North America Essentials 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 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, Carbondioxide Extraction, and Others), Application (Aromatherapy, Cosmetics & Personal Care, Toiletries and Cleaners, Home Care, Agriculture, Food & Beverages, Alternative Energy and Medical, Textiles, Automobile Air Fresher, Food Packaging Material, and Others), End User (Cosmetics Companies, Pharma Companies, Medical Spa, Dermatology Clinics, and Others), Distribution Channel (Direct and Indirect), Industry Trends and Forecast to 2030.
North America 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 provide 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.
Data Bridge Market Research analyses that the North America essential oils market is expected to reach USD 6,998.52 million by 2030, at a CAGR of 9.7% during the forecast period.
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Report Metric |
Details |
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Forecast Period |
2023 to 2030 |
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Base Year |
2022 |
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Historic Years |
2021 (Customizable to 2020-2016) |
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Quantitative Units |
Revenue in USD Million |
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Segments Covered |
By Product (Citrus Oils, Floral Oils, Herbaceous Oils, Camphoraceous Oils, Minty Oils, Spicy Oils, Resinous/Musky Oils, and Woody/Earthy Oils), Types (Singles 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, Carbondioxide Extraction, and Others), Application (Aromatherapy, Cosmetics & Personal Care, Toiletries and Cleaners, Home Care, Agriculture, Food & Beverages, Alternative Energy and Medical, Textiles, Automobile Air Fresher, Food Packaging Material, and Others), End User (Cosmetics Companies, Pharma Companies, Medical Spa, Dermatology Clinics, and Others), Distribution Channel (Direct and Indirect). |
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Countries Covered |
U.S., Canada, and Mexico |
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Market Players Covered |
Lebermuth, Inc., Floral Essential Oil, Kelvin Natural Mint Pvt Ltd, SOiL Organic Aromatherapy and Skincare, dōTERRA, Clive Teubes Group, Young Living Essential Oils, LC., Floracopeia, Robertet, Rocky Mountain Oils, LLC, Vigon International, LLC, Frontier Co-op., Synthite Industries Ltd., Silverline Chemicals, Phoenix Aromas & Essential Oils, LLC among others. |
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.
North America Essential Oils Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints, and challenges. All of this is discussed in detail below:
Drivers
RISING DEMAND FOR ESSENTIAL OILS IN THE PERSONAL CARE AND PHARMACEUTICAL INDUSTRY
The cosmetics, personal care, and pharmaceutical industries widely utilize essential oils for formulating beauty products as they confer anti-aging, antioxidant, and anti-inflammatory properties, contributing to market growth.
Increasing demand for bio-based products in the personal care and cosmetic industries is expected to significantly increase the essential oils market growth over the forecast period. Essential oils have significant beneficial properties such as high nutritional value, temperature versatility, high squalene, and skin-identical properties. The use of essential oils in the personal care industry offers a variety of benefits. The main reason for their usage in cosmetics is their pleasant aroma. Applying various essential oils, such as lavender and tea tree oil, on the skin provides plenty of hydration. Essential oils can also be added to lotion, creams, shampoos, and many others.
Thus, the growth of the application segments and increasing demand for essential oils is anticipated to drive the growth of the North America essential oils market.
INCREASE IN CONSUMER ACCEPTANCE OF NATURAL PRODUCTS FOR HEALTHY LIVING
Consumers changing eating habits are more inclined towards conscious indulgence, which means that while they want to indulge in eating out and eating right, they want to be mindful of what they eat and will select their places after thorough consideration. For instance, around 78% of millennials prefer to purchase healthy foods, which is 8% more than the total market. Around 54% of millennials prefer vegetarian foods, which is 15% higher than the total market.
The result of this lifestyle shift has been more straightforward in high-growth natural consumers product categories such as baby care, personal care, household products, and cosmetics have also transitioned their offerings to cater to this new generation of consumers.
Restraint
LACK OF 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.
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 North America essential oils market.
Opportunity
SHIFT TOWARDS AROMATHERAPY
Aromatherapy is increasingly considered a popular therapy, with more spas opening in various areas, increasing consumer awareness of well-being, higher demand for natural products, and its benefits in psychological and physiological health. Using essential oils in aromatherapy for personal and therapeutic purposes offers tremendous growth potential. This alternative therapy utilizes various combinations of essential oils to relieve ailments like depression, indigestion, headache, insomnia, muscular pain, respiratory problems, and others. For example, Thyme essential oil is widely used in aromatherapy to help reduce fatigue, nervousness, and stress. The availability of a wide range of aroma oils is expected to boost the North America essential oils market. Thus, the demand for essential oil enables manufacturers to launch new products to expand further, which may promote market growth in the forecast period.
Challenge
LOW PRODUCTION VOLUMES OF ESSENTIAL OILS AND INCREASING CONSUMER DEMAND
Low production volumes of essential oils and increasing consumer demand are expected to affect the market growth of North America essential oils market. High transportation rates, increased variability in rainfall, and intensive summer drought can be considered the main constraints to these crop productions. Under such conditions, adopting sustainable agricultural practices and introducing new/ underutilized crops, able to diversify cropping systems and mitigate climate changes, can represent promising strategies in addressing cropping system sustainability, crop improvement, and food security.
Thus, the increasing demand for essential oil cannot be fulfilled by the low production volumes and is expected to affect the market growth due to uncertainty in weather and the time-consuming extraction process, as well as the low content of oil after extraction. Moreover, it is expected to restrain the growth of North America's essential oils market.
Post-COVID-19 Impact on North America Essential Oils Market
Post the pandemic, the demand for essential oils has increased as there won't be more restrictions on movement, so the supply of products would be easy. In addition, the growing trend of using essential oils for their therapeutic properties and natural ingredients may propel the market's growth.
The increased demand for essential oils enables manufacturers to launch innovative and multifunctional essential oils, which ultimately increases the demand for essential oils and has helped the market grow.
Moreover, the high demand for essential oils for food and beverages and personal care products will drive the market's growth. Furthermore, the increased demand for products that boost the immune system after the COVID-19 pandemic resulted in market growth, as consumers were more concerned about their health and wellness. Additionally, consumers' interest in new flavors and enhanced fragrances is expected to fuel the growth of the North America essential oils market.
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.
North America Essential Oils Market Scope
The North America essential oils market is segmented into seven segments based on product, types, 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 North America essential oils 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 method of extraction, the North America essential oils 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 North America essential oils market is segmented into organic and conventional.
Types
- Singles
- Blends
On the basis of types, the North America essential oils 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
- Food Packaging Material
- Others
On the basis of application, the North America essential oils market is segmented into food & beverages, aromatherapy, cosmetic & personal care, home care, toiletries & cleaners, alternative energy and medical, textiles, automobile air fresher, agriculture, food packaging material, and others.
End User
- Cosmetic Companies
- Pharma Companies
- Medical Spa
- Dermatology Clinics
- Others
On the basis of end user, the North America essential oils market is segmented into cosmetic companies, pharma companies, medical spa, dermatology clinics, and others.
Distribution Channel
- Direct
- Indirect
On the basis of distribution channel, the North America essential oils market is segmented into direct and indirect.
North America Essential Oils Market Regional Analysis/Insights
The North America essential oils market is analyzed, and market size insights and trends are provided based on product, types, category, method of extraction, application, end user, and distribution channel, as referenced above.
The countries covered in the North America essential oils markets report are U.S., Canada, and Mexico. The U.S. is expected to dominate the market due to rising awareness of the health benefits of essential oils. 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 North America 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 North America Essential Oils Market Share Analysis
The North America 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 North America essential oils market.
Some of the major players operating in the North America essential oils market are Lebermuth, Inc., Floral Essential Oil, Kelvin Natural Mint Pvt Ltd, SOiL Organic Aromatherapy and Skincare, dōTERRA, Clive Teubes Group, Young Living Essential Oils, LC., Floracopeia, Robertet, Rocky Mountain Oils, LLC, Vigon International, LLC, Frontier Co-op., Synthite Industries Ltd., Silverline Chemicals, Phoenix Aromas & Essential Oils, LLC among others.
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