Aromatherapy Carrier Oil Market Size, Share & Trends Analysis Report, By Application (Cosmetic, Personal Care, Food & Beverages, Medical), By Region (Asia Pacific, North America, Europe), And Segment Forecasts, 2023 - 2030

Report Overview

The global aromatherapy carrier oil market size was estimated at USD 1.26 billion in 2022 and is expected to grow at a compound annual growth (CAGR) of 10.4% from 2023 to 2030. This growth is attributed to several factors including increased interest in aromatherapy, rising awareness of essential oils, growth in the wellness and personal care industry, consumer preference for natural products, expanding distribution channels, and ongoing research and development efforts. In addition, aromatherapy has witnessed a notable surge in popularity in recent years owing to the increasing inclination toward natural and holistic approaches to health and wellness. Aromatherapy is widely recognized for its potential advantages in stress reduction, relaxation, mood enhancement, and various other aspects related to physical and emotional well-being. Consequently, this heightened interest in aromatherapy has led to a significant rise in the demand for carrier oils.

The COVID-19 pandemic had an overall negative impact on the market. The economic uncertainties caused due to the pandemic resulted in a decline in consumer spending across various sectors. Non-essential products, including aromatherapy carrier oils, witnessed reduced demand as consumers prioritized essential items. This effect was particularly notable in regions where purchasing power had been significantly affected. Moreover, the temporary closure of non-essential retail outlets, such as specialty stores and wellness centers, impacted the availability and accessibility of carrier oils. Although consumers increasingly turned to online shopping during periods of lockdown, the closure of physical stores nonetheless influenced the market. In addition, the pandemic led to a shift in consumer priorities toward health and hygiene. Consequently, consumer spending has been redirected toward personal care products like hand sanitizers and hygiene-related items. This temporary change in priorities affected the demand for carrier oils, primarily used for aromatherapy and personal care.

On the other hand, the COVID-19 pandemic prompted a major emphasis on health and wellness among consumers, leading many individuals to seek natural remedies to support their overall well-being, including adopting aromatherapy practices. Consequently, there was an increased interest in aromatherapy, including using carrier oils. The global pandemic generated elevated stress and anxiety levels, further driving the popularity of aromatherapy to cope with these challenges, given its recognized potential for relaxation and stress reduction.

An increase in preference for plant-extracted products is one of the major factors driving the market. Carrier oils are cold-pressed vegetable oils extracted from plants and processed naturally. They possess nutritional and natural healing properties and are used as alternatives to pharmaceutical products such as medicated topicals and tablets. Carrier oils are being widely adopted in the treatment of various medical conditions. Aromatherapy is considered an alternative to medicinal therapy, which helps treat several conditions such as pain, skin-related problems, digestive disorders, cardiovascular disorders, immune disorders, cold & cough, insomnia, respiratory disorders, anxiety, and wounds. Furthermore, growing awareness in women about skin and hair care is expected to drive the adoption of therapeutic-grade carrier oils in aromatherapy applications.

Essential oils are concentrated extracts derived from plants that possess therapeutic properties. As awareness regarding the potential benefits of essential oils continues to grow, the demand for carrier oils has also increased. Carrier oils play a vital role in aromatherapy practices by facilitating the safe dilution and application of essential oils to the skin. The wellness and personal care industry is experiencing significant expansion, fueled by consumer preferences for natural and organic products. Carrier oils are frequently utilized in skincare and cosmetic formulations due to their moisturizing, nourishing, and soothing attributes. As the demand for natural and organic personal care products grows, the market for aromatherapy carrier oils is expected to grow significantly.

The rising consciousness regarding the potentially harmful effects of synthetic chemicals in various products has increasingly led consumers to seek natural and organic alternatives. Carrier oils derived from plant sources are considered natural and free from synthetic additives or harmful substances. This inclination towards natural and organic products is expected to fuel the demand for carrier oils in the aromatherapy and personal care industries. Moreover, carrier oils have gained access to consumers through various distribution channels, including specialty stores, online platforms, and mainstream retail outlets. The availability of carrier oils through diverse channels enhances their convenience for consumers, thereby contributing to the market's overall growth.

An increase in disposable income is also one of the important factors driving the market. With growing disposable income, the preference for natural products in creams, moisturizers & soaps for skin care, insect repellents, and toiletries is increasing. Carrier oils are derived from natural sources such as plant matter; however, their availability is extremely limited despite large-scale extraction operations. Limited or lack of awareness in developing countries such as South Africa, Brazil, Mexico, Saudi Arabia, and India impedes market growth. The rise in awareness initiatives by governments and private organizations is expected to aid growth in these countries. In addition, the growing trend of using natural products in the beauty & wellness industry is also another factor boosting demand for carrier oils. These oils are also widely used in personal care products to reduce the usage of harmful chemical products, aiding market growth. In addition, growing purchasing power and consumer awareness about the adverse effects of chemicals in toiletries & cosmetics are leading to an increase in preference for naturally sourced products.

Application Insights

In terms of application, the cosmetic segment dominated the market with the largest revenue share in 2022 and is also expected to grow at the fastest CAGR over the forecast period from 2023 to 2030, owing to the increasing incidence of skin problems globally. Carrier oils are widely used in cosmetics for skin & hair care, scar management, hair strengthening, controlling dandruff, and reducing itching. According to the World Health Organization, skin infections are among the most common human diseases, affecting around 900 million people globally. Furthermore, studies have shown that castor oil has antifungal and anti-inflammatory properties, and when applied topically, it can help reduce inflammation. It also improves lymphatic circulation within the body.

The medical segment also held a significant revenue share in 2022, as aromatherapy products have been proven effective in dealing with chronic pains. These products are increasingly being adopted for medicinal use despite the lack of evidence for their healing properties. Hence, these products are widely replacing most conventional medications owing to their health benefits and high potency with negligible adverse effects. According to WebMD, jojoba oil can be used to treat psoriasis by preventing flare-ups due to active inflammation and reducing pain to some extent.

The personal care segment is anticipated to grow at a lucrative CAGR over the forecast period due to the introduction of natural cleaning agents. Cleaning agents and household products are increasingly used for personal care applications due to their antibacterial and antiseptic properties.

Regional Insights

North America dominated the market in 2022 with the largest revenue share of 44.0%, owing to the increasing awareness about the advantages of alternative therapies. Moreover, the majority of the key market players, such as Edens Garden; Rocky Mountain Oils, LLC; and Plant Therapy, are headquartered in the U.S.

The import and export of carrier oils in European countries have increased awareness regarding aromatherapy in this region, thereby boosting the market growth. According to a survey conducted by Pain Alliance Europe, chronic pain affects around 20% of the adult population in Europe. As a result, the demand for natural products for pain management has increased in this region.

Asia Pacific is expected to grow at the fastest CAGR of 12.2% during the forecast period from 2023 to 2030. This growth is anticipated due to factors such as the rising prevalence of skin disorders and increasing preference for natural products. Growing awareness about the various therapeutic benefits of the products is also driving the demand for aromatherapy products. Furthermore, increased imports of carrier oil from the Asia Pacific region are fueling the market growth. According to Volza, carrier oils import shipments from India were around 6,400 in 2023.

Key Companies & Market Share Insights

The rise in competition is leading to rapid technological advancements, and companies are constantly working towards improving their products with a major focus on research and development. Factors such as investment in research & development, compliance with regulatory policies, and technological advancements constantly drive the introduction of novel techniques. A limited number of global companies are manufacturing these products and competing in the market. Key manufacturers are increasingly adopting strategic initiatives such as new product development, mergers & acquisitions, and geographic expansion. For instance, in February 2022, TruArc Partners, a private equity firm that actively engages with middle-market specialty manufacturing and business services companies, that focus on driving transformative growth, announced a partnership with New Directions Aromatics Inc., a provider of natural ingredients to the personal care, health and beauty, and cosmetics markets. The partnership will offer New Directions Aromatics Inc. ample resources and capital to benefit from the expanding demand for natural and organic products. TruArc Partners and New Directions Aromatics Inc. will work together to foster growth by providing support for enhancing value-added capabilities, talent acquisition, technological advancements, and pursuing additional acquisitions.

Furthermore, companies are focusing on creating awareness among people by publishing various blogs and articles about the benefits of using carrier oils. For instance, Moksha Lifestyle published an article about the benefits of using Jojoba oil, a prominent carrier oil used in aromatherapy. In October 2020, Florihana Distillerie launched Brazil nut carrier oil, extending its 100% organic carrier oil range. This product launch is expected to bolster the company’s footprint in the global market. Some prominent players in the global aromatherapy carrier oil market include:

• Edens Garden

• Rocky Mountain Oils, LLC

• Plant Therapy

• Falcon

• Florihana Distillerie

• Moksha Lifestyle Products

Aromatherapy Carrier Oil Market Report Scope

Global Aromatherapy Carrier Oil Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global aromatherapy carrier oil market report based on application and region:

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Cosmetic

    • Skin Care

    • Others

  • Personal Care

    • Household

    • Soap

  • Food & Beverages

  • Medical

    • Pain Management

    • Cold & Cough

    • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • Thailand

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait