Report Overview

India Essential Oils Market - Industry Trends & Forecast Report, 2029

India essential oils market size is expected to grow at a CAGR of 6.92% during the forecast period between 2023 and 2029. Major growth drivers for India essential oils market include the rising demand for natural and organic products, increasing awareness about the health benefits of essential oils, and the popularity of traditional medicine systems such as Ayurveda and aromatherapy. Essential oils are highly concentrated plant extracts that are used in a wide range of personal care, cosmetic, and aromatherapy products. The market growth is being propelled by several factors, one of which is the introduction of innovative aromas and flavors, such as rose, hyssop, roman chamomile, myrrh, and grapefruit. Also, the market is experiencing an increase in demand for organic products with longer shelf life and added health benefits, which is further boosting product adoption among consumers. Furthermore, the utilization of these products in medicines to treat dermatological, respiratory, and dental disorders is on the rise, and the Government of India (GoI) is implementing various initiatives to promote preventive healthcare, both of which are expected to contribute to the market's growth.

India Essential Oils Market – Overview

Essential oils are highly concentrated hydrophobic fluids that contain active chemical phytoconstituents derived from different parts of plant species such as herbal plants, rinds, leaves, and barks. These oils are referred to as 'essential', as they contain the essence of plants' perfumes. Essential oils are extracted using various techniques including evaporation, cold pressing, resin pressing, solvent evaporation, expression, wax plugging, and absolute oil drilling. The primary principle behind the use of essential oils is their distinctive aromatic hydrocarbons that help to relax the body. Essential oils are widely used in pharmaceutical formulations due to their numerous health benefits, and they are derived from plants, making them safe with no adverse reactions. India Essential Oils are classified into various types including Lemon, Orange, peppermint, spearmint, lime, clove, eucalyptus, and citronella. Lemon oil provides empowering and purifying effects, Lavender oil provides comforting and soothing effects, Peppermint oil alleviates travel sickness and nausea, Bergamot oil relieves ache and aids digestion, and orange oil combats bad odor while empowering and purifying. Essential oils are utilized as a raw material in the production of different items such as food, beverages, lavender oil products, beauty products, home healthcare products, and perfumes. Plant waste is also used as a raw material for the production of essential oils.

India Essential Oils Market

Growth Drivers

Surging Demand from Personal Care Industry

The personal care industry is one of the key end-use industries for essential oils. Essential oils are widely used in the production of cosmetics, perfumes, and toiletries due to their natural and aromatic properties. One of the key factors driving the demand for essential oils in the personal care industry is their longer shelf life than synthetic fragrances. Essential oils are natural and do not contain any synthetic ingredients, which makes them highly desirable for consumers who prefer natural products. Moreover, essential oils have been found to have various therapeutic properties that benefit the skin and hair. For example, essential oils like lavender, tea tree, and peppermint are used in the production of skincare and hair care products due to their antibacterial and anti-inflammatory properties. The increasing demand for natural and organic personal care products is also driving the growth of the essential oils market. Consumers are becoming more conscious of the ingredients used in their personal care products and are opting for natural alternatives.

Restraints

Side-effects Related to Inappropriate Dosage

Inappropriate dosage or misuse of essential oils can lead to adverse side effects. Essential oils are highly concentrated plant extracts that need to be used in the appropriate dosage and with caution. If used improperly, they can cause skin irritation, allergic reactions, and other health problems. The potential side effects of essential oils have led to concerns among consumers and regulatory bodies, which can restrain the growth of the essential oil market in India. Consumers may become hesitant to use essential oils if they perceive them as potentially harmful or if they are not properly informed about their use. Also, the lack of standardization in the essential oil industry can also lead to safety concerns. There is currently no regulatory framework in India for essential oils, and the quality and purity of essential oils can vary widely among different brands and suppliers.

Impact of COVID-19 on India Essential Oils Market

COVID-19 had detrimental impact on the essential oils market in India. The disruption in the supply chain caused by the pandemic and related lockdowns has resulted in a shortage of essential oils, affecting their production and availability. Additionally, the closure of many businesses and industries reduced the demand for essential oils, including spas, salons, and other businesses that use essential oils in their services. Despite these challenges, the pandemic also created new opportunities for the essential oils market, as consumers became more health-conscious and are looking for natural remedies and products, including those that contain essential oils. Furthermore, the shift towards online shopping has led to an increase in online sales for companies in the essential oils market.

India Essential Oils Market

Segmental Coverage

India Essential Oils Market – By Type

By type, India essential oils market is bifurcated into Singles and Blends segments.

India Essential Oils Market – By Product

By product, India essential oils market is segmented into Lavender Oil, Lemon Oil, Orange Oil, Frankincense, Chamomile Oil, Lime Oil, Rosemary, Tea Tree, Eucalyptus Oil, Clove Oil, and Peppermint Oil. The clove segment is expected to dominate due to its characteristics. Clove is the dried flower bud of an evergreen tree of medium size and is available in the Molucca islands of Indonesia. It is a good source of nutrients, including minerals, vitamin C and A, essential oils, non-volatile propyl extract (fat), and dietary fiber. India and the United States are the largest importers of cloves worldwide. Clover leaf oil is typically obtained through the process of evaporation.

India Essential Oils Market – By Application

By product, India essential oils market is segmented into Spa & Relaxation, Personal Care & Cosmetics, Food & Beverages, and Pharmaceuticals. The Spa Relaxation (Aromatherapy) segment is expected to be the highest throughout the predicted period. Aromatherapy involves the use of liquid substances derived from plant materials, which contain volatile oils, and is achieved through various techniques. The demand for aromatherapy is being driven up by changing lifestyles and their implications, such as increased stress and depression, as well as higher disposable incomes. Essential oils are extracted from natural plant sources, such as flower petals, herbal products, and trees. Aromatherapy commonly uses essential oils like tea tree, jasmine, rose, and peppermint oils. These oils are used in relaxation therapies, acupressure, and other types of care. Followed by, food and beverages segment dominating the market. Essential oils have antimicrobial properties that are utilized to prolong the shelf life of food and beverage products. Food and beverage manufacturers are increasingly focused on extending product shelf life without compromising quality, which is a significant driver of growth for this application segment. There is a growing demand for natural, safe, and minimally processed food products worldwide, which is the major factor driving the use of essential oils in food and beverage applications. Also, personal care and cosmetics segment witnessed a fast growth during the forecast period. The pleasant fragrance of essential oils makes them ideal for use in personal care products, such as cosmetics, toiletries, and fragrances like perfumes, body sprays, and air fresheners. Essential oils are categorized as base notes, middle notes, and top notes based on their volatility, which is important for their use in perfumes. Moreover, the rise in consumer disposable incomes and growing awareness regarding the need to maintain a healthy lifestyle are expected to drive the demand for fragrances produced using essential oils.

India Essential Oils Market – By Distribution Channel

Based on distribution channel, India essential oils market is split into Direct and Retail segments.

India Essential Oils Market – By Region

Geographically, India essential oils market is divided into North India, South India, East India, and West India regions. Some of the major essential oil-producing states in India are Tamil Nadu, Karnataka, Uttar Pradesh, Andhra Pradesh, and Maharashtra. Tamil Nadu and Karnataka in South India are major producers of sandalwood oil, while Uttar Pradesh in North India is known for its production of menthol oil. Andhra Pradesh in South India is a significant producer of citronella oil, while Maharashtra in West India produces a range of essential oils, including eucalyptus, lemongrass, and patchouli.

Competitive Landscape

Major players operating in India essential oils market include GrainCorp, Malteurop, Rahr Corporation, Boortmalt, Indesso, Lipoid Kosmetic AG, The Herbarie at Stoney Hill Farm, Inc.,  International Flavors & Fragrances, Inc., Bell Flavors & Fragrances, and Rutland Biodynamics Ltd. Malteurop, Rahr Corporation, Boortmalt, Indesso, Lipoid Kosmetic AG, The Herbarie at Stoney Hill Farm, Inc.,  International Flavors & Fragrances, Inc., Bell Flavors & Fragrances, and Rutland Biodynamics Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Type

• Singles

• Blends

By Product

• Lavender Oil

• Lemon Oil

• Orange Oil

• Frankincense

• Chamomile Oil

• Lime Oil

• Rosemary

• Tea Tree

• Eucalyptus Oil

• Clove Oil

• Peppermint Oil

By Application

• Spa & Relaxation

• Personal Care & Cosmetics

• Food & Beverages

• Pharmaceuticals

By Distribution Channel

• Direct

• Retail

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Essential Oils Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Longer Shelf Life Surging the Demand from Personal Care Industry
         2. Increasing Application in Supplement and Pharmaceutical Industries
      2. Restraints
         1. Side-effect Related to Inappropriate Dosage
      3. Opportunity
         1. Rising Disposable Income and Standard of Living
      4. Challenges
         1. Limited supply of Raw Materials
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Essential Oils Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Singles
         2. Blends
      2. By Product
         1. Lavender Oil
         2. Lemon Oil
         3. Orange Oil
         4. Frankincense
         5. Chamomile Oil
         6. Lime Oil
         7. Rosemary
         8. Tea Tree
         9. Eucalyptus Oil
         10. Clove Oil
         11. Peppermint Oil
         12. Others
      3. By Application
         1. Spa and Relaxation
         2. Personal Care & Cosmetics
         3. Food & Beverages
         4. Pharmaceuticals
         5. Others
      4. By Distribution Channel
         1. Direct
         2. Retail
      5. By Region
         1. North India
         2. South India
         3. East India
         4. West India
5. North India Essential Oils Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Product
      3. By Application
      4. By Distribution Channel
6. South India Essential Oils Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Product
      3. By Application
      4. By Distribution Channel
7. East India Essential Oils Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Product
      3. By Application
      4. By Distribution Channel
8. West India Essential Oils Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By Product
      3. By Application
      4. By Distribution Channel
9. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. India Essential Oils Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
10. Impact of Covid-19 on India Essential Oils Market
11. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)

     11.1.   GrainCorp

    11.2.   Malteurop

    11.3.   Rahr Corporation

   11.4.   Boortmalt

  11.5.   Indesso,

 11.6.   Lipoid Kosmetic AG

 11.7.   The Herbarie at Stoney Hill Farm, Inc.

 11.8.   International Flavors & Fragrances, Inc.

 11.9.   Bell Flavors & Fragrances

 11.10. Rutland Biodynamics Ltd.

11.11. Other Prominent Players

11.  
12. Key Strategic Recommendations
13. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

*Financial information of case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List Of Figures

Figure 1       India Essential Oils  Segmentation     

Figure 2       India Essential Oils Market Value Chain Analysis     

Figure 3       Company Market Share Analysis, 2022

Figure 4       India Essential Oils Market Size, By Value (USD Million), 2019–2029   

Figure 5       India Essential Oils Market Share, By Type, By Value, 2019–2029       

Figure 6       India Essential Oils Market Share, By Product, By Value, 2019–2029   

Figure 7       India Essential Oils Market Share, By Application, By Value, 2019–2029        

Figure 8       India Essential Oils Market Share, By Distribution Channel, By Value, 2019–2029          

Figure 9       North India Essential Oils Market Size, By Value (USD Million), 2019–2029    

Figure 10     North India Essential Oils Market Share, By Type, By Value, 2019–2029        

Figure 11     North India Essential Oils Market Share, By Product, By Value, 2019–2029    

Figure 12     North India Essential Oils Market Share, By Application, By Value, 2019–2029

Figure 13     North India Essential Oils Market Share, By Distribution Channel, By Value, 2019–2029  

Figure 14     South India Essential Oils Market Size, By Value (USD Million), 2019–2029   

Figure 15     South India Essential Oils Market Share, By Type, By Value, 2019–2029       

Figure 16     South India Essential Oils Market Share, By Product, By Value, 2019–2029   

Figure 17     South India Essential Oils Market Share, By Application, By Value, 2019–2029          

Figure 18     South India Essential Oils Market Share, By Distribution Channel, By Value, 2019–2029  

Figure 19     East India Essential Oils Market Size, By Value (USD Million), 2019–2029      

Figure 20     East India Essential Oils Market Share, By Type, By Value, 2019–2029

Figure 21     East India Essential Oils Market Share, By Product, By Value, 2019–2029     

Figure 22     East India Essential Oils Market Share, By Application, By Value, 2019–2029 

Figure 23     East India Essential Oils Market Share, By Distribution Channel, By Value, 2019–2029  

Figure 24     West India Essential Oils Market Size, By Value (USD Million), 2019–2029     

Figure 25     West India Essential Oils Market Share, By Type, By Value, 2019–2029

Figure 26     West India Essential Oils Market Share, By Product, By Value, 2019–2029    

Figure 27     West India Essential Oils Market Share, By Application, By Value, 2019–2029

Figure 28     West India Essential Oils Market Share, By Distribution Channel, By Value, 2019–2029  

List of Tables

Table 1 India Essential Oils Market Size, By Value (USD Million), 2019–2029

Table 2 India Essential Oils Market Size, By Type, By Value, 2019–2029

Table 3 India Essential Oils Market Size, By Product, By Value, 2019–2029

Table 4 India Essential Oils Market Size, By Application, By Value, 2019–2029

Table 5 India Essential Oils Market Size, By Distribution Channel, By Value, 2019–2029

Table 6 North India Essential Oils Market Size, By Value (USD Million), 2019–2029

Table 7 North India Essential Oils Market Size, By Type, By Value, 2019–2029

Table 8 North India Essential Oils Market Size, By Product, By Value, 2019–2029

Table 9 North India Essential Oils Market Size, By Application, By Value, 2019–2029

Table 10      North India Essential Oils Market Size, By Distribution Channel, By Value, 2019–2029

Table 11      South India Essential Oils Market Size, By Value (USD Million), 2019–2029

Table 12      South India Essential Oils Market Size, By Type, By Value, 2019–2029

Table 13      South India Essential Oils Market Size, By Product, By Value, 2019–2029

Table 14      South India Essential Oils Market Size, By Application, By Value, 2019–2029

Table 15      South India Essential Oils Market Size, By Distribution Channel, By Value, 2019–2029

Table 16      East India Essential Oils Market Size, By Value (USD Million), 2019–2029

Table 17      East India Essential Oils Market Size, By Type, By Value, 2019–2029

Table 18      East India Essential Oils Market Size, By Product, By Value, 2019–2029

Table 19      East India Essential Oils Market Size, By Application, By Value, 2019–2029

Table 20      East India Essential Oils Market Size, By Distribution Channel, By Value, 2019–2029

Table 21      West India Essential Oils Market Size, By Value (USD Million), 2019–2029

Table 22      West India Essential Oils Market Size, By Type, By Value, 2019–2029

Table 23      West India Essential Oils Market Size, By Product, By Value, 2019–2029

Table 24      West India Essential Oils Market Size, By Application, By Value, 2019–2029

Table 25      West India Essential Oils Market Size, By Distribution Channel, By Value, 2019–2029

Table 26      GrainCorp Company Overview

Table 27      GrainCorp Financial Overview

Table 28      Malteurop Company Overview

Table 29      Malteurop Financial Overview

Table 30      Rahr Corporation Company Overview

Table 31      Rahr Corporation Financial Overview

Table 32      Boortmalt Company Overview

Table 33      Boortmalt Financial Overview

Table 34      Indesso, Company Overview

Table 35      Indesso, Financial Overview

Table 36      Lipoid Kosmetic AG Company Overview

Table 37      Lipoid Kosmetic AG Financial Overview

Table 38      The Herbarie at Stoney Hill Farm, Inc. Company Overview

Table 39      The Herbarie at Stoney Hill Farm, Inc. Financial Overview

Table 40      International Flavors & Fragrances, Inc. Company Overview

Table 41      International Flavors & Fragrances, Inc. Financial Overview

Table 42      Bell Flavors & Fragrances Company Overview

Table 43      Bell Flavors & Fragrances Financial Overview

Table 44      Rutland Biodynamics Ltd. Company Overview

Table 45      Rutland Biodynamics Ltd. Financial Overview