Market Size of Essential Oil Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 8.60 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Europe |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Essential Oil Market Analysis
The global essential oil market is projected to register a CAGR of 8.6% during the forecast period.
- After the pandemic, the essential oils market experienced positive growth. Essential oils have antimicrobial, antioxidant, and anti-infective properties; thus, they treat various health conditions, including stress, immunity disorders, sleep disorders, and depression. Therefore, due to the rise in awareness regarding the benefits of essential oils, the essential oils market has grown rapidly after the pandemic.
- There has been an increase in consumers' awareness of natural and organic products, both in personal care products and food and beverage products. One of the major forces impacting the global essential oils market has been the shift from synthetic products to natural products, which has caused manufacturers to focus on natural products. Essential oils are expected to be in high demand due to their health benefits in pharmaceuticals and medical applications in the forecast period.
- The increased demand for aromatherapy is fueling the market expansion for essential oils. Market expansion is accelerated by rising demand from key end-use industries, including food and beverage, personal care and cosmetics, and aromatherapy, as well as increasing consumer desire for organic products. Regulations that support the use of environmentally friendly ingredients in cosmetics, food, and beverages also positively impact the market.
- Additionally, the sales of essential oils through retail outlets are growing steadily. However, the prominence of Internet-based online sales is poised to increase over the coming years, as most importers and wholesalers launch websites for online sales in addition to the existing over-the-counter sales. The market is majorly driven by the health benefits offered by essential oils.
- There is a strong upward trend in the essential oil market, as it is now being used in almost every industry due to the many health benefits, it offers, from the food and beverage industry to medicines and animal feeds, along with their presence in personal care products and other areas. Furthermore, the increasing R&D activities and innovation in extraction techniques are expected to bolster the market's growth in emerging economies.
Essential Oil Industry Segmentation
Essential oils are concentrated plant extracts that maintain the original flavor and aroma of the source and are produced by mechanical pressing or distillation.
The essential oil market is segmented by type, application, and geography. Based on type, the market is segmented into orange oil, corn mint oil, spearmint oil, cedarwood oil, lemon oil, eucalyptus oil, lemongrass oil, clove oil, citronella oil, and other types of oil. Based on application, the market is segmented into food and beverages, pharmaceuticals, aromatherapy, perfumery, personal care & cosmetics, home care products, and other applications. Based on geography, the market is segmented into North America, Europe, Asia-Pacific, South America, the Middle East and Africa.
For each segment, the market sizing and forecasts have been done based on value (in USD Million).
| Product Type | |
| Orange Oil | |
| Cornmint Oil | |
| Spearmint Oil | |
| Cedarwood Oil | |
| Lemon Oil | |
| Eucalyptus Oil | |
| Lemongrass Oil | |
| Clove Oil | |
| Citronella Oil | |
| Other Types of Oil |
| Application | |
| Food and Beverages | |
| Pharmaceuticals | |
| Aromatherapy | |
| Perfumery | |
| Personal Care & Cosmetics | |
| Home Care Products | |
| Other Applications |
| Geography | ||||||||
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Essential Oil Market Size Summary
The essential oils market is experiencing robust growth, driven by an increasing consumer shift towards natural and organic products across various sectors, including personal care, food, and beverages. This trend has been significantly influenced by the rising awareness of the health benefits associated with essential oils, such as their antimicrobial, antioxidant, and anti-infective properties. These oils are gaining traction in the pharmaceutical and medical fields for their therapeutic benefits, addressing conditions like stress, immunity disorders, and sleep issues. The market's expansion is further fueled by the growing demand for aromatherapy and the adoption of environmentally friendly regulations that encourage the use of natural ingredients in consumer products. The shift from synthetic to natural products has prompted manufacturers to innovate and focus on the development of essential oils, enhancing their application in various industries.
The global essential oils market is characterized by its fragmented nature, with numerous regional and domestic players contributing to its diversity. Europe holds a significant share of the market, supported by organizations like the European Federation of Essential Oils, which advocate for stakeholder interests and facilitate market entry for new companies. The region's demand is bolstered by increased consumer interest in wellness and lifestyle products, particularly in the spa and aromatherapy sectors. The market is also witnessing a rise in online sales channels, complementing traditional retail outlets. Strategic initiatives such as mergers, acquisitions, and new product developments are key focus areas for leading companies aiming to strengthen their market presence. Notable players in the industry include Fakhry & Co., Lebermuth, Inc., and Young Living Essential Oils, among others, who are actively expanding their product offerings and distribution networks to meet the growing consumer demand for essential oils.
Essential Oil Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION ( Market Size by Value- USD Millions)
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2.1 Product Type
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2.1.1 Orange Oil
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2.1.2 Cornmint Oil
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2.1.3 Spearmint Oil
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2.1.4 Cedarwood Oil
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2.1.5 Lemon Oil
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2.1.6 Eucalyptus Oil
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2.1.7 Lemongrass Oil
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2.1.8 Clove Oil
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2.1.9 Citronella Oil
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2.1.10 Other Types of Oil
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2.2 Application
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2.2.1 Food and Beverages
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2.2.2 Pharmaceuticals
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2.2.3 Aromatherapy
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2.2.4 Perfumery
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2.2.5 Personal Care & Cosmetics
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2.2.6 Home Care Products
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2.2.7 Other Applications
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.1.4 Rest of North America
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2.3.2 Europe
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2.3.2.1 United Kingdom
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2.3.2.2 Germany
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2.3.2.3 Spain
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2.3.2.4 Italy
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2.3.2.5 France
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2.3.2.6 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 Australia
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2.3.3.4 India
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2.3.3.5 Rest of Asia- Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle East and Africa
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2.3.5.1 South Africa
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2.3.5.2 Saudi Arabia
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2.3.5.3 Rest of Middle East and Africa
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Essential Oil Market Size FAQs
What is the current Essential Oil Market size?
The Essential Oil Market is projected to register a CAGR of 8.60% during the forecast period (2024-2029)
Who are the key players in Essential Oil Market?
KATO Flavors & Fragrances (KFF), Herbal Family, Food Base Kft, Robertet Group and Biolandes SA are the major companies operating in the Essential Oil Market.
