Australia Essential Oil Market Overview, 2028

Australia Essential Oil Market Overview, 2028

Australia's essential oil market is a fragrant tapestry woven with the country's rich natural bounty. From the pristine eucalyptus groves of the Blue Mountains to the sun-kissed fields of lavender in Tasmania, Australia's diverse landscapes offer an aromatic symphony of essential oils that captivate the senses. The market is a testament to the nation's commitment to sustainable harvesting practices and the preservation of its unique flora and fauna. Whether it's the soothing scent of Australian tea tree oil or the invigorating aroma of lemon myrtle, these precious extracts not only enhance well-being but also reflect Australia's deep connection to its environment. Australia has a unique flora largely of Gondwanan origin with later influence from the Indian subcontinent and south-east Asia. As the demand for natural remedies and aromatherapy surges worldwide, Australia's essential oil market stands as a fragrant beacon of purity, offering a sensory journey through its untamed landscapes and time-honored traditions. The Essential Oil Producers Association of Australia (EOPAA) plays a pivotal role in Australia's thriving essential oil industry. Comprising dedicated producers, cultivators, and enthusiasts, EOPAA serves as the driving force behind the country's essential oil sector. Certifications like Certified Organic or ACO (Australian Certified Organic) ensure stringent standards during cultivation and processing stages were met - offering further assurance about product quality. Identifying real versus fake isn't always straightforward when it comes to essential oils. Authenticity goes beyond just looking at 'made in Australia' labels; one needs to delve deeper into details like botanical name, extraction method used, plant part utilized for oil production as well as batch number.

According to the research report ""Australia Essential Oil Market Overview, 2028,"" published by Bonafide Research, the Australia Essential Oil market is projected to reach market is expected to add around USD 58.5 Million from 2023 to 2028. Essential oils have been a part of human life for centuries, their therapeutic and medicinal properties making them indispensable. Demand for essential oils has experienced a dramatic increase in recent years. According to a survey conducted back in 2017, around 11% of Australians were found using essential oils specifically for health-related purposes. Exports of natural oils from Australia account for more than 90% of the country's total production, underscoring the importance of international demand to sustain its farming sector. This highlights how crucial international demand is for sustaining our farming sector. According to data from the Department of Agriculture, exports contribute substantially towards supporting regional economies by creating jobs and fueling development initiatives at a grassroots level. WA is a major exporter of essential oils (HS3301/3302). Total Western Australian (WA) essential oils exports were estimated at USD 26.6 million for the 2021 financial year, representing 23% of all Australian essential oils exports by value. Our essential oils exports are showing stronger than average growth, achieving a 19 year 31% compound annual growth rate (CAGR) between the 2002 and 2021 financial years compared to 9% Australia-wide CAGR for the same period.
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The report has been segmented on the basis of Type of essential oils. These types includes Citrus (Oranges, Tangerines/ Mandarins, Lemons and Limes, Grapefruit), Rosemary Oil, Geranium Oil, Lavender Oil, Rose Oil, Peppermint Oil, Clove leaf Oil , Eucalyptus Oil, Citronella Oil, Clove Bud Oil, Jasmine Oil, Tea Tree Oil, and Others (Dill Seed, Saffron, Grapeseed Oil, Cumin Seed, Nutmeg, Cedarwood, Frankincense, Sandalwood, Sage, Clove bud, Myrrh Oil, Juniper Berry, Cardamom, Black pepper, Ginger, Cinnamon, Basil, Spearmint oil, Jasmine oil, Turmeric, Vetiver, Acorus Calamus, Ajowan, Carrot Seed, Cassia, Celery, Curry Leaf, Cypriol, Davana, Fennel, Garlic, Ylang ylang). These two oils, among others like lemon myrtle and kunzea, showcase Australia's rich biodiversity and commitment to sustainable cultivation practices. The production of these essential oils not only contributes significantly to the country's economy but also reflects Australia's dedication to providing high-quality, naturally derived products to global markets.The southeastern states of Victoria and Tasmania are renowned for their production of eucalyptus oil. Eucalyptus trees thrive in these cooler, temperate climates, with the Blue Mountains in New South Wales also contributing significantly to eucalyptus oil production. Tea tree oil, known for its antiseptic and medicinal properties, is primarily cultivated in the northern regions of New South Wales and Queensland. These subtropical areas provide the ideal conditions for the tea tree's growth. Lavender farms are scattered across various states, including Victoria, New South Wales, and Tasmania. These regions offer a range of climates suitable for lavender cultivation, resulting in diverse lavender oil varieties and thus hold the largest market CAGR.

The report is segmented on the basis of Application of essential oils. In Australia, the food and beverages industry has long held the largest market share, serving as a cornerstone of the nation's economy. With its diverse culinary traditions and high-quality produce, Australia has earned a global reputation for its food and beverage exports, ranging from wines to exotic fruits. However, in recent years, there has been a noticeable shift as the aromatherapy and healthcare industry gains momentum in the use of essential oils. This surge in demand is driven by the growing awareness of the therapeutic and wellness benefits of essential oils, many of which are native to Australia. As consumers increasingly seek natural remedies and holistic approaches to health, essential oils sourced from the country's unique flora, such as tea tree, eucalyptus, and lavender are becoming essential ingredients in a wide range of healthcare and aromatherapy products. This expansion has not only diversified Australia's export portfolio but also reflects a commitment to sustainable and ethical practices in essential oil production. It's a testament to how Australia's diverse landscapes contribute not only to delightful culinary experiences but also to the well-being and relaxation of people worldwide through the use of these fragrant and beneficial oils. Based on the nature of essential oils, the market is divided into conventional type and organic type. The demand for organic essential oils has indeed seen a significant increase, driven by consumers' growing preference for natural and sustainable products. Organic essential oils are prized for their purity and the absence of synthetic pesticides and chemicals in their production. They often cater to eco-conscious consumers who prioritize environmental and health considerations. However, despite the surge in demand for organic essential oils, the conventional type of essential oils still holds the largest market share. This is partly due to the long-established presence of conventional essential oil production and the broader accessibility of these products. Conventional essential oils are more readily available, and they often serve various industries, including cosmetics, perfumery, and food processing.

In Australia, the most commonly used method for the extraction of essential oils is distillation and holds the largest market share. This centuries-old technique relies on the application of steam to release the aromatic compounds from plant materials. In the case of Australian essential oils, native plants like eucalyptus, tea tree, and lemon myrtle are often used as sources. Additionally, steam distillation aligns well with Australia's commitment to sustainable and environmentally friendly practices in essential oil production, making it the method of choice for many Australian essential oil producers. Cold press extraction, also known as cold-pressing or expression, is another method used for citrus oils like orange and lemon oils. It involves mechanically pressing the oils from the peels of citrus fruits, and it is known for producing high-quality oils that retain their natural fragrance. While carbon dioxide extraction, solvent extraction, and other methods like resin tapping and maceration are used for specific essential oils and in certain applications, they are not as commonly utilized in the Australia compared to distillation and cold press extraction. In Australia, consumers of essential oils typically access these aromatic treasures through a variety of distribution channels, with the retail sector playing a prominent role. Health food stores, pharmacies, and specialty shops dedicated to natural and holistic products are popular destinations for those seeking essential oils. These retail outlets offer a diverse range of essential oils, providing consumers with the opportunity to browse and select oils that suit their preferences and needs. In recent years, e-commerce has also experienced remarkable growth as a distribution channel for essential oils in Australia. Online platforms and dedicated websites allow consumers to explore a vast array of essential oils and related products, often providing detailed information, customer reviews, and convenient ordering options. This digital shift has further expanded the accessibility of essential oils, enabling consumers from all corners of the country to explore and purchase their favorite oils with ease. Additionally, essential oils are frequently integrated into spa and wellness centers, where consumers experience the oils in relaxing treatments and purchase them directly from these establishments. The combination of these distribution channels provides Australian consumers with a wealth of choices when it comes to acquiring essential oils, catering to a diverse range of preferences and lifestyles.

The COVID-19 pandemic, while predominantly associated with hardship and challenges had an unexpected silver lining in the Australia' essential oil market. As the world grappled with uncertainty and anxiety, there was a surge in interest in holistic wellness and natural remedies, which breathed new life into the essential oil industry. Australians, seeking solace and comfort, turned to the therapeutic power of essential oils to alleviate stress, boost immunity, and create a sense of calm in their homes. The pandemic-induced emphasis on self-care and well-being saw essential oils becoming a cornerstone of daily routines. Diffusers filled with soothing lavender oil became fixtures in households, offering a fragrant refuge from the chaos outside. Eucalyptus oil gained popularity for its respiratory benefits, while citrus oils like lemon and orange found their way into homemade cleaning products, emphasizing the desire for safe and natural alternatives. Additionally, the direct sales model used by many essential oil companies, where independent distributors operate from home, thrived during lockdowns, providing economic opportunities for individuals facing job uncertainty. The increased online presence of essential oil companies made it convenient for consumers to explore and purchase products from the safety of their homes.

Considered in this report:
• Geography: Australia
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• Australia Essential Oil market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type:
• Citrus (Oranges, Tangerines/ Mandarins, Lemons and Limes, Grapefruit)
• Rosemary Oil
• Geranium Oil
• Lavender Oil
• Rose Oil
• Peppermint Oil
• Clove leaf Oil
• Eucalyptus Oil
• Citronella Oil
• Clove Bud Oil
• Jasmine Oil
• Tea Tree Oil
• Others (Dill Seed, Saffron, Grapeseed Oil, Cumin Seed, Nutmeg, Cedarwood, Frankincense, Sandalwood, Sage, Clove bud, Myrrh Oil, Juniper Berry, Cardamom, Black pepper, Ginger, Cinnamon, Basil, Spearmint oil, Jasmine oil, Turmeric, Vetiver, Acorus Calamus, Ajowan, Carrot Seed, Cassia, Celery, Curry Leaf, Cypriol, Davana, Fennel, Garlic, Ylang ylang)

By Application:
• Food & beverages
• Cosmetics
• Aromatherapy
• Healthcare
• Home care
• Other applications (feed, insecticides, and paints)

By Nature:
• Conventional
• Organic

By Method of Extraction:
• Distillation
• Cold press extraction
• Carbon dioxide extraction
• Solvent extraction
• Other extraction methods (resin tapping and maceration)

By Distribution Channel:
• Direct Distribution
• Retail Distribution
• Mlm Distribution
• Online
• Others (Craft Fairs and Trade Shows, Home Parties and Workshops, Beauty Salons, Alternative Medicine Practitioners, etc.)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Essential Oil industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.