Global Essential Oils Market Size, Share & Trends Analysis Report By End-user, By Region, and Segment Forecasts, 2023 - 2030

Global Essential Oils Market Size, Share & Trends Analysis Report By End-user, By Region, and Segment Forecasts, 2023 - 2030

Global Essential Oils Market Size, Share & Trends Analysis Report By End-user, By Region, and Segment Forecasts, 2023 – 2030

The global Essential Oils market was valued at around US $9.7.9 billion in 2022 and is expected to reach US $XX billion by 2030 with a CAGR of ~10.2% during the forecast period.

Essential oils are liquids that are usually obtained from the stems, leaves, seeds, roots, or flowers of plants by a process called distillation. Essential oils such as lavender, tea tree, orange, lemon, peppermint, and others are commonly used. These oils are antimicrobial, antiviral, antifungal, and antibacterial. They are helpful for people who have problems with assimilation or digestion because they can simply avoid the digestive system. Furthermore, because essential oils are extremely oxygenating and safe to consume, they are perfect for newborns who are unable to swallow tablets or capsules. In addition to causing respiratory problems, skin allergies, and lung diseases, synthetic substances impede brain function. Essential oils are harmless and don't have any negative side effects because they are made from pure plant extracts. Because they do not interfere with physiological processes or leave behind toxic waste, natural essential oils are preferred over synthetic ones.

Due to increasingly hectic lives and demanding schedules, people are looking for therapies that will relax and relieve stress. Certain essential oils, such as lavender, mandarin, and rose, have both energising and relaxing effects on the body and mind. Strong-smelling oils like lavender are utilised in spa and aromatherapy services. They are well known for resolving sleep problems, mental, emotional, and spiritual wellness concerns. The previously mentioned concerns have led to an increase in the usage of essential oils in aromatherapy. Due to the increase in demand for natural ingredients in food and drinks as well as in the fragrance and personal care industries, manufacturers have begun utilising essential oils in the cosmetics, fragrance, and food and flavouring sectors.

The market for essential oils has expanded due to the wide range of uses for these products, which include aromatherapy, flavour and fragrance improvement, and other applications. In addition, it is projected that the market for essential oils will grow and that the medicinal qualities of these products would be crucial in controlling peak sales. The extensive application of essential oils in industry, commerce, and household settings is another element propelling the worldwide market. The market is, however, severely limited by the high price of essential oils. On the other hand, it is anticipated that growing consumer demand for essential oils as natural preservatives would open up new business prospects.

“Citrus segment, by type, to be dominating market from 2023 to 2030.”

Based on type, the market is separated into sections for citrus, eucalyptus, lavender, rosemary, tea tree, peppermint, and other plants. In the citrus sector, orange, lemon, grapefruit, and lime are further separated. The citrus segment had the highest revenue share in 2022. Because it improves the condition of skin, nails, and hair, it has a significant market dominance and is especially popular with young women. Orange essential oil is being used more and more by significant end-use sectors to improve their products' sensory appeal and increase their value. It is said to enhance the elasticity, firmness, and tone of the skin. Additionally, stretch marks, acne, and dermatitis are treated with it. It is also expected that the industry's main development drivers would be the increasing number of working women and increased disposable income.

“Spa & relaxation segment, by application, to be dominating market from 2023 to 2030.”

Through Application Food & beverage, personal care & cosmetics, spa & relaxation, pharmaceuticals & medicinal formulations, and other categories make up the worldwide essential oils market. In 2022, the global market for spas and relaxation was headed by the sector with the most revenue. The globalisation of clients' lifestyles has led to this notable market presence. These oils' antimicrobial qualities are used to increase the shelf life of food and drink items. The increasing focus on extending product shelf life without compromising quality in the food and beverage industry is another important factor driving the growth of this application category. The global increase in demand for natural, safe, and minimally processed food products was the main factor driving the application breadth of essential oils in food and beverage applications. Because of their pleasant scent, essential oils are ideal for personal care products including air fresheners, body sprays, cosmetics, and toiletries. To make perfumes, essential oils are divided into base, middle, and top notes according to how volatile they are. Furthermore, growing consumer disposable incomes and awareness of the need of leading a healthy lifestyle would support the growth of the essential oil-infused bouquet industry.

“Direct distribution segment, by distribution channel, to be dominating market from 2023 to 2030.”

The global essential oils market is divided into three segments based on the distribution channel: retail, MLM, and direct. Direct distribution accounted for the bulk of sales in 2022. But because more people are becoming aware of essential oils, alternative distribution routes have led to an increase in retail sales, mostly through convenience stores. Nonetheless, major corporations have begun utilising multi-level marketing strategies to expand and increase sales.

Most importers and wholesalers have created websites for their online and in-person over-the-counter businesses. The distribution routes for selling the products will get more intricate as some sellers focus solely on internet sales to increase their worldwide reach.

“Europe to be largest region in Essential Oils Market.”

Europe held the lion's share of the global market share. This is explained by the region's sizable population and wide range of untapped markets, which are expected to attract the interest of significant businesses and motivate them to establish operations and distribution centres there. Organisations such as the European Federation of Essential Oils (EFEO) have contributed to the growth of the European essential oil industry. EFEO was founded to promote and protect the interests of stakeholders throughout the whole market value chain. In order to amend or create legislation relating to essential oils, the organisation is in communication with the European Commission and the European Parliament. The market in the area has expanded as a result of these reasons. Europe holds a leading market position in this sector, mainly because feedstock is easily obtained and there are many industrial participants in the region. Many reasons have led to the emergence of key end-user sectors, such as the early developed economy and higher living standards.

Essential Oils Competitive Landscape

The competitive landscape of the Essential Oils Market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Essential Oils technology holds the potential for further growth. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Essential Oils Market is highly competitive, with numerous companies vying for market share. Prominent companies in the Essential Oils Market include:

Major Players:

Biolandes SAS

ivaudan International SA

International Flavours and Fragrances Inc.

Symrise AG

Enio Bonchev Production Ltd.

The Lebermuth Company, Inc.

Essential Oils of new Zealand

Phoenix Aromas & Essential Oils LLC

Sydney Essential Oil Co.

Young Living Essential Oils

Stoelzle Glass GroupOthers

Recent Developments:

As of July 2023, the Quebec-based company Aliksir and Labrador Production is a member of the BIOLANDES Group. This is a big step and a return to Biolandes' roots, as the company was founded on the idea of distilling maritime pine in the Landes region after seeing distilleries that produced conifers in Quebec. The addition of Aliksir and Labrador Production to the group expands its capacity to supply hydrosols and essential oils derived from the boreal forest. Both businesses share the same ideals as Golgemma and the Biolandes Group and are dedicated to using the forest resources in the area, including certified organic farms. The interchange of expertise is made possible by this merger, since Biolandes welcomes the teams from these businesses in Quebec.

Givaudan Active Beauty introduced the BBiomeTM Score in May 2023, marking a revolutionary milestone in the field of skin microbiome research. With the support of a scientific publication1 and the endorsement of a dermatological expert, this label exemplifies full transparency and accessibility in the cosmetics sector. The B~BiomeTM Score label is supported by science and indicates microbiome-friendliness. In order to improve understanding and usability, the results of the B~BiomeTM Score are displayed as letter grades, ranging from A to E..