Essential Oils Market

Essential Oils Market  Size, Share, Growth (2023-2028)

Essential Oils Market Size was worth US$ 8.8 Billion in 2023 and is anticipated to reach a valuation of US$ 15.3 billion by 2028 with a CAGR of 11.8 %.

Global Essential Oils Market  Overview

Essential oil is extracted from aromatic flowers and plants. They are not soluble in water. Natural and green product consumption is driving the essential oils market. Traditionally, these oils were used in the food and beverage industries. However, they have recently been used to stimulate the sensory organs in order to achieve a rich experience of nature. They are also key ingredients in a variety of skincare and cosmetic products. They are also used in a variety of household products as aromatic. They are typically extracted through distillation from a plant's stems, leaves, seeds, or flowers. Tea tree, citrus, Lavender, and peppermint oil are the most commonly used essential oils. They are also consumed to help with various digestive issues. These oils are high in antioxidants and help to improve overall health. They are widely used for both commercial and personal purposes.

REPORT COVERAGE:

Essential Oils Market Drivers:

Due to the increasing applications of oils in various end-user industries, the essential oils market is constantly expanding. They have a number of advantages, and as consumers become more aware of these advantages, global demand is increasing. Consumers are becoming more interested in living a healthy lifestyle, and the growing popularity of aromatherapy is driving market demand. Consumers have become extremely picky when it comes to personal care products. They prefer natural products of high quality that will enhance their experience and increase customer satisfaction. There has also been an increase in the use of active compounds in pharmaceuticals, skincare, and other industries, which has broadened the scope of the essential oils market. They also serve as natural preservatives and are used as a natural additives in the food and beverage industries. As consumers become more aware of the harmful effects of chemical preservatives and flavourings, they prefer natural and organic food products that is attributed to propel the demand of the essential oils market. Essential oils also help to extend the shelf life of various products by preventing oxidation, which has increased their use in moisturizers, cleansers, gels, and other cream products. They also contain various vitamins and minerals such as silicon, copper, iodine, and zinc, which has increased their use in dietary and pharmaceutical products.

Global Essential Oils Market Restraints:

Good quality essential oils must be extremely concentrated, and the manufacturing process is extremely expensive due to the high raw material requirements. The supply of aromatic flowers and plants is inconsistent, affecting prices in the long run. Essential oil prices are rising due to increased demand and limited supply, which may be a primary restraining factor in the essential oils market's growth. They also have some side effects and must be used with caution and instructions. Incorrect application can result in a variety of health and skin problems.Many synthetic substitutes in the market attempt to replicate essential oils and are frequently sold at lower prices, posing a significant challenge to the market's growth.

Essential Oils Market Opportunities:

The demand for essential oils is constantly increasing, but consumer awareness is still very low. Targeted marketing campaigns can generate a significant amount of interest in the market. Because of the projected increase in population, developing countries have a significant opportunity. FMCG consumption is increasing in economies such as China and India. These countries' demand is expected to grow at an exponential rate.

COVID-19 Impact on the Essential Oils Market :

The impact of the COVID 19 pandemic on various end-user industries has been significant. During the pandemic, however, there was an increase in oil demand worldwide. Due to increased stress and anxiety, people were hyper-focused on self-care. Aromatherapy has gained popularity. There was also a shift toward consuming healthy foods, which can aid in developing immunity. Many consumers were incorporating these essential oils into their diets to boost their immunity and live healthier lives. Due to their antimicrobial properties, tea tree oil, eucalyptus oil, and peppermint were in high demand. Increased digitization and internet penetration also aided key players in making their supply chains more efficient and serving customers online. The pandemic positively impacts the Essential oils market, and the demand is expected to rise during the forecast period. 

Essential Oils Market Key Developments:

• In 2020, Doterra launched several new essential oils products to assist people in meeting their health goals.

• Givaudan acquired Myrissi in February 2021 to gain access to AI technology and propose new Organoleptic methods to their customers.

• In May 2020, Firmenich acquired Les Derives, a global supply chain leader in the field of naturally derived ingredients. It will help Firmenich establish itself as a global leader in the natural ingredients market.

Essential Oils Market Segmentation:

Bakers Yeast Market: By Product Type

• Citrus

• Eucalyptus

• Lavender

• Rosemary

• Tea – Tree

• Others

The citrus oil segment is expected to dominate the market in terms of product type during the forecast period. Due to their functionality and market availability, oils such as orange oil and lemon oil currently have the largest market share. They are used for both oral and application purposes. They are used in the food and beverage industries as flavorants. Because of its high vitamin C content, orange oil is in high demand in the skincare industry. Lemon oil has many benefits, including anti-inflammation, antibacterial properties, and assistance with mental health issues such as depression. It is very soothing and calming.

By Application

• Food and Beverages

• Pharmaceuticals

• Personal care and Cosmetics

Due to their traditional use in food items for the purpose of taste and the shelf life of products, the food and beverage sectors have dominated the marketplace in terms of application. However, Because of the wide range of uses of essential oils in body care products such as perfumes, fragrances, body washes, body oils, and so on, the cosmetics and personal care segment is expected to overtake and dominate the market during the forecast period.

Essential Oils Market Regional Analysis:

• North America

• Europe

• Asia-Pacific

• Middle East & Africa

• Latin America

According to the Region, Europe has the largest market share and is expected to dominate the essential oils market in the coming years. The cosmetic industry is thriving in Europe, and consumers are increasingly interested in using oils in their skincare regimens. Aromatherapy is becoming increasingly popular in countries such as the United Kingdom, France, and Germany. North America and the Asia-Pacific region are also expected to see steady growth in the market due to rising population and disposable income levels. Organic products are becoming more popular among consumers.

Essential Oils Market Key Players:

1. Biolandes SAS

2. Symrise AG

3. Givaudan International SA

4. Enio Bonchey Production ltd.

5. Essential Oils of New Zealand

6. The Lebermuth Company Inc.

7. Phoenix Aromas & Essential Oils

8. Sydney Essential Oils Co.

9. Moksha Lifestyle Products

10. Young Living Essential Oils

11. West India Spices Inc.

12. Dterra International LLC

13. H. Reynaud and FILS

14. Farroti Essenz SRL