Status : Published Published On : May, 2022 Report Code : VRFB11019 Industry : Food & Beverage Available Format : Page : 190
2015
2022

Global Essential Oil Market - Analysis and Forecast (2022-2028)
Industry Insight by Type (Orange, Lemon, Eucalyptus, Peppermint, Clove Leaf, Lime, Cornmint, Citronella, Spearmint, Geranium, Jasmine, Tea Tree, Rosemary, Lavender, and Others), by Application (Food & Beverages, Medical, Animal Feed, Spa & Relaxation, Cleaning & Home, and Others), and Geography (U.S., Canada, Germany, U.K., France, China, Japan, India, and Rest of the World)

Industry Overview

During the forecast period 2022-2028, the global Essential Oil Market Size is expected to rise at a CAGR of 9.5 percent, from USD 10.7 billion in 2022 to USD 16.75 billion in 2028.

Essential oils can be defined as the concentrated extracts of various plants, which are used by practitioners in alternative and natural health practices such as naturopath and aromatherapy. Essential oils generally have a stronger smell than the plant as they are extracted from and contain a concentration of active ingredients, which is dependent on the amount of plant matter that is needed to make essential oil.

Essential Oil Market

There are different methods such as water distillation, cold pressing, and others that are used by the essential oil manufacturer for the extraction of essential oil. In cold pressing hot steam or water passes through the plants, which results in the pulling away of essential compounds from the plants. However, in cold pressing, the essential oil is extracted by mechanically squeezing or pressing the plant matter to release the essential oils or juices out of it. In addition, manufacturers operating in the market use essential oil to create a wide range of products, that have various applications in different industries.

Industry Trends

A lot of industries such as Automotive, Aviation, and others experienced negative impact owing to COVID-19 pandemic. However, Essential Oils market experienced positive growth during the pandemic. In addition, Essential Oils offers antioxidant, antimicrobial, and anti-infective properties, which are beneficial and utilized in treating different health conditions such as immunity disorders, stress conditions, depression, and sleep disorders. Thus, the Essential Oil market experienced significant growth during the pandemic as the number of patients experiencing mental problems increased, which in turn boosted the Essential Oils market growth.

Furthermore, the increased trend of clean labelling will led to the market expansion owing to the rising awareness among consumers about the simplicity and use of less synthetic ingredients on product labels.

Market Segmentation

Insight by Type

  • Orange
  • Lemon
  • Eucalyptus
  • Peppermint
  • Clove Leaf
  • Lime
  • Cornmint
  • Citronella
  • Spearmint
  • Geranium
  • Jasmine
  • Tea Tree
  • Rosemary
  • Lavender
  • Others

The orange segment dominated the global Essential Oil market and is anticipated to maintain its lead during the forecast period as Orange has characteristics of being non-greasy, skin elastic, firmness, and treats acne, scars, and stretch marks, and environment friendly. Thus, making it the preferred choice for use in pest controls, household cleaners, and others.

In addition, the Clove Leaf segment is anticipated to exhibit a remarkable growth rate during the forecast period as it has a strong germicide property and has increased adoption in dental applications. Also, it offers fragrance in soaps, toiletries, lotions, toothpaste, massage oils, perfumes, cosmetics, etc.

Insight by Application

  • Food & Beverages
  • Medical
  • Animal Feed
  • Spa & Relaxation
  • Cleaning & Home
  • Others

The Food & Beverages segment dominated the market and is expected to maintain its dominance throughout the forecast period owing to the increased adoption of essential oil as a natural ingredient while preparing food. Essential Oils have antimicrobial and antioxidant properties that control or prevent the growth of bacteria in food. Thus, they can be easily used to replace synthetic preservative with harmful effects.

However, Cleaning & Home is anticipated to experience a remarkable growth rate during the forecast period due to the preference of consumers toward the adoption of a chemical-free solution for cleaning. In addition, Essential oil also has a wide range of applications in home cleaners. Also, Essential Oils are a natural, non-toxic, safe way of cleaning the home and also they are a versatile and inexpensive way of personal care.

Essential Oil Market Report Coverage

Report Metric

Details

Historical Period

2016–2021

Base Year Considered

2021

Forecast Period

2022-2028

Market Size in 2022

$10.7 Billion

Revenue Forecast in 2028

$16.75 Billion

Growth Rate

CAGR 9.5%

Segments Covered in the Report

By Type and By Application

Report Scope

Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

Regions Covered in the Report

North America, Europe, Asia-Pacific, Middle East, and Rest of the World

 

Industry Dynamics

Growth Drivers

Development of Aromatherapy Will Drive the Growth

The global Essential Oils Market is anticipated to exhibit a remarkable growth rate owing to the adoption of essential oils for a number of applications such as aromatherapies, flavor & fragrance, and others. Also, Essential Oils are also used majorly aromatherapy, owing to their psychological and physiological benefits for the body. Moreover, the demand for aromatherapy has also increased in recent years due to factors such as the general rise in disposable income of the population in the past decade. Thus, aromatherapy has increased the use of these volatile oils as potential therapeutic agent, including massage, inhalation, and bathing. Growing public awareness about the importance of aromatherapy owing to people's growing interest in natural care and getting back to nature will spur the creation of natural/organic components with healing properties.

Other factors attributing to the market growth of essential oil includes the wide range of use of Essential Oils in commercial, industrial, and household application, and a number of health benefits offered by essential oils are driving the growth of the market. Also, the use of Essential Oils for making flavors & fragrances is boosting the market growth. In addition, the usage of Essential Oil also offers various health benefits, which in turn is expected to propel the growth of the global market.

Challenges

Adulteration of Essential Oil may stymie the Market Growth

The adulteration of Essential Oils is one of the major challenges which is hindering the global market growth. Also, some of the Essential oils may contain some synthetic adulterants and may not be created equal. Thus, this processed and adulterated Essential Oil can only act as fragrance products and does not possess any Essential Oil properties. Moreover, adulterated Essential Oils are extremely dangerous and they might also have number of side effects and can also result in some permanent damage, which in turn is restraining the growth of Global Essential Oil Market.

In addition, the high prices associated with Essential Oil will also act as one of the major factors restraining the growth of the global Essential Market.

Opportunities

Continuous Research & Development will offer Potential Opportunities for Essential Oil Producers

Many manufacturers in the market are introducing and developing new methods of producing heath and natural ingredient to provide maximum benefits to the consumer, which is a remarkable growth opportunity for the players operating in the global Essential Oil Market. Thus, essential oil functioning is being improved in a variety of applications, including food, cosmetics, medicines, and animal nutritional items.

Growing demand of Essential Oils as natural preservatives is anticipated to provide a remarkable growth opportunity for the players operating in the market. In addition, demand for natural ingredient has been increasing due to growing awareness about the benefits offered by natural ingredients and rising disposable income among the population, which in turn results in consumers spending money to buy expensive natural products.

Geographic Overview

North America contributes the major share in the Essential Oil Market owing to the growing presence of end-use industries in this region, expansion of aromatherapy market, and rising awareness related to the adoption of Essential Oil among consumers.

In addition, Asia Pacific is anticipated to experience a remarkable growth rate during the forecast period as it is the prime market for natural antioxidants, increased prominence of health sector, and have favorable conditions for agriculture, availability of raw materials, and Others. Also, consumers are choosing natural essential oil ingredients like pepper and spearmint, thereby surging the market demand for essential oils.

Competitive Insight

Leading companies operating in the global Essential Oils Market are exhibiting a rise in products sales. Therefore, the market players in the industry are primarily focused on improving their supply and production strategy to fulfill the exponentially growing demand for the products and make effective marketing strategy. In addition, the demand for peppermint oil, tea tree oil, and eucalyptus oil, which have potential as antiviral & antibacterial and aromatherapy has increased in recent years.

Various companies operating in the Essential Oils Market are adopting various strategies to fulfill the increasing demand for essential oils like collaborations, acquisitions, product launch and expansion, partnerships to offer extensive offerings, wide customer base and have a strong foothold in the market.

Essential Oils of New Zealand Ltd. offers a comprehensive range of essential oils, vegetable (carrier) oils, essential oil blends, fragrances, perfumes, and flavours, as well as glass bottles. Experiments with more exotic plants like clary sage, imported cardamom seeds, Australian tea tree grown in Karamea, and New Zealand native kanuka and manuka oils have all contributed to a better understanding of essential oil crop management, harvesting, and distillation techniques, as well as the overwhelming importance of quality as a key ingredient in successfully marketing essential oils globally. These essential oils can be used as a massage therapist, a candle maker, an aromatherapy practitioner, a personal care products producer, or someone who utilises essential oils to improve their own well-being.

Young Living Essential Oils, LC, based in Lehi, Utah, is one of the prominent global leader in essential oils and oil-infused products. Young Living is committed to industry leadership, setting the bar with its Seed to Seal® quality promise, which is built on three pillars: sourcing, science, and standards. These guiding principles enable Young Living to safeguard the environment while still providing pure, authentic items that members may use and share with friends and family.

Recent Development by Key Players

Backyard poultry owners seek natural, nutritious feeds that help their birds thrive, produce healthy eggs, and keep their coops clean. In October 2021, essential oils have been added to Cargill's Nutrena® Naturewise® poultry feeds to meet this demand. Natural* essential oils help to promote egg weight, size, and production, as well as improved palatability and a fresh aroma straight from the bag.

Leading multination manufactures of fragrances, flavors and other cosmetic manufacturers are acquiring technology companies to expand its capabilities in the market. For instance, on April 2021, Givaudan, a cosmetic product manufacturer acquired Myrissi, an Artificial Technology company to expand its capabilities in Artificial Intelligence. In addition, Myrissi has introduced a patented AI based technology which is capable of translating fragrances into images and color pattern, relevant to the consumers and also predicting the emotional response of end customer. This development will allow the company to make advancements in fragrance and cosmetic industry, which in turn will benefit Global Essential Oil Market.

Global Essential Oils companies are introducing new range of new products related to Essential Oils, which in turn is anticipated to drive the market growth. For instance, on October 2020, doTERRA Essential Oil company announced various Essential Oil products and 3 new wellness programs that are specifically designed to help people focus on their health goal. Also, the pre-packaged kids are one of the efficient ways to help consumers understand which doTERRA oil and products will be most beneficial for them. In addition, the pre-packaged kits are offered in recyclable and reusable bags with a focus to reduce their footprint.

Global leader operating in the Flavor & Fragrance Industry are acquiring companies involved in supply of naturally derived ingredients to expand the business over coming years. For instance, on May 2020, Flavor & Fragrance Industry leader, Firmenich International SA acquired DRT, a leader in supply and development of renewable, high quality, and naturally derived ingredient. In addition, this acquisition will make Firmenich International SA a key player in development of renewable and natural ingredient for products related to perfume and beyond. In addition, this acquisition will also strengthen the Firmenich’s already leading business in Perfumery & Ingredients and company’s capability to offer consumers with high quality products.

Leading fragrances and grooming brand in various countries are introducing new range of products that are developed by using Essential Oil, which in turn is anticipated to boost the market in various countries. For instance, on March 2022, Denver, one of India’s top leading men’s grooming and fragrances brands has introduced high quality self-care men’s grooming products. In addition, the mix of Essential Oils and their high quality fragrance make the company’s products stand out.

Key Players Covered in the Report

Some of the industry players in the global Essential Oil Market included BIOLANDES, doTERRA, Essential Oils of New Zealand Ltd., Givaudan, Lebermuth, Inc., and Young Living Essentials Oils, LC., Cargill, Incorporated, Moksha Lifestyle Products, Firmenich SA, and International Flavors & Fragrances Inc.

Essential Oil Market Size and Market Analysis

The Essential Oil Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2022–2028.

Segments Covered in the Report

By Type

  • Orange
  • Lemon
  • Eucalyptus
  • Peppermint
  • Clove Leaf
  • Lime
  • Cornmint
  • Citronella
  • Spearmint
  • Geranium
  • Jasmine
  • Tea Tree
  • Rosemary
  • Lavender
  • Others

By Application

  • Food & Beverages
  • Medical
  • Animal Feed
  • Spa & Relaxation
  • Cleaning & Home
  • Others

Region Covered in the Report

North America

  • U.S.
  • Canada
  • Mexico

Europe

  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe

Asia-Pacific (APAC)

  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific

Rest of the World (RoW)

  • Brazil
  • Saudi Arabia
  • South Africa
  • U.A.E.
  • Other Countries

Frequently Asked Questions

During the forecast period 2022-2028, the global Essential Oil Market Size is expected to rise at a CAGR of 9.5 percent, from USD 10.7 billion in 2022 to USD 16.75 billion in 2028.
The high prices associated with Essential Oil and adulteration will act as one of the major factors restraining the growth of the global Essential Market.
Asia-Pacific is anticipated to grow at a faster pace in the Essential Oils Market owing to the shift of consumer preference toward nutritional and healthy food in countries like China, India, and Others.
The global Essential Oils Market is anticipated to exhibit a remarkable growth rate owing to the adoption of essential oils for a number of applications such as aromatherapies, flavor & fragrance, and others and also wide range of use of Essential Oils in commercial, industrial, and household applications.
Some of the major players in the global Essential Oils Market include BIOLANDES, doTERRA, Essential Oils of New Zealand Ltd., Givaudan, Lebermuth, Inc., and Young Living Essentials Oils, LC., Cargill, Incorporated, Moksha Lifestyle Products, Firmenich SA, and International Flavors & Fragrances Inc.

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle

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