The global essential oils market size is set to gain traction by reaching USD 18.25 billion by 2028 while exhibiting a CAGR of 9.57% in the forecast period. This information is given by Fortune Business Insights™ in its report, titled, “Essential oils Market, 2021-2028.” The report further observes that the market stood at USD 8.74 billion in 2020. The rising trend of green consumerism and natural inputs for food preservation and sensory-related aspects are expected to boost the product’s demand. Companies are further focusing on launching new products. For instance, in June 2019, Robertet, a natural ingredient producer, launched encapsulated powdered essential oil. This oil can be used as a carrier for prebiotic insulin and transporting petroleum oils into powder form for improved absorption. Thus this technology will allow the use of these oils in the nutraceutical industry.
The research report focuses on analyzing the essential oils by considering contributions, prospects, and growth trends. It presents detailed profiles of key players present in the market to determine their competencies in each segment. Besides, it ensures to help our clients better understand the competitive landscape, such as mergers & acquisitions, new product launches, joint ventures, and collaborations.
List of Key Players Profiled in Report
- Biolandes SAS (France)
- Givaudan International SA (Vernier, Switzerland)
- International Flavors and Fragrances Inc. (New York, United States)
- Symrise AG (Holzminden, Germany)
- Enio Bonchev Production Ltd. (Bulgaria)
- The Lebermuth Company, Inc. (Indiana, United States)
- Essential Oils of New Zealand (New Zealand)
- Phoenix Aromas & Essential Oils LLC (United States)
- Sydney Essential Oil Co. (Australia)
- Young Living Essential Oils (Utah, United States)
Drivers and Restraints
Increasing Inclination towards Aromatherapy to Fuel Market Growth
The increasing inclination of people toward their personal wellness is expected to contribute towards essential oils market growth. Consumers prefer high-quality products at reasonable prices to satisfy their needs. Therefore, manufacturers are increasing their expenditure on research and development to come up with premium quality ethereal oils. Additionally, the robust hospitality and tourism sector is offering aromatherapy within reach of common consumers, and this trend is further expected to boost the ethereal oils market.
On the other hand, the manufacturing of ethereal oils is a very concentrated product. For example, one pound of lavender oil requires around 250 pounds of lavender flowers. Therefore, excessive demand for raw materials is creating constrained supply, which ultimately makes the prices hike. Therefore, acting as the major market constraint.
By type, the market is divided into citrus, eucalyptus, lavender, rosemary, tea tree, and others. Based on type, the citrus segment held a market share of 41.48% in 2020. This is attributable to its superior functional and organoleptic characteristics.
On the basis of its application, it is divided into food & beverages, personal care & cosmetics, pharmaceuticals, and others. Finally, based on region, the market is categorized into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Europe to Remain at Forefront; Backed by Use of these Oils in Food Preservation
Europe is expected to hold the largest essential oils market share during the forecast period. This is attributable to the growing demand for aromatherapy and the use of these volatile oils in food preservation in major European countries such as Germany, France, and the U.K. Thus, such factors are expected to promote the sales of plant-based volatile oils in the region. The region stood at USD 3.85 billion in 2020.
North America is expected to showcase significant market share during the forecast period owing to the increasing usage of natural ingredients containing cosmetic products. Moreover, high disposable income in the region supports people in joining various aromatherapy programs promoting the regional market.
Key Players to Focus on New Launches to Strengthen their Market Prospectus
The global market for aetheroleum oils contains a large number of prominent companies that are constantly trying to develop unique devices to cater to the demand from patients across the globe. To do so, they are joining hands with local or reputed firms, launching new solutions to strengthen their portfolio in the market. Below is industry development:
- August 2018: Gilbert, an Arizona-based company, launched the Essence by Isagenix Essential Oil collection. The new product is designed to help customers meet a range of health and wellness needs, from relieving stress to supporting weight wellness journeys.