Essential Oils Market
PUBLISHED: 2024 ID: SMRC26415
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Essential Oils Market

Essential Oils Market Forecasts to 2030 - Global Analysis By Type (Lavender Oil, Tea Tree Oil, Peppermint Oil, Lemon Oil and Other Types), Source, Distribution Channel, Application, End User and By Geography

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4.4 (53 reviews)
Published: 2024 ID: SMRC26415

This report covers the impact of COVID-19 on this global market
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According to Stratistics MRC, the Global Essential Oils Market is accounted for $11.3 billion in 2024 and is expected to reach $24.7 billion by 2030 growing at a CAGR of 13.8% during the forecast period. Essential oils are concentrated plant extracts that capture the natural aroma and beneficial properties of their source. Obtained through processes like steam distillation or cold pressing, these oils contain the essence of the plant's fragrance and therapeutic qualities. Commonly used in aromatherapy, skincare, and holistic healing, essential oils are valued for their potential to enhance well-being, relieve stress, and treat various ailments. Each oil has unique characteristics and uses, making them versatile tools in natural health practices.

According to the Global Wellness Institute, in 2020 there were over 1,60,000 spas, earning $68 billion in revenue globally. Spa revenue was growing by 8.7% annually prior to 2020.

Market Dynamics: 

Driver: 

Growing aromatherapy industry

The market is witnessing a surge in demand, fueled by the growing popularity of aromatherapy. Consumers are increasingly seeking natural remedies for health and wellness, driving the expansion of this industry. Aromatherapy, with its therapeutic benefits and pleasant fragrances, is gaining traction as a holistic approach to relaxation and healing. This trend is prompting the introduction of innovative products and the exploration of new applications, further propelling the growth of the market.

Restraint:

Availability of synthetic and substandard products

Despite stringent regulations, some producers cut corners, using cheaper synthetic alternatives or diluting oils with inferior substances. This compromises purity and potency, deceiving consumers and potentially causing adverse effects. The presence of such products underscores the importance of thorough research and sourcing from reputable suppliers. Vigilance and education are essential to safeguard against the risks associated with synthetic and substandard essential oils.

Opportunity:

Increasing demand for natural ingredients

The market is witnessing a surge in demand for natural ingredients. Consumers are increasingly seeking products that are sourced from natural and organic materials due to growing health and environmental concerns. This trend is driving manufacturers to prioritize the use of natural ingredients in their essential oil formulations. As a result, there is a noticeable shift towards plant-based extracts and botanicals, reflecting a broader consumer preference for clean-label and sustainable products.

Threat:

High price of essential oils

The market is marked by soaring prices, often rendering these aromatic extracts unaffordable for many consumers. Factors such as scarcity of raw materials, intricate extraction processes, and growing demand contribute to the steep costs. Additionally, the market's reliance on natural resources susceptible to environmental fluctuations exacerbates price volatility. As a result, accessing these essential oils, renowned for their therapeutic and aromatic properties, becomes a luxury rather than a commonplace indulgence for health and wellness enthusiasts.

Covid-19 Impact:
 
The COVID-19 pandemic significantly impacted the essential oils industry, altering its definition and perception. Essential oils, traditionally known for their therapeutic and aromatic properties, saw a surge in demand as people sought natural remedies and wellness products amidst health concerns. This heightened interest led to a broader recognition of essential oils for their antiviral and immune-boosting potential. Consequently, the definition of essential oils expanded beyond aromatherapy to encompass their role in supporting overall health and well-being during a global health crisis.

The peppermint oil segment is expected to be the largest during the forecast period

The peppermint oil is expected to be the largest during the forecast period. With its invigorating scent and numerous therapeutic benefits, including promoting digestion and relieving headaches, it enjoys popularity in aromatherapy and holistic wellness practices. As a natural remedy, it's often utilized in skincare, haircare, and household cleaning products, reflecting the growing consumer demand for natural alternatives. Peppermint oil's distinct properties make it a staple in the essential oils market, catering to health-conscious individuals seeking holistic solutions.

The pharmaceutical segment is expected to have the highest CAGR during the forecast period

The pharmaceutical segment is expected to have the highest CAGR during the forecast period. Their antimicrobial, anti-inflammatory, and analgesic properties are increasingly recognized, fostering their utilization in pharmaceutical formulations. This market convergence emphasizes the industry's shift towards holistic healthcare solutions. Key players are leveraging essential oils' versatility to develop innovative products, catering to the growing demand for natural remedies in pharmaceuticals.

Region with largest share:

North America is projected to hold the largest market share during the forecast period driven by increasing consumer interest in natural remedies and aromatherapy. With a diverse range of applications spanning from skincare to holistic wellness, essential oils have become mainstream products in households across the continent. Factors such as rising health consciousness and demand for organic, chemical-free alternatives contribute to the market's expansion.

Region with highest CAGR:

Asia Pacific is projected to hold the highest CAGR over the forecast period. There has been a noticeable increase in demand for essential oils across countries in the region. This demand is fueled by a rising interest in natural and organic products, as well as a growing awareness of the therapeutic benefits of essential oils. Many countries in the region have a long history of traditional medicine practices that incorporate the use of essential oils. This cultural heritage contributes to the widespread acceptance and usage of essential oils in the region.

Key players in the market

Some of the key players in Essential Oils market include Cargill, Takasago International Corporation, VedaOils, Azelis, Turpaz Industries, PT Indika Energy Tbk, Sydney Essential Oil Co., India Essential Oils, DoTerra, Flavex Naturextrakte GmbH, Falcon, Ungerer Limited, Pure Essential Supply Inc., Miracle Botanicals and Sun Essential Oils.

Key Developments:

In October 2023, Azelis, a service provider in the specialty chemicals and food ingredients industry, acquired 100% of the shares of BLH SAS, a distributor of flavors & fragrances focused on the fine perfumery market in France.

In January 2023, PT Indika Energy Tbk (INDY) announced that its diversification into the essential oil industry through its subsidiary, PT Indika Multi Properti (IMP), which acquired a 46% stake in PT Natura Aromatik Nusantara (NAN) for IDR 179.60 billion (~USD 11.55 billion)

Types Covered:
• Lavender Oil
• Tea Tree Oil
• Peppermint Oil
• Lemon Oil
• Other Types

Sources Covered:
• Citrus Oils
• Herb Oils
• Floral Oils
• Wood Oils
• Spice Oils

Distribution Channels Covered:
• Online Retail
• Specialty Stores
• Supermarkets and Hypermarkets
• Direct Sales

Applications Covered:
• Aromatherapy
• Spa and Wellness
• Massage Oil
• Cleaning & Home
• Fragrances
• Animal feed
• Other Applications

End Users Covered:
• Pharmaceutical
• Food & Beverages
• Nutraceuticals
• Personal Care
• Other End Users 

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings: 
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary         
           
2 Preface          
 2.1 Abstract         
 2.2 Stake Holders        
 2.3 Research Scope        
 2.4 Research Methodology       
  2.4.1 Data Mining       
  2.4.2 Data Analysis       
  2.4.3 Data Validation       
  2.4.4 Research Approach       
 2.5 Research Sources        
  2.5.1 Primary Research Sources      
  2.5.2 Secondary Research Sources      
  2.5.3 Assumptions       
           
3 Market Trend Analysis        
 3.1 Introduction        
 3.2 Drivers         
 3.3 Restraints        
 3.4 Opportunities        
 3.5 Threats         
 3.6 Application Analysis       
 3.7 End User Analysis        
 3.8 Emerging Markets        
 3.9 Impact of Covid-19        
           
4 Porters Five Force Analysis        
 4.1 Bargaining power of suppliers       
 4.2 Bargaining power of buyers       
 4.3 Threat of substitutes       
 4.4 Threat of new entrants       
 4.5 Competitive rivalry        
           
5 Global Essential Oils Market, By Type       
 5.1 Introduction        
 5.2 Lavender Oil        
 5.3 Tea Tree Oil        
 5.4 Peppermint Oil        
 5.5 Lemon Oil        
 5.6 Other Types        
           
6 Global Essential Oils Market, By Source       
 6.1 Introduction        
 6.2 Citrus Oils        
 6.3 Herb Oils         
 6.4 Floral Oils        
 6.5 Wood Oils        
 6.6 Spice Oils        
           
7 Global Essential Oils Market, By Distribution Channel     
 7.1 Introduction        
 7.2 Online Retail        
 7.3 Specialty Stores        
 7.4 Supermarkets and Hypermarkets      
 7.5 Direct Sales        
           
8 Global Essential Oils Market, By Application      
 8.1 Introduction        
 8.2 Aromatherapy        
 8.3 Spa and Wellness        
 8.4 Massage Oil        
 8.5 Cleaning & Home        
 8.6 Fragrances        
 8.7 Animal feed        
 8.8 Other Applications        
           
9 Global Essential Oils Market, By End User      
 9.1 Introduction        
 9.2 Pharmaceutical        
 9.3 Food & Beverages        
 9.4 Nutraceuticals        
 9.5 Personal Care        
 9.6 Other End Users        
           
10 Global Essential Oils Market, By Geography      
 10.1 Introduction        
 10.2 North America        
  10.2.1 US        
  10.2.2 Canada        
  10.2.3 Mexico        
 10.3 Europe         
  10.3.1 Germany        
  10.3.2 UK        
  10.3.3 Italy        
  10.3.4 France        
  10.3.5 Spain        
  10.3.6 Rest of Europe       
 10.4 Asia Pacific        
  10.4.1 Japan        
  10.4.2 China        
  10.4.3 India        
  10.4.4 Australia        
  10.4.5 New Zealand       
  10.4.6 South Korea       
  10.4.7 Rest of Asia Pacific       
 10.5 South America        
  10.5.1 Argentina       
  10.5.2 Brazil        
  10.5.3 Chile        
  10.5.4 Rest of South America      
 10.6 Middle East & Africa       
  10.6.1 Saudi Arabia       
  10.6.2 UAE        
  10.6.3 Qatar        
  10.6.4 South Africa       
  10.6.5 Rest of Middle East & Africa      
           
11 Key Developments         
 11.1 Agreements, Partnerships, Collaborations and Joint Ventures    
 11.2 Acquisitions & Mergers       
 11.3 New Product Launch       
 11.4 Expansions        
 11.5 Other Key Strategies       
           
12 Company Profiling         
 12.1 Cargill         
 12.2 Takasago International Corporation      
 12.3 VedaOils         
 12.4 Azelis         
 12.5 Turpaz Industries        
 12.6 PT Indika Energy Tbk       
 12.7 Sydney Essential Oil Co.       
 12.8 India Essential Oils        
 12.9 DoTerra         
 12.10 Flavex Naturextrakte GmbH       
 12.11 Falcon         
 12.12 Ungerer Limited        
 12.13 Pure Essential Supply Inc.       
 12.14 Miracle Botanicals        
 12.15 Sun Essential Oils        
           
List of Tables          
1 Global Essential Oils Market Outlook, By Region (2022-2030) ($MN)    
2 Global Essential Oils Market Outlook, By Type (2022-2030) ($MN)    
3 Global Essential Oils Market Outlook, By Lavender Oil (2022-2030) ($MN)   
4 Global Essential Oils Market Outlook, By Tea Tree Oil (2022-2030) ($MN)    
5 Global Essential Oils Market Outlook, By Peppermint Oil (2022-2030) ($MN)   
6 Global Essential Oils Market Outlook, By Lemon Oil (2022-2030) ($MN)    
7 Global Essential Oils Market Outlook, By Other Types (2022-2030) ($MN)    
8 Global Essential Oils Market Outlook, By Source (2022-2030) ($MN)    
9 Global Essential Oils Market Outlook, By Citrus Oils (2022-2030) ($MN)    
10 Global Essential Oils Market Outlook, By Herb Oils (2022-2030) ($MN)    
11 Global Essential Oils Market Outlook, By Floral Oils (2022-2030) ($MN)    
12 Global Essential Oils Market Outlook, By Wood Oils (2022-2030) ($MN)    
13 Global Essential Oils Market Outlook, By Spice Oils (2022-2030) ($MN)    
14 Global Essential Oils Market Outlook, By Distribution Channel (2022-2030) ($MN)   
15 Global Essential Oils Market Outlook, By Online Retail (2022-2030) ($MN)   
16 Global Essential Oils Market Outlook, By Specialty Stores (2022-2030) ($MN)   
17 Global Essential Oils Market Outlook, By Supermarkets and Hypermarkets (2022-2030) ($MN)  
18 Global Essential Oils Market Outlook, By Direct Sales (2022-2030) ($MN)    
19 Global Essential Oils Market Outlook, By Application (2022-2030) ($MN)    
20 Global Essential Oils Market Outlook, By Aromatherapy (2022-2030) ($MN)   
21 Global Essential Oils Market Outlook, By Spa and Wellness (2022-2030) ($MN)   
22 Global Essential Oils Market Outlook, By Massage Oil (2022-2030) ($MN)    
23 Global Essential Oils Market Outlook, By Cleaning & Home (2022-2030) ($MN)   
24 Global Essential Oils Market Outlook, By Fragrances (2022-2030) ($MN)    
25 Global Essential Oils Market Outlook, By Animal feed (2022-2030) ($MN)    
26 Global Essential Oils Market Outlook, By Other Applications (2022-2030) ($MN)   
27 Global Essential Oils Market Outlook, By End User (2022-2030) ($MN)    
28 Global Essential Oils Market Outlook, By Pharmaceutical (2022-2030) ($MN)   
29 Global Essential Oils Market Outlook, By Food & Beverages (2022-2030) ($MN)   
30 Global Essential Oils Market Outlook, By Nutraceuticals (2022-2030) ($MN)   
31 Global Essential Oils Market Outlook, By Personal Care (2022-2030) ($MN)   
32 Global Essential Oils Market Outlook, By Other End Users (2022-2030) ($MN)   
           
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.

List of Figures

RESEARCH METHODOLOGY


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.


Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.


For more details about research methodology, kindly write to us at info@strategymrc.com

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