U.S. Essential Oil Market Report

U.S. Essential Oil Market Analysis By Product (Frankincense, Tea Tree, Sandalwood, Clove, Eucalyptus, Lemon, Lemongrass, Cedarwood, Rosemary, Thyme, Basil, Citronella), By Application (Flavors, Fragrances, Aromatherapy), And Segment Forecasts, 2014 - 2024

Published: February 2017  |  78 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-405-5

Industry Insights

The U.S. essential oil market size was valued at USD 3.36 billion in 2015 and is expected to witness an estimated growth rate of 9.0% from 2016 to 2024. Around 200 different types of essential oils are consumed all over the world annually, and the U.S. plays a major role in overall demand. The peculiar fragrances & flavors that these oils add to any end use product such as food, drinks, therapies, etc. is considered to be a key driver.

Increasing consumer disposable incomes and rapid expansion of food & beverage industries are expected to contribute to the demand for natural fragrances & flavors produced using essential oils. These scents provide stimulation in aromatherapy, massages, and other relaxation techniques.

U.S. essential oil market revenue by product, 2014 - 2024 (USD Billion)

U.S. essential oil market

The added health benefits of essential oils are expected to trigger their demand in pharmaceutical and medical applications as well. These oils do not exhibit any known major side effects unlike other conventional medicines and drugs; this will probably be a significant boosting factor for the market.

Rising demand for aromatic cleaning agents and bio-based personal care products is expected to stimulate demand for home care and personal care products. The increased use of fragrances and flavors owing to the expansion of end-use industries in emerging markets is expected to drive the U.S. market.

Key companies have established supply partnerships to reduce overall production costs. Local manufacturers focus on providing upgraded varieties of essential oils at affordable prices, but the limited availability of raw materials is likely to pose a significant challenge to these manufacturers.

Most of the exotic essential oils are produced from rare crops and plants which are either difficult to harvest or are a very species in nature. Restrictions on harvesting and cultivation of such trees & plants will probably add to the raw material scarcity.

Product Insights

Lemon oil holds the maximum market share among the different essential oils mentioned in the report. Popularity of lemon oils has increased owing to its antibacterial, disinfectant, and quick stain removal action. It is thus used in various applications such as cleaning and laundry products, personal care products and many dietary supplements.

Eucalyptus oil is also gaining popularity rapidly. Rising demand for natural substitutes in place of conventional medications to treat colds, sinus congestions, fever, and body pain is fostering the market development.

However, other products such as orange, asafetida, jasmine, rose, cardamom, chamomile, grapefruit, lime, mustard, etc. are projected to account for more than 70% of the U.S. essential oil demand.

Application Insights

The flavors segment held the largest market share on account of its growing demand for exotic dishes and local cuisine as flavoring and coloring agents. The essential oils such as thyme, lemongrass, rosemary, etc., provide great nutritive value to foods and also improve the overall appeal of products with few drops, leading to a high value with less investment.

U.S essential oil market volume share by application, 2015

U.S. essential oil market

The fragrances segment is projected to generate the highest product demand during the forecast period, owing to increased use of essential oils in perfumeries and growing popularity of exotic fragrance in food & beverages has led to the growth of the application segment.

Essential oils demand from aromatherapy application segment will also observe remarkable growth. Owing to its rising popularity in aromatherapy, massages, stimulation, and relaxation techniques to heal skin, promote digestion, tone muscles, enhance circulation, and dispel viral disease.

Regional Insights

The U.S. is characterized by high consumer disposable income and accelerated the expansion of the food & beverages, personal care, and home care industries, which are likely to contribute to the increased demand for flavors & fragrances produced using essential oils.

Furthermore, the concentration of cosmetics industries in the region and growing popularity for aromatherapy is expected to boost the market growth. The absence of import duty rates and relaxed rules & regulations on the import are the major factors promoting essential oils demand in the U.S.

The U.S. is the largest importer as well as exporter of essential oils. It mainly exports to Japan, United Kingdom, Canada, Germany and some other Asian countries. However, imports majority of its requirements from India and France. It is also the largest importer of citronella oil followed by other European countries such as France, United Kingdom, Germany & Netherlands.

Citronella oil is used as a natural bug repellent and a pesticide; it can also be used in medications. The country fulfills its demand for frankincense oil and sandalwood by importing them from Somalia, India, and other Central African countries.

Competitive Insights

Key players include Biolandes SAS, Young Living Essential Oils, doTerra International, Ungerer Limited, The Nature’s Bounty Co., Aura Cacia and others. These companies supply their products to end-use industries such as medical, food & beverages, cleaning agents, household products, and spa & relaxation.

The market is characterized by a large number of market participants with the major players having high integration throughout the value chain. The companies have unified their operations to provide raw materials as well as manufacture the final product, thus cutting down the procurement and operational costs of raw material.  

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2024

Market representation

Revenue in USD Million & CAGR from 2016 to 2024

Country scope

U.S.

Report coverage             

Revenue forecast, competitive landscape, growth factors and trends

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Segments covered in the report

This report forecasts volume & revenue growth and provides an analysis on the latest trends in each of the sub-segments from 2014 to 2024. For the purpose of this report, Grand View Research has segmented U.S. essential oils market on the basis of product and application:

  • Product Outlook (Volume, Tons; Revenue, USD Million, 2014 - 2024)

    • Frankincense

    • Lavender

    • Peppermint

    • Tea Tree

    • Sandalwood

    • Clove

    • Eucalyptus

    • Lemon

    • Lemongrass

    • Cedarwood

    • Rosemary

    • Thyme

    • Basil

    • Citronella

    • Spearmint

    • Others

  • Application Outlook (Volume, Tons; Revenue, USD Million, 2014 - 2024)

    • Flavors

    • Fragrances

    • Aromatherapy

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