Essential Oils and Aromatherapy Diffuser Oils Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2024-2030

Essential Oil and Aromatherapy Diffuser Oils Market Overview

Essential Oil and Aromatherapy Diffuser Oils Market Size is estimated to reach $22.8 billion by 2030 and it is poised to grow at a CAGR of 10.2% over the forecast period of 2024-2030. Essential Oil, also known as ethereal oils, are revered for their fragrant, feather-light, and volatile nature. They have versatile application possibilities and are widely utilized. Trends such as functional fragrances and customization availability are propelling the demand for Essential Oil such as Acorus Calamus, Citronella, Lavender, Cardamom, Cypriol, Cumin Seed, and others.

The aromatherapy diffuser oils market has been experiencing significant growth, driven by increasing consumer interest in natural and holistic health remedies. Consumers are increasingly seeking natural alternatives for health and wellness, favoring essential oils for their potential therapeutic benefits. This has boosted demand for aromatherapy products as part of holistic self-care routines. The market has seen a diversification in product offerings. Manufacturers are introducing a wide range of essential oil blends targeting specific needs such as stress relief, sleep improvement, and immune support. Customization and unique formulations are attracting a broader consumer base. The e-commerce boom has significantly impacted the aromatherapy diffuser oils market. Online platforms offer a wider variety of products and convenient purchasing options, contributing to market growth. Social media and influencer marketing are also playing a vital role in product promotion and consumer education.

Essential Oil and Aromatherapy Diffuser Oils Market Report Coverage

The report: “Essential Oil and Aromatherapy Diffuser Oils Market Forecast (2024-2030)" by IndustryARC, covers an in-depth analysis of the following segments in the Essential Oil and Aromatherapy Diffuser Oils Market.

By Type – Singles & Blends.
By Product - Citrus Fruits (Lemon Oil, Orange Oil, Mandarin Oil, Bergamot Oil, Tangerine Oil and Others), 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: North America (the U.S., Canada and Mexico), Europe (Germany, United Kingdom (UK), France, Italy, Spain, Russia and the Rest of Europe), Asia Pacific (China, Japan India, South Korea, Australia and New Zealand and Rest of Asia Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America) and Rest of the World (Middle East and Africa).

Key Takeaways

• Geographically, Europe held a dominant market share in the year 2023. It is owing to the vast demand for various applications in countries under the scope of Europe. However, Asia-Pacific is expected to offer lucrative growth opportunities over the forecast period of 2024-2030 owing to suitable weather conditions for agriculture, low-cost labor and ample availability of raw materials.
• Increased awareness pertinent to the benefits of natural care products along with food and beverage applications supported by growing R&D activities has been a key market driver. However, supply challenges have resulted in quality issues for manufacturers which impedes growth.
• A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Essential Oil and Aromatherapy Diffuser Oils Market Report.

                                                                            
 
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Essential Oil and Aromatherapy Diffuser Oils Market Segment Analysis - by Product

Essential Oil and Aromatherapy Diffuser Oils Market based on products can be further segmented into Citrus Fruits Oil, 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 and Others. Citrus Fruits Oil held a dominant market share in the year 2023. Citrus fruits such as lemon and orange are predominantly used in various industries, such as food and beverages. As per Citrus Industry, Global Orange production stood at 47.9 million tons in 2022-23. However, the Eucalyptus segment is estimated to be the fastest growing, with a CAGR of 10.4% over the forecast period of 2024-2030. It is owing to the growing beneficial usage of the following segment, which will proliferate the demand for pharmaceuticals and dietary supplements.

Essential Oil and Aromatherapy Diffuser Oils Market Segment Analysis - by Application

Essential Oil and Aromatherapy Diffuser Oils Market based on the application can be further segmented into Spa & Relaxation, Cleaning and Home, Food and Beverages, Pharmaceuticals and Others. Food and Beverages held a dominant market share in the year 2023. It is owing to diverse bioactive profiles, essential oil acts as an ideal replacement for synthetic food additives in a variety of commercial food products. As per Ingredion's ATLAS survey 2023, Seventy-eight percent (78%) of consumers say they would spend more money on food and beverages with packaging claims stating 'natural' or 'all-natural. However, Spa and Relaxation is estimated to be the fastest-growing, with a CAGR of 10.8% over the forecast period of 2024-2030. It is owing to the growing role of depression, anxiety and sleep depravity that will drive the usage of such products directly or via a product.

Essential Oil and Aromatherapy Diffuser Oils Market Segment Analysis - by Geography

Europe held a dominant market share in 2023. It is owing to the recognition of various Essential Oil as food flavoring, that leads to a strong demand within the food and beverage industry. Essential Oil have a wide range of properties such as stress-relieving, anti-bacterial, soothing, refreshing and invigorating. Moreover, conditions such as indigestion, stress, insomnia, anxiety and depression can be leveled off by using the following product. As per Champion Health 2022, nearly 7% of adults feel stressed every single day in UK. However, Asia-Pacific is estimated to be the fastest growing, with a CAGR of 9.95% over the forecast period of 2024-2030. It is owing to growing consumer awareness about the beneficial aspects of Essential Oil, along with increasing spending habits.

Essential Oil and Aromatherapy Diffuser Oils Market Drivers

Increased Awareness Pertinent to the Benefits of Natural Care Products and Ingredients has Proliferated the Demand.

The personal and cosmetic care industry has witnessed a swift shift towards organic and natural products which has aided in the deployment of Essential Oil. Growing health consciousness in wellness products and concerns related to environmental sustainability among customers boosted revenues for the market concern. Moreover, penetration of essential oil via e-commerce channels has proliferated the demand to many extents, as an e-commerce enabled consumer knowledge to increase the benefits of essential oil. As per Nutrition Business Journal estimates, sales of natural, organic, and functional food and beverage products grew by 6.6% to reach $199 billion in 2022 and has continued to outpace non-natural conventional products. The following has aided in market growth.

Substantial Demand for Aromatherapy Complimented by Changed Health Awareness Has Proliferated the Market Demand.

The product launches within the essential oil for aromatherapy have seen a growing claim to provide functional benefits, which has aided the overall market growth. Products sphering to benefits such as sleep enhancement and anxiety reductions remain as one of the top-product claims, which in turn has grasped immense market acceptability owing to the lifestyle situations. As per ADAA.Org, Generalized Anxiety Disorder affects 6.8 million U.S. adults or nearly 3.1% of the total U.S population.

Essential Oil and Aromatherapy Diffuser Oils Market Challenges

Supply Constraints of Essential Oil along with Comparable Price Increment Impedes Market Growth.

The tight supply and higher pricing have been a major concern for manufacturers as natural and organic raw materials shortages can bring unintended consequences, especially with the quality attributes. With demand outstripping supply, there being seasonal harvests but year-round demand, there is a risk that this situation will result in compromises in quality and continuity of supply. The implementation of new environmental protection regulations in major essential oil-producing countries has forced producers to close their operations. The result of this is an immediate decrease in production. For instance, a 32 oz bottle of organic lavender oil rose to $416 in February 2022 from $300 the previous year, thereby, higher prices impede the market growth.

Essential Oil Industry Outlook

Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Essential Oil Industry. The top 10 companies in the Essential Oil and Aromatherapy Diffuser Oils Market are-

1. Young Living Essential Oil
2. doTERRA International
3. Biolandes
4. Farotti Essenze Srl
5. Sensient Technologies Corporation 
6. The Lebermuth Company
7. NOW Foods
8. Mane Kancor Ingredients Pvt Ltd
9. Robertet Group
10. Norex Flavours Private Limited

Recent Developments

• In August 2023, Botanical Innovations launched Botanical’s Breath Microencapsulated Essential Oil, aiming to innovate nutraceutical applications. These powders offer gradual, sustained release of Essential Oil, enhancing sensory experiences. Kerry Ferguson, managing director, highlighted their commitment to science and nature for enriched lives.

• In October 2022, doTERRA launched a new product supporting wellness combining pure Essential Oil, sustainable sourcing and evidence-based research. Product launch includes Helichrysum touch, LaLuz Diffuser, Roam Diffuser, Dawn Aroma Humidifier, Balance Bath Bar, On Guard Toothpaste and On Guard Hand Wipes.

• In September 2022, doTERRA announced the product launch of various essential oil and products. Products that will be launched by 2022-2023 include eucalyptus, guaiac wood, Spanish sage and doTerra Hope Touch.

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