The aromatherapy market has witnessed significant growth in recent years owing to the growing consumer preference towards plant-derived and natural products. Aromatherapy uses aromatic plant oils and compounds from plants to affect a person's mood or health. Some key advantages are that aromatherapy products help reduce stress and anxiety, improve sleep, enhance mental focus and relaxation. With rising health awareness and busy lifestyles, aromatherapy helps keep oneself calm and rejuvenated.
The Global aromatherapy market is estimated to be valued at US$ 6.39 Bn in 2024 and is expected to exhibit a CAGR of 8.2% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the aromatherapy market are doTERRA International, Koninklijke DSM N.V., International Flavors & Fragrances Inc., Symrise, Eden Garden, Young Living Essential Oils, Frontier Natural Products Corporation, Rocky Mountain Oil, Mountain Rose Herbs, Plant Therapy Inc., Thann-Oryza Co. Ltd, G Baldwin & Co., Ouwave Aroma Tech Co. Ltd, RyohinKeikaku Co. Ltd, and Isagenix International LLC. Key players are investing in R&D activities to develop innovative aromatherapy products and expand their product portfolio.
The growing demand for plant-based wellness products combined with increasing disposable incomes is expected to drive the market over the forecast period. Aromatherapy helps treat various conditions like anxiety, insomnia, depression, pain and improves overall well-being, thereby finding wide applicability.
Manufacturers are focusing on expanding their geographic presence by tapping opportunities in developing nations. The market in Asia Pacific is expected to grow at a high rate owing to increasing health awareness and rising disposable incomes. Additionally, easy availability of essential oils and growing e-commerce is also supporting the global expansion of the aromatherapy market.
Market Drivers
Health benefits associated with aromatherapy: Growing consumer awareness about health benefits of aromatherapy like stress relief, relaxation, pain relief is a key factor supporting market growth. Aromatherapy helps lower heart rate, relieves muscle tension and promotes relaxation.
Busy lifestyles and rising stress levels: Fast paced lifestyles and associated high stress levels have increased the demand for aromatherapy products that help reduce anxiety and promote relaxation and well-being. Busy consumers are opting for aromatherapy for its temporary and immediate relaxing effects.
Ease of use: Aromatherapy products like essential oils, diffusers are easy to use and non-invasive. They do not require any prescriptions or consultations, which has broadened their consumer base. This drives greater adoption of aromatherapy for day-to-day wellness needs.
Current geopolitical situation and the aromatherapy market
The current geopolitical tensions across various regions are impacting the aromatherapy market growth. The ongoing Russia-Ukraine conflict and economic sanctions on Russia by western nations has disrupted essential oil supply chains. Russia is one of the leading producers and exporters of various essential oils like lavender, peppermint, eucalyptus etc. used in aromatherapy. The restricted trade has inflated the prices of these oils in the international market. This will negatively impact the aromatherapy market in the short term. However, manufacturers are exploring alternative sourcing options from other countries to overcome this supply issue.
The tensions between China and Taiwan also add uncertainties. Any potential conflicts could affect the growth strategies of market players focused on expanding in the Asia Pacific region. Overall, the market remains resilient with growing awareness about wellness benefits. Players will need to closely monitor the geopolitical situation and diversify their supply networks globally to mitigate risks from regional disruptions. Strengthening domestic production can also help reduce heavy reliance on imports amid unstable trade policies between nations.
Fastest growing regions for the aromatherapy market
The Asia Pacific region is projected to witness the fastest growth in the global aromatherapy market during the forecast period. This is mainly attributed to the rising health consciousness and increasing adoption of aromatherapy products for relaxation and stress relief in highly populated countries like China and India. The growing demand for natural wellness products is encouraging market players to rapidly expand their footprints across Asia Pacific with new product launches, collaborations with local suppliers and effective promotional activities through digital channels. Significant economic development coupled with rising disposable incomes is also driving the demand for premium aromatherapy products in Asia Pacific. North America currently dominates the market but Asia Pacific is envisioned to surpass other regions in terms of aromatherapy sales revenues by 2030.
Geographical regions with highest revenues in the aromatherapy market
Currently, North America accounts for the highest share of revenues in the global aromatherapy market led by high awareness, strong presence of leading brands and easy availability of various aromatherapy products through multiple retail channels including hypermarkets, health stores and e-commerce platforms. Europe is also a major revenue generator for market players owing to increasing preference of aromatherapy over medications for treatment of minor health issues like headaches, sleep disorders and anxiety in countries like Germany, UK and France. However, Asia Pacific region dominated by China and India is expected to contribute the highest revenues to the global aromatherapy market by 2030 due to ongoing development of retail sectors, affordable product pricing and large consumer base.
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