Global Essential Oils Market Size, Share & Trends Analysis Report, Forecast Period, 2024-2030

The Essential Oils market is experiencing robust expansion, with market size projected to increase from XX billion in 2023 to xx billion by 2030, demonstrating a consistent year-over-year growth rate of 10.55%. Essential Oils Market Size, Share, Competitive Landscape and Trend Analysis Report, by Types (Citrus, Eucalyptus, Lavender, Rosemary, Tea Tree, Peppermint, Others), by applications (Food & Beverages, Personal Care & Cosmetics, Spa & Relaxation, Pharmaceuticals & Medicinal Formulations, Others) And regions (North America(United States.Canada.Mexico), South America(Brazil.Argentina.Chile.Rest of South America), Europe(Germany.France.Italy.United Kingdom.Benelux.Nordics.Rest of Europe), Asia Pacific(China.Japan.India.South Korea.Australia.Southeast Asia.Rest of Asia-Pacific), MEA(Middle East.Africa)) : Industry Forecast and Opportunity Analysis for 2023 - 2030

Essential oils are defined as highly concentrated and aromatic natural oils obtained from plants that are produced, marketed, and consumed around the world. Essential oils are used for various purposes, including aromatherapy, cosmetics and perfumes, Flavors, and medicines, among many others. These oils are obtained through various processes, including steam distillation, cold pressing, and solvent extraction, among others. With the rise in health awareness and modern consumerism focused on the use of natural products as well as environmental preservation, the market for essential oils and their applications is forecasted to grow from innovations and other product extensions coupled with new trends in essential oil-based products.

Essential Oils Report Highlights

Report Metrics	Details
Forecast period	2019-2030
Base Year Of Estimation	2023
Growth Rate	CAGR of 10.55%
By Product Type	Citrus, Eucalyptus, Lavender, Rosemary, Tea Tree, Peppermint, Others
Key Market Players	Biolandes SAS DoTerra Essential Oils of New Zealand Falcon Farotti S. R. L. Flavex Naturextrakte GmbH H. Reynaud & Fils (HRF) India Essential Oils Sydney Essential Oil Co. (SEOC) Ungerer Limited Young Living Essential Oils
By Region	North America(United States.Canada.Mexico) South America(Brazil.Argentina.Chile.Rest of South America) Europe(Germany.France.Italy.United Kingdom.Benelux.Nordics.Rest of Europe) Asia Pacific(China.Japan.India.South Korea.Australia.Southeast Asia.Rest of Asia-Pacific) MEA(Middle East.Africa)

Essential Oils Market Trends

The essential oils market continues to grow at a rapid pace, fuelled by the changes in consumer behaviour regarding natural and organic products. There is an increase in the use of essential oils in personal care, cosmetics, and aromatherapy as more and more people become aware of health issues and their surroundings. Holistic approaches such as essential oils, whose application was mainly for health improvement, relaxation, and skin treatment, among others, have seen an increase in popularity for use in stress management and wellness. Another important end-user trend to note in the essential oils market is improvements in extraction methods and in the product itself. Modern technology has made it possible to extract the essential oils and other products more efficiently and sustainably. Also, there is a product range extension to include mixes and other formulas aimed at particular consumer needs like calming, enhancing immunity levels, or energising the individual, among other applications. These included tendencies offer an insight into the changing nature of the essential oils market and, more importantly, the natural and sustainable ways of producing products.

Essential Oils Market Leading Players

The key players profiled in the report are Biolandes SAS, DoTerra, Essential Oils of New Zealand, Falcon, Farotti S. R. L., Flavex Naturextrakte GmbH, H. Reynaud & Fils (HRF), India Essential Oils, Sydney Essential Oil Co. (SEOC), Ungerer Limited, Young Living Essential Oils

Growth Accelerators

The key factor propelling the growth of the global essential oils market is the soaring appetite for natural and organically sourced products in all sectors, particularly in food and beverages, cosmetics, and aromatherapy. There is a noticeable change that embraces natural products rather than synthetic as the consumers grow health-aware and care for the environment. Such changes are marked more in the personal care and beauty therapy products where essential oils are appreciated due to their scent and health benefits. Another salient factor fuelling drivers of the essential oils market is allied to the growth in the food and beverage industry that is incorporating essential oils in advanced ways as flavouring agents and preservatives, among other uses. The clean label trend compels the use of natural-flavoured ingredients, and this explains the growing inclination towards essential oils as they are flavour some and associated with health benefits. Consequently, the prospects for growth in the essential oils market remain optimistic, as there is a general inclination of consumers towards healthier, environmentally friendly, and natural products.

Essential Oils Market Segmentation analysis

The Global Essential Oils is segmented by Type, Application, and Region.
By Type, the market is divided into Distributed Citrus, Eucalyptus, Lavender, Rosemary, Tea Tree, Peppermint, Others . The Application segment categorizes the market based on its usage such as Food & Beverages, Personal Care & Cosmetics, Spa & Relaxation, Pharmaceuticals & Medicinal Formulations, Others. Geographically, the market is assessed across key Regions like North America(United States.Canada.Mexico), South America(Brazil.Argentina.Chile.Rest of South America), Europe(Germany.France.Italy.United Kingdom.Benelux.Nordics.Rest of Europe), Asia Pacific(China.Japan.India.South Korea.Australia.Southeast Asia.Rest of Asia-Pacific), MEA(Middle East.Africa) and others, each presenting distinct growth opportunities and challenges influenced by the regions.

Competitive Landscape

The worldwide market for essential oils faces stiff competition as many players from different scales of enterprise, small or large, are present in the market. DoTERRA, Young Living Essential Oils, Now Foods, Rocky Mountain Essential Oils, and Plant Therapy are some of the key market contributors. The competition in the market is also steep with product differentiation and quality, sustainability, and ethical sourcing being central to the marketing strategies. The essential oils market will continue to be active and competitive in the future, with more players entering the market and more 'out-of-the-box' products being manufactured as the consumer base is expanding and becoming more demanding.

Challenges In Essential Oils Market

The essential oils market at a global level is also confronted with numerous issues that are detrimental to the growth and sustainability of the market. One such issue is the variation in supply, which can be attributed to environmental causes and a lack of raw materials at different times. Since essential oils are plant-based, the supply of essential oils can be affected by climate changes, natural disasters, or farming. The instability of raw materials can be costly for all the manufacturers, as they might be forced to sell their products at a higher or lower price than their normal market price due to their available supply of materials. Therefore, all manufacturers find it hard to supply their products at the same price and even quality. Moreover, essential oils are now more under the watch of the regulatory authorities, especially on matters of safety and labelling. There is a rising concern about the engagement and use of essential oils in cosmetic, alimentary, and therapeutic markets. This creates discomfort for small and medium enterprises as they may find it difficult to meet such restrictions and thus, most likely, lead to accumulation of the market, as the barriers to entry are higher for small MSEs as compared to the big firms with deeper pockets.

Risks & Prospects in Essential Oils Market

The increasing desire for natural and organic products across multiple sectors such as personal care, cosmetics, food, beverages, aromatherapy, and other factors is expected to create ample opportunities in the global essential oil market. With increased health consciousness and environmental awareness, most consumers are looking for solutions that are not artificial fragrances and other chemicals. This has triggered the rise of essential oil usage since it is more often than not believed to be safer and healthier; thus, more uses are being found in personal hygiene and cosmetic products, cleaning agents, and even in herbal medicines. Moreover, the growing wellness and self-care trend is also complementing the rise in aromatherapy that employs essential oils to ease stress and help in relaxation. At the same time, the spread of sustainability and environmentally friendly practices is creating new markets for the essential oil manufacturers. Companies are putting more emphasis on sustainable sourcing and production due to the green consumerism. Also, new markets for custom essential oil blends and other offerings are seen, especially in the food and beverage industry where there is a preference for natural tastes and smells. In addition, the Asia Pacific and Latin American regions are emerging markets that provide room for development thanks to increasing disposable incomes coupled with changing consumer preferences, which are conducive to the growth of the essential oils industry.

Key Target Audience

The essential oils global market audience involves many industries—personal care and cosmetics, f&b, pharmaceuticals, etc. In the personal care industry, for example, due to the use of essential oil-based soaps, creams, and perfumes, organic and natural ingredients are in high demand. Edible oils in food and beverages aid not only for flavouring and preservation but also for health, as more and more people are becoming aware of the health risks of using chemicals.,, Moreover, a major portion of the audience base for essential oils lies in the wellness and aromatherapy industries. Clients who purchase essential oils for their home diffusers, massages, or incense sticks are female, which means they are wellness or health-orientated. Health and wellness professionals such as massage therapists and those who practice holistic health also seek essential oils for their therapeutic uses. Additional targeted audiences include distributors reaching out to retail shops and online stores where consumers purchase essential oils. Adding on, the spread of such trends is more likely to increase the current demand within the audience segments described above.

Merger and acquisition

Recent trends of mergers and acquisitions in the global essential oil industry show how these companies are consolidating to develop their product portfolios and increase their share in the market. For example, in the year 2021, Givaudan, the worldwide leader in flavour and fragrance solutions, acquired the natural extract and essential oil business of the American firm, the Naturex Group. The goal of this acquisition was to fortify Givaudan’s standing in the natural ingredients domain, thus allowing it to add more essential oils and extracts for its clients in cosmetics, food, and beverage, among other industries. In 2022, Symrise, another big player in the flavour and fragrance business, undertook the acquisition of the essential oil business of the Dutch company DRT (Dérivés Résiniques et Terpéniques). This business acquisition was designed to improve the natural ingredients offered by Symrise and its scope of sustainability because of the natural extracts that DRT supplies, including its experience in research and production, which DRT is proficient in. These M&A’s merger and acquisition movements show the emerging low level of the essential oils market, as companies are, on the other hand, shifting vertical integration and broadening service provision due to the increased market for natural sustainable products.