Asia Pacific Essential Oils - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

Asia Pacific Essential Oils - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The Asia Pacific Essential Oils Market size is estimated at USD 2.26 billion in 2024, and is expected to reach USD 3.35 billion by 2029, growing at a CAGR of 8.21% during the forecast period (2024-2029).

Asia-Pacific's demand for essential oils and products is increasing due to high disposable income, demand for organic and natural ingredients, and consumer attraction toward luxury products. Due to changes in lifestyles, urbanization, and stressful lives, people prefer to take aromatherapies for physical and emotional well-being. Essential oils play a vital role in aromatherapy. Furthermore, consumers' demand for citrus-based essential oil such as oranges and lemons is significant in some countries. The products witnessed a growing penetration across the household, and personal care industry, wherein citrus essential oil recently escalated in flavors, odourants, and pharmaceutical ingredients segment.

Essential oils are also gaining more popularity in the food sector. Market players have been introducing food-grade essential oil for use in various products. Demand for clean-label natural ingredients is increasing among consumers. As essential oils are extracted naturally without losing any nutrients, they are preferred in the food industry. Furthermore, the use of essential oils in the pharmaceutical industry is also famous as it helps pain relief. Market players have been using essential oils in medicines for pain management. In July 2021, Venus Remedies, a Chandigarh, India-based drug firm's consumer health care division, offered supplements for crucial pain management, stress management, and vitamin supplement. They launched the R3SET supplement to ensure maximum benefit by combining essential oils with nanotechnology for instant and better results.

APAC Essential Oil Market Trends

Increasing Awareness Toward the Health Benefits of Essential Oil

Essential oil poses both antimicrobial and antifungal properties. Cosmetic preparations such as gels, creams, and ointments do not require an additional chemical preservative if they contain essential oil or a single compound as an active agent. It led manufacturers to incorporate essential oil, elevating the existing properties of ointment, gels, and creams. Essential oils have a broad set of incorporation in cosmetic products, perfumes, and related household products in line with their variety of properties but most notably due to their pleasant odor. There is a massive demand for organic products in the Asia-Pacific region owing to their health benefits and use of natural ingredients. Consumers want their products to be chemical-free and cruelty-free. Due to the demand, market players are also introducing new products made with organic and high-quality ingredients at affordable prices. For instance, in June 2021, Bella Vita Organic, India's all-natural ayurvedic brand, launched a range of luxury yet inexpensive essential oils. Nine essential oils were launched from floral or plant-based, ranging from too strong or mild. All of these are available online on the brand's website.

Japan is Expected to Witness High Growth Rate

The Japanese essential oil industry is growing owing to the demand for essential oils in various sectors like cosmetics, perfumes, and personal care products. Japan is famous for its variety of cosmetics. Demand for natural and organic cosmetics is growing in Japan. Therefore, the use of essential oil extracts in products is increasing instead of artificial ingredients. The regional players in Japan are innovating the products with the help of different essential oils. For instance, in November 2022, Japanese beauty and personal care brand Edobio launched a new hair and body care lineup. The products include shampoo, body soap, and conditioner. The products like conditioners are made by using camelia oil. Japanese people are also attracted to perfumes and fragrances. The use of essential oils in those perfumes is also driving the market as demand for clean-label, natural ingredients and skin-sensitive products is increasing. The market players are innovating products and enhancing people's experience with experts' help. For instance, in June 2021, skincare and fragrance company "Osaji" opened a new physical store called 'Kako Ikea.' Customers can make perfumes and fragrances in this store using various essential oils and products. Over the medium term, an increase in disposable income, demand for natural ingredients, and product innovation are expected to drive the market.

APAC Essential Oil Industry Overview

The Asia-Pacific Essential oil market is competitive, with a strong presence of regional players dominating specific regions. Major players operating in the market are Aroma Treasures, Young Living essential oils, Organic Harvest, Ultra International B.V., and do Terra, among others. New product development and expansion are vital strategic players that allow them to have a stronghold in the market. Other players that dominate the market are Springfields Australia, At-Aroma Co., Bella Vita, In Essence, Auroma, and Tilley Aroma Natural.

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