Essential Oils Industry Overview
The global essential oils market size is estimated to reach USD 35.5 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 7.4% from 2021 to 2028. The growth can be attributed to the rising awareness regarding the health benefits of naturally sourced oils and the growing inclination of people towards aromatherapy. Additionally, increasing demand from major end-use industries such as food and beverage and personal care, and cosmetics is likely to have a positive impact on the market.
Essential Oils Market Segmentation
Grand View Research has segmented the global essential oil market based on product, application, sales channel, and region:
Based on the Product Insights, the market is segmented into Acorus Calamus, Ajowan, Basil, Black pepper, Cardamom, Carrot Seed, Cassia, Cedarwood, Celery, Cinnamon, Citronella, Clove, Cornmint, Cumin Seed, Curry Leaf, Cypriol, Davana, Dill Seed, Eucalyptus, Fennel, Frankincense, Garlic, Ginger, Holy Basil, Juniper Berry, Lemon, Lemongrass, Lime, Mace, Mustard, Neem, Nutmeg, Orange, Palmarosa, Pepper Mint, DMO, Rosemary, Spearmint, Turmeric, Vetiver, Ciz-3 Hexanol, Tea Tree, Others.
- The orange oil segment dominated the market for essential oils and accounted for a revenue share of 9.5% in 2020. This is attributed to its usage for improving low libido, lowering PMS-related health problems, and fighting hypertension on account of its blood-dialing property.
- Lemon oil is expected to witness considerable growth over the forecast period due to its usage in detergents, perfumes, and soaps and can also be blended in DIY household cleaners. It is primarily used as a detoxifying agent and disinfectant for treating sore throats and flu.
- The davana oil segment is anticipated to witness the highest CAGR of 16.9% in the coming years. This is attributed to its extensive utilization for producing natural perfumes and flavoring agents. Antiviral, stimulant, nervine, and antiseptic properties of the oil make it suitable for use in various medical applications.
Based on the Application Insights, the market is segmented into Medical, Food & Beverages, Spa & Relaxation, Cleaning & Home.
- The spa and relaxation segment dominated the market for essential oils accounted for the largest revenue share of 46.4% in 2020. This is attributed to the increasing number of consumers are visiting spa centers for aromatherapy and massage purposes to rejuvenate physically, emotionally, mentally, as well as spiritually. Personal care emerged as the largest application segment under the spa and relaxation segment in 2020.
- The food and beverage segment is projected to witness the most significant CAGR over the forecast period. This is attributed to the growing focus of food and beverage manufacturers on increasing product shelf life without compromising the quality.
- Medical emerged as one of the most significant application segments of the market in 2020. The segment is projected to witness growth over the coming years owing to the increasing application scope of essential oil and floral extracts in the medical sector.
Based on the Sales Channel Insights, the market is segmented into Direct Selling, Others.
- The direct selling segment accounted for a revenue share of 44.0% in 2020. Increasing awareness among people regarding essential oil has given rise to more retail sales, especially through convenience stores. However, top players such as doTerra and Young Living Essential Oils have adopted multi-level marketing strategies to expand their business and improve their sales.
- Furthermore, most of the importers and wholesalers have launched websites for online sales, along with their existing over-the-counter sales. Distribution channels for selling the products are likely to become complex as some sellers focus purely on online sales to increase their geographic reach.
Essential Oils Regional Outlook
- North America
- Europe
- Asia Pacific
- Central America
- South America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
Companies are focusing on upgrading their production technologies to minimize resource consumption and maximize output. Improved profitability through optimizing the value chain and re-structuring the business process are major strategies focused upon by market players.
Some prominent players in the global essential oils market include
- Takasago International Corporation
- Symrise
- MANE
- Flavex Naturextrakte GmbH
- Firmenich SA
- Synthite Industries Ltd.
- ROBERTET GROUP
- International Flavors & Fragrances Inc.
- Givaudan
- Falcon
- Norex Flavours Private Limited
- BMV Fragrances Pvt. Ltd.
- VedaOils
- MOKSHA LIFESTYLE PRODUCTS
- Ultra International
- VidyaHerbs
Order a free sample PDF of the Essential Oils Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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