North America Essential Oils Market Size, Share & Trends Analysis Report By Product (Orange, Cornmint, Eucalyptus), By Application (Medical, Food & Beverages), By Sales Channel, By Country, And Segment Forecasts, 2024 - 2030

North America Essential Oils Market Size, Share & Trends Analysis Report By Product (Orange, Cornmint, Eucalyptus), By Application (Medical, Food & Beverages), By Sales Channel, By Country, And Segment Forecasts, 2024 - 2030

North America Essential Oils Market Growth & Trends

The North America essential oils market size is expected to reach USD 15.70 billion by 2030 and is anticipated to grow at a CAGR of 7.8% from 2024 to 2030, according to a new report by Grand View Research, Inc. This growth can be attributed to the rising utilization of the product from numerous end-use industries such as food & beverages, cosmetics, pharmaceuticals, and cleaning, among others.

Essential oils compatibility with various substances like glucose, starch, fats, oils, acids, and non-ionic emulsifiers further drives market growth. The increasing demand for naturally derived oils and the growing popularity of aromatherapy are positively influencing the market. Consumer education plays a crucial role, as greater awareness of essential oil applications and usage leads to increased sales.

Flavors and fragrances provide lasting sensory impressions, often determined by taste and smell chemicals when subtly applied via food, beverage, medical products, and other substances. These products enhance the overall appeal and aesthetic value of consumer goods. Flavors and fragrances are mostly prepared using volatile chemicals and essential oils to deliver a specific flavor or enhance existing flavors. Food flavors can be categorized as natural and synthetic. Increasing consumer demand for fresh and natural products has contributed to exponential segment growth.

On the other hand, stringent federal regulations regarding farming and cultivation as well as environmental impact of these operations have restricted excess farming activities and decreased the supply of crops for essential oils production. Raw materials are required for these derived fragrances and these oils are highly susceptible to political upheaval, changing agricultural practices, disease outbreaks, and natural disasters. Numerous popular oils including lavender, ylang-ylang, rose, iris, jasmine, sandalwood, vanilla, or vetiver cannot be synthesized unnaturally in laboratories and need to be sourced from actual plant matter.

North America Essential Oils Market Report Highlights

• In terms of product, Davana emerged as the fastest-growing segment with a CAGR of 20.6% from 2024 to 2030 due to its extensive utilization in producing flavoring agents and natural perfumes. In addition, the antiviral, stimulant, nervine, and antiseptic properties of the oil make it suitable for use in various medical applications
• Based on application, the food & beverages segment emerged as the fastest-growing segment with the fastest CAGR of 8.1% from 2024 to 2030. This is attributed to the ascending demand for safe, natural, and less processed food products across the region rose and is the major factor driving the application scope of essential oil & floral extracts in food & beverage applications
• In terms of sales channel, direct selling emerges as the fastest sales channel with the highest CAGR of 8.3% from 2024 to 2030, as many essential oil companies have moved to open their own websites and e-commerce platforms allowing for a convenient and efficient shopping experience
• The U.S. witnessed the fastest CAGR and is expected to emerge as the fastest-growing country in the North America region, with a CAGR of 8.1% from 2024 to 2030. Growing product application scope coupled with the expansion of key end-use industries is projected to provide significant growth potential for market in the U.S. over the forecast period

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