Essential Oils Market

Global Market Study on Essential Oils: Sourcing from Herbs & Spices to Gain Prominence across Regions

Essential Oils Market Segmented By Citrus Essential Oils, Herbs & Spices Essential Oils, Mint Essential Oils, Flower Essential Oils, Nuts Essential Oils type in Organic Essential Oils, Conventional Essential Oils Form

About the Report

Essential oils are typically obtained by distillation and have characteristic odor of the plant or other source from which they are extracted. This provides numerous health benefits such as fighting harmful bacteria, reducing stress, treating fungal infections, and promoting sleep.

Additionally, awareness regarding their health and skin benefits is rising, which is subsequently benefitting manufacturers of essential oils. Moreover, rising consumer inclination toward natural and organic products has also increased demand over the years.

Manufacturers’ effort in offering high-quality essential oils for specific end-use industries is a major driver that is expected to propel demand over the forecast period of 2020 to 2030. A new report by Persistence Market Research details all these factors and also talks about other important factors responsible for rapid market growth across the world.

The report also analyzes the impact COVID-19 has had on various industries in general, and the market for essential oils in particular.

Find Out More about the Report Coverage

Companies

  • Young Living Essential Oils
  • doTERRA
  • Now Health Group, Inc.
  • Givaudan SA
  • Rocky Mountain Oils, LLC
  • NHR Organic Oils
  • Ultra International B.V.
  • AOS Product Pvt. Ltd.
  • Sensient Technologies Corporation
  • BMV Fragrances Pvt Ltd
  • International Flavors & Fragrances
  • Lebermuth Inc.
  • Ugerer and company
  • Van Aroma
  • Falcon Essential Oils
  • Naturral & Essentials Oils Pvt Ltd
  • Prinova Group LLC

Why are Future Projections for Essential Oils Brighter than Historical Trends?

From 2015-2019, sales of essential oils experienced a value growth of 5.8%. Sales were high due to the growing cosmetics & personal care industry, accounting for more than 30% market share. The food & beverage industry is seeking natural ingredients for food products, as more consumers are avoiding synthetic and chemical ingredients.

Essential oils can be used as preservatives, as they contain anti-bacterial properties. Moreover, as they also contain high amounts of antioxidants, essential oils can also be used for functional beverage formulations.

Moreover, awareness regarding the benefits of essential oils for use in food & beverage products is also increasing. This is expected to propel demand for essential oils from the food & beverage industry, with the market value expected to reach US$ 7.7 Bn by the end of 2030. Overall, the market is expected to expand even faster over the coming years, at a noteworthy CAGR of close to 8% through 2030.

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How is Growing Consumer Awareness Supporting Market Growth?

There is increase in demand for heath beneficial products, owing to rise in awareness regarding health and wellness. Widespread presence of various diseases such as respiratory diseases, throat infections, fatigue, depression, and others is pushing customers toward the use of health-beneficial products.

Essential oils, when combined with base oils, offer a wide range of health benefits owing to their medicinal properties. These products act as a primary alternative for chemical-infused medicines.

Essential oils have also proven to be an easy solution to heal stress, anxiety, headaches and migraines, sleep and insomnia, inflammatory conditions, and many other health related problems.

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Is Increased Positioning of Organic Products Driving Demand for Essential Oils?

More customers are opting for organic and natural products, which is evident from the change in their purchasing patterns. Government support for the development of organic farming is also increasing across regions, as it helps maintain a healthy environment and reduces pollution, which is one of the key reason for the increasing trend of organic products.

  • For instance, in 2019, USDA announced to increase the number of certified organic operations to support the development of organic products by funding for organic research and certification cost-share assistance.

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How is Shifting Customer Preference for Gluten-free Products Favoring Demand for Essential Oils?

Gluten-free products have gained traction among consumers suffering from gluten-related condition such as celiac disease or gluten-intolerance. Apart from gluten-free diet and medication, there is no other option for these consumers to boost their immune system and relieve the symptoms.

Essential oils play a major role in the dietary intake of these consumers, as such oils are used to boost essential nutrition, cleanse the body, and boost the immune system. These oils are high in essential nutrients that prove to beneficial for digestion-boosting.

  • For instance, Herb Pharm manufactures gluten-free essential oils for active immune system support.

Will Increasing Prominence of Aromatherapy Favor Essential Oil Suppliers?

Aromatherapy is the use of aromatic substances for relaxation, rejuvenation, and the treatment of certain minor physical conditions. Practitioners consider that the aroma of natural, organic, and therapeutic oils can have several beneficial effects on the body. Citrus oils can be used in various ways such as in massages, bathing, showers, inhalation, perfumes, and others.

Globally increasing demand for therapeutic and aromatic oils is a result of rising preference for convenient, harmless, and natural alternatives to traditional allopathic solutions. Increasing demand for therapeutic oils is also a result of the urban and sophisticated image that these products carry, and the historical use of therapeutic oils in several eastern countries.

These products are particularly popular among urban women. Growing consumer interest in aromatherapy directly contributes to revenue increase essential oil manufacturers.

What are the Challenges Faced by Essential Oil Manufacturers?

High prices of essential oils can create inconvenience for key players to manage their final product pricing and profit margins simultaneously. Fluctuating prices of essential oils may cause sudden rise or fall in growth of the market within a short period of time.

High pricing of essential oils can drive customers to adopt other low-cost essential oils or synthetic oils as an alternative. This also leads to the fluctuation in demand for products causing a problem for manufacturers. The market faces price constraints and proves to be a major retraining factor for the growth of market players.

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Country-wise Analysis

Why Does Germany Hold the Highest Share in Europe’s Market for Essential Oils?

Germany is one of the leading producers and consumers of essential oils, making it one of the dominating markets in Europe. The perfumery and aromatherapy market is at its peak in Germany. Besides, use of cosmetics and personal care products is high compared to any other country in the region.

Increasing demand for new aroma flavor in aromatherapy, perfumery, cosmetics, and personal care products is a key factor behind the high usage of essential oils. Also, rising demand for natural, organic, and premium quality products in Germany makes it one of the most prominent countries in the European market. Germany holds around 13% of the value share in European essential oils industry.

Why Will Essential Oil Usage Grow Significantly in India?

India is second-largest populated country in the world. Besides, it is one of the fastest-growing country based on both, population and economy. Also, wide production and availability of raw materials such citrus and herbs & spices is further fueling demand for essential oils.

Growing demand for food and beverages, cosmetics & personal care, aromatherapy, and home care & toiletries are key factors fueling demand for essential oils, as they are key ingredients in all these products. Moreover, growing middle-class population in the country and increased health awareness among consumers are expected to boost demand for essential oils through the retail sector.

Overall, the market in India is expected to expand even faster at an impressive CAGR of close to 12% through 2030.

Category-wise Insights

Will Customer Preference for Natural Ingredients Benefit Manufacturers of Essential Oils in the Aromatherapy Industry?

The wellness and aromatherapy industry is growing rapidly. Worldwide, preference for convenient, harmless, and natural alternatives to traditional allopathic solutions is rapidly increasing. Rising consumer interest in aromatherapy directly contributes to revenue increase in the therapeutic massage oils segment. As such, it is an important driver for the sales of essential oils across the world.

Essential oil sales in aromatherapy are expected to exhibit significant value CAGR of close to 8% over the forecast period.

Why Does Citrus Oil Hold the largest Value & Volume Share in the Essential Oils Space?

Citrus oils are used in home care products as a source of fragrance, and also because of their status as a safe solvent. Solvents are substances that can dissolve other substances easily. This property makes citrus oils ideal for use as surfactants in industrial/household cleaners. Increasing demand for citrus-based cleaners is closely tied to rising consumer preference for cleaner and safer cleaning solutions.

Limonene is a key component of citrus oil, and imparts several beneficial properties associated with this oil. Limonene can be a replacement for several other solvents such as acetone, mineral spirits, glycol ethers, and toluene. Limonene is also a direct substitute for many organic solvents.

Citrus essential oil holds more than 40% volume share in the global market for essential oils.

Competition Landscape

Persistence Market Research has profiled the following prominent essential oil manufacturers in its report:

  • Young Living Essential Oils
  • doTERRA
  • Now Health Group, Inc.
  • Givaudan SA
  • Rocky Mountain Oils, LLC
  • NHR Organic Oils
  • Ultra International B.V.
  • AOS Product Pvt. Ltd.
  • Sensient Technologies Corporation
  • BMV Fragrances Pvt Ltd
  • International Flavors & Fragrances
  • Lebermuth Inc.
  • Ugerer and company
  • Van Aroma
  • Falcon Essential Oils
  • Naturral & Essentials Oils Pvt Ltd
  • Flavaroma
  • Prinova Group LLC
  • Sydney Essential Oil
  • Kush Aroma Exports

These manufacturers are focused on offering essential oils through the retail sector owing to high internet penetration across the world. Online marketing is an effective strategy that companies are adopting to generate higher sales of essential oils. Also, key players are making huge investments in research & development activities.

They are taking efforts to increase the functionality of essential oils in various food products, cosmetics, pharmaceutical products, and animal nutritional products.

Many companies are focusing on launching new blends of essential oils in the market to keep in line with rising consumer preference for multi functional essential oils.

  • In 2018, DoTerra International partnered with the Research Institute for Fragrance Material to enhance its range of essential oils.

Report Scope

Attribute

Details

Forecast Period

2020-2030

Historical Data Available for

2015-2019

Market Analysis

US$ Mn for Value & Tons Units for Volume

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • The Middle East & Africa

Key Countries Covered

  • US
  • Canada
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Poland
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Vietnam
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • South Africa

Key Segments Covered

  • Type
  • Nature
  • End Use
  • Distribution Channel
  • Region

Key Companies Profiled

  • Young Living Essential Oils
  • doTERRA
  • Now Health Group, Inc.
  • Givaudan SA
  • Rocky Mountain Oils, LLC
  • NHR Organic Oils
  • Ultra International B.V.
  • AOS Product Pvt. Ltd.
  • Sensient Technologies Corporation
  • BMV Fragrances Pvt Ltd
  • International Flavors & Fragrances
  • Lebermuth Inc.
  • Ugerer and company
  • Van Aroma
  • Falcon Essential Oils
  • Naturral & Essentials Oils Pvt Ltd
  • Flavaroma
  • Prinova Group LLC
  • Sydney Essential Oil
  • Kush Aroma Exports

Customization & Pricing

Available upon Request

Key Questions Answered in Report

  • Which is the most lucrative market for the sales of essential oils?

    As per Persistence Market Research’s projections, China is expected to offer significant value CAGR over the forecast period. Established aromatherapy and cosmetics & personal care industry in the country is increasingly demanding unique, natural, flavor and aroma ingredients.

  • Which is the most used product type of essential oils?

    Sales of citrus essential oils are the highest and account for more than 40% volume market share, owing to high production and low cost availability of citrus fruits.

  • Which are some of the leading companies offering essential oils?

    Companies such as Young Living Essential Oils, doTERRA, Now Health Group, Inc., Ultra International B.V., Givaudan SA, AOS Product Pvt. Ltd., International Flavors & Fragrances, and Sensient Technologies Corporation are some of the key players offering essential oils for different end-use industries.

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  • Is this research conducted by Persistence Market Research?

    Yes, the research has been conducted by expert analysts of Persistence Market Research, through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to a research analyst.

  • What research methodology is followed by Persistence Market Research?

    Persistence Market Research follows a methodology that encompasses demand-side assessment of the market, and triangulates the same through supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions. Request a detailed methodology.

  • Who are the respondents for primary research?

    Persistence Market Research speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.

  • What are the sources of secondary research?

    Persistence Market Research conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.

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Key Market Segments Covered

Type

  • Citrus Essential Oils
  • Herbs & Spices Essential Oils
  • Mint Essential Oils
  • Flower Essential Oils
  • Nuts Essential Oils
  • Others

Form

  • Organic Essential Oils
  • Conventional Essential Oils

End Use

  • Essential Oils for Food & Beverage Industry
  • Essential Oils for Cosmetics & Personal Care
  • Essential Oils for Home Care & Toiletries
  • Essential Oils for Aromatherapy
  • Essential Oils for Animal Feed
  • Essential Oils for Foodservice Industry
  • Essential Oils for Retail/Household

Distribution Channel

  • Business to Business Sale of Essential Oils for
  • Business to Consumer Sale of Essential Oils for
    • Hypermarkets/Supermarkets
    • Specialty Stores
    • Online Retail
    • Other Retail Sectors

Region

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East & Africa (MEA)

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