Market Trends of Essential Oil Industry
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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