Global Essential Oils Market Size Zooming to Touch USD 27.3 Billion by 2029

Published | 01 January 2023

Global essential oils market size is flourishing owing to a growing emphasis on health and wellbeing, as well as a favorable perception of aromatherapy that is spurring the demand for essential oils. Aromatherapy is used to enhance health and wellness and is regarded as a complementary medicine.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimates global essential oils market size at USD 15.39 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects global essential oils market size to grow at a significant CAGR of 8.6% reaching a value of USD 27.28 billion by 2029. Major growth factors for global essential oils market include an increasing demand from key end-use industries, such as food and beverages, personal care and cosmetics, and aromatherapy. In comparison to the majority of conventional medications and drugs, essential oils have few side effects. These favorable characteristics of essential oils are expected to be the primary drivers of the market expansion. Growing consumer interest in natural and organic food and drinks, and personal care products compels manufacturers to shift their focus from synthetic to natural products, impacting the global market for essential oils significantly. Because of their numerous health benefits, essential oils are expected to be in high demand for pharmaceutical and medical applications as well.

Global Essential Oils Market – Overview

Essential oils are extracted from some plant species' roots, seeds, flowers, fruits, and leaves via expression, steam distillation, and carbon dioxide extraction. It is used in the production of cleaning gels, shower gels, soaps, and sprays. A wide range of essential oil-related health benefits are expected to drive demand in pharmaceutical and medical applications. Unlike the majority of conventional medications and drugs, essential oils have no significant side effects. These essential oil properties are expected to be the driving force behind the market growth. The increasing prevalence of health problems, such as cardiovascular disease, Alzheimer's disease, and bronchitis, is driving demand for beneficial essential oils. The essential oil market is expanding rapidly due to other factors, such as rising disposable income and living standards as well as rising consumer demand for personal care products. A rapid expansion of essential oil uses in personal care products could open new business opportunities for suppliers in the essential oil market during the forecast period.

People's growing interest in personal wellness is expected to contribute to the growth of the essential oils market. Consumers prefer high-quality products at reasonable prices. As a result, manufacturers are increasing their investments in research and development to produce high-quality ethereal oils. The thriving hospitality and tourism industries are bringing aromatherapy to the attention of everyday consumers, and this trend is expected to fuel the growth of essential oils market. However, ethereal oil is a highly concentrated product. One pound of lavender oil, for example, requires approximately 250 pounds of lavender flowers. As a result of the excessive demand for raw materials, supply is constrained, causing prices to rise.

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Opportunity: Intensive R&D to Provide Essential Oil Producers with Lucrative Growth Opportunities

The key players in the essential oils market are heavily investing in R&D. Essential oil manufacturers are working to improve the functionality of essential oils in a variety of applications, including food, cosmetics, pharmaceuticals, and animal nutritional products. To keep up with rising consumer preferences, many companies are focusing on introducing new essential oil blends. This factor is driving essential oil sales as a result of the various benefits offered, creating long-term opportunities for global manufacturers. For instance, DoTerra International expanded its essential oil offerings in 2018 by collaborating with the Research Institute for Fragrance Material.

Challenge: Increasing Demand for Natural and True-Label Products

The emphasis on where fruits come from and how they are grown is growing as a result of rising consumer demand for natural goods free of dangerous chemicals. This concern is heightened in the case of fruits because the fruit's peel, which contains the majority of the oils, is sprayed with pesticides or fertilizer. Chemicals are used for more than just on-farm cultivation; they are also sprayed on fruit shipments to extend shelf life and prevent spoilage. Examples of these synthetic chemicals include pesticides and fungicides. As many consumers prefer true-label products and are wary of using any chemically-processed ingredients, this presents a serious disadvantage.

Impact of COVID-19 on Global Essential Oils Market

Essential oils are widely used in the food and beverages, cosmetics, pharmaceuticals, and other industries. These industries experienced both positive and negative effects as a result of the COVID-19 disease outbreak. Essential oils are frequently used for food preservation, the creation of anti-aging products, the creation of anti-bacterial drugs, and other purposes. The manufacturing of these goods was temporarily hampered by the worldwide closure of industrial facilities. However, as restrictions were loosened, the essential oil supply chain and distribution network started to prosper. Additionally, essential oil retail sales did not significantly change despite higher online sales of health-related products during lockdowns.

Global Essential Oils Market – By Distribution Channel

The global essential oils market is divided into two segments based on distribution channel: direct and retail. The direct selling industry held a significant market share in 2021. As more people become aware of the benefits of essential oils, retail sales, particularly through convenience stores, have increased. Top competitors, such as doTerra and Young Living Essential Oils, have adopted multi-level marketing strategies in order to grow their businesses and increase sales.

The majority of importers and wholesalers have launched websites for online sales in addition to their current over-the-counter sales. As some sellers focus solely on online sales to expand their geographic reach, product distribution channels may become more complicated. As a result, they use compensation plans, enticing discounts, and gifts to attract and sign up a large number of customers as independent distributors.

Competitive Landscape

Global essential oils market is fiercely competitive. Prominent players in global essential oils market include The Herbarie at Stoney Hill Farm, Inc., International Flavors & Fragrances, Inc., Bell Flavors & Fragrances, Rutland Biodynamics Ltd., Prakruti Products Pvt. Ltd, Ambe Phytoextracts Pvt. Ltd., The Green Labs LLC, Berje, Inc., Umalaxmi Organics Pvt. Ltd., Flavaroma, Prinova Group LLC, Sydney Essential Oil, Kush Aroma Exports, and Van Aroma. These companies use various strategies, including increasing investments in their R&D activities, mergers, and acquisitions, joint ventures, collaborations, licensing agreements, and new product and service releases to further strengthen their position in global essential oils market.

Don’t miss the business opportunity in the Global Essential Oils Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Global Essential Oils Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Global Essential Oils Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

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