The essential oils market size is projected to reach US$ 24.39 billion by 2031 from US$ 14.26 billion in 2023. The market is expected to register a CAGR of 6.9% during 2023–2031. The rising preference for organic oils is likely to remain a key trend in the essential oils market.
Essential Oils Market Analysis
Essential oils are known to exhibit antioxidant, antimicrobial, and anti-infective properties. Scientific evidence suggests that stress, sleep disorders, immunity disorders, and depression can be alleviated with the use of essential oils, as they impart a calming effect on the body to reduce stress and anxiety. Moreover, essential oils can be used in the production of household cleaning products and air fresheners to mask unpleasant odors. Therefore, the market for essential oils is expected to catapult in response to not only the rising awareness about the health benefits, especially post-pandemic, but also due to their popularity in promoting freshness in a livable environment.
Essential Oils Market Overview
Essential oils are extracted from plants via steam distillation and mechanical processes such as cold pressing. As essential oils induce relaxation due to their unique scent and flavor, they are widely preferred in end-use industries such as food & beverages, aromatherapy, personal care, cosmetics, and animal feed. Lemon, lavender, rosemary, and tea tree are among the well-known essential oils.
Customize This Report To Suit Your Requirement
You will get customization on any report - free of charge - including parts of this report, or country-level analysis, Excel Data pack, as well as avail great offers and discounts for start-ups & universities
Essential Oils Market: Strategic Insights
- Get Top Key Market Trends of this report.This FREE sample will include data analysis, ranging from market trends to estimates and forecasts.
Customize This Report To Suit Your Requirement
You will get customization on any report - free of charge - including parts of this report, or country-level analysis, Excel Data pack, as well as avail great offers and discounts for start-ups & universities
Essential Oils Market: Strategic Insights
- Get Top Key Market Trends of this report.This FREE sample will include data analysis, ranging from market trends to estimates and forecasts.
Essential Oils Market Drivers and Opportunities
Increasing Popularity of Aromatherapy Favors Essential Oils Market
As aromatherapy has clinically proven to elevate mood and cognitive performance because of its calming, antidepressant, and anti-stress effects, it is no longer considered a supplementary therapy, but it is now a mainstream therapy. Thus, as the popularity of aromatherapy grows, the adoption of essential oils will subsequently increase because they are the major therapeutic agents used in the therapy. These factors are anticipated to drive the demand for essential oils in aromatherapy, which will cohesively fuel the market for essential oils globally.
Surging Demand for Organic Products Drives Essential Oils
In recent years, health trends have been rapidly evolving, with many consumers choosing clean-labeled and organic products over conventional products. With the surging number of people suffering from heart diseases, obesity, high blood pressure, skin disorders, and diabetes, the demand for organically certified products is increasing. Consumers perceive organic products to be healthier than conventional ones as they are grown following stringent farming practices that avoid chemical fertilizers, genetically modified organisms (GMOs), synthetic pesticides, antibiotics, and growth hormones. This factor is significantly driving the demand for organic products, which further boosts the demand for organically procured ingredients such as essential oils and propels the market study.
Essential Oils Market Report Segmentation Analysis
Key segments that contributed to the derivation of the essential oils market analysis are type, category, and application.
- Based on type, the essential oils market is divided into lemon, tea tree, lavender, rosemary, eucalyptus, and others. The lemon segment held the largest market share in 2023.
- By category, the market is segmented into organic and conventional. The conventional segment held a larger share of the market in 2023.
- In terms of application, the market is categorized into food & beverages, cosmetics & personal care, aromatherapy, household cleaning products, and others. The food & beverages segment dominated the market in 2023.
Essential Oils Market Share Analysis by Geography
The geographic scope of the essential oils market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.
The essential oils market in North America is significantly growing with the thriving personal care & cosmetic industry. Further, there is a growing trend of using natural, vegan, and organic cosmetic products among consumers in the region due to a growing preference for chemical-free products, which tends to increase the sales of natural and organic essential oils. Moreover, consumers in the region are ready to pay extra for products that claim clean labels and are natural. Also, the growing food & beverage industry with rising consumption of products with natural ingredients is expected to drive the essential oils market growth in North America.
Essential Oils Market Regional Insights
The regional trends and factors influencing the Essential Oils Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Essential Oils Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
- Get the Regional Specific Data for Essential Oils Market
Essential Oils Market Report Scope
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 14.26 Billion |
| Market Size by 2031 | US$ 24.39 Billion |
| Global CAGR (2023 - 2031) | 6.9% |
| Historical Data | 2021-2022 |
| Forecast period | 2023-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
Essential Oils Market Players Density: Understanding Its Impact on Business Dynamics
The Essential Oils Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Essential Oils Market are:
- Cargill, Incorporated
- Givaudan
- Sensient Technologies Corporation
- International Flavors and Fragrances Inc
- Firmenich SA
Disclaimer: The companies listed above are not ranked in any particular order.
- Get the Essential Oils Market top key players overview
Essential Oils Market News and Recent Developments
The essential oils market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for innovations, business expansion:
- doTERRA – a US-based essential oil company, announced the launch of new sustainably sourced and natural essential oils. These newly launched essential oils include eucalyptus essential oil and guaiac wood essential oil. (Source: doTERRA, Press Release, 2022)
- Phoenix Flavors and Fragrances, a leading compounder and developer of high-performance fragrances and flavors, announced the acquisition of Innovative Fragrances Inc. (IFI), an Atlanta-based developer and compounder of fragrance compounds that serve a diverse set of end markets, including candle, personal care, home fragrance, and other air fresheners. This acquisition of IFI aligns with the vision to create a market-leading developer of high-performance flavors and fragrances, supported by a strong team of regulatory experts and perfumers to meet customer-specific requirements and needs. (Source: Phoenix Flavors and Fragrances, Newsletter, 2022)
Essential Oils Market Report Coverage and Deliverables
The “Essential Oils Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
- Historical Analysis (2 Years), Base Year, Forecast (7 Years) with CAGR
- PEST and SWOT Analysis
- Market Size Value / Volume - Global, Regional, Country
- Industry and Competitive Landscape
- Excel Dataset
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type, Category, Application, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Get Free Sample For