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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
Worldwide consumption of essential oils stands at 497,959 tons in 2022. The global essential oils market is predicted to surge ahead at a CAGR of 7.7% to reach a valuation of US$ 39.14 Bn by 2032.
| Attribute | Key Insights |
|---|---|
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Essential Oils Market Size (2022E) |
US$ 18.66 Bn |
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Projected Sales of Essentials Oils (2032F) |
US$ 39.14 Bn |
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Value CAGR (2022-2032) |
7.7% |
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Value Share of Top 5 Countries (2021A) |
46.4% |
In the global market for essential oils, the European region holds dominance and is expected to be valued at US$ 13.43 Bn by the end of 2032. Essential oil sales are set to account for around 15% to 20% value share in the global plant based oils market in 2022.
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During the years 2017-2021, global sales of essential oils registered a significant compounded annual growth rate (CAGR) of 7.3%. Essential oils are becoming more popular due to growing emphasis on health and wellbeing, as well as a positive perception of aromatherapy. It is considered a complementary medicine that is utilized to improve health and wellness.
Volatile oils are available in various types such as citrus oil, flowers oil, herbs & spices oil, mints oil, nut oil, and others. These oils are utilized in various sectors such as cooking, aromatherapy, fragrance, cosmetics & personal care, and others, which will drive market growth of essential oils.
Going forward, by 2032, the global essential oils market is expected to reach US$ 39.14 Bn expanding at a value CAGR of 7.7%.
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Get a Customized Version“Multi-level Marketing to Benefit Key Manufacturers of Essential Oils”
Many key producers of essential oils have embraced multi-level marketing techniques in order to reach out to more customers and expand their business. Growing awareness of the health benefits of essential oils has resulted in an increase in retail sales, particularly through convenience stores.
In addition to traditional over-the-counter sales, key market players are offering products directly to customers through online retail channels such as e-Commerce platforms. As a result, customers now have easier access to products. Manufacturers of essential oils have also allowed wholesalers to order products in bulk via their websites. Thus, adopting multi-level marketing strategies will help manufacturers allow their products to be available to customers in an efficient manner.
“Pharmaceutical industry to Drive Substantial Demand for Essential Oils”
Plant-based oils comprise compounds called phenols, terpenes, and terpenoids that are utilized for medical standards and health assistance. These compounds are used as essential ingredients in pharmaceutical agents and therapeutic drugs. The biological activities of these compounds are used for the treatment of various diseases.
Carvacrol compounds present in essential oils can be used to lower cholesterol levels, improve gut symptoms, and lose weight. These are also popular as pain-reducing agents and cancer-fighting properties.
Essential oils are widely used in capsules and tablets that can be availed from health food stores. The functional properties of ethereal oils make them vital ingredients in the pharma industry for the production of capsules and tablets.
“Intensive R&D to Provide Lucrative Growth Opportunities to Essential Oil Producers”
Key players in the essential oils market are investing heavily in research & development. Manufacturers are working to improve the functionality of essential oils in various applications such as food, cosmetics, pharmaceuticals, and animal nutritional products.
Many companies are focusing on introducing new essential oil blends in order to keep up with rising consumer preferences. This factor is driving the sales of essential oils as a result of the various benefits provided, which has created long-term opportunities for global manufacturers.
“Independent Organizations Supporting Processing of Essential Oils”
The global essential oils market is supported by various organizations to promote the use of organic and natural ingredients or products in a majority of day-to-day applications. These organic essential oils are certified with various standards to promote their trade globally.
High-quality standards are marked by specific guidelines and regulations for the production, harvesting, and processing of herbs and aromatic crops by international organizations, including the European Union and the United Nations. Post-harvesting processing operations for herbs, spices, and essential oils are monitored by entities such as the Food and Agriculture Organization of the United Nations and The United Nations Industrial Development Organization.
The support offered by these organizations creates various opportunities for key essential oil product manufacturers in the market.
“High Price of Essential Oils Can Hurt Market Expansion”
The high price of essential oils can make it difficult for market players to manage their final product pricing and profit margins at the same time. Fluctuating prices of essential oils can cause a rapid rise or fall in market growth in a short period of time.
Due to the high pricing of essential oils, consumers are trying substitutes such as low-cost oils or synthetic oils, which leads to fluctuation in the demand for essential oils.
“Rising Demand for Natural & True-label Products”
Growing consumer demand for natural products that are free from harmful chemicals is increasing the focus on the origin of fruits and the cultivation method used. This concern is even stronger in the case of fruits, as the peel of the fruit, which is the major source of oils, is exposed to pesticides or fertilizer sprays.
Use of chemicals is not limited to on-farm cultivation; synthetic chemicals such as pesticides and fungicides are also sprayed on fruit shipments to extend shelf-life and prevent spoilage. This is a significant disadvantage as many consumers prefer true-label products and are hesitant to use any chemically-processed ingredients.
Which Country is Showing Significant Growth Potential in the Middle East & Africa?
“South Africa Essential Oils Market Providing Lucrative Growth Prospects”
In the Middle East & Africa, the South Africa essential oils market is expected to register a value CAGR of 5.7% over the forecast period. Currently, the market is valued at US$ 330.0 Mn, and is growing owing to increased demand for essential oils for various purposes such as perfumery, flavor in aromatherapy, and others.
Why India is Showing Promising Growth in the South Asian Market?
“Aromatherapy Trend Driving Essential Oil Consumption in India”
The India essential oils market has witnessed a positive impact due to ongoing trends among consumers, including aromatherapy practices, health benefits of essential oils, positioning of organic products, and others.
Furthermore, India is a second-largest populated country and also one of the fastest-growing economies in the world, which will offer growth opportunities to essential oil suppliers through various end-use industries, as they are used as vital ingredients in various applications such as cosmetics & personal care, aromatherapy, and others.
Overall, the market in India is expected to register a promising CAGR of 10.9% and rise rapidly from its current valuation of US$ 768.1 Mn.
Which End-use Industries Drive Most Demand for Essential Oils?
“High Consumption Rate of Essential Oils in Cosmetics & Personal Care Sector”
Essential oils are utilized in various end-use industries such as food & beverages, cosmetics & personal care, home care & toiletries, aromatherapy, animal feed, foodservice, retail/households for flavor enhancers, therapeutics or aromatherapy, perfumery, and others.
However, cosmetics & personal care and retail/households are showing potential growth and are slated to register high-value CAGRs of 8.8% and 8.3%, respectively, during the forecast period.
Which Essential Oil Type is Highly Demanded?
“Citrus Essential Oil a Hit among Consumers”
On the basis of type, citrus oils hold a volume share of 47.1% and account for current consumption of approximately 234,413 tons in 2022.
Essential oils are majorly utilized by food & beverage, cosmetics, pharmaceutical, and various other industries. The COVID-19 disease outbreak had both, a positive and negative impact on these industries. Essential oils are used for food preservation, anti-aging product formulations, anti-bacterial drug formulations, and others. The manufacturing of these products was affected for a certain time due to the closing of industrial units across the world.
However, as restrictions were eased, the supply chain and distribution network of essential oils started thriving. Moreover, retail sales of essential oils did not see that much of impact due to higher online sales of health-beneficial products during lockdowns.
Key manufacturers of essential oils are focusing on launching new and innovative blends of essential oils for several applications such as cosmetics, food products, pharmaceuticals, and others. Producers are also focusing on achieving certificates of various international standards to build a strong brand image among their consumers.
| Attribute | Details |
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Forecast period |
2022-2032 |
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Historical data available for |
2017-2021 |
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Market analysis |
US$ Million for Value |
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Key regions covered |
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Key countries covered |
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Key market segments covered |
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Key companies profiled |
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Report coverage |
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Customization & pricing |
Available upon request |
Essential Oils Market by Type:
Essential Oils Market by Nature:
Essential Oils Market by End Use:
Essential Oils Market by Distribution Channel:
Essential Oils Market by Region:
Global essential oil consumption is currently pegged at 18,658.4 tons.
The global essential oils market size is expected to be valued at US$ 18.66 Bn in 2022.
The France essential oils market is predicted to register the highest CAGR of 8.1% in Europe.
Young Living Essential Oils, dōTERRA, Now Health Group, Inc., Ultra International B.V., and Givaudan SA, AOS Product Pvt. Ltd. hold an approximate market share of 30% to 40%.
The Germany essential oils market is valued at US$ 940.4 Mn in 2022.
Cosmetics & personal care holds dominance with a value share of 34.4%.
Market value of essential oils in Indonesia is anticipated to reach US$ 1.33 Bn by 2032, and Australia is set to reach US$ 695.5 Mn.
