Global Essential Oils Market is expected to reach USD 20.8 Billion by the end of forecast period 2021-2027
The Essential Oils Market is forecasted to grow at a high rate owing to the increasing application of essential oils in several end-use industries.
The Global Essential Oils Market was valued at USD 10.5 Bn in 2020 and is expected to reach USD 20.8 Bn by 2027, with a growing CAGR of 10.3% during the forecast period.
The essential oils market is majorly growing owing to the high demand for essential oils from the food & beverage industry across the globe. Increasing demand for safe, natural, and minimally processed food products has emerged as the prominent factor responsible for expanding the essential oils demand in food & beverage applications. Additionally, growing demand from food & beverage manufacturers on improving the product shelf life without compromising the quality is another major factor driving the growth of essential oils in the essential oils industry. Many essential oils possess antioxidant and antimicrobial properties that help in controlling the growth of bacteria in food. These oils act as natural preservatives and are now gradually replacing synthetic ingredients with harmful side effects in the food & beverage industry. Cooking with plant extracts such as thyme, oregano, clove oil, and cinnamon helps in combating spoilage fungi and the production of yeasts, and thus keeping food fresh for a longer duration. Owing to these benefits, food & beverage manufacturers are increasingly preferring the use of essential oils for cooking, which, in turn, is positively driving the industry growth.
Moreover, the increasing number of health-conscious consumers combined with the rising demand for “all-natural ingredients” in the past few years are also prominent factors responsible for driving the essential oils industry. Growing awareness regarding the benefits of natural ingredients and increasing disposable income, has resulted in liberal spending by people on a good-quality natural product that provides long-lasting health benefits. Furthermore, the implementation of stringent regulations regarding the use of preservatives and food additives by several nations is further expected to encourage the use of natural essential oils in various food products. All these factors are expected to trigger the growth in essential oils industry across the globe.
Despite such strong growth factors, high product cost and availability of counterfeit products are posing challenges in the growth of the essential oils market. The adulterated essential oils do not contain the properties of essential oils and merely serve as fragrance products, thereby hampering the essential oils market growth. However, increasing demand for homemade cosmetics by young women due to their medicinal benefits and natural content is providing growth opportunities in the market. In addition, the growing demand for essential oils for home care applications for enhancing air freshness is also expected to offer growth opportunities in the market.
Global Essential Oils Market by Region Outlook (Revenue, USD Million, 2021-2027)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
Based on region, the Asia-Pacific is the fastest-growing region in the essential oils market across the globe. The growth in the region is mainly attributed to the developing economies in the region including India, China, and Indonesia that are leading exporters of essential oils across the globe. Moreover, the region has high population growth and is the leading market in the food & beverage industry across the globe. Thereby, the growing demand for protein-rich meat diets and beverages is projected the drive the market. The growth in the region is also due to the growing health-conscious consumers and increasing awareness regarding the health benefits associated with essential oils leading to increased product demand. Other factors such as rising disposable income along with rapid urbanization in the developing economies are also helping the market growth.
The Global Essential Oils Industry Segmentation:
Global Essential Oils Market by Product Type Outlook (Revenue, USD Million, 2021-2027)
- Orange oil
- Lime oil
- Lemon oil
- Peppermint oil
- Clove leaf oil
- Rosemary oil
- Tea tree oil
- Lavender oil
- Other oil types (cedar, sandalwood, anise, chamomile, ginger, cinnamon, thyme, geranium, eucalyptus, basil, citronella, cornmint, spearmint oil, jasmine and ylang-ylang)
Global Essential Oils Market by Application Outlook (Revenue, USD Million, 2021-2027)
- Food & beverages
- Health care
- Cosmetics & toiletries
- Home care
- Other applications (insecticides, feed, and paint)
Global Essential Oils Market by Method of Extraction Outlook (Revenue, USD Million, 2021-2027)
- Carbon dioxide extraction
- Cold press extraction
- Solvent extraction
- Other extraction methods (maceration and resin tapping)
- Based on product type, the orange oil segment has shown the most lucrative growth in the essential oils market in 2020.
- Based on applications, the aromatherapy application accounted for the largest share in the essential oils market and is expected to show similar trends in the forecast period.
- Based on the extraction process, the distillation process held the most dominant share in the essential oils industry and is projected to hold the same position during the forecast period.
- Based on regions, North America dominated the essential oils industry across the globe.
- Based on region, the Asia-Pacific is expected to be the fastest-growing region during the forecast period.
Company Profiles and Competitive Intelligence
The key players operating in the Essential Oils market are:
- Sydney Essential Oil Co. (SEOC)
- Biolandes SAS
- Indian Essential Oils
- H. Reynaud & Fils (HRF)
- Young Living Essential Oil
- Essential Oils of New Zealand
- Farotti S. R. L.
- Flavex Naturextrakte GmbH
- West India Spices Inc.
- Ungerer Limited
- The Lebermuth Company
- Rocky Mountain Essential Oils
- Moksha Lifestyle Products
- Cargill, Inc.
- Koninklijke DSM N.V.
- Givaudan SA
- Young Living Essential Oils
- Sensient Technologies Corporation
- Firmenich SA
- International Flavors & Fragrances Inc.
- ROBERTET SA
- In February 2021, Givaudan, a Swiss multinational manufacturer of flavors, fragrances, and active cosmetic ingredients announced the acquisition of Myrissi. This acquisition is expected to help the company achieve its long-term Fragrance & Beauty goals by making use of Myriss’s expertise in AI, and suggesting new organoleptic approaches to attract consumers.
- In May 2020, Firmenich, the world's largest privately-owned perfume and taste company announced the acquisition of Les Dérivés Résiniques et Terpéniques (“DRT”), a leading company in supply and development of naturally derived, renewable, and high-quality ingredients. The acquisition is expected to help Firmenich in becoming a top player in renewable ingredients for perfumery and beyond.
- In November 2019, Young Living Essential Oils announced the setup of a new office in the South Africa market. The new office is projected to help the company expand and grow in the South African market.