Aromatherapy Oils Market By Oil Type (Basil, Chamomile, Eucalyptus, Jasmine, Lavender, Lemon, Peppermint, Rosemary, Sandalwood, Tea tree, Others) By Application (Anxiety and Depression Management, Cold and Cough, Hair and Skincare, Headaches, Insomnia, Body Ache and Pain Management, Relaxation, Scar Management, Others) By Mode of Delivery (Aerial Diffusion, Direct Inhalation, Topical Application)- Growth, Size, Share and Competitive Analysis 2015 – 2027

The global aromatherapy oils market generated USD 2,000 million in revenue in 2020, and it is expected to grow to USD 3,600 million by 2027, with a CAGR of around 9% over the analysis period.

Aromatherapy oils are essential oils extracted from herbs, flowers, bark, and leaves, among others, for natural healing based on aromatherapy. Aromatherapy oils help in managing pain, improve sleep quality, reduce stress and anxiety, provide relief from migraines and headaches, and improve the respiratory system. Some of the major sources of aromatherapy oils include basil, chamomile, eucalyptus, jasmine, lavender, lemon, peppermint, etc.

Rising Incidence Rate of Key Market Drivers and Restraints

Anxiety and depression are the most common disorders worldwide. According to the WHO, more than 450 million people around the world are facing problems associated with mental health, such as anxiety and depression. Although effective psychological and medicinal treatments are used to treat mental illness, aromatherapy is also widely used, as essential oils are found to be very effective in relieving stress and anxiety. For instance, lavender oil is very useful for restoring the sleeping cycle. This, in turn, drives the demand for different kinds of aromatherapy oils.

High costs and rigorous regulations present a major challenge to growth.

Rising essential oil prices and stringent government and regulatory body regulations are influencing the growth of the aromatherapy oil market. The scarcity of raw materials is another major concern for the manufacturers of essential oils, which in turn affects the margins. Essential oil production is expensive owing to its unique attributes and requires substantial capital investment in advanced equipment. As a result, despite their advantages, their market penetration worldwide is low.

Impact of COVID-19

The impact of COVID-19 on sales of aromatherapy oils has remained significant in 2020 and is likely to affect the market growth rate in 2021 to a great extent. The global economic shutdown and restrictions on human mobility had an unprecedented impact on aromatherapy oils. However, the e-commerce platform has rescued aromatherapy oil sales to some extent, as brick-and-mortar channels were blocked for sales during the lockdown period.

Europe Continues to Offer Strong Ground for Aromatherapy Oils

Aromatherapy oils have been in great demand in Europe over the past few decades. The higher demand for aromatherapy oils in the region is an outcome of the widespread awareness among end-users. Furthermore, higher end-user purchasing power parity, an increasing preference for natural products, and good distribution channel penetration across the region are driving demand for aromatherapy oils in the region. However, Asia Pacific is also expected to arise as a future growth market, backed by rapid growth in demand from India, China, Japan, South Korea, and other prominent Southeast Asian economies. Vietnam, Indonesia, Thailand, and Malaysia are prominent economies for the growth of the aromatherapy oil market in the near future.

Hair and Skincare Products are Paving the Way for Future Growth

Hair and skincare, body aches, pain management, headaches, etc., are the major applications of aromatherapy oils. Consumers across the world are shifting towards natural products, which has commenced a paradigm shift in their buying patterns. With increasing income, consumers are willing to spend more on natural and organic hair and skin care products. Particularly, millennials are the major purchasing force for aromatherapy oils and are expected to be a major revenue channel during the analysis period.

Direct Inhalation and Aerial Diffusion will be used to deliver aromatherapy oils.

Three modes of delivery of aromatherapy oils are aerial diffusion, direct inhalation, and topical application. Aromatherapy diffusers disperse aromatherapy oils into the air, filling the space with natural fragrances. It helps in improving sleep, controlling appetite, reducing stress, and improving relaxation, among other benefits. Direct inhalation of aromatherapy oils helps stimulate the olfactory system, disinfect and decongest the respiratory system, and provide psychological relief.

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