In 2023, the size of the worldwide essential oil market was estimated to be USD 11.41 billion. The market is expected to expand at a compound annual growth rate (CAGR) of 10.55% from USD 12.47 billion in 2024 to USD 27.82 billion by 2032.
Aetheroleum oils are defined as non-water soluble liquids that contain plant-based volatile fragrance components. The strong trend of green consumerism and the rising demand for natural goods for food preservation and sensory aspects are the main drivers of the global market. Comprising intricate and volatile chemical molecules, essential oils are recognized for their ability to combat infections, inflammation, fungal growth, and viral growth. These oils don't have any significant adverse effects, in contrast to the majority of prescription medications. These elements are anticipated to be the main forces behind market expansion. In order to manufacture appealing products, conventional medications and pharmaceuticals also use pleasant-smelling fragrance compounds, primarily for substances that release unwanted scents. Because of their related health benefits and lower danger of negative effects, essential oils are also gradually replacing the majority of chemicals, medications, and pharmaceuticals.
This was noted in a report titled "Essential Oils Market, 2024-2032" by Fortune Business InsightsTM.
Information Source: https://www.fortunebusinessinsights.com/industry-reports/essential-oils-market-101063
Segments
Citrus to Dominate Market Owing to Increasing Popularity among Consumers
On the basis of type, the market is divided into eucalyptus, rosemary, citrus, lavender, tea tree, peppermint, and others. The citrus segment holds the largest Essential Oils Market share owing to their superior functional, availability, organoleptic characteristics, and strong demand dynamics.
Food & Beverages Segment to Hold the Market Share Owing to Increasing Demand for Oils
By application, the market is segmented into spa & relaxation, food & beverages, personal care & cosmetics, pharmaceuticals & medicinal formulations, and others. The food & beverages segment is projected to hold the largest share during the forecast period. This growth is attributed to the incorporation of essential oils in food products, which enhances the sensory qualities, extends shelf life, and improves storage stability of various edibles.
Growing Awareness about the Product to Drive the Direct Distribution Channel Sales
Based on the distribution channel, the market is divided into direct distribution, MLM (multi-level marketing) distribution, and retail distribution. The direct distribution segment holds the largest market share, driven by growing consumer demand for experiencing the fragrance of essential oils firsthand, which is expected to further fuel market growth.
Report Coverage-
The report offers:
- Major growth drivers, restraining factors, opportunities, and potential challenges for the market.
- Comprehensive insights into regional developments.
- List of major industry players.
- Key strategies adopted by the market players.
- Latest industry developments such as product launches, partnerships, mergers, and acquisitions.
Drivers & Restraints-
Growing Demand and Need for Natural Ingredients to Foster Market Growth
The use of plant-based volatile oils plays a crucial role in the natural preservation of food, especially amid growing concerns about synthetic food additives and their long-term harmful effects. Essential oils have demonstrated antibacterial properties in various foods, including milk, fish, meat products, fresh meat, dairy products, and cooked rice.
Essential oils are highly concentrated, with one pound of lavender oil, for instance, requiring around 250 pounds of lavender flowers. This increasing demand coupled with limited supply is likely to drive up prices, potentially limiting their use across various application sectors in developing economies.
Regional Insights-
Europe to Dominate the Market Share Owing to Plant-based Volatile Oils
Europe is expected to lead the market share in 2022, driven by cosmetic manufacturers increasingly incorporating essential oils into their formulations. The rising popularity and demand for aromatherapy in countries like the U.K., Germany, and France are also projected to contribute significantly to the growth of the Essential Oils Market.
North America is forecasted to hold the second-largest market share, with demand for essential oils in the region expected to experience notable growth throughout the projected period.
Competitive Landscape-
Industry Association a Priority for Prominent Companies in the Market
The global market continues to be largely fragmented due to the strong presence of local and private-label brands across various regions. Leading companies like International Flavors and Fragrances Inc., Givaudan International SA, and Symrise AG are pursuing mergers and acquisitions to strengthen their foothold and enhance their influence in the market.
List of Key Players Present in the Report:
- Biolandes SAS (France)
- Givaudan International SA (Switzerland)
- International Flavours 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.)
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