The Global Essential Oil Market was valued at USD 3,497.5 million in 2020 and is projected to grow at a CAGR of 8.9% during the forecast period from 2020 to 2028.
There has been increasing demand for essential oils from major end-use industries such as aromatherapy, food & beverages, personal care, and cosmetics. The demand for essential oils is projected to be driven by several health benefits offered by these oils in pharmaceutical and medical applications. Essential oils have no major side effects, unlike most of the conventional medicines and drugs. These are expected to be the major factors for market growth. The use of essential oils in aromatherapy applications, such as cardiovascular problems, Alzheimer’s disease, and bronchitis, is creating more demand for it.
The factor that is influencing consumer trend is the rising demand for organic products. Further, people are seeking products made from natural ingredients due to the implementation of regulations favoring the use of environmental-friendly ingredients in cosmetics and the food & beverages industry. The industry has witnessed a sharp increase in demand for 100% plant-based oils, and this is due to the fact that these oils are devoid of synthetic fragrances and animal-derived components.
A majority of consumers demand essential oils for various purposes, such as for enhancing air freshness at home by adding drops of essential oils in aroma pots or aroma diffusers, which diffuse oil in the form of atomized particles. Owing to the natural content and medicinal benefits, young women use essential oils for making homemade cosmetics as well.
FIGURE 1: GLOBAL ESSENTIAL OIL MARKET
The essential oil market is segmented based on product, application, sales channel, and extraction method
FIGURE 2: GLOBAL ESSENTIAL OIL MARKET SEGMENTATION
Global Essential Oil Market, By Product
The Cananga oil segment has emerged as one of the prominent products segments in this category, with the largest volume share. For developing sensory appeal and improving the product value, major end-use industries such as cosmetics are increasingly using Cananga essential oil. This oil is believed to promote skin elasticity, and firm and tone up the skin. It is also known to treat acne, stretch marks, and dermatitis. The oil helps enhance the quality of skin, nails, and hair, for which its popularity among young women has been rising. This segment is expected to grow significantly due to increasing working women population, along with their rising disposable income.
Global Essential Oil Market, By Application
Medical application is projected to witness significant growth over the forecast period, and it also held the largest volume share. The growth of this segment can be primarily attributed to the changing lifestyle of consumers around the world. The demand for aromatherapy has been increasing due to the busy and hectic lifestyle, which has created a significant requirement for stress-relieving therapies.
The major factor that is expanding the application scope of essential oils in food and beverage applications is the increasing demand for natural, safe, and minimally processed food products across the globe. There are antimicrobial properties associated with the essential oils, which help in preserving food and beverage products for a longer duration.
Global Essential Oil Market, By Extraction Method
As compared to other extraction method, the distillation method is the most widely used by manufacturers, as it yields the purest form of essential oil. For extraction of oil, different types of distillation methods are used, such as water distillation, water & steam distillation, and steam distillation. Quality control and wide application usage in the global market are the main advantages of using distillation method.
Global Essential Oil Market, By Sales Channel
Direct selling has emerged as the key sales channel in recent years. Increasing awareness among people regarding essential oil has given rise to more retail sales, especially through convenience stores. In line with this, they attract more consumers by offering compensation plans and providing attractive discounts as well as gifts.
Global Essential Oil Market, By Region
The Asia Pacific market is expected to have the largest share of the essential oil market. Asia Pacific is also projected to grow significantly over the coming years. There has been a rise in the availability and affordability of essential oils in the Asia Pacific region, which has led to the growth of the market. Further, dual income households and the rise in awareness about functionalities, health benefits, and applications of essential oils have been driving the global market.
FIGURE 3: GLOBAL ESSENTIAL OIL MARKET (USD MILLION), PRE-COVID AND POST-COVID MARKET ESTIMATION AND FORECAST, 2020-2028
Some Recent Developments in the Global Essential Oil Market:
- In February 2019, DuPont showcased Enviva EO, a natural identical phytogenic blend designed to fit into any nutritional health strategy and consistently improve feed intake, leading to improved gut heath and performance.
- In August 2018, Ungerer Limited U.K was thrilled to announce the opening of a subsidiary office to their Shanghai production facilities. This business expansion will help to enhance the company portfolio and growth rate.
- In May 2019, DSM partnered with Singapore-based innovation catalyst Padang & Co to launch a new innovation hub in Singapore, to enable the co-creation of solutions to tackle the region’s nutritional, health, and sustainability challenges.
What Does This Report Provide?
This report provides a detailed understanding of the global essential oil market demand from a qualitative and quantitative perspective with a forecast for the next 10 years. The report also provides dynamic indicators with potential impact on the market during the forecast period and an in-depth analysis of the leading companies operating in the global essential oil market.
The major market drivers, challenges, and opportunities for the global essential oil market have also been covered in the report. This report further includes the market share of the leading companies operating in the essential oil market, along with their production capacities and the growth strategies adopted by them.
- Cananga oil
- Cubeb oil
- Nutmeg oil
- Cajeput oil
- Java citronella oil
- Patchouli oil
- Clove oil
- Lemongrass oil
- Vetiver oil
- Kaffir lime leaf oil
- Massoia bark oil
- Spa & Relaxation
- Cleaning & Home
- Food & Beverages
By Extraction Method
- Cold Press Extraction
- Carbon Dioxide Extraction
- Solvent Extraction
North America Essential Oil Market
- North America, by Country
- North America, by Product
- North America, by Application
- North America, by Sales Channel
- North America, by Extraction Method
Asia Pacific Essential Oil Market
- South Korea
- Rest of Asia Pacific
- Asia Pacific, by Product
- Asia Pacific, by Application
- Asia Pacific, by Sales Channel
- Asia Pacific, by Extraction Method
Europe Essential Oil Market
- Western Europe, by Country
- The Netherlands
- Rest of Western Europe
- Western Europe, by Product
- Western Europe, by Application
- Western Europe, by Sales Channel
- Western Europe, by Extraction Method
Middle East & Africa Essential Oil Market
- Saudi Arabia
- South Africa
- Rest of Middle East & Africa
- Middle East, by Product
- Middle East, by Application
- Middle East, by Extraction Method
South America Essential Oil Market
- South America, by Country
- Rest of South America
- South America, by Product
- South America, by Application
- South America, by Sales Channel
- South America, by Extraction Method
Major Companies: In this report, the following major companies have been studied – Symrise AG, Givaudan, Young Living Essential Oils, Berje Inc, Huabao, Hasegawa, Ventos SA, Do Terra, BASF SE, Solvay, Firmenich, Cargill, DSM, Mane SA, and Sensient Technologies, among others.
Objectives of This Report:
- To estimate the market size for the essential oil market on a regional and global basis.
- To identify the major segments in the essential oil market and evaluate their market shares and demand.
- To provide a competitive scenario for the essential oil market with major developments observed by key companies in the historic years.
- To evaluate key factors governing the dynamics of essential oil market with their potential gravity during the forecast period.
- To evaluate the leading company-wise pricing analysis for the mentioned applications
This study is customized to meet your specific requirements:
- By sub-segment
- By client specific country analysis with market share analysis
- Pricing analysis along with the potential and existing customer analysis
- Product-specific competitive benchmarking and pricing analysis
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