Essential Oil Extraction Market - 2024-2031

Essential Oil Extraction Market - 2024-2031

Global Essential Oil Extraction Market reached US$ 8.41 billion in 2023 and is expected to reach US$ 13.91 billion by 2031, growing with a CAGR of 6.5% during the forecast period 2024-2031.

The global essential oil l extraction market has witnessed significant growth and transformations over the years. Consumers are highly adopting essential oil extracts they are concentrated aromatic compounds obtained from plants, they are highly valued for various properties in many medicinal uses, cosmetic, and skincare products, cleaning and disinfecting products, and others.

In addition, manufacturing companies are launching innovative products to attract larger consumer bases. For instance, in August 2023, Botanical Innovations launched Botanical’s Breath Microencapsulated Essential Oils. Microencapsulation technology is designed to allow for the gradual and sustained release of essential oil compounds, and it has a new era of innovation in nutraceuticals.

The cosmetics & toiletries segment accounts for the largest share of global essential oils market. As well as the Asia-Pacific region, showing the dominance in world share as the consumer demand is high in this region. Similarly the manufacturing companies are also focusing on developing this market, which helps in driving the global essential oil extraction market.

Dynamics

Increasing Demand for Aromatherapy

The interest in aromatherapy is rising among consumers, which helps in a growing interest in natural approaches like aromatherapy, which uses essential oils to promote physical, mental, and emotional health. This expands and new in creating opportunities for the essential oil extraction market.

Furthermore, the variety of essential oil applications in various aromatherapy is expanding rapidly, manufacturers are also launching innovative products in their portfolios. For instance, in November 2023, ELYSCE launched a line of aromatherapy products, featuring U.S.-made, high-quality essential oils and accessories. They are essential oils that are 100% natural, pure, cruelty-free, and free from synthetic fragrances, formaldehyde, and more.

Rising Usage of Essential Oils in a Wide Range of Applications

The essential oils widely used across a diverse range of applications have indeed been a driving force behind the growth of the global essential oil extraction market. they are widely used in cosmetics and personal care products due to their natural fragrance and potential skin benefits. And also they are used in aromatherapy, medical applications as they offer various properties.

In addition, the manufacturers are highly focused on developing and launching products of essential oils in their portfolios. For instance, in January 2023, VedaOils Launched New Fragrance Oils & Blends. The enticing combinations include more than 15 options, including the Christmas Wreath Blend, Sleep Oil Blend, Pumpkin Pie Essential Oil Blend, Unwind Essential Oil Blend & Autumn Wreath Oil Blend. This delivers benefits such as improved sleep and less stress.

High Production Cost

The extraction methods such as cold press extraction, distillation,solvent extraction, and other extraction methos hare require specialized equipments, which can contributing to higher operational expenses. Hence, the high production cost can limit the market for smaller consumer bases which can decline the growth of global essential oil extraction market.

Segment Analysisn

The global essential oil extraction market is segmented based on extraction method, products, distribution channel, application, and region.

Increase in the Application of Essential Oils in Cosmetics

The cosmetics & toiletries segment accounts for the largest share of the global essential oil extraction market. Consumers are highly adopting these essential oils in cosmetics and toiletries as these essential oils provide natural and pleasing fragrances to toiletries, including products like soaps, shower gels, shampoos, and lotions, and also offer potential skin benefits.

Furthermore, manufacturing companies are expanding their essential oil portfolios by launching a wide range of products. For instance, in December 2022, Dabur launched ‘Odonil Gel Pocket’, a Gel-based Air Freshener infused with Essential Oils. A Unique Gel-based air freshener that gives superior and long-lasting fragrance.

Geographical Penetration

Product Launches in Asia-Pacific

Asia-Pacific has been a dominant force in the global essential oil extraction market and its significance has only grown in the post-2020 era. Consumers in this region are highly adopting concentrated essential oils in various applications as they offer natural medicinal and aromatic properties, hence it might help in driving the essential oil extraction market in this region.

Furthermore, manufacturing companies in this region are developing innovative technologies and launching products in their portfolios. For instance, in June 2023, ACTI ZEE T, a leading brand in natural health and wellness launched a new line of Pure Essential Oils in the Indian market. The pure essential oils range which are lavender and invigorating eucalyptus to refreshing peppermint and soothing rose.

Competitive Landscape

The major global players in the market include dōTERRA, Young Living Essential Oils., Edens Garden., Plant Therapy., Aura Cacia, Neom Ltd, CLIGANIC, Rocky Mountain Oils, LLC., Starwest Botanicals., and Organic Harvest.

COVID-19 Impact Analysis

Despite the adverse effects of the COVID-19 pandemic on various industries, the essential oils market experienced growth during this period. The increased awareness of essential oils' antimicrobial, antioxidant, and anti-infective properties contributed to their use in treating a range of health conditions, including stress, immunity disorders, sleep disorders, and depression. The heightened prevalence of mental health issues during the pandemic further underscored the significance of the essential oils market, leading to its expansion.

By Extraction Method
• Distillation
• Cold Press Extraction
• Carbon Dioxide Extraction
• Solvent Extraction
• Others

By Product
• Lavender Oil
• Lemon Oil
• Orange Oil
• Frankincense
• Patchouli Oil
• Lavandin Oil
• Lemongrass Oil
• Citronella Oil
• Balsam
• Bergamot
• Others

By Distribution Channel
• Hypermarkets/Supermarkets
• Specialty Stores
• Convenience Stores
• Others

By Application
• Food & Beverage
• Cosmetics & Toiletries
• Aromatherapy
• Home Care
• Health Care
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In October 2023, Naturally, Australian Products (NAP) partnered with Eswatini-based essential oil producers to source certified organic Eucalyptus radiata, Eucalyptus dives, and Eucalyptus smithii essential oils.
• In October 2023, NYC-based apothecary Anima Mundi acquired Floracopeia, through this acquisition more than 20 specific essential oils have been handpicked from Floracopeia and added to the Anima Mundi product range.
• In January 2022, Mensa Brands, a technology-led 'House of Brands' built for the e-commerce industry, acquired Florona, a personal care and aromatherapy label that caters to the US and Canada markets.

Why Purchase the Report?
• To visualize the global essential oil extraction market segmentation based on the extraction method, products, distribution channel, application, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of essential oil extraction market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global essential oil extraction market report would provide approximately 70 tables, 75 figures and 210 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies