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.
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.
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.
By Product Type
By Application
By Method Of Extraction
By Region
The unique insights provided by this report also include the following:
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
Restraints
Opportunities
Note: Challenges along with an in-depth market dynamics analysis is mentioned in the report. .
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
The report also provides in-depth analysis of recent news developments and investments
Company Profiles and Competitive Intelligence
The key players operating in the Essential Oils Industry are:
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.
Research Methodology
Log in / Register