice, facilitating due diligence compliance for premium brands.

EU regulatory requirements for residue limits compel conventional suppliers to adopt reduced-input farming methods to prevent shipment rejections. Organic producers face production challenges due to limited crop protection options. However, organic certification continues to command premium prices in wellness and dermo-cosmetic applications, despite yield fluctuations. The three-to-five-year transition period for new organic producers helps maintain market equilibrium by limiting supply increases and supporting price stability for existing certified producers.

By Source: Waste Streams Confer Cost Leadership

Fruits and vegetables hold a 38.15% market share in 2024, as food processing waste streams provide an economical source for essential oil production. The herbs and spices segment is projected to expand at a 12.21% CAGR through 2030, driven by increasing therapeutic applications. Citrus processing yields significant essential oil volumes as byproducts, with orange peel oil extraction creating additional revenue streams for juice producers. This integrated approach provides cost benefits that dedicated essential oil crops cannot achieve, especially during periods of elevated agricultural input costs.

The herbs and spices segment faces distinct challenges, as many therapeutic oils require dedicated cultivation instead of waste stream extraction. The production of lavender, rosemary, and sage demands specific climate conditions and precise harvest timing to maximize essential oil yields and quality. Research indicates that controlled drought conditions can enhance essential oil yields in herbs such as thyme, though this requires precise irrigation management. The cultivation of these specialty crops necessitates extensive agricultural expertise and careful monitoring throughout the growing season to ensure optimal oil content and composition.

Essential Oil Market: Market Share by Source
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Note: Segment shares of all individual segments available upon report purchase

By Application: Clean-Label Imperatives Drive Adoption

The food and beverage sector accounted for 42.15% of essential oil sales in 2024, driven by bakeries, confectionery manufacturers, and dairy processors replacing synthetic flavors with natural oils that provide antimicrobial properties. The essential oils market in food applications reached USD 7.8 billion in 2024, with a projected CAGR of 9.6%. The GRAS (Generally Recognized as Safe) status of orange, lemon, peppermint, and basil oils has simplified their incorporation into food formulations.

The aromatherapy and wellness segment, growing at 12.54% CAGR, benefits from increased mental health awareness and new subscription-based diffuser services. Personal care manufacturers are incorporating natural fragrances to meet EU allergen disclosure requirements. The pharmaceutical segment commands premium unit prices due to Good Manufacturing Practice standards and rigorous purity testing. New applications include the integration of essential oils into biopolymer films for eco-friendly packaging, which extends product shelf life without synthetic preservatives, particularly benefiting organic food manufacturers.

Geography Analysis

Europe held 39.19% of global revenue in 2024, buoyed by robust consumer preference for natural ingredients, strict allergen labeling rules, and mature distribution hubs. The Netherlands reexports 43% of world imports, ensuring efficient intra-EU logistics. Germany focuses on industrial-scale orange and peppermint oils for food and cleaning products, whereas France emphasises high-value botanicals for luxury perfumery.

Asia-Pacific is expected to post an 11.65% CAGR through 2030 as domestic demand scales alongside wellness and clean-label movements. China exported USD 340 million in 2024 while importing USD 341 million, highlighting the region’s dual role as supplier and consumer [3]Observatory of Economic Complexity, “Essential Oils Trade Data 2024,” oec.world. India dominates mint oil, enabling local contract manufacturers to supply global confectionery firms. Rapid technology adoption, including ultrasonic extraction units, is improving product quality and lifting regional competitiveness.

North America shows strong demand growth due to increased functional food product launches and direct-to-consumer aromatherapy sales. Supply risks remain as Florida's citrus growing area continues to decrease. South America utilizes Brazil's extensive orange production to increase exports, helping balance weather-related challenges in other regions. The Middle East and Africa focus on specialty botanicals like frankincense and myrrh, though sustainable harvesting practices are necessary to maintain future supply.

Essential Oil Market CAGR (%), Growth Rate by Region
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Competitive Landscape

The global essential oil market is fragmented, with a mix of global giants and regional players. Givaudan, Symrise, and DSM-Firmenich integrate farming partnerships, extraction plants, and formulation laboratories to achieve scale efficiencies and accelerate innovation. DSM-Firmenich leverages its expertise in science and innovation to develop sustainable and high-quality natural ingredients, catering to diverse applications across food, fragrance, and nutrition.

Companies like doTERRA and Young Living circumvent traditional retail channels, building customer loyalty through educational communities and generating multibillion-dollar revenues. These organizations secure supply against harvest fluctuations through long-term farmer agreements and cooperative-owned distilleries. Their technological advantages provide competitive barriers: supercritical CO₂ systems reduce energy consumption, while enhanced encapsulation methods improve shelf stability and controlled release in premium products.

Growth potential exists in pharmaceutical-grade oils, where regulatory requirements limit smaller competitors. While biotechnology companies develop fermentation methods for nature-identical compounds, consumer resistance and labeling regulations restrict immediate adoption. Sustainability certifications have become essential requirements, particularly for luxury brands requiring regenerative agriculture verification. Suppliers failing to meet sustainability standards risk losing access to high-margin market segments.

Essential Oil Industry Leaders

  1. Biolandes

  2. KATO Flavors and Fragrances

  3. DSM-Firmenich

  4. International Flavors & Fragrances Inc.

  5. Givaudan SA

  6. *Disclaimer: Major Players sorted in no particular order
Essential Oil Market
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Recent Industry Developments

  • April 2025: International Flavors & Fragrances Inc. strengthened its customer service capabilities by consolidating most of its Mexican operations at a new facility in Mexico City's Tecnoparque business complex.
  • December 2024: Biolandes strengthened its regulatory compliance and sustainability commitment by establishing an Environmental, Social, and Governance (ESG) team at its Le Sen facility. This initiative demonstrates the company's dedication to maintaining high standards in environmental protection, social responsibility, and corporate governance practices.
  • January 2023: VedaOils launched Essential Oil Blends, featuring more than 15 options made from natural fragrances. The blends are suitable for personal use and incorporation into scented products.

Table of Contents for Essential Oil Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Rising demand in therapeutic applications
    • 4.2.2 Increasing popularity of natural fragrances in perfumes and personal care products
    • 4.2.3 Adoption of natural flavorings and additives in food and beverages
    • 4.2.4 Growing demand for essential oils in household and industrial cleaning solutions
    • 4.2.5 Expanding application of essential oils in eco-friendly packaging and material innovation
    • 4.2.6 Technological advancements in extraction and production
  • 4.3 Market Restraints
    • 4.3.1 Climate-driven crop yield volatility and price spikes
    • 4.3.2 Increasing competition from synthetic alternatives and fragrance compounds
    • 4.3.3 Safety Risks in Food and Pharmaceutical Applications
    • 4.3.4 Complex Regulatory Compliance Across Regions
  • 4.4 Supply Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porters Five Forces
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Bargaining Power of Suppliers
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Intensity of Competitive Rivalry

5. MARKET SIZE AND GROWTH FORECASTS (VALUE AND VOlUME)

  • 5.1 By 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 By Source
    • 5.2.1 Fruits and Vegetables
    • 5.2.2 Herbs and Spices
    • 5.2.3 Flowers
  • 5.3 By Nature
    • 5.3.1 Conventional
    • 5.3.2 Organic/Certified Organic
  • 5.4 By Application
    • 5.4.1 Food and Beverages
    • 5.4.1.1 Bakery and Confectionery
    • 5.4.1.2 Dairy
    • 5.4.1.3 Functional Drinks
    • 5.4.1.4 Other Food and Beverages
    • 5.4.2 Personal Care and Cosmetics
    • 5.4.3 Pharmaceuticals
    • 5.4.4 Aromatherapy and Wellness
    • 5.4.5 Perfumery and Fragrances
    • 5.4.6 Others
  • 5.5 By Geography
    • 5.5.1 North America
    • 5.5.1.1 United States
    • 5.5.1.2 Canada
    • 5.5.1.3 Mexico
    • 5.5.1.4 Rest of North America
    • 5.5.2 Europe
    • 5.5.2.1 Germany
    • 5.5.2.2 United Kingdom
    • 5.5.2.3 Italy
    • 5.5.2.4 France
    • 5.5.2.5 Spain
    • 5.5.2.6 Netherlands
    • 5.5.2.7 Rest of Europe
    • 5.5.3 Asia-Pacific
    • 5.5.3.1 China
    • 5.5.3.2 India
    • 5.5.3.3 Japan
    • 5.5.3.4 Australia
    • 5.5.3.5 South Korea
    • 5.5.3.6 Rest of Asia-Pacific
    • 5.5.4 South America
    • 5.5.4.1 Brazil
    • 5.5.4.2 Argentina
    • 5.5.4.3 Rest of South America
    • 5.5.5 Middle East and Africa
    • 5.5.5.1 South Africa
    • 5.5.5.2 Saudi Arabia
    • 5.5.5.3 United Arab Emirates
    • 5.5.5.4 Rest of Middle East and Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Ranking Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Biolandes
    • 6.4.2 KATO Flavors and Fragrances
    • 6.4.3 DSM-Firmenich
    • 6.4.4 International Flavors & Fragrances Inc.
    • 6.4.5 Givaudan SA
    • 6.4.6 doTERRA International LLC
    • 6.4.7 Young Living Essential Oils, LC
    • 6.4.8 Robertet
    • 6.4.9 Lebermuth, Inc.
    • 6.4.10 Sydney Essential Oil Company
    • 6.4.11 Symrise AG
    • 6.4.12 Phoenix Aromas & Essential Oils, Inc.
    • 6.4.13 A.fakhry & Co.
    • 6.4.14 VedaOils
    • 6.4.15 AOS Products Pvt. Ltd.
    • 6.4.16 Arora Aromatics Pvt. Ltd.
    • 6.4.17 Young Chemist
    • 6.4.18 Plant Therapy
    • 6.4.19 Aethon International LLP
    • 6.4.20 Florihana Distillerie

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

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Global Essential Oil Market Report Scope

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).

By Type Orange Oil
Cornmint Oil
Spearmint Oil
Cedarwood Oil
Lemon Oil
Eucalyptus Oil
Lemongrass Oil
Clove Oil
Citronella Oil
Other Types of Oil
By Source Fruits and Vegetables
Herbs and Spices
Flowers
By Nature Conventional
Organic/Certified Organic
By Application Food and Beverages Bakery and Confectionery
Dairy
Functional Drinks
Other Food and Beverages
Personal Care and Cosmetics
Pharmaceuticals
Aromatherapy and Wellness
Perfumery and Fragrances
Others
By Geography North America United States
Canada
Mexico
Rest of North America
Europe Germany
United Kingdom
Italy
France
Spain
Netherlands
Rest of Europe
Asia-Pacific China
India
Japan
Australia
South Korea
Rest of Asia-Pacific
South America Brazil
Argentina
Rest of South America
Middle East and Africa South Africa
Saudi Arabia
United Arab Emirates
Rest of Middle East and Africa
By Type
Orange Oil
Cornmint Oil
Spearmint Oil
Cedarwood Oil
Lemon Oil
Eucalyptus Oil
Lemongrass Oil
Clove Oil
Citronella Oil
Other Types of Oil
By Source
Fruits and Vegetables
Herbs and Spices
Flowers
By Nature
Conventional
Organic/Certified Organic
By Application
Food and Beverages Bakery and Confectionery
Dairy
Functional Drinks
Other Food and Beverages
Personal Care and Cosmetics
Pharmaceuticals
Aromatherapy and Wellness
Perfumery and Fragrances
Others
By Geography
North America United States
Canada
Mexico
Rest of North America
Europe Germany
United Kingdom
Italy
France
Spain
Netherlands
Rest of Europe
Asia-Pacific China
India
Japan
Australia
South Korea
Rest of Asia-Pacific
South America Brazil
Argentina
Rest of South America
Middle East and Africa South Africa
Saudi Arabia
United Arab Emirates
Rest of Middle East and Africa
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Key Questions Answered in the Report

What is the current size of the essential oils market?

The essential oils market is estimated at USD 18.57 billion in 2025 and is projected to reach to USD 28.67 billion by 2030.

Which segment holds the largest essential oils market share?

Citrus oil leads by type with a 24.65% share of revenue in 2024, due to its broad use across food, beverage, and cleaning products.

Why is Europe the leading regional market?

Europe’s 39.19% share stems from strict allergen regulations, consumer preference for natural ingredients, and efficient re-export logistics through Dutch hubs.

What role does technology play in extraction?

Supercritical CO₂ and microwave-assisted processes allows the reduction of oil extraction time and raise yields by more than 60%, improving cost efficiency and purity.

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