People seek stress-relieving and soothing therapies due to increased busy lifestyles and stressful schedules. Some essential oils, including rose, mandarin, and lavender, have a calming and energizing influence on the body and mind. In spa and aromatherapy sessions, oils like lavender, known for its powerful aroma, are used. They are renowned for calming emotional wellness, mental wellness, spiritual wellness, and sleep issues. Essential oils must be diluted with a carrier oil due to their high potency before being applied directly to the body. Thus, there is a rise in the use of essential oils in aromatherapy due to the considerations mentioned earlier. Manufacturers have started using essential oils in the cosmetics, fragrances, and food & flavoring sectors due to the surge in demand for natural ingredients in food & drinks and the fragrance & personal care industry.

Synthetic compounds impair brain function and cause respiratory issues, skin allergies, and lung ailments. As essential oils are derived from pure plant extracts, they are safe and have no adverse side effects. Natural essential oils are favored because they do not hinder bodily functions or leave hazardous waste like synthetics.

Essential oil is a liquid typically extracted through distillation from a plant's stems, leaves, seeds, roots, or flowers. Lavender, tea tree, orange, lemon, peppermint, cornmint, and other essential oils are frequently utilized. These oils have antiviral, antifungal, antibacterial, and antimicrobial properties. They easily bypass the digestive system, making them advantageous for those with digestion or assimilation issues. Additionally, because newborns cannot swallow tablets or capsules, essential oils are ideal because they are highly oxygenating and safe for use.

The essential oil market has witnessed growth attributed to the diverse applications of essential oils, spanning flavor and fragrance enhancement, aromatherapy, and various other uses. Furthermore, it is anticipated that the therapeutic properties of essential oils will play a key role in regulating peak sales and fostering the expansion of the essential oils market. The widespread usage of essential oils for industrial, commercial, and domestic purposes is another factor driving the global market. However, the market is severely constrained by the high cost of essential oils. Conversely, the increasing desire for essential oils as natural preservatives is expected to create opportunities to expand the market for these products.

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

Factors Driving the Market

Drivers

Growing Knowledge of Essential Oils' Health Benefits

The industry has been expanding significantly, mainly because people are becoming more aware of the advantages that essential oils provide for their health. Consumer awareness and comprehension of the possible health advantages offered by essential oils have significantly increased in recent years.

An organic and holistic approach to wellness is gaining popularity among global consumers. Plant-derived essential oils are considered a natural alternative to synthetic products, aligning with this trend. Essential oils are in high demand since they are thought to be good for physical, mental, and emotional health. This is due to the growing interest in holistic wellbeing.

As customers learn more about the distinct health advantages provided by various oils, they are incorporating essential oils into their everyday routines. This rising understanding of the medicinal benefits of essential oils has positively impacted the expansion of the global essential oils market. Additionally, teaching customers about the health advantages of essential oils has been greatly aided by the knowledge that is readily available through numerous channels, such as online resources, social media, and health and wellness publications. Customers now have comprehensive information about the precise functions, applications, and safety measures related to various essential oils. The availability of information has enabled customers to make knowledgeable decisions about their health, which has increased the use of essential oils and thus fueled the industry.

Restrain

Growing Essential Oil Allergies as a result of Consumer Ignorance

Due to the increasing number of allergies connected to their use, the market for essential oils worldwide is experiencing difficulty. These allergies are frequently brought on by consumers who are unaware of the hazards and safe use of essential oils. The lack of consumer understanding is one of the main issues behind the rise in essential oil allergies.

The potential adverse effects of utilizing essential oils, including allergic responses, skin sensitivity, and respiratory issues, lack broad awareness. Natural products are frequently misused because consumers believe that they are naturally harmless.

Essential oils are made up of a complex blend of chemical components that, in those who are susceptible, can cause sensitization and allergic reactions. Limonene, linalool, eugenol, and geraniol are among the common allergens present in essential oils. These substances can cause sensitization, when the immune system develops a negative response following subsequent exposure, as a result of prolonged or excessive exposure.

Trends

Essential Oils Have Many Uses, and Demand for Organic Products Is Growing Participate in Market Expansion

Owing to increasing consumer demand for natural and organic food, beverages, and personal care products, manufacturers have had to redirect their attention from synthetic to natural offerings. This has had a huge impact on the worldwide essential oil market. Another factor that influences customer behavior is the growing demand for organic goods.

The continuing implementation of laws supporting the use of ecologically friendly substances in the food, beverage, and cosmetics industries has increased people's desire to buy items made of natural ingredients. To maximize consumer benefits, producers across various industries are developing inventive ways to incorporate healthy and natural components into their recipes. The popularity of essential oils is rising as natural additives and flavor enhancers in the preservation and maintenance of food items like candies, confections, meat, pickles, and soft drinks. Chemical preservatives, repellents, edible film coatings, and odorants for paints and detergents are also made with these oils. Additionally, due to the rising demand for preservative-free products with extended shelf life, active packaging technologies are now employed to safeguard food products from microbial infection. This should increase the use of essential oils to boost their quality and safety.

Due to their manifold health benefits, essential oils are expected to witness significant demand in the pharmaceutical and medical sectors. Due to the advantages they offer, including eradicating dangerous bacteria, easing muscle spasms, easing flatulence, disinfecting and soothing inflamed skin, mainly when brought on by a venomous, itchy bug bite, promoting quick healing of irritated and scarred skin, and relieving muscle tension when used during a massage, the demand for essential oils has been on the rise.

Market Segmentation

By Type

The market is divided into citrus, eucalyptus, lavender, rosemary, tea tree, peppermint and others based on the type. Orange, lemon, grapefruit, and lime are further divided into the citrus segment. During the year 2022, the citrus segment held the largest portion of revenue share. Its substantial market dominance stems from its ability to enhance the health of skin, nails, and hair, making it particularly appealing to young women. Significant end-use sectors increasingly use orange essential oil to enhance sensory appeal and raise the value of their products. It is thought to improve skin tone, firmness, and elasticity. It is also used to treat dermatitis, acne, and stretch marks. Additionally, it is anticipated that rising disposable income and the expanding number of working women will serve as this industry's primary growth drivers.

By Application

By Application, The global Essential Oils market is categorized into food & beverages, personal Care & cosmetics, spa & relaxation, pharmaceuticals & Medicinal Formulations and others. Securing the most substantial revenue, the spa and relaxation sector dominated the global market 2022. This significant market presence is a result of customers' evolving lifestyles on a global scale. The antibacterial properties of these oils are utilized to extend the longevity of food and beverage products. Another critical aspect fueling the expansion of this application category is the food and beverage industry's rising emphasis on improving product shelf life without sacrificing quality. The primary driver of the application scope of essential oils in food & beverage applications came as the global rise in demand for natural, secure, and minimally processed food items.

Essential oils are perfect for personal care items, including cosmetics, toiletries, and fragrances like perfumes, body sprays, and air fresheners because of their pleasant aroma. Essential oils are categorized into base, middle, and top notes based on their volatility to create perfumes. Additionally, rising consumer disposable incomes and awareness of the need to maintain a healthy lifestyle would help fuel the market for bouquets made with essential oils.

In aromatherapy and other relaxing methods, these scents stimulate the senses. Essential oils with stress-relieving and brain-stimulating properties include chamomile, cedarwood, peppermint, rose, eucalyptus, sandalwood, tea tree, lavender, jasmine, rosemary, and lemon. Additionally, rosemary oil improves attention, while lavender oil helps with migraines.

Due to its use in stress-relieving treatments, personal care has become a significant market area within spa & relaxation in the worldwide essential oil industry. They enhance the appearance of hair, skin, color cosmetics, and makeup. Additionally, these oils are utilized in soaps, shampoos, and baby goods, as well as for cleaning the mouth, teeth, and gums.

Growing consumer interest in utilizing natural and organic products is driving the demand for personal care products with natural ingredients, benefiting the essential oil sector. They are frequently found in body sprays, air fresheners, and fragrances.

By Distribution Channel

Based on the distribution Channel, the global Essential Oils market is categorized into direct distribution, MLM distribution, and retail distribution. In 2022, direct distribution made up the majority of sales. However, additional retail sales, primarily through convenience stores, have resulted from alternative distribution channels due to people becoming more aware of essential oils. However, significant businesses have started using multi-level marketing techniques to grow their companies and boost revenue.

The majority of importers and wholesalers have developed websites for existing over-the-counter sales as well as online sales. As some sellers concentrate only on online sales to expand their global reach, the distribution routes for selling the products will get more complicated.

By Regions

With the largest revenue share, Europe controlled the world market. This is explained by the large population and the variety of unexplored markets, which will likely draw important companies' attention to this area and encourage them to develop and set up their operations and distribution facilities there. The expansion of the European sector has benefited from groups like the European Federation of Essential Oils (EFEO). To advance and defend stakeholders' interests along the whole value chain of the market, EFEO was established. The organization is in dialogue with the EU Parliament and the European Commission to change or create legislation pertaining to essential oils. Such factors have helped the region's market to grow. The dominant market position held by Europe in this sector is primarily due to the ease of obtaining feedstock and the presence of numerous industry players. Key end-user industries have emerged due to numerous factors, including the early developed economy and the better standard of living.

Pioneers in the field, Asia Pacific nations like India, China, and Indonesia are now the biggest exporters of some of the world's most priceless oils and extracts, including champagne extract, jasmine extract, davana oil, frankincense oil, sandalwood oil, spice oils, etc. The favorable agricultural weather, the affordable labor force, and the plentiful supply of raw materials are just a few of the elements propelling the expansion of industry in this area.

In the upcoming years, market growth in North America is anticipated to be boosted by growing consumer awareness of the value of living a healthy lifestyle and rising consumer acceptance of natural products. High per capita income, tax advantages, and government subsidies all encourage international businesses to establish and grow operations in this area. The increasing preference for preventative healthcare in the area significantly contributes to this situation.

Competitive Landscape

The globally Essential Oils market is concentrated with several players present in the market, namely Biolandes SAS, Givaudan 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, and Stoelzle Glass Group

The industry leader in natural aromatic extracts is Biolandes SAS. The business, which specializes in floral waters, resins, and essential oils, strongly emphasizes sustainability. It includes every production stage, from sourcing to cutting-edge extraction methods, resulting in superior botanical extracts. Biolandes prioritize ethical business relationships and sustainable farming to promote environmental well-being and community involvement. Its reputation has been built on this dedication in the food, cosmetics, and fragrance sectors. Because of its knowledge and commitment, Biolandes is a trustworthy supplier of a wide range of premium natural products.

Givaudan International SA is a prominent Swiss company in the fragrance and flavor industry. As a global leader, Givaudan is renowned for its innovation in creating scents and tastes that captivate consumers worldwide. With a history dating back to 1895, the company has consistently pushed boundaries to craft innovative sensory experiences for various products. Givaudan's expertise lies in collaborating with industry partners to develop unique and memorable fragrances and flavors. Their commitment to sustainability and responsible sourcing underscores their dedication to ethical practices. Givaudan's creative prowess and commitment to quality have solidified its position as a premier choice for fragrance and flavor solutions across the globe. 

An international pioneer in developing distinctive tastes and scents is International Flavors & Fragrances Inc. (IFF). With a history spanning more than 130 years, IFF is famous for its ground-breaking contributions to the flavor and fragrance industries. The company's creative prowess is obvious in its cross-industry partnerships, which provide consumers around the world with enthralling sensory experiences. The ecologically friendly techniques and ethical sourcing that IFF follows demonstrate its dedication to sustainability. By utilizing cutting-edge technologies and embracing many cultural influences, IFF continues to change how people throughout the world perceive and enjoy flavors and scents.

Recent Developments

• July 2023, Aliksir and Labrador Production, based in Quebec, Canada, is now part of the BIOLANDES Group. This marks a significant step and a return to Biolandes' origins, as the company was initially established with the inspiration of distilling maritime pine in the Landes region after observing conifer distilleries in Quebec. Including Aliksir and Labrador Production enhances the group's ability to provide essential oils and hydrosols sourced from the boreal forest. Both companies are committed to utilizing local forest resources, including certified organic farms, aligning with Biolandes Group and Golgemma's values. This integration allows for the exchange of expertise, as Biolandes welcomes the Quebec teams from these entities.
• In May 2023, Givaudan Active Beauty established a groundbreaking milestone in skin microbiome by introducing the B‑Biome™ Score. This label, endorsed by a dermatological expert and supported by a scientific publication1, demonstrates complete transparency and accessibility within the beauty industry. The B‑Biome™ Score label reflects microbiome-friendliness and is scientifically substantiated. To enhance comprehension and accessibility, the outcomes of the B‑Biome™ Score are represented through letter grades spanning from A to E.

Essential Oils Market Scope

Table of Contents

1. Report Overview
2. Summary

2.1.  All that is covered in the Report

2.2.  Essential Oils Market at a Glance

2.3.  Market Players in the field

3. Essential Oils Market

3.1.  Market Summary

3.2.  Geographical Analysis - Essential Oils Market

3.2.1.    North America

3.2.1.1.        USA Essential Oils Market Size in USD Million (2018-2030)

3.2.1.2.        Canada Essential Oils Market Size in USD Million (2018-2030)

3.2.1.3.        Mexico Essential Oils Market Size in USD Million (2018-2030)

3.2.2.    Europe

3.2.2.1.        Germany Essential Oils Market Size in USD million (2018-2030)

3.2.2.2.        United Kingdom Essential Oils Market Size in USD million (2018-2030)

3.2.2.3.        France Essential Oils Market Size in USD million (2018-2030)

3.2.2.4.        Italy Essential Oils Market Size in USD million (2018-2030)

3.2.2.5.        Spain Essential Oils Market Size in USD million (2018-2030)

3.2.3.    Asia-Pacific

3.2.3.1.        Japan Essential Oils Market Size in USD million (2018-2030)

3.2.3.2.        China Essential Oils Market Size in USD million (2018-2030)

3.2.3.3.        India Essential Oils Market Size in USD million (2018-2030)

3.2.3.4.        Australia Essential Oils Market Size in USD million (2018-2030)

3.2.3.5.        South Korea Essential Oils Market Size in USD million (2018-2030)

3.2.3.6.        Rest of APAC Essential Oils Market Size in USD million (2018-2030)

3.2.4.    Middle East and Africa

3.2.4.1.        Saudi Arabia Essential Oils Market Size in USD million (2018-2030)

3.2.4.2.        UAE Essential Oils Market Size in USD million (2018-2030)

3.2.4.3.        Turkey Essential Oils Market Size in USD million (2018-2030)

3.2.4.4.        Israel Essential Oils Market Size in USD million (2018-2030)

3.2.4.5.        Rest of Middle East Essential Oils Market Size in USD million (2018-2030)

3.2.5.    South America

3.2.5.1.        Brazil Essential Oils Market Size in USD million (2018-2030)

3.2.5.2.        Argentina Essential Oils Market Size in USD million (2018-2030)

3.2.5.3.        Rest of South America Essential Oils Market Size in USD million (2018-2030)

3.3.  Analysis by Type - Essential Oils Market

3.3.1.    Citrus

3.3.1.1.        Orange

3.3.1.2.        Lemon

3.3.1.3.        Grapefruit

3.3.1.4.        Lime

3.3.1.5.        Others

3.3.2.    Eucalyptus

3.3.3.    Lavender

3.3.4.    Rosemary

3.3.5.    Tea Tree

3.3.6.    Peppermint

3.3.7.    Others

3.4.  Analysis by Application - Essential Oils Market

3.4.1.    Food & Beverages

3.4.2.    Personal Care & Cosmetics

3.4.3.    Spa & Relaxation

3.4.4.    Pharmaceuticals & Medicinal Formulations

3.4.5.    Others

3.5.  Analysis by Distribution Channel - Essential Oils Market

3.5.1.    Direct Distribution

3.5.2.    MLM Distribution

3.5.3.    Retail Distribution

4. Competitive Analysis – Essential Oils Market
5. Market Share Analysis

5.1.  By Geography

5.1.1.    North America

5.1.2.    Asia

5.1.3.    Europe

5.1.4.    RoW

6. Revenue Share Analysis

6.1.  By Geography

6.1.1.    North America

6.1.2.    Asia

6.1.3.    Europe

6.1.4.    RoW

7. Competition – Market Leaders

7.1.  Company Profiles

7.1.1.    Biolandes SAS

7.1.1.1.        Business Overview

7.1.1.2.        Products and Services

7.1.1.3.        Strategic Initiatives and Market Developments

7.1.2.    Givaudan International SA

7.1.3.    International Flavours and Fragrances Inc.

7.1.4.    Symrise AG

7.1.5.    Enio Bonchev Production Ltd.

7.1.6.    The Lebermuth Company, Inc.

7.1.7.    Essential Oils of new Zealand

7.1.8.    Phoenix Aromas & Essential Oils LLC

7.1.9.    Sydney Essential Oil Co.

7.1.10.  Young Living Essential Oils

7.1.11.  Stoelzle Glass Group

8. Factor Analysis

8.1.  Drivers & Opportunities

8.2.  Restraints & Challenges

9. Porter’s Five Forces Analysis

9.1.  Competitors

9.2.  End-Users

9.3.  Suppliers

9.4.  Substitutes

9.5.  New Entrants

10. Macroeconomic & Environmental Factor Analysis

10.1.              Business Impact of Russia and Ukraine War

10.2.              Supply Chain Vulnerabilities

11. Trend Analysis
12. Opportunity Assessment
13. Methodology
14. About Research Foretell

14.1.              Our Offerings

Global Essential Oils Market Segmentation

Essential Oils by Type: Market Size & Forecast 2023-2030

• Citrus
• Eucalyptus
• Lavender
• Rosemary
• Tea Tree
• Peppermint
• Others

Essential Oils by Application: Market Size & Forecast 2023-2030

• Food &Beverages
• Personal Care & Cosmetics
• Spa & Relaxation
• Pharmaceuticals & Medicinal
• Formulations
• Others

Essential Oils by Distribution Channel: Market Size & Forecast 2023-2030

• Direct Distribution
• MLM Distribution
• Retail Distribution)

Essential Oils by Geography: Market Size & Forecast 2023-2030

• North America (USA, Canada, Mexico)
• Europe (Germany, UK, France, Russia, Italy, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Southeast Asia, Rest of Asia-Pacific)
• South America (Brazil, Argentina, Columbia, Rest of South America)
• Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria, South Africa, Rest of MEA)

Major Players:

• Lavender Oil
• Peppermint Oil
• Tea Tree Oil
• Eucalyptus Oil
• Lemon Oil
• Frankincense Oil
• Rosemary Oil
• Chamomile Oil
• Sandalwood Oil
• Bergamot Oil
• Ylang Ylang Oil
• Patchouli Oil