Essential Oil Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2024-2030

Report Code: FBR 11808 Report Format: PDF + Excel

Essential Oil Market Overview

Essential Oil 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 increasing consumer preference for natural and organic products is driven by a growing awareness of their potential health benefits and environmental sustainability. Consumers are seeking products free from synthetic chemicals and additives, leading to a higher demand for natural alternatives like Essential Oil. In the food and beverage industry, Essential Oil are valued for their flavoring properties and used as natural additives in a variety of products. In cosmetics, they are sought after for their fragrance and potential skincare benefits. Aromatherapy, which utilizes Essential Oil for their therapeutic properties, has gained popularity as people look for holistic approaches to wellness.

Manufacturers are responding to these trends by introducing new essential oil-based products and formulations. They are also focusing on sustainable sourcing and production practices to meet consumer expectations for environmentally friendly products. The growth of e-commerce has made Essential Oil more accessible to a wider audience, allowing consumers to purchase products from anywhere at any time. This increased accessibility is driving market growth by expanding the reach of Essential Oil to new consumers and markets.

Essential Oil Market Report Coverage

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

                                                                                       
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Essential Oil Market Segment Analysis - by Product

Essential Oil 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 Market Segment Analysis - by Application

Essential Oil 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 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 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 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 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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1. Essential Oil Market - Overview
    1.1 Definitions and Scope
2. Essential Oil Market - Executive Summary
3. Essential Oil Market - Comparative Analysis
    3.1 Company Benchmarking - Key Companies
    3.2 Global Financial Analysis - Key Companies
    3.3 Market Share Analysis - Key Companies
    3.4 Patent Analysis
    3.5 Pricing Analysis
4. Essential Oil Market - Start-up Companies Scenario Premium
    4.1 Key Start-up Company Analysis by
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Venture Capital and Funding Scenario
5. Essential Oil Market – Market Entry Scenario Premium Premium 
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Case Studies of Successful Ventures
6. Essential Oil Market - Forces
    6.1 Market Drivers
    6.2 Market Constraints/Challenges
    6.3 Porters Five Force Model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. Essential Oil Market – Strategic Analysis
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Market Life Cycle
8. Essential Oil Market – by Product
    8.1 Citrus Fruit Oils
    8.2 Lavender Oil
    8.3 Frankincense Oil
    8.4 Chamomile Oil
    8.5 Rosemary Tea Tree Oil
    8.6 Patchouli Oil
    8.7 Lavandin Oil
    8.8 Lemongrass Oil
    8.9 Citronella Oil
    8.10 Balsam Oil
    8.11 Eucalyptus Oil
    8.12 Clove Oil
    8.13 Cedarwood Oil
    8.14 Coriander Oil
    8.15 Basil Oil
    8.16 Cornmint Oil
    8.17 Peppermint Oil
    8.18 Spearmint Oil
    8.19 Litsea Cubeba Oil
    8.20 Acorus Calamus Oil
    8.21 Others
9. Essential Oil Market – by Type
    9.1 Singles
    9.2 Blends
10. Essential Oil Market - by Application
    10.1 Spa & Relaxation
    10.2 Cleaning and Home
    10.3 Food and Beverage
    10.4 Pharmaceuticals
    10.5 Others
11. Essential Oil Market - by Extraction Method
    11.1 Distillations
    11.2 Cold Press Extractions
    11.3 Carbon Dioxide Extractions
    11.4 Solvent Extraction
    11.5 Others
12. Essential Oil Market - by Distribution Channel
    12.1 B2B
    12.2 B2C
13. Essential Oil Market - by Geography
    13.1 North America
        13.1.1 the U.S.
        13.1.2 Canada
        13.1.3 Mexico
    13.2 Europe
        13.2.1 the UK
        13.2.2 Germany
        13.2.3 France
        13.2.4 Italy
        13.2.5 Spain
        13.2.6 Russia
        13.2.7 Rest of Europe
    13.3 Asia-Pacific
        13.3.1 China
        13.3.2 India
        13.3.3 Japan
        13.3.4 South Korea
        13.3.5 Australia & New Zealand
        13.3.6 Rest of Asia-Pacific
    13.4 South America
        13.4.1 Brazil
        13.4.2 Argentina
        13.4.3 Chile
        13.4.4 Colombia
        13.4.5 Rest of South America
    13.5 Rest of the World
        13.5.1 Middle East
        13.5.2 Africa
14. Essential Oil Market - Entropy
    14.1 New product launches
    14.2 M&A’s, collaborations, JVs and partnerships  
15. Essential Oil Market – Industry/Segment Competition Landscape Premium 
    15.1 Market Share Analysis
        15.1.1 Market Share by Region – Key companies
        15.1.2 Market Share by Countries – Key Companies
    15.2 Competition Matrix
    15.3 Best Practices for Companies
16. Essential Oil Market – Key Company List by Country Premium Premium 
17. Essential Oil Market - Company Analysis
    17.1 Young Living Essential Oil
    17.2 doTERRA International
    17.3 Biolandes
    17.4 Farotti Essenze Srl
    17.5 Sensient Technologies Corporation 
    17.6 The Lebermuth Company
    17.7 NOW Foods
    17.8 Mane Kancor Ingredients Pvt Ltd
    17.9 Robertet Group
    17.10 Norex Flavours Private Limited

* “Financials would be provided to private companies on best-efforts basis."

LIST OF TABLES

1.Global Essential Oil Market Analysis and Forecast By Product Type Market 2023-2030 ($M)
2.Global Essential Oil Market Analysis and Forecast By Extraction Method Market 2023-2030 ($M)
3.Global Essential Oil Market Analysis and Forecast By Sales channel Market 2023-2030 ($M)
4.Global Essential Oil Market Analysis and Forecast By Product Type Market 2023-2030 (Volume/Units)
5.Global Essential Oil Market Analysis and Forecast By Extraction Method Market 2023-2030 (Volume/Units)
6.Global Essential Oil Market Analysis and Forecast By Sales channel Market 2023-2030 (Volume/Units)
7.North America Essential Oil Market Analysis and Forecast By Product Type Market 2023-2030 ($M)
8.North America Essential Oil Market Analysis and Forecast By Extraction Method Market 2023-2030 ($M)
9.North America Essential Oil Market Analysis and Forecast By Sales channel Market 2023-2030 ($M)
10.South America Essential Oil Market Analysis and Forecast By Product Type Market 2023-2030 ($M)
11.South America Essential Oil Market Analysis and Forecast By Extraction Method Market 2023-2030 ($M)
12.South America Essential Oil Market Analysis and Forecast By Sales channel Market 2023-2030 ($M)
13.Europe Essential Oil Market Analysis and Forecast By Product Type Market 2023-2030 ($M)
14.Europe Essential Oil Market Analysis and Forecast By Extraction Method Market 2023-2030 ($M)
15.Europe Essential Oil Market Analysis and Forecast By Sales channel Market 2023-2030 ($M)
16.APAC Essential Oil Market Analysis and Forecast By Product Type Market 2023-2030 ($M)
17.APAC Essential Oil Market Analysis and Forecast By Extraction Method Market 2023-2030 ($M)
18.APAC Essential Oil Market Analysis and Forecast By Sales channel Market 2023-2030 ($M)
19.MENA Essential Oil Market Analysis and Forecast By Product Type Market 2023-2030 ($M)
20.MENA Essential Oil Market Analysis and Forecast By Extraction Method Market 2023-2030 ($M)
21.MENA Essential Oil Market Analysis and Forecast By Sales channel Market 2023-2030 ($M)

LIST OF FIGURES

1.US Essential Oil Market Revenue, 2023-2030 ($M)
2.Canada Essential Oil Market Revenue, 2023-2030 ($M)
3.Mexico Essential Oil Market Revenue, 2023-2030 ($M)
4.Brazil Essential Oil Market Revenue, 2023-2030 ($M)
5.Argentina Essential Oil Market Revenue, 2023-2030 ($M)
6.Peru Essential Oil Market Revenue, 2023-2030 ($M)
7.Colombia Essential Oil Market Revenue, 2023-2030 ($M)
8.Chile Essential Oil Market Revenue, 2023-2030 ($M)
9.Rest of South America Essential Oil Market Revenue, 2023-2030 ($M)
10.UK Essential Oil Market Revenue, 2023-2030 ($M)
11.Germany Essential Oil Market Revenue, 2023-2030 ($M)
12.France Essential Oil Market Revenue, 2023-2030 ($M)
13.Italy Essential Oil Market Revenue, 2023-2030 ($M)
14.Spain Essential Oil Market Revenue, 2023-2030 ($M)
15.Rest of Europe Essential Oil Market Revenue, 2023-2030 ($M)
16.China Essential Oil Market Revenue, 2023-2030 ($M)
17.India Essential Oil Market Revenue, 2023-2030 ($M)
18.Japan Essential Oil Market Revenue, 2023-2030 ($M)
19.South Korea Essential Oil Market Revenue, 2023-2030 ($M)
20.South Africa Essential Oil Market Revenue, 2023-2030 ($M)
21.North America Essential Oil By Application
22.South America Essential Oil By Application
23.Europe Essential Oil By Application
24.APAC Essential Oil By Application
25.MENA Essential Oil By Application
26.Competition Landscape, Sales /Revenue, 2015-2018 ($Mn/$Bn)