High demand from cosmetics, food and beverage, pharmaceutical and other end-use industries where it is used to impart aroma and flavor is driving the market growth. Rising customer inclination towards organic, flavored cosmetic and food products is fueling the market growth. Also, rising adoption of aromatherapy among potential consumers is likely to foster market demand in upcoming timespan. Rising awareness within the population regarding its aromatic and therapeutic properties has widened its application industries. Moreover, changing lifestyle, increasing disposable income of the population within emerging economies is further boosting the market demand.
The latest report by Value Market Research expects the Global Essential Oil Market was valued USD 7,200 MN in 2017 and is likely to reach at USD 12,745.02 MN by 2024 with the CAGR of 8.0%.
ORANGE, CORN MINT AND LEMON OIL COLLECTIVELY HELD HIGHEST MARKET SHARE
In 2017, orange, corn mint and lemon oil has dominated the segment and has accounted over 35% of total market share. Rising demand from end-use industries to neutralize unpleasant taste, impart aroma, flavor is driving the segment growth. Also, various therapeutic properties of these oils have widened its application in pharmaceutical, massage and relation therapy.
FOOD AND BEVERAGE EMERGED AS THE LEADING APPLICATION SEGMENT
Food and beverage dominated the application segment by accounting for over 25% of the total market share in 2017. Use of essential oils to impart color, flavor, and color to the food is driving the market growth. Also, the advantages of essential oils to control bacterial growth, improve digestion, weight loss are the further fueling the market growth.
EUROPE LED THE REGIONAL MARKET
In 2017, Europe dominated the geographical market by accounting for over 35% of the total market share. A strong market for aromatherapy coupled with raising awareness of a healthy lifestyle for the mental and physical well being among the population is driving the market growth. Rising demand for natural fragrance ingredients in food and cosmetic industry is further boosting market growth.
KEY PLAYERS OF THE MARKET
Biolandes, dTERRA International, Essential Oils of New Zealand, Farotti SRL, H.Reynaude & Fils, Moksha Lifestyle Products, Sydney Essential Oils Co. Pty Ltd., The Lebermuth Company, West India Species, Inc. and Young Living Essential Oils are the prominent players of the essential oil market.
As per this study the Global Essential Oil Market was valued USD 17 MN (by revenue) in 2021 and is anticipated to reach USD 33.98 MN by 2028 with a CAGR of 10.4%.
The essential oil is extracted from various herbs and plants by distillation processes such as steam and water distillation. This essential oil contains volatile aroma compounds and original essence of the plant from which it is derived. They are basically used in food items and beverages, pharmaceuticals, cosmetics, and toiletries products.
Market Dynamics
Growing demand from the food and beverage industry is the major factor driving the market growth. Also, rising application across cosmetics and toiletries and aromatherapy for the fragrant product is another major factor boosting the market growth. Further, changing consumer preferences towards flavored food products and beverages is again propelling the market growth. Additionally, growing demand from pharmaceutical is likely to offer new opportunity growth to the market.
This detailed market study is centered on the data obtained from multiple sources and is analyzed using numerous tools including porter's five forces analysis, market attractiveness analysis and value chain analysis. These tools are employed to gain insights of the potential value of the market facilitating the business strategists with the latest growth opportunities. Additionally, these tools also provide a detailed analysis of each application/product segment in the global market of essential oil.
Market Segmentation
The broad essential oil market has been sub-grouped into product and application. The report studies these subsets with respect to the geographical segmentation. The strategists can gain a detailed insight and devise appropriate strategies to target specific market. This detail will lead to a focused approach leading to identification of better opportunities.
By Product
- Orange
- Eucalyptus
- Corn mint
- Peppermint
- Citronella
- Lemon
- Lime
- Clover Leaf
- Spearmint
- Rosemary
- Others
By Application
- Food & Beverages
- Medical
- Cleaning & Home
- Spa & Relaxation
- Others
Regional Analysis
Furthermore, the report comprises of the geographical segmentation which mainly focuses on current and forecast demand for essential oil in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The report further focuses on demand for individual application segments in all the regions.
Global Essential Oil Market Share by Region (Representative Graph)
The report also covers detailed competitive landscape including company profiles of key players operating in the global market. The key players in the essential oil market include Biolandes, dTERRA International, Essential Oils of New Zealand, Farotti SRL, H.Reynaude & Fils, Moksha Lifestyle Products, Sydney Essential Oils Co. Pty Ltd, The Lebermuth Company, West India Species, Inc., and Young Living Essential Oils. An in-depth view of the competitive outlook includes future capacities, key mergers & acquisitions, financial overview, partnerships, collaborations, new product launches, new product developments and other developments with information in terms of H.Q.
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