The Essential Oil Market is to Touch $22.8 Billion by 2030; consumer preference for natural and organic products, coupled with increasing awareness about aromatherapy's health benefits propels market growth.

The Essential Oil Market size is estimated to reach $22.8 billion by 2030, growing at a CAGR of 10.2% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Essential Oil Market – By Type (Singles & Blends), By Product (Citrus Fruits, Lavender Oil, Frankincense, Chamomile Oil, Rosemary Tea Tree Oil, Patchouli Oil, Lavandin Oil, Lemongrass Oil, Citronella Oil, Balsam, Eucalyptus Oil, Clove Oil, Cedarwood Oil, Coriander Oil, Basil Oil, Cornmint Oil, Peppermint Oil, Spearmint Oil, Litsea Cubeba Oil, Acorus Calamus Oil and Others), By Application (Spa & Relaxation, Cleaning and Home, Food and Beverages, Pharmaceuticals and Others), By Extraction Method (Distillation, Cold Press Extraction, Carbon Dioxide Extraction, Solvent Extraction and Others), By Distribution Channel (Direct Sales (B2B) and Indirect Sales (B2C)), By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030”

Rising demand for essential oils in natural and organic skincare products, driven by increasing consumer awareness of their therapeutic benefits and skin-friendly properties are fueling the growth of the Essential Oil industry during the forecast period.

Europe maintained a prominent market share in 2023, driven by the widespread adoption of essential oils as food flavorings, bolstering demand in the food and beverage sector. Essential oils are valued for their diverse properties, including stress relief, antibacterial effects, soothing capabilities, and refreshing and invigorating qualities. Furthermore, these oils are recognized for their potential to alleviate conditions such as indigestion, stress, insomnia, anxiety, and depression. According to Champion Health's 2022 report, approximately 7% of adults in the UK experience daily stress, highlighting the growing awareness and adoption of essential oils as natural remedies for wellness and mental health support. 

The personal and cosmetic care industry has rapidly shifted towards organic and natural products, driving the adoption of essential oils. Increased consumer awareness about health and environmental sustainability concerns has significantly boosted market revenues. Additionally, the proliferation of essential oils through e-commerce channels has expanded market demand, as online platforms enable consumers to better understand the benefits of these products. According to estimates from the Nutrition Business Journal, sales of natural, organic, and functional food and beverage products grew by 6.6% to reach $199 billion in 2022, surpassing sales of non-natural conventional products. These factors collectively contribute to the ongoing growth of the market.

The introduction of new products in the essential oil aromatherapy sector has increasingly focused on promoting functional benefits, thereby bolstering overall market growth. Products targeting benefits such as improved sleep and reduced anxiety have emerged as prominent claims, garnering significant market acceptance due to their relevance to modern lifestyles. According to ADAA.Org, Generalized Anxiety Disorder affects approximately 6.8 million adults in the United States, representing about 3.1% of the total population. This statistic underscores the growing demand for natural remedies like essential oils that offer therapeutic benefits for managing anxiety and enhancing overall well-being. 

Key companies profiled in the Essential Oil Market are Young Living Essential Oil, doTERRA International, Biolandes, Farotti Essenze Srl, Sensient Technologies Corporation , The Lebermuth Company, NOW Foods, Mane Kancor Ingredients Pvt Ltd, Robertet Group, Norex Flavours Private Limited and others.