Global Essential Oils Market, By Product (Citrus Oils, Floral Oils, Herbaceous Oils, Camphoraceous Oils, Minty Oils, Spicy Oils, Resinous/Musky Oils, and Woody/Earthy Oils), Types (Singles/Virgin and Blends), Category (Conventional and Organic), Method of Extraction (Hydro-Or-Steam- Distillation, Hydrodiffusion, Cold Press Extraction, Water Distillation, Supercritical Fluid Extraction, Solvent Extraction, Microwave Assisted Process (MAP), Carbondioxide, Extraction, and Others), Application (Food & Beverages, Aromatherapy, Cosmetics & Personal Care, Home Care, Toiletries and Cleaners, Alternative Energy and Medical, Textiles, Automobile Air Fresher, Agriculture, and Others), End Use (Cosmetic Companies, Pharma Companies, Medical Spa, Dermatology Clinics, and Others), Distribution Channel (Direct and Indirect) - Industry Trends and Forecast to 2030.
Essential Oils Market Analysis and Insights
Essential oils can be defined as either products or mixtures of fragrant substances or as mixtures of fragrant and odorless substances. These fragrant substances are chemically pure compounds that are which provide the respective distinguishability. They are extracted through various methods such as distillation, cold press extraction, solvent extraction, enzymatic extraction, and many others. The use of essential oils is rising due to the demand from the food & beverage industry for the preparation of various products such as soft drinks, bakery products, sports drinks, and many others. Furthermore, essential oils have gained demand due to the spa & relaxation centers across the nation. However, certain essential oils can cause allergenic effects, especially in people prone to skin rashes, and those who have pollen allergies may hamper the market growth.
The increase in the technological advancement of essential oils and rising demand for rapid and sensitive technologies in food & beverage products, personal care, and cosmetics are expected to create immense opportunities for the manufacturers of essential oils. On the other hand, the exhaustion of natural resources and the handling issue due to its liquid nature may challenge the market's growth.
For instance,
- In October 2021, Cargill launched essential oils to its Nutrena, Naturewise poultry feeds. The natural essential oils promote egg weight, size, and production, enhanced palatability, and a fresh aroma direct from the bag
Data Bridge Market Research analyses that the global essential oil smarket is expected to reach the value of USD 21,350.53 million by 2030, at a CAGR of 9.6% during the forecast period.
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Report Metric
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Details
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Forecast Period
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2023 to 2030
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Base Year
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2022
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Historic Year
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2021 (Customizable to 2015-2020)
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Quantitative Units
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Revenue in USD Million, Volumes in Tons, Pricing in USD
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Segments Covered
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Product (Citrus Oils, Floral Oils, Herbaceous Oils, Camphoraceous Oils, Minty Oils, Spicy Oils, Resinous/Musky Oils, and Woody/Earthy Oils), Types (Singles/Virgin and Blends), Category (Conventional and Organic), Method of Extraction (Hydro-Or-Steam- Distillation, Hydrodiffusion, Cold Press Extraction, Water Distillation, Supercritical Fluid Extraction, Solvent Extraction, Microwave Assisted Process (MAP), Carbondioxide, Extraction, and Others), Application (Food & Beverages, Aromatherapy, Cosmetics & Personal Care, Home Care, Toiletries and Cleaners, Alternative Energy and Medical, Textiles, Automobile Air Fresher, Agriculture, and Others), End Use (Cosmetic Companies, Pharma Companies, Medical Spa, Dermatology Clinics, and Others), Distribution Channel (Direct and Indirect)
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Countries Covered
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U.S., Canada, Mexico, Germany, U.K., Italy, France, Spain, Switzerland, Russia, Turkey, Belgium, Netherlands, Denmark, Norway, Finland, Sweden, Rest of Europe, China, India, Japan, Australia, Indonesia, South Korea, Thailand, Malaysia, Singapore, Philippines, New Zealand, Vietnam, Taiwan, Hongkong, Rest of Asia-Pacific, Brazil, Argentina, Rest of South America, Egypt, South Africa, Saudi Arabia, U.A.E., Israel, Bahrain, Kuwait, Oman, Qatar, and Rest of Middle East and Africa
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Market Players Covered
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Kelvin Natural Mint Pvt. Ltd., Young Living Essential Oils, Lebermuth, Inc, Moksha Lifestyle Products, Robertet, SOiL Organic Aromatherapy and Skincare, dōTERRA, Edens Garden, ANIMA MUNDI APOTHECARY, Sakkara, Nefertiti, Essential Oils of New Zealand Ltd., FAROTTI SRL, LISHA Trade, Nefertari, Inc., Cario Aromatic, KM Chemicals, NOW Foods, AROMA TIERRA, and still pure naturals ltd. among others
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Market Definition
Essential oils are concentrated plant extracts that retain their source's natural smell, flavor, and essence. Unique aromatic compounds give each essential oil its characteristic essence. Essential oils are obtained through distillation (via steam and water) or mechanical methods, such as cold pressing. The oils capture the plant's scent and flavor, and essence. They are mostly named after the plant from which they are derived. The applications of essential oils are diverse. Widely used in cosmetics, perfumes, food & beverages, they also have medicinal applications due to their therapeutic properties and agro-alimentary uses because of their antimicrobial and antioxidant effects
Global Essential Oils Market Dynamics
Drivers
Rising Awareness and Use of Essential Oils as Herbal Medicine
The global essential oils market has been experiencing significant growth in recent years, largely driven by the rising use of essential oils in herbal medicines. Essential oils, derived from various plant sources, have been utilized for centuries due to their therapeutic properties and aromatic qualities. The increasing consumer preference for natural and organic products and the growing awareness of the benefits of herbal medicines have fuelled the demand for essential oils.
For instance,
- In May 2021, according to a research article published in the Journal of Multidisciplinary Healthcare, 51.8% of people have good awareness regarding herbal medicine safety in South West Ethiopia
Consumers are increasingly seeking natural and organic alternatives to conventional medicines and treatments. Essential oils, derived from plants through distillation or cold-pressing methods, are considered natural and eco-friendly. They are free from synthetic chemicals and artificial additives, making them a popular choice for health-conscious individuals.
Essential oils possess a wide range of therapeutic properties, including antimicrobial, antiviral, anti-inflammatory, and antioxidant effects. These properties make them valuable in treating and preventing various health conditions. Herbal medicines, which rely on the healing properties of plants, often incorporate essential oils as key ingredients to enhance their efficacy.
The therapeutic benefits of essential oils have gained recognition among healthcare professionals and consumers, leading to their growing use in herbal medicines. In addition, there is a growing awareness and acceptance of herbal medicines as an alternative or complementary approach to conventional healthcare. Herbal medicines have a long history of traditional use in different cultures and are often perceived as safer and more holistic than synthetic drugs. Essential oils, being derived from plants, align with the principles of herbal medicine. The increasing knowledge and acceptance of herbal medicines have contributed to the rising use of essential oils in this sector. Thus, the development of the application segments and increasing demand for essential oils is anticipated to drive market growth.
Rising Awareness Regarding Health Benefits of Essential Oils
The market has been experiencing substantial growth, primarily due to the rising awareness regarding the health benefits of essential oils. In recent years, there has been a significant increase in consumer awareness and understanding of the potential health benefits offered by essential oils.
Consumers around the world are increasingly adopting a natural and holistic approach to wellness. Essential oils derived from plants align with this trend and are viewed as a natural alternative to synthetic products. The growing interest in holistic wellness has propelled the demand for essential oils, as they are perceived as beneficial for physical, mental, and emotional well-being.
For instance,
- In November 2022, according to an article by WebMD, stress and anxiety can be managed using essential oils. For instance, investigators discovered that inhaling 2.5, 5, or 10 droplets of orange oil reduced anxiety in male volunteers
Consumers are incorporating essential oils into their daily routines as consumers become more knowledgeable about the specific health benefits offered by different oils. This increasing awareness of the therapeutic properties of essential oils has had a positive impact on the growth of the global essential oils market. In addition, the availability of information through various channels, including online resources, social media, and health and wellness publications, has played a crucial role in educating consumers about the health benefits of essential oils. Consumers now have access to detailed information about the specific uses, applications, and precautions associated with different essential oils. The dissemination of knowledge has empowered consumers to make informed decisions regarding their health, leading to higher adoption of essential oils and subsequently driving market growth.
Restraints
Limited Availability of Raw Materials
The lack of availability of raw materials can be caused due to climatic conditions. In unfavorable climatic conditions, it is difficult for farmers to cultivate and grow plants such as herbs, spices, mint, citrus fruits, and others, thus less available raw materials is expected to restraint the market growth.
The fluctuating production of these plants has resulted in the volatile supply of these plants in the form of seeds, roots, leaves, and others. The volatile supply of raw materials also drives the prices of the end product, these essential oils. The limited raw material availability is expected to hamper the market's overall value chain, a key restraining factor of the market.
Thus, the lack of raw material availability may cause the switching of consumers to other products and can also affect the supply chain.
The outcomes from limited materials availability are:
- Technological: Supply chain stakeholders may redesign their products by using substitute materials
- Geographic: The upstream supply chain may reconfigure to tap into new sources
- Operational: Downstream firms may alter inventory practices or work to recover alternative materials streams
HIGH PRODUCTION COST FOR ESSENTIAL OILS
The entire production process of essential oil includes the procurement of raw materials from farmers, then processing with one of the extraction processes out of cold-pressed, enzymatic extraction, and others, followed by the packaging and supplying of essential oils.
Production cost depends on the availability of materials such as seeds, fertilizer, water, production equipment, and the weather. Thus, the lack of any of them interrupts production and increases the production cost.
The other factors are:
- Price rise
- Place and right of exchange
In the whole process of production, the cost factor is considered to be the most important, which not only includes the price of raw materials but is also determined by costs of labor, capital, technology, and others. The particular inputs and how these factors are combined to generate production are expressed in the production cost.
Opportunities
Rising Research & Development and Innovative Technologies
One of the key opportunities for the growth of the global essential oil market lies in the rising R&D activities in essential oil manufacturing. As manufacturers and researchers invest in improving extraction techniques, quality control processes, and expanding the application areas of essential oils, new opportunities are created to meet evolving consumer needs. R&D efforts in essential oil manufacturing focus on optimizing extraction processes and techniques. This includes developing innovative extraction methods, such as supercritical fluid extraction and ultrasound-assisted extraction, to improve efficiency and yield. Advanced technologies and equipment are being explored to enhance the quality, purity, and aroma profiles of essential oils. By refining extraction processes, manufacturers can achieve higher productivity, reduce production costs, and improve overall product quality.
For instance,
- In September 2022, according to India Science, Technology & Innovation, CSIR (Council of Scientific and Industrial Research)-NEIST (North East Institute of Science and Technology) has worked hard to build distillation plants that are appropriate for the North Eastern region's environment. Steam distillation is used to extract essential oils from oil-bearing leaves, grass, and other plants. Essential oils such as citronella, lemongrass, patchouli, geranium, and palmarosa will play a significant part in export marketing
In addition, R&D in essential oil manufacturing plays a crucial role in establishing quality control measures and standardization. Through scientific research, analytical methods, and testing protocols, manufacturers are working towards ensuring consistent quality, authenticity, and safety of essential oils. This includes developing robust quality control procedures to detect adulteration, ensuring compliance with regulatory standards, and implementing traceability systems.
Challenges
Rising Allergies from Essential Oils due to Lack of Consumer Awareness
The global essential oils market is facing a challenge due to the rising number of allergies associated with their use. These allergies are often a result of consumers' lack of awareness regarding the potential risks and proper usage of essential oils. One of the primary challenges contributing to the rising allergies to essential oils is the lack of consumer awareness. Many people are unaware of the potential risks associated with essential oil usage, including allergic reactions, skin sensitization, and respiratory issues. Consumers often assume that natural products are inherently safe, leading to improper and uninformed usage.
Essential oils contain a complex mixture of chemical compounds that can trigger sensitization and allergic reactions in susceptible individuals. Common allergens found in essential oils include limonene, linalool, eugenol, and geraniol. Prolonged or excessive exposure to these compounds can lead to sensitization, where the immune system develops an adverse response upon subsequent exposure.
For instance,
- According to HealthyWA, undiluted essential oils can irritate or burn delicate skin or the nose. Susceptible individuals may also experience an allergic response and a skin rash
- Tisserand Institute, in an article, listed the harmful effects of essential oils as skin reactions are the most common types of adverse reaction to essential oils, and they include: irritation (irritant contact dermatitis), allergic contact dermatitis (delayed hypersensitivity), and contact urticaria (immediate hypersensitivity)
The rising incidence of allergies linked to essential oils poses a significant challenge to the growth of the market. As more consumers experience adverse reactions, the demand for these products may decrease, leading to a decline in sales and market expansion.
Recent Developments
- In August 2020, Young Living Essential Oils launched new products in the happy, healthy home category, including Cassia oil, Ecuadorian oregano oil, one heart essential oil
- In October 2020, Neptune Wellness Solutions launched a brand called Forest Remedies with a collection of products developed in collaboration with IFF, which launched six essential oils lemon, sweet orange, bergamot, peppermint, eucalyptus, and tea tree oil
Global Essential Oil Market Scope
The global essential oils market is segmented into seven segments based on product, type, category, method of extraction, application, end user, and distribution channel.
The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to make strategic decisions to identify core market applications.
Product
- Citrus Oils
- Minty Oils
- Floral Oils
- Herbaceous Oils
- Camphoraceous Oils
- Spicy Oils
- Resinous/Musky Oils
- Woody/Earthy Oils
On the basis of product, the market is segmented into citrus oils, herbaceous oils, floral oils, minty oils, spicy oils, camphoraceous oils, resinous/musky oils and woody/earthy oils.
Method of Extraction
- Hydro- Or- Steam- Distillation
- Water Distillation
- Cold Press Extraction
- Carbondioxide Extraction
- Solvent Extraction
- Hydrodiffusion
- Supercritical Fluid Extraction
- Microwave Assisted Process (Map)
- Others
On the basis of extraction method, the market is segmented into cold pressed, solvent extraction, supercritical extraction, carbondioxide extraction, hydro-or-steam distillation, water distillation, hydrodiffusion, Microwave Assisted Process (MAP), and others.
Category
- Organic
- Conventional
On the basis of category, the market is segmented into organic and conventional.
Type
- Singles/Virgin
- Blends
On the basis of type, the market is segmented into singles and blends.
Application
- Food & Beverages
- Aromatherapy
- Cosmetics & Personal Care
- Home Care
- Toiletries and Cleaners
- Alternative Energy and Medical
- Textiles
- Automobile Air Fresher
- Agriculture
- Others
On the basis of application, the market is segmented into food & beverages, aromatherapy, cosmetic & personal care, home care, toiletries & cleaners, alternative energy and medical, textiles, automobile air fresher, agriculture and others.
End User
- Cosmetic Companies
- Pharma Companies
- Medical Spa
- Dermatology Clinics
- Others
On the basis of end user, the market is segmented into cosmetic companies, pharma companies, medical spa, and dermatology clinics.
Distribution Channel
- Direct
- Indirect
On the basis of distribution channel, the market is segmented into direct and indirect.
Global Essential Oil Market Regional Analysis/Insights
The global essential oil market is analyzed, and market size insights and trends are provided based on as referenced above.
The countries covered in the markets report are U.S., Canada, Mexico, Germany, U.K., Italy, France, Spain, Switzerland, Russia, Turkey, Belgium, Netherlands, Denmark, Norway, Finland, Sweden, Rest of Europe, China, South Korea, India, Singapore, Thailand, Indonesia, Malaysia, Philippines, Australia, New Zealand, Hong Kong, Taiwan, Rest of Asia-Pacific, Brazil, Argentina, Rest of South America, Egypt, South Africa, Saudi Arabia, U.A.E., Israel, Bahrain, Kuwait, Oman, Qatar, and Rest of Middle East and Africa.
In Europe, France is dominating and is expected to show the highest growth in the forecast period in the market, due to large production, easy availability of products, and the increase in customer base.
In North America, the U.S. is dominating country due to growing application in the supplement and pharmaceutical industries. In Asia-Pacific, China is expected to dominate the market, due to an increase in disposable income and increased investment in the application of natural resources.
The country section of the report also provides individual market-impacting factors and changes in regulations in the market that impact the current and future trends of the market. Data points, such as new and replacement sales, country demographics, disease epidemiology, and import-export tariffs, are some of the major pointers used to forecast the market scenario for individual countries. In addition, the presence and availability of Europe brands and their challenges faced due to high competition from local and domestic brands and the impact of sales channels are considered while providing a forecast analysis of the country data.
Competitive Landscape and Global Essential Oil Market Share Analysis
The global essential oils market competitive landscape provides details of the competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, North America presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width, and breadth, and application dominance. The above data points only relate to the companies' focus on the market.
Some of the major players operating in the market are Kelvin Natural Mint Pvt. Ltd., Young Living Essential Oils, Lebermuth, Inc, Moksha Lifestyle Products, Robertet, SOiL Organic Aromatherapy and Skincare, dōTERRA, Edens Garden, ANIMA MUNDI APOTHECARY, Sakkara, Nefertiti, Essential Oils of New Zealand Ltd., FAROTTI SRL, LISHA Trade, Nefertari, Inc., Cario Aromatic, KM Chemicals, NOW Foods, AROMA TIERRA, and still pure naturals (pty) ltd. among others.
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