Market Size of Essential Oil Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 8.60 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Europe |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
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.
