Essential oils market was valued at USD 7400 million in 2019 and is expected to register a CAGR of 8.80% over the forecast period (2020-2027), due to their growing application in food & beverage, healthcare, and home care.

To have an edge over the competition by knowing the market dynamics and current trends of “Essential Oils Market”, request for Sample Report here

Key Drivers

The factors driving the global essential oils market include increasing disposable income among consumers, improved standard of living in developing economies and growing usage of essential oils in various applications especially food and beverages as well as cosmetic applications. The inclination of consumers towards natural and organic products will increase the demand for essential oils in the market. Furthermore, increasing working women population due to the growing awareness regarding women health and hygiene will boost the global essential oils market. Increasing demand for the added flavors and fragrances and high adoption of natural products over chemical-based products by the consumers will further propel the global essential oils market. In addition, rising demand for aromatic personal care products will further enhance the growth of the global essential oils market in upcoming years. The therapeutic properties of essential oils have augmented their demand in medications for aromatherapy or as carriers for drug delivery applications, which is likely to propel the market growth. Moreover, the adoption of essential oils to improve the sensory properties of agricultural items like animal feeds and food commodities has driven the market growth.

Rising incidences of respiratory, dermatological, and dental disorders and growing use of essential oils as natural additives and flavoring agents to preserve food products, like confectionery, meat, pickles, and soft drinks are projected to augment the market size. Surging demand for extended shelf-life and minimal addition of preservatives has encouraged the use of active packaging systems to prevent food products from microbial contamination, which is promoting the demand for essential oils to ensure the safety and quality of seafood, dairy products, cereal-based items will pave the way for market.

However, the high price of the essential oils, less availability of raw material and side effects related to certain essential oils are the certain factors that may hinder the global essential oils market.

Do you want to know more about the Research process and detailed Methodology, Request Research Methodology of this report

Product Type Segment Analysis

Orange oil type captured a significant market share in the global essential oils market in 2018 as it offers multiple health benefits such as firmness, scars, skin elasticity and other benefits to the skin. Moreover, orange oil helps to improve the quality of hair, skin and nails among consumers, reducing PMS-related health issues and hypertension because of its blood-dialing property, which has driven the market growth. The high vitamin C content and antioxidant property of orange oil helps to reduce dark spots and wrinkles, which is propelling their demand.

Lavender oil is also growing during the forecast period owing to the growing demand in the food industry for flavoring tea, dairy products and other food products. Growing penetration of these oils in the development of cosmetic and personal care products will further drive the global essential oils market. The increasing demand for lavender essential oil due to its remarkable benefits like relieving muscle spasms, reducing harmful bacteria, and soothing inflamed skin, especially due to bug bite, to promote fast healing of scarred skin, and relieve muscle tension.

Application Segment Analysis

Food & beverage application is estimated to hold the highest market share, due to their growing use to maintain the flavor and freshness of the final product. In addition, increasing consumer awareness regarding health benefits will increase the usage of essential oils as an additive in food & beverage products. Essential oils are used in cosmetics, toiletries and other personal care products due to the growing health and hygiene among consumers will further enhance the market growth in upcoming years.

Aromatherapy industry is expected to witness a faster share over the forecast period, because of the increasing application of essential oils as a supplemental medicine to treat chronic stress or anxiety, skin problems, fatigue, respiratory infections, depression, and digestion issues.

Method of Extraction Segment Analysis

Distillation method of extraction is widely used by the manufacturers in the global essential oils market. There are different types of distillation methods such as steam distillation, water distillation and water & steam distillation for the extraction of essential oils. In addition, wider application usage and quality control are the advantages of the distillation method in the global essential oils market. The solvent extraction comprises separation of the immiscible liquids like water and organic solvent.

In case, any of your paint points areas are not covered in the current scope of this report, Request for Customization here

Regional Analysis

Europe is forecast to lead the market over the forecast period due to the presence of various industry players and the inclination of consumers towards natural ingredients-based products than synthetic based products. The presence of well-developed end-use industries and growing awareness about the essential oils amongst consumers which is projected to strengthen the market growth.

Asia-Pacific is predicted to witness a higher CAGR during the forecast period due to the increase in the availability of essential oils. Factors including rising disposable income, growing awareness regarding the functionalities and health benefits of essential oils will boost the essential oils market in this region. In addition, the suitable weather conditions for agriculture, cost-effective labour, and easy availability of raw materials are propelling the market size. Furthermore, an increasing inclination towards healthy and nutritional food and beverages in China and India has augmented the market growth.

Top Market Players

Various notable players operating in the market, include Cargill, E. I. Du Pont De Nemours and Company, Koninklijke DSM N.V., Dōterra International LLC, Givaudan SA, Firmenich SA, Young Living Essential Oils, Sensient Technologies Corporation, The Lebermuth Company, Inc., International Flavors & Fragrances Inc., Symrise AG, among others. Prominent players are adopting various strategies such as expansion, collaborations, partnerships, product launches and acquisitions to enhance their existing product portfolio and strengthen their position in the global market.

Key Developments:

• In 2019, International Flavors & Fragrances Inc. collaborated with Neptune Wellness Solutions Inc. to co-develop hemp-derived cannabinoids products for the health & wellness market.
• In 2019, Cargill planned to invest approximately USD 225 million on refined oils facility in Sidney, Ohio and to carter the growing demand for refined and protein oils.

Segments covered in the Report:

The global essential oils market has been segmented on the basis of product type, application, method of extraction and key geographies. Based on product type, the market is segmented into lemon oil, orange oil, lime oil, corn mint oil, peppermint oil,  citronella oil, spearmint oil, geranium oil, clove leaf oil, lavender oil and others. Based on application, the market is segmented into food & beverage, cosmetics & toiletries, aromatherapy, home care, health care and others. Based on method of extraction, the market is segmented into distillation, carbon dioxide extraction, cold press extraction, solvent extraction and others.

For detailed scope of the “Essential Oils Market” report request a Sample Copy of the report

Key questions answered in this research report: