Essential Oils Market Strategies and Share 2031
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.
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Essential Oils Market: Strategic Insights
Market Size Value in US$ 13,687 million in 2022 Market Size Value by US$ 23,962 million by 2030 Growth rate CAGR of 7.2% from 2022 to 2030 Forecast Period 2022-2030 Base Year 2022
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Essential Oils Market: Strategic Insights
| Market Size Value in | US$ 13,687 million in 2022 |
| Market Size Value by | US$ 23,962 million by 2030 |
| Growth rate | CAGR of 7.2% from 2022 to 2030 |
| Forecast Period | 2022-2030 |
| Base Year | 2022 |
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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 Report Scope
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
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.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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