The global essential oils market was valued at USD 12.47 billion in 2024 and is expected to expand from USD 13.66 billion in 2025 to USD 27.82 billion by 2032, reflecting a robust compound annual growth rate (CAGR) of 10.69% during the forecast period. In 2024, Europe led the market, holding 43.46% of the global share.
Essential oils are concentrated, plant-derived, hydrophobic liquids that carry volatile aromatic compounds. Their popularity continues to rise due to the growing preference for natural and organic products, particularly in food preservation and sensory applications. This trend aligns with the broader consumer movement toward sustainability and eco-friendly choices.
The COVID-19 outbreak further boosted demand for essential oils, as many consumers turned to them for their perceived health and immunity-boosting benefits. Industry experts highlighted that regular use of oils such as tea tree, peppermint, and eucalyptus could promote calmness, strengthen the immune system, and offer antibacterial and antiviral support. These qualities fueled a surge in demand during the pandemic, especially for aromatherapy applications.
Information Source: https://www.fortunebusinessinsights.com/industry-reports/essential-oils-market-101063
Market Segmentation
Citrus oils dominate the global essential oils market owing to their versatility, appealing fragrance, and broad availability. Their multifunctional properties make them a preferred choice across multiple industries. The food and beverage sector remains the largest consumer segment, utilizing these oils for flavor enhancement, preservation, and stability.
Direct sales represent the leading distribution channel, as consumers prefer firsthand evaluation of aroma and quality before purchasing, particularly in personal care and wellness categories. This interactive approach fosters greater trust and loyalty, strengthening brand-consumer relationships.
Key Insights from the Report
- Analysis of growth drivers, challenges, and opportunities
- Regional patterns and emerging trends
- Detailed company profiles across global markets
- Strategic initiatives such as mergers, acquisitions, and product launches
Market Dynamics
The rising awareness of the negative impacts of synthetic additives is encouraging a shift toward natural solutions like essential oils, valued for their antimicrobial and preservative properties. These oils are increasingly used in foods such as dairy products, meat, and cereals. However, production remains costly and resource-intensive. For example, around 250 pounds of lavender flowers are needed to extract a single pound of lavender oil, creating cost challenges in price-sensitive markets.
Regional Insights
Europe continues to dominate the market, supported by a strong cosmetics industry and increasing interest in aromatherapy, particularly in Germany, France, and the UK. North America holds the second-largest share and is expected to grow steadily, driven by consumer demand for natural health and wellness alternatives.
Leading Companies in the Essential Oils Market
- Biolandes SAS (France)
- Givaudan International SA (Switzerland)
- International Flavors and Fragrances Inc. (U.S.)
- Symrise AG (Germany)
- Enio Bonchev Production Ltd. (Bulgaria)
- The Lebermuth Company, Inc. (U.S.)
- Essential Oils of New Zealand (New Zealand)
- Phoenix Aromas & Essential Oils LLC (U.S.)
- Sydney Essential Oil Co. (Australia)
- Young Living Essential Oils (U.S.)
Get Sample PDF Brochure: https://www.fortunebusinessinsights.com/enquiry/request-sample-pdf/essential-oils-market-101063
Competitive Landscape
The essential oils sector is moderately fragmented, with a mix of established global corporations and regional producers. Companies are increasingly adopting mergers, acquisitions, and strategic collaborations to strengthen market presence and expand their global reach.
