Essential Oils Market Analysis and Global Forecast 2024-2034

Essential Oils Market Overview

The Essential Oils Market size accounted for USD 8.84 Billion in 2023 and is estimated to account for 9.41 Billion in 2024. The Market is expected to reach USD 18.33 Billion by 2034 growing at a compound annual growth rate (CAGR) of 7.41% from 2024 to 2034. The essential oils market refers to the global industry involved in the production, distribution, and sale of essential oils. These oils are concentrated, aromatic liquids extracted from plants through various methods, such as steam distillation, dry distillation, or mechanical expression. They are valued for their unique fragrances, flavors, and potential health benefits.

The market is driven by rising consumer interest in natural and organic products, as well as increasing awareness about the health benefits of essential oils. As consumer demand for natural products continues to increase, the market is expected to experience further expansion and diversification.

Global Essential Oils Market Synopsis

Essential Oils Market Dynamics

The major factors that have impacted the growth of Essential Oils Market are as follows:

Drivers:

Ø  Health Benefits and Therapeutic Applications

Essential oils are widely used in alternative medicine for their potential therapeutic properties, such as anti-inflammatory, antimicrobial, and antioxidant benefits. This has led to increased demand in healthcare, pharmaceuticals, and wellness sectors. Essential oils are frequently incorporated into skincare, haircare, and beauty products due to their natural fragrances and perceived health benefits. The growth of the beauty and personal care market is a major driver. Essential oils are also used in eco-friendly cleaning products for their antimicrobial properties and natural fragrances, driving demand in the homecare sector.

Restraint:

• Perception of High Production Costs and High Pricing for End Consumers

The extraction of essential oils, especially through methods like steam distillation and cold pressing, can be labor-intensive and expensive. Large quantities of raw plant material are often required to produce small amounts of oil, leading to high production costs that are passed on to consumers. Due to the cost of production and limited availability of certain oils, essential oils are often priced higher than synthetic alternatives. This can make them less accessible to price-sensitive consumers, limiting market growth.

Opportunity:

⮚      Rising Popularity of Aromatherapy and Wellness Trends

The global wellness industry, particularly aromatherapy, is rapidly growing. Essential oils are a core component of wellness practices such as meditation, stress relief, and holistic healing. This expanding market offers opportunities for product diversification, new blends, and innovative aromatherapy solutions. With the rise of clean-label food products, essential oils are being used as natural flavor enhancers, preservatives, and additives. This creates opportunities for innovation in the food and beverage industry, especially for companies that cater to the growing demand for natural ingredients in functional foods and drinks.

Essential Oils Market Segment Overview

By Type

Based on Type, the market is segmented based on Orange oil, Lemon oil, Lime oil, Peppermint oil, Cornmint oil, Citronella oil, Spearmint oil , Geranium oil , Clove leaf oil, Eucalyptus oil, Jasmine oil, Tea tree oil, Rosemary oil and Lavender oil. The orange segment dominant the market. Orange essential oil is extracted by cold compression from orange peels. It has a light citrus scent and offers therapeutic and health benefits. It is the cheapest readily available oil on the market. It is abundant in the antioxidant d-limonene, which aids in the cleansing process. It easily combines with other citrus oils.

By Application

Based on Application, the market has been divided into Food & beverages, Cosmetics & toiletries, Aromatherapy, Home care, Health care and Other applications. The food and beverages segment dominant the market. In the food and beverage industry, essential oils are frequently used as a flavoring component. Some of the flavors or essences used in food products include peppermint, menthol, lime, orange, spearmint, and others. Orange juice and other tangy foods are flavoring agents that use orange essential oil. Chewing gums and candy contain spearmint oil.

Global Essential Oils Market Regional Analysis

Based on region, the global Essential Oils Market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Essential Oils Market followed by the Asia-Pacific and Europe regions.

Essential Oils North America Market

North America holds a dominant position in the Essential Oils Market. North America is a significant market for essential oils, driven by strong demand for natural and organic products in sectors like personal care, cosmetics, and food & beverages. The wellness industry, particularly aromatherapy, is well-established in this region. High consumer awareness of the therapeutic and health benefits of essential oils and a growing focus on sustainability and organic products. The US and Canada are experiencing rapid growth in the essential oils market, fueled by increasing consumer interest in natural health and wellness.

Essential Oils Asia-Pacific Market

The Asia-Pacific region has indeed emerged as the fastest-growing market for the Essential Oils Market industry. Asia-Pacific is a rapidly growing market for essential oils, driven by rising disposable incomes, increasing awareness of natural wellness products, and the growing cosmetics and personal care industry. Rising demand for essential oils in personal care and cosmetics, particularly in countries like China, Japan, India, and South Korea and increased consumer spending on natural health and wellness products.

Competitive Landscape

The global Essential Oils Market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.

Prominent Players:

• CARGILL INC
• DuPont
• Koninklijke DOTERRA INTERNATIONAL LLC N.V.
• DOTERRA INTERNATIONAL LLC
• Givaudan SA.
• YOUNG LIVING ESSENTIAL OILS.
• The Lebermuth Company Inc
• Sensient Technologies Corporation
• Essential oils of New Zealand

Key Development

In February 2021, Givaudan took over Myrissi. Givaudan’s long run Fragrance & Beauty strategy would be enabled by the acquisition of Myrissi; Myrissi’s artificial intelligence competence would aid Givaudan in providing new organoleptic methods to consumers.

In May 2020, Firmenich acquired Les Derives Resiniques et Terpeniques, a world leader in the creation and delivery and naturally derived ingredients. Firmenich would benefit from this acquisition by becoming major player in renewable ingredients for perfumery and other applications.

Scope of the Report

Global Essential Oils Market, by Type

• Orange oil
• Lemon oil
• Lime oil
• Peppermint oil
• Cornmint oil
• Citronella oil
• Spearmint oil
• Geranium oil
• Clove leaf oil
• Eucalyptus oil
• Jasmine oil
• Tea tree oil
• Rosemary oil
• Lavender oil.

Global Essential Oils Market, by Application

• Food & beverages
• Cosmetics & toiletries
• Aromatherapy
• Home care
• Health care
• Other applications

Global Essential Oils Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: $18.33 Billion
CAGR	7.41% CAGR (2023-2033)
Base year	2022
Forecast Period	2023-2033
Historical Data	2021
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Type, Application
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	CARGILL INC, DuPont, Koninklijke DOTERRA INTERNATIONAL LLC N.V., DOTERRA INTERNATIONAL LLC, Givaudan SA., YOUNG LIVING ESSENTIAL OILS., The Lebermuth Company Inc, Sensient Technologies Corporation and Essential oils of New Zealan
Key Market Opportunities	• Rising Popularity of Aromatherapy and Wellness Trends
Key Market Drivers	• Health Benefits and Therapeutic Applications • Rising Demand in the Personal Care & Cosmetics Industry

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Essential Oils Market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Essential Oils Market historical market size for the year 2021, and forecast from 2023 to 2033
• Essential Oils Market share analysis at each product level
• Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Essential Oils Market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.