Essential Oils Market By Type (Orange oil, Lemon oil, Lime oil, Peppermint oil, Cornmint oil, Citronella oil, Spearmint oil, Geranium oil, Clove leaf oil, Eucalyptus oil, Jasmine oil, Tea tree oil, Rosemary oil, Lavender oil, Other oil types) By Method of Extraction (Distillation, Carbon dioxide extraction, Cold press extraction, Solvent extraction, Other extraction methods) By Method of Extraction - Growth, Share, Opportunities & Competitive Analysis, 2016 - 2028

What is the Global Consumption of Essential Oils?

The global consumption of Essential Oils increased to more than 495,959 tons in 2021 and is projected to witness substantial growth in the near future. Manufacturers are channeling their resources and capital changing strategies from synthetic to natural products as consumer awareness of natural and organic personal care products, food, and beverages has grown, which has functioned as one of the key influencing factors to the global essential oils market. In addition, essential oils are expected to grow in popularity in pharmaceutical and medical Methods of Extraction due to a variety of health benefits.

Moreover, consumer preferences are growing along with demand for organic products, which has become a driving factor. People are becoming more interested in items manufactured from natural components as legislation supporting the use of environmentally friendly ingredients in the cosmetics and food and beverage industries continue to be implemented. The demand for 100 percent plant-based goods that are free of synthetic perfumes and animal-derived ingredients has skyrocketed in recent years.

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What is the Market Size of Essential Oils in term of value?

The global Essential Oils Market is projected to increase at a significant CAGR of 7.1% in the coming years. In 2021, the global essential oils market was valued at USD 18.2 Billion and is projected to reach at the value of USD 27.5 Billion by 2028. The demand for essential oils is projected to increase substantially in the coming years and is presumed to generate revenue opportunities for the key industry players worth USD 9.3 Billion during the forecast period between 2022 and 2028.

How Independent Organizations Supporting Essential Oils Processing?

Various organisations assist the global essential oils industry in order to encourage the use of organic and natural ingredients or products in a wide range of everyday Method of Extractions. In addition, these organic essential oils have been certified according to various standards to encourage global trade.

International organisations such as the European Union and the United Nations have precise norms and regulations for producing, harvesting, and processing herbs and aromatic crops, indicating high-quality requirements. The Food and Agriculture Organization of the United Nations and the United Nations Industrial Development Organization supervise post-harvest processing operations for herbs, spices, and essential oils. The assistance provided by these organisations opens up a slew of possibilities for essential oil product manufacturers.

Interesting Facts about Essential Oils Industry

  • The top 5 countries for essential oils market are the U.S., Brazil, U.K, Germany and China.
  • The top 5 importers of essential oils are U.S., Germany, France, Italy, India.
  • Top essential oils firms are constantly concentrating on the creation of sophisticated items that will fuel market expansion over the next ten years.
  • South Africa's essential oils market is predicted to grow at a value CAGR of 5.7 percent across the Middle East and Africa over the forecast period.
  • In the following years, the Lemon oil segment is expected to grow at the fastest rate of 16.9%. This is due to its widespread use in the production of natural fragrances and flavoring compounds.
     

Who are the Top 10 players/companies in essential oils market in term of value and volume?

The key players in the global essential oils market in terms of value and volume include Cargill, Inc. (US), DuPont (US), Koninklijke DSM N.V. (Netherlands), dôTERRA International LLC (US), Givaudan SA (Switzerland), Young Living Essential Oils (US), The Lebermuth Company, Inc. (US), Symrise (Germany), Sensient Technologies Corporation (US), Essential oils of New Zealand (New Zealand), Firmenich SA (Switzerland), International Flavors & Fragrances Inc. (US), Mane (France), ROBERTET SA (France), Rocky Mountain Oils LLC (US), BIOLANDES SAS (France), Falcon (India), Farroti (Italy), Indian Essential Oils (India), and Ungerer Limited (UK).

These key players are concentrating on new product developments as well as technological innovation to enhance their production of essential oils to gain competitive market share at a global level. Les Derives Résiniques et Terpeniques, a global pioneer in the discovery and supply of high-quality, renewable, and naturally derived ingredients, was acquired by Firmenich in May 2020. Firmenich would become a leader in renewable ingredients for fragrance and other uses as a result of this acquisition.

In October 2020, dôTERRA introduced three new wellness programs and many new essential oil products and diffusers to assist consumers to focus on their specific health goals.

In February 2021, Givaudan purchased Myrissi. The acquisition of Myrissi would help Givaudan's long-term Fragrance & Beauty strategy. Givaudan would benefit from their AI experience in proposing new organoleptic methods to consumers.

Who are the Top 10 Countries in the Essential Oils Market?

The major countries in the global essential oils market are China, India, the U.S., Canada, the U.K., Germany, France, Russia, Japan, and Brazil. Due to the rising local demand for essential oils, the market for these oils has seen significant expansion across India in recent years. Demand for consumer products is directly tied to population growth and rising living standards. Due to untapped market potential and ongoing advances in the medical, food and beverage, and spa and relaxation industries, the regional market is expected to grow significantly during the forecast period.

The market for essential oils in France is expected to grow at a rate of over 8%. In terms of peppermint and citrus oil imports, France trails Germany, with the food and beverage industry accounting for the majority of consumption. Active government healthcare programs in Europe are likely to improve regional market demand by increasing consumer awareness of current research and advances in therapeutic drug production.

Which is the Key Product in the Essential Oils Market?

In 2021, the orange oil segment topped the essential oil market, with a sales share of close to 10 percent. This is due to its healthy characteristic, which has been used to improve low libido, lessen PMS-related health concerns, and combat hypertension.

Lemon oil is predicted to increase significantly throughout the projection period as a result of its use in detergents, fragrances, and soaps, as well as its ability to be mixed into DIY household cleansers. It's typically used to treat sore throats and the flu as a detoxifying and disinfectant. Lime oil's astringent qualities aid in cleansing congested and greasy skin. This oil is supposed to treat apathy, sadness, and mental tiredness when spread in the air.

What are the Major Driving Factors for Essential Oils Market?

Essential oils are employed as alternatives for synthetic components in food and beverages to impart flavor to the finished goods. As people become more aware of the health advantages of essential oils, demand for food and beverage products containing these oils as additives has grown.

Essential oils are commonly found as capsules and tablets sold at health food stores. In addition, ethereal oils are essential ingredients in the pharmaceutical industry for the manufacturing of capsules and tablets due to their functional qualities.

Furthermore, in addition to their existing over-the-counter sales, most importers and wholesalers have developed websites for online sales. However, as some sellers focus only on online sales to expand their geographic reach, the distribution methods for selling the products are expected to get more complicated.

What are the Major Restraints for Essential Oils Market?

Due to the high cost of essential oils, market players may find it challenging to manage their final product pricing and profit margins simultaneously. Essential oil prices fluctuate, causing a dramatic spike or decline in market growth over a short period of time. Due to the high cost of essential oils, consumers are turning to replacements such as low-priced oils or synthetic oils, causing demand for essential oils to fluctuate.

Essential oils are highly concentrated substances with a low yield. For example, one pound of lavender essential oil requires roughly 220 pounds of lavender flowers. Adulteration of essential oils is a serious concern and has become a major challenge for this business. Essential oils aren't all the same, and some may contain synthetic adulterants. These adulterated essential oils are only fragrance goods and do not have the qualities of essential oils.

Which Region Dominated the World Essential Oils Market?

In 2020, Europe dominated the market for essential oils, accounting for 49.2 percent of total sales. In the following years, the region is expected to dominate the industry. The presence of organizations like the European Federation of Essential Oils (EFEO) has aided the growth of the essential oil sector in Europe.

Over the forecasted years, East Asia is estimated to have the highest CAGR of 8.4 percent in the essential oil market. This is due to favorable climatic conditions for agriculture, low-cost labor, and abundant raw material availability. Furthermore, a shift in consumer preferences in China and India toward healthier and more nutritional foods and beverages and other food products is expected to present attractive growth prospects for global industry participants in the East Asia market. In 2020, China led the East Asia market. In addition, the demand for essential oils in China is predicted to rise due to the high demand for Chinese fragrances and the availability of a big consumer base for the skincare market.

Frequently asked questions about global Essential Oils industry

Segmentation of Global Essential Oils Market-

 Global Essential Oils Market – By Type

  • Orange oil
  • Lemon oil
  • Lime oil
  • Peppermint oil
  • Cornmint oil
  • Citronella oil
  • Spearmint oil
  • Geranium oil
  • Clove leaf oil
  • Eucalyptus oil
  • Jasmine oil
  • Tea tree oil
  • Rosemary oil
  • Lavender oil
  • Other oil types (sandalwood, cedar, chamomile, anise, ginger, thyme, cinnamon, ylang-ylang, and basil)

Global Essential Oils Market – By Method of Extraction

  • Distillation
  • Carbon dioxide extraction
  • Cold press extraction
  • Solvent extraction
  • Other extraction methods (resin tapping and maceration)

Global Essential Oils Market – By Method of Extraction

  • Food & beverages
  • Cosmetics & toiletries
  • Aromatherapy
  • Home care
  • Health care
  • Other Method of Extractions (feed, insecticides, and paint)

Givaudan SA, AOS Product Pvt. Ltd., Young Living Essential Oils, dTERRA, Now Health Group, Inc., Ultra International B.V., and Givaudan SA, AOS Product Pvt. Ltd. have a 30 percent to 40 percent market share.

Europe accounted for the highest share in the global essential oils market in terms of value as well as volume.

Rising awareness of the health advantages of naturally obtained oils, as well as an increasing number of people displaying an interest in aromatherapy, are key drivers driving the essential oils market growth.

The leading segment by Method of Extraction is cosmetics & toiletries capturing market share of close to 5% in 2021

From 2021 to 2028, the global essential oils market is predicted to increase at a compound yearly growth rate of 7.1%, reaching USD 27.5 billion.

Essential Oils Market Scope

Report Attribute Details
Market Value in 2021 USD 18.2 Billion
Market Value in 2028 USD 27.5 Billion
CAGR 7.1%
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
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Published Date:  Jul 2022
Category:  Consumer Goods
Report ID:   58010
Report Format:   PDF
Pages:   200
Rating:    4.8 (70)
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