Essential Oils Market Share and Trends Analysis

The global essential oils market size is likely to value US$ 22.2 billion in 2025 and projected to reach US$ 37.3 billion, at a CAGR of 7.7% during the forecast period from 2025 to 2032. The global essential oils market is growing steadily, driven by rising consumer focus on natural wellness, aromatherapy, and clean-label ingredients. Asia Pacific leads due to expanding consumer base, while Europe and North America emphasize premium, sustainable, and therapeutic-grade essential oil products.

Key Industry Highlights

• Leading Region: Europe, holding nearly 49.3% market share in 2025, driven by strong demand for natural ingredients, established fragrance and flavor industries, and high consumer preference for organic, clean-label essential oils.
• Fastest-Growing Region: Asia Pacific, fueled by expanding production in China and India, rising wellness awareness, growing aromatherapy use, and increasing disposable incomes supporting natural product adoption.
• Investment Opportunities: North America, focusing on sustainable sourcing, advanced extraction technologies, and bio-based formulations, supported by FDA guidance, wellness-driven consumer trends, and R&D in therapeutic-grade essential oils.
• Dominant Product: Citrus oils, capturing nearly 43.0% market share, due to wide industrial applications in food, cosmetics, and cleaning products, affordability, and abundant raw material availability.

Key Insights	Details
Global Essential Oils Market Size (2025E)	US$ 22.2 Bn
Market Value Forecast (2032F)	US$ 37.3 Bn
Projected Growth (CAGR 2025 to 2032)	7.7%
Historical Market Growth (CAGR 2019 to 2024)	7.0%

Market Dynamics

Driver – Rising Consumer Awareness and Preference for Natural Products

The growing preference among consumers for natural, plant-based, and minimally processed products is a strong driver for the essential oils market. For example, a U.S. survey found that about 53% of consumers said a “natural” label claim would motivate them to purchase a product. Likewise, another survey showed 74% of consumers considered organic ingredients important in personal-care items, with 65% wanting clear ingredient lists. In Europe, a report showed 56% of respondents consider natural/organic labelling important when buying supplements. These data illustrate heightened consumer awareness of ingredient origin and composition – translating into greater demand for essential oils, which are marketed as natural, therapeutic and eco-friendly options in aromatherapy, wellness, skincare and household use.

Restraints – High Production Costs and Price Volatility

The high price of pure and premium essential oils serves as a restraint on wider market expansion for the essential oils market. Extraction of oils often demands large quantities of raw material one source notes that onion oil yields only 0.005–0.01 % of raw material, leading prices of up to €550–650/kg. As another example, more common oils such as orange oil fetched only US $8-10/kg (2022) due to higher yields, while rarer oils such as rose-oil reached €8,000-9,000/kg. In addition, a U.S. government study by the United States Department of Agriculture (USDA) stated that major barriers for essential oil producers include costly equipment, labor and large capital investments. The result: high retail prices limit access in price-sensitive markets, slowing adoption in developing regions and serving as a cap on market penetration.

Opportunity – Integration of Essential Oils into the Pharmaceutical and Healthcare Sectors

The integration of essential oils into the pharmaceutical and healthcare sectors is a noteworthy driver for the essential oils market. Increasingly, essential oils are studied for their anti-microbial, anti-inflammatory, analgesic and anxiolytic properties for instance, research shows oils can act as antibacterial, antiviral and antioxidant agents. Moreover, regulatory bodies are beginning to treat essential oils as herbal medicinal preparations: for example, the European Medicines Agency’s “Reflection Paper” addresses essential oils when used as active pharmaceutical ingredients in herbal-medicinal products. Meanwhile, health-care websites emphasize that aromatherapy using essential oils (e.g., lavender, orange-bergamot blends) may help treat agitation, anxiety and sleep disorders in clinical settings. Together, these developments signal growing acceptance of essential oils not just in wellness/spa contexts but in medical and therapeutic domains, expanding their application scope and market potential.

Category-wise Analysis

By Product Insights

Citrus dominates the market with a 43.0% share in 2025 due to their abundant availability, versatile applications, and cost-effectiveness. Oils such as orange, lemon, and lime are extracted as by-products from the fruit juice industry, making them easier and cheaper to produce compared to floral or herbal oils. Their high content of limonene gives strong antimicrobial, cleansing, and uplifting aromatic properties, which drive demand across food, beverage, cosmetics, and cleaning industries. Additionally, citrus oils are widely approved for use as natural flavoring agents and preservatives by authorities like the U.S. FDA and EFSA, enhancing their industrial adoption. Their pleasant scent, functional benefits, and affordability collectively position citrus oils as the most commercially dominant segment in the essential oils market.

By Method of Extraction, Distillation is gaining traction due to efficiency, purity, scalability, and solvent-free extraction suited for diverse botanicals

Distillation dominates the essential oils market by extraction method because it is the most efficient, cost-effective, and widely applicable technique for separating volatile aromatic compounds from plant materials. The process, commonly steam or hydro-distillation preserves the purity, potency, and natural aroma of oils without chemical solvents, aligning with consumer demand for clean-label and natural products. It is also highly scalable, making it suitable for both small artisanal producers and large industrial manufacturers. According to the U.S. Department of Agriculture (USDA), distillation is the preferred method for most commercial essential oils like lavender, eucalyptus, and peppermint due to its high yield and product stability. Its combination of efficiency, sustainability, and compatibility with diverse botanicals ensures continued market dominance.

Regional Insights

Europe Essential Oils Market Trends

Europe region dominates the global market with a 49.3% share in 2025, due to its strong manufacturing base, high consumer demand for natural products, and advanced trade networks. According to the European Commission’s trade statistics, the EU imported over 68,000 tonnes of essential oils in 2022, valued at more than €1.8 billion, representing around 43% of global imports. Countries like France, Germany, and the Netherlands serve as major hubs for processing and re-exporting essential oils used in cosmetics, food, and pharmaceuticals. Additionally, the EU’s strict regulations on synthetic chemicals and consumer preference for organic, plant-based, and clean-label products drive higher adoption of essential oils. The region’s established aromatherapy, fragrance, and wellness industries further solidify Europe’s dominant position in the global essential oils market.

Asia Pacific Essential Oils Market Trends

Asia Pacific is the fastest-growing region in the essential oils market due to its expanding production capacity, strong agricultural base, and increasing consumer inclination toward natural wellness products. China and India are major producers, together accounting for over 70% of Asia Pacific’s essential oil output, with China producing around 51,000 tonnes and India 28,000 tonnes annually (FAO, 2023). Rising disposable incomes, urbanization, and growing awareness of aromatherapy, herbal medicine, and natural personal care products are driving regional demand. Government initiatives in countries like India, promoting AYUSH and traditional medicine, have further boosted essential oil utilization in healthcare and wellness sectors. This combination of large-scale production, population-driven consumption, and cultural preference for natural remedies makes the Asia Pacific the fastest-growing regional market globally.

North America Essential Oils Market Trends

North America is a key region in the global essential oils market due to its high consumption, strong import base, and established wellness culture. The United States imported over US $1.1 billion worth of essential oils in 2023, representing nearly 20% of global imports (U.S. International Trade Commission). The region’s consumers have a strong preference for natural and therapeutic products, about 77% of U.S. adults regularly use dietary or botanical supplements (National Institutes of Health, 2023), reflecting broader acceptance of plant-based health solutions. Additionally, widespread use of essential oils in aromatherapy, cosmetics, and household care supports consistent demand. Combined with advanced distribution networks and regulatory support for natural ingredients, these factors make North America a critical hub for essential oil trade and innovation.

Competitive Landscape

The global essential oils market is expanding as producers adopt advanced extraction, sustainable sourcing, and eco-friendly packaging. Leading brands emphasize purity, safety, and traceability, while emerging players focus on organic and therapeutic-grade oils. Growing wellness awareness, aromatherapy use, and demand for natural, clean-label products are driving rapid global adoption.

Key Industry Developments:  

• In October 2025, Researchers discovered that essential oil mixtures significantly enhanced the vase life and overall quality of gerbera cut flowers. The study found that combining specific essential oils reduced microbial growth in vase water, delayed petal wilting, and maintained freshness for longer periods compared to untreated samples. The findings demonstrated that natural essential oils could serve as effective, eco-friendly alternatives to chemical preservatives commonly used in the floral industry. This research highlighted the growing potential of essential oils in extending post-harvest longevity and improving the aesthetic appeal of ornamental flowers.
• In June 2025, Scientists reported a breakthrough in treating leishmaniasis using plant-based essential oil nanoemulsions. The study demonstrated that these nanoemulsions effectively killed Leishmania parasites while minimizing toxicity to healthy cells.
• In February 2025, Sensient Technologies Corporation announced that it had acquired Biolie, a French white biotechnology company, to strengthen its portfolio of naturally derived active color ingredients. The acquisition expanded Sensient’s capabilities in bio-based extraction and sustainable production, enabling it to develop advanced natural color and cosmetic solutions.
• In June 2024, International Flavors & Fragrances (IFF) unveiled a new range of innovative fragrance ingredients at the World Perfumery Congress 2024. The company showcased sustainable, high-performing aroma molecules designed to enhance scent longevity and intensity while reducing environmental impact. These new ingredients reflected IFF’s commitment to green chemistry and responsible sourcing practices.

Companies Covered in Essential Oils Market

• 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
• Others