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

Research Methodology

A three-pronged approach was followed for deducing the essential oils market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for essential oils market to gather the most reliable and current information possible.

• We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
• We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
• We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
• We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
• We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of essential oils market data depending on the type of information we’re trying to uncover in our research.

• Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

• Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

• Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

• Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

• Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

• Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

• This step also entails the finalization of the report scope and data representation pattern.

• Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Essential Oils Market Categorization:

The essential oils market was categorized into four segments, namely product (Acorus Calamus, Ajowan, Basil, Black Pepper, Cardamom, Carrot Seed, Cassia, Cedarwood, Celery, Cinnamon, Citronella, Ciz-3 Hexanol, Clove, Cornmint, Cumin Seed, Curry, Leaf, Cypress, Cypriol, Davana, Dill Seed, De-Mentholised Peppermint, Eucalyptus, Fennel, Frankincense, Garlic, Ginger, Holy Basil, Juniper Berry, Lavender, Lemon, Lemongrass, Lime, Mace, Mustard, Neem, Nutmeg, Orange, Palmarosa, Patchouli, Pepper Mint, Rosemary, Spearmint, Tangerine, Tea Tree, Turmeric, Vetiver, Ylang Ylang), application (Medical, Food & Beverages, Spa & Relaxation), sales channel (Direct Selling) and region (North America, Europe, Asia Pacific, Middle East & Africa, Central America, South America).

Segment Market Methodology:

The essential oils market was segmented into product, application, sales channel and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

• Demand estimation of each product across countries/regions summed up to from the total market.

• Variable analysis for demand forecast.

• Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

• Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

• Used extensively for new product forecasting or analyzing penetration levels.

• Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

• Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

• This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The essential oils market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Middle East & Africa, Central America, South America, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into thirteen countries, namely, the U.S.; Canada; Mexico; Germany; the UK.; France; China; India; Japan; Taiwan; South Korea; Singapore; Australia.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Essential oils market companies & financials:

The essential oils market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

• Symrise -Symrise offers fragrances, flavorings, cosmetic ingredients, functional ingredients, and nutritional & sensorial extracts. The products developed by the company are adopted in food, beverages, personal care & cosmetics, perfumes, pet food, cleaning, and laundry detergent applications. Symrise operates through three business segments, including Flavor, Nutrition, and Scent & Care. The flavor segment comprises Savory, Beverages, and Sweet business units, which offer over 13,000+ unique flavorings. This diverse range of flavors are utilized by the food and beverage industry in their product formulations. The nutrition segment consists of Food, Probi, Pet Food, and Aqua business units. The Scent & Care segment comprises Cosmetic Ingredients Fragrance and Aroma Molecules divisions.

• MANE - MANE is primarily engaged in the development, formulation, and distribution of specialty ingredients for cosmetics, food & beverage, pharmaceutical, chemical, soaps & detergents, and tobacco industries. The company operates through three business divisions, including Flavor, Fragrance, and Ingredients. Its product portfolio comprises aromatic raw materials such as essential oils, isolates, absolutes, active pharmaceutical ingredients, resinoids, extracts, flavouring substances, natural & synthetic flavors, and savory additives mixtures, among others. MANE has over 50 R&D facilities and it is actively engaged in R&D activities. The company has a global presence with over 27 manufacturing sites in 39 countries.

• Flavex Naturextrakte GmbH- Flavex Naturextrakte GmbH produces and distributes fragrances, flavors, and essential oils. The company’s clientele includes businesses in the food, skincare, nutraceutical, and perfumery industries. Since its inception, the company has invested in diverse R&D initiatives to optimize its production processes. Flavex employs specialists who have profound experience in analytical procedures and photochemistry. The company offers a widespread range of botanical extracts and CO2-based extracts that are integrated in producing food flavors and natural remedies.

• Firmenich SA- Firmenich SA is a biotechnology-centric company that manufactures and distributes flavors and fragrances across the world. The products of the company cater to food, beverage, cosmetics, personal care, and perfumery end-use industries, among others. Jasmine Concrete (India), Essex Laboratories (Oregon, U.S.), and Nelixia (Guatemala) are some of the supplier partners of the company. Its client base includes a wide range of consumers, from multinationals to SMEs.The company has presence in over 100 countries which includes 46 manufacturing units and 6 R&D centers.

• Synthite Industries Ltd. - Synthite Industries Ltd. offers plant-derived food ingredients, application-specific solutions, and value-added products. The company serves its products to various end-use applications including food, fragrance, cosmetics, aromatherapy, and nutraceuticals. Its vast product portfolio encompasses over 500 products including essential oils, organic extracts, spice oleoresins, health ingredients, floral concretes, resinoids, and absolutes. The company has over 8 manufacturing facilities out of which three are located in Kerala and two in Andhra Pradesh. Other facilities are located in Coimbatore, Karnataka, and China.

• ROBERTET GROUP - ROBERTET GROUP develops and distributes specialty ingredients for the flavor, fragrance, food & beverage, cosmetics, and healthcare industries. In addition, the company also develops in-house flavors and fragrances and supplies them to end-use industries for formulating consumer products. The company operates through 4 business divisions, including Natural Raw Material, Flavor, Fragrance, and Active Ingredients. The raw materials division produces a wide range of ingredients such as essential oils, aroma chemicals, fractions, isolates, oleoresins, and floral extracts for aromatherapy, fragrance, flavor, health, and beauty applications. The flavors division offers unique solutions for food and pharmaceutical applications for their inclusion in products such as ready-to-eat meals, dairy, confectionery, and flavored drinks. The fragrance division caters to the personal care, cleaning, and perfume industries, wherein its client base includes small to large national and international brands. The active ingredients divisions cater its products specifically to the health and beauty industries through its subsidiaries, Bionov and Hitex.

• International Flavors & Fragrances Inc. - International Flavors & Fragrances Inc. produces and supplies a wide range of ingredients and compounds across the world. The company operates through three business segments, including Taste, Scent, and Frutarom. The taste segment includes savory solutions, flavor compounds, nutrition & specialty ingredients and inclusions. Savory solutions comprise seasonings, natural colors, powder flavors, natural antioxidants, and functional ingredients, which cater to the meat and fish industries. Nutrition and specialty ingredients include natural health ingredients, natural colors, and flavor ingredients such as botanical extracts, flavor extracts, essential oils, citrus products, distillates, aroma chemicals, and natural gums and resins.The scent segment includes fragrance ingredients and compounds. The ingredients category comprises natural, synthetic, active, and functional ingredients. Fragrance compounds consist of two broad groups namely consumer and fine fragrances.

• Givaudan- Givaudan develops, formulates, and distributes flavor and fragrance solutions worldwide. The company delivers its services through two major business divisions, including Flavors and Fragrances. The Flavors division is segmented into beverages, dairy, savory, and sweet goods. The division innovates and develops unique ingredients, which are further used in food & beverage formulations. The Fragrance division includes fine fragrances, consumer products, and active beauty, which serve consumer markets including personal care, household, and cleaning. The company has presence across 181 locations with 77 production sites, and 69 creation centers globally.

• Falcon - Falcon manufactures and distributes essential oils and carrier oils worldwide. The company’s business portfolio comprises production and supply of essential oils, carrier oils, aromatherapy oils, absolutes, and linseed oils to the pharmaceutical, personal care, nutraceutical, perfumery, and paint industries. The company has invested in various R&D initiatives to enhance its product portfolios and packaging for longer shelf life and to prevent contamination. The key products offered by the company include linseed oil, carrier oils, absolutes, and essential oils. The products are classified as aromatic oil, cosmetic oil, fragrance oil, health oil, ayurvedic oil, spa oil, fixed vegetable oil, spice oils, and herbal oils.

• Takasago International Corporation -Takasago International Corporation is involved in the production and distribution of specialty ingredients across the world. The company operates across food, beverage, pharmaceutical, cosmetics, and household applications. The business segments of Takasago comprise Flavors, Fragrances, Aroma Ingredients, and Fine Chemicals. The essential oils formulated by the company are used in their fragrance formulations as well as supplied to flavor and fragrance houses for further product development. The company invests significantly in research and development activities and has over 10 R&D centers worldwide, which work on creating unique solutions that cater to customers' needs. It also has over 25 production sites located in 28 different countries across the globe.

Value chain-based sizing & forecasting

Supply Side Estimates

• Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

• Segment revenue determination via variable analysis and penetration modeling.

• Competitive benchmarking to identify market leaders and their collective revenue shares.

• Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

• Identifying parent markets and ancillary markets

• Segment penetration analysis to obtain pertinent

• revenue/volume

• Heuristic forecasting with the help of subject matter experts

• Forecasting via variable analysis

Essential Oils Market Report Objectives:

• Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

• Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

• Understanding market estimates and forecasts (with the base year as 2022, historic information from 2018 to 2020, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Essential Oils Market Report Assumptions:

• The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

• The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

• We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

• All market estimates and forecasts have been validated through primary interviews with the key industry participants.

• Inflation has not been accounted for to estimate and forecast the market.

• Numbers may not add up due to rounding off.

• Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

• Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

• Latin America includes Central American countries and the South American continent

• Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

• Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

• Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.