Global Essential Oils Market by Product Type (Orange oil, Lime oil, Lemon oil, Peppermint oil, Clove leaf oil, Rosemary oil, Tea tree oil, Lavender oil, and Other oil types); by Application (Food & Beverages, Aromatherapy, Health Care, Cosmetics & Toiletries, Home Care and Other applications (insecticides, feed, and paint), by Method Of Extraction (Distillation, Carbon dioxide extraction, Cold press extraction, Solvent extraction, Other extraction methods); by Region (North America, Europe, Asia Pacific, Latin America and Middle East & Africa); - Global Forecasts 2021 to 2027

Date : Oct 2021

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Report ID : 118

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Category : F&B ingredients

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Report Format:  PDF EXCEL PPT WORD

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 Global Essential Oils Market Definition:

Essential oil is a concentrated hydrophobic liquid that is obtained through distillation or mechanical pressing from different parts of the plant. They are natural ingredients that are already available in plants and can be extracted from barks, flowers, roots, fruits, leaves, vegetables, herbs, spices, etc. In the modern era, these oils are gaining wide acceptance not only due to their medicinal value but also because of their detoxification, nutritive, anti-inflammatory, antimicrobial, antioxidant, and antidepressant properties. They also act as natural medicines and refrain from any major side effects.

Essential Oils Market

The Global Essential Oils Market Dynamics:

The essential oils market is accounted to boost at a significant pace in the forecast period. The market is majorly experiencing traction owing to the health benefits offered by the essential oils. There are a variety of essential oils available in the market and each oil possesses unique health benefits. For instance, lavender oil promotes relaxation and is used for treating fungal infections, anxiety, depression, insomnia, allergies, eczema, menstrual cramps, and nausea. Peppermint oil is commonly used for treating problems like muscle aches, headaches, joint itching, and pain. Tea tree oil helps fight bacterial, viral, and fungal infections. Owing to these benefits, essential oils have wide application in various industries including food & beverages, aromatherapy, health care, cosmetics & toiletries, and home care among many others. The rising product demand from these industries is projected to bloom in the essential oils market.  

Moreover, favourable government initiatives and regulations are also projected to offer potential opportunities for market players in the essential oils market across the globe. Many economies across the globe including Kenya, Mauritius, Rwanda, Tanzania, and Uganda have implemented zero percent import duty for essential oils. Additionally, many international organizations such as the European Union (EU) and the United Nations (UN) have implemented specific guidelines and regulations and set up organizations to monitor the production, processing, and harvesting of aromatic crops and flowers. For instance, the European Federation of Essential Oils (EFEO) has been set up by the EU to protect, promote and represent the interests of production and trade of essential oils and related items across Europe. Similarly, the Food and Agriculture Organization and The United Nations Industrial Development Organization (UNIDO) set up by the United Nations aims at regulating and controlling the overall post-harvest processing operations of essential oils, herbs, and spices in developing nations. Such favourable policies and organizations are expected to elevate the essential oils market demand across the globe.  

The Global Essential Oils Market Segmentation:

By Product Type

  • 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)

By Application

  • Food & beverages
  • Aromatherapy
  • Health care
  • Cosmetics & toiletries
  • Home care
  • Other applications (insecticides, feed, and paint)

By Method Of Extraction

  • Distillation
  • Carbon dioxide extraction
  • Cold press extraction
  • Solvent extraction
  • Other extraction methods (maceration and resin tapping)

By Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

The unique insights provided by this report also include the following:

  • In-Depth Value Chain Analysis
  • Market Opportunity Mapping
  • Sector Snapshot
  • Key Players Positioning Matrix
  • Regulatory Scenario
  • Strategies Adopted-Benchmarking Heat Map
  • Market Trends
  • Covid-19 Impact Analysis
  • Product Comparison
  • Pre & Post Covid 19 Impact On Essential Oils Market
  • Competitive Landscape

Based on product type, the orange oil segment has shown the most lucrative growth in the essential oils market in 2020 due to rising application in the cosmetic industry

Based on product type, the essential oils market is fragmented as orange oil, lime oil, lemon oil, peppermint oil, clove leaf oil, rosemary oil, tea tree oil, lavender oil, and other oil types. Among these, the orange oil segment has shown the most lucrative growth in the essential oils industry in 2020. This growth is majorly due to the rising application of orange oils in major end-use industries such as cosmetics. Orange oil helps in promoting elasticity and tone up the skin. The oil is used to enhance the quality of nails, hair, and skin, thereby increasing their popularity among young women. It is also helpful in treating stretch marks, acne, and dermatitis. Therefore, growing awareness regarding the cosmetic benefits offered by orange oils is expected to boost the product demand.

The lavender oil segment is also expected to witness significant growth in the essential oil market during the forecast period. Lavender oil possesses several benefits, such as eliminating harmful bacteria, relieving muscle spasms, relieving flatulence, disinfecting and soothing inflamed skin. Lavender oil also facilitates speedy healing of scarred and irritated skin and relieves muscle tension when used in massages. It also offers relaxing and calming properties, thereby improving sleep for those suffering from insomnia. Owing to these health benefits, then there has been bolstering demand for lavender oil which is, in turn, driving the essential oil industry growth.

Based on applications, the aromatherapy application accounted for the largest share in the essential oils market primarily due to the rising depression rate across the globe.

Based on applications, the essential oils industry is segmented as food & beverages, aromatherapy, health care, cosmetics & toiletries, home care, and other applications. Among these, aromatherapy applications accounted for the largest share in the essential oils market. This growth is majorly attributed to the changing lifestyles of people and their consequences, such as depression, and high stress which is resulting in a rising demand for aromatherapy. As per the data released by WHO in September 2021, nearly 280 million people across the globe have depression. Aromatherapy is a practice that makes use of natural plant extracts, such as essential oils, carrier oils, and hydrosols in several ways to heal the mind, spirit, and body. It uses essential oils that help in alleviating tension and reducing stress by stimulating the brain’s pleasure centers. Apart from helping in reducing depression, aromatherapy also helps in soothing skin, stimulating hair growth, treating fungal infection, improving concentration, reducing inflammation among many others. These benefits offered by aromatherapy are increasing the demand for aromatherapy and thereby positively impacting the essential oils industry growth.

Based on regions, North America dominated the essential oils industry across the globe owing to the rising depression rate in the region along with the increasing disposable income of consumers

Based on region, the essential oils market is segmented as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Among these, North America dominated the essential oils industry across the globe. In developed regions like the United States, the fast-paced lifestyle has resulted in increased stress levels among people in recent years. According to National Health Interview Survey, in 2019, 2.8% of adults in the U.S. suffered from severe symptoms of depression, 4.2% of adults had moderate symptoms, and 11.5% experienced mild symptoms of depression. Given the benefits associated with essentials oils for reducing depression, this high rate of depression is thus creating a high product demand in the region. Moreover, the increasing disposable income of consumers, particularly in the developing regions combined with shifting consumers' preferences to spend a hefty amount on healthy, nutritional, and natural products is also contributing to influencing the market growth. Further, there has been an immense increase in the number of lifestyle and recreational users in recent years in the region. The growing number of these users has increased the demand for health and energy drinks and has resulted in increased demand for essential oils in the beverages. All these aforementioned factors are driving the growth in the essential oils industry.

The report also provides in-depth analysis of Essential Oils market dynamics such as drivers, restraints opportunities and challenges

Drivers

  • Rising consumer disposable income
  • Changing tastes and preferences
  • Increasing application in major end-use industries
  • Rising demand for natural and organic products

Restraints

  • High product cost
  • Depletion of natural resources

Opportunities

  • Favourable government policies
  • Increasing demand from developing nation

Note: Challenges along with an in-depth market dynamics analysis is mentioned in the report. .

COVID-19 impact on the Essential Oils market analysis

The Covid-19 pandemic has majorly impacted the essential oils market across the globe. The pandemic has resulted in a dramatic loss of human life and presented an unprecedented challenge to food systems, public health, and the world of work. Due to this, consumers are now more concerned regarding maintaining their health and well-being. According to a report published by National Center for Biotechnology Information in January 2021, there was an approximately three-fold increase in rates of clinically elevated depression in females in the U.S. from pre-COVID-19 to COVID-19. Essential oils have antioxidant, anti-infective, and antimicrobial properties, which are useful in maintaining health. Owing to these properties they help treat several conditions such as stress conditions, depression, sleep disorders, and immunity disorders. Thus, the outbreak has positively impacted the essential oils industry growth.

The report also provides an in-depth analysis of key trends in Essential Oils market

  • Shifting consumer preferences towards using organic products is a major factor influencing the essential oil industry. Essential oils are natural aromatic, volatile liquids that are obtained from different parts of the plants. These oils are free of animal-derived components and synthetic fragrances. Owing to this, the majority of population across the globe are turning to organic products to acquire the health benefits associated with them.
  • Implementation of regulations that favors the use of environmentally friendly ingredients in the food and beverage and cosmetics industry has contributed to positively influencing the essential oils market growth.

The report also provides in-depth analysis of recent news developments and investments

  • In October 2021, Cargill, an American privately held global food corporation, launched poultry feed with essential oils for maximized egg production and healthy flocks. This natural essential oil is expected to help the promotion of egg weight, production, and size, improved palatability, and a fresh aroma direct from the bag.
  • In July 2021, YN Scents, a Malaysia-based scent company announced the launch of its new product “lavender essential oil”. The oil is 100% natural and offers several benefits such as promoting deeper sleep, relieving stress, reducing anxiety, purifying the air, and removing bad odor. 
  • In October 2020, dôTERRA, a Utah-based company that sells essential oils and other related products announced the launch of various new essential oil products and diffusers. This launch also includes three new wellness programs that are designed to facilitate people's focus on their specific health goals.

Company Profiles and Competitive Intelligence

The key players operating in the Essential Oils Industry are:

  • Sydney Essential Oil Co. (SEOC)
  • Biolandes SAS
  • Indian Essential Oils
  • H. Reynaud & Fils (HRF)
  • Young Living Essential Oil
  • DoTerra
  • Essential Oils of New Zealand
  • Farotti S. R. L.
  • Flavex Naturextrakte GmbH
  • West India Spices Inc.
  • Falcon
  • Ungerer Limited
  • The Lebermuth Company
  • Rocky Mountain Essential Oils
  • Moksha Lifestyle Products
  • Cargill, Inc.
  • DuPont
  • Koninklijke DSM N.V.
  • Givaudan SA
  • Young Living Essential Oils
  • Symrise
  • Sensient Technologies Corporation
  • Firmenich SA
  • International Flavors & Fragrances Inc.
  • Mane
  • ROBERTET SA

Frequently Asked Questions (FAQs)

What is the market value for Global Essential Oils Market?

The global Essential Oils market was valued at USD 10.5 Bn in 2020 and is anticipated to reach USD 20.8 Bn by 2027.

What is the estimated market growth rate of Essential Oils Industry?

The Essential Oils Market is estimated to grow at a compound annual growth rate (CAGR) of 10.3% during forecast period.

Which regional segment has dominated the Essential Oils Market in the base year 2020?

The North America has dominated the Essential Oils Market in the base year 2020.

Which regional segment is expected to be the fastest growing region during the forecast period?

The Asia-Pacific is expected to be the fastest growing region during the forecast period.

Who are the key players in the Essential Oils Industry?

A few key players include, but not limited to: Sydney Essential Oil Co. (SEOC), Biolandes SAS, Indian Essential Oils, H. Reynaud & Fils (HRF), Young Living Essential Oil, Farotti S. R. L., and Falcon among others.

Does the report provide detailed COVID-19 analysis for Essential Oils Market?

Yes, the report contains detailed COVID-19 analysis for Essential Oils Market.

Author Credentials

Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.

  1. Introduction
    1. Product Outline
    2. Essential Oils Overview
    3. Different Types Of Essential Oils 
    4. Analysis Of Essential Oils Ecosystem
    5. Supply Chain Analysis
    6. Covid -19 Impact
    7. Market Dynamics
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Threats
    8. Technology Overview
  2. Technology and Regulatory Landscape for Essential Oils    
    1. Regulations and Standards
  3. Essential Oils Market Pricing Analysis
    1. Prices of Essential Oils   
  4. Essential Oils Market by Product Type
    1. Orange oil
    2. Lime oil
    3. Lemon oil
    4. Peppermint oil
    5. Clove leaf oil
    6. Rosemary oil
    7. Tea tree oil
    8. Lavender oil
    9. Other oil types (cedar, sandalwood, anise, chamomile, ginger, cinnamon, thyme, geranium, eucalyptus, basil, citronella, cornmint, spearmint oil, jasmine and ylang-ylang)
  5. Essential Oils Market by Application
    1. Food & beverages
    2. Aromatherapy
    3. Health care
    4. Cosmetics & toiletries
    5. Home care
    6. Other applications (insecticides, feed, and paint)
  6. Essential Oils Market by Method of Extraction
    1. Distillation
    2. Carbon dioxide extraction
    3. Cold press extraction
    4. Solvent extraction
    5. Other extraction methods (maceration and resin tapping)
  7. Regional Analysis
    1. North America
      1. US
      2. Canada
      3. Mexico
    2. Europe
      1. Germany
      2. UK
      3. France
      4. Norway
      5. Italy
      6. Spain
      7. Netherlands
      8. Rest Of Europe
    3. Asia Pacific
      1. China
      2. India
      3. Japan
      4. Australia
      5. New Zealand
      6. Rest Of Asia Pacific
    4. Middle East and Africa
    5. South America
  8. Key Strategic Insights
    1. New Raw Material Sources
    2. New Applications
    3. Emerging Technologies
    4. Opportunity mapping
    5. Critical Success Factors
    6. Environmental Impact and sustainability issues
    7. Consumer preferences
  9. Key Market Trends / Recent Developments
  10. Competitive Scenario
    1. Competitive Strategies of Key Players
      1. Mergers and Acquisitions
      2. Investments
      3. Joint Ventures
      4. New Product launches
    2. Strength of product portfolio
    3. Ranking of Key Players
    4. Presence of players by Geographies
  11. Key Global Players
    1. Sydney Essential Oil Co. (SEOC)
    2. Biolandes SAS
    3. Indian Essential Oils
    4. H. Reynaud & Fils (HRF)
    5. Young Living Essential Oil
    6. DoTerra
    7. Essential Oils of New Zealand
    8. Farotti S. R. L.
    9. Flavex Naturextrakte GmbH
    10. West India Spices Inc.
    11. Falcon
    12. Ungerer Limited
    13. The Lebermuth Company
    14. Rocky Mountain Essential Oils
    15. Moksha Lifestyle Products
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