Aromatherapy Market Size, Share & Trends Report

Aromatherapy Market Size, Share & Trends Analysis Report By Product (Consumables, Equipment), By Mode Of Delivery (Topical, Aerial), By Application, By Distribution Channel, By End-use, And Segment Forecasts, 2020 - 2029

  • Published Date: Aug, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-1-68038-573-1
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 181

Report Overview

The global aromatherapy market size was valued at USD 1.37 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 11.8% from 2020 to 2029. The market is projected to be driven by growing consumer disposable income and the need to maintain a healthy lifestyle. Furthermore, several health benefits related to essential oils are anticipated to fuel the demand over the forecast period. Rising awareness related to various benefits of aromatherapy, including stress reduction, depression, and anxiety, particularly in the developed economies, is anticipated to boost the need for aromatherapy. It is an alternative remedy therapy to treat several disorders, including insomnia, cardiovascular, and respiratory disorders. This factor acts as a significant driver for the market.

The U.S. aromatherapy market size

The U.S. accounts for the largest share in the North America aromatherapy market. Increased awareness pertaining to the advantages of alternative therapies aids in the growth of the regional market. Additionally, favorable law and regulations for essential oil farming are anticipated to boost the market growth in this region.

Essential oils are organic products that are extracted from plants. These oils are non-toxic, and hence are safe for inhalation. Therefore, aromatherapy is used as a substitute for pharmaceutical drugs. Various adverse effects related to pharmaceuticals are boosting the use of these naturally developed essential oils, which, in turn, is anticipated to drive the market over the projected period.

Furthermore, pharmaceutical drugs might harm healthy and diseased cells, for instance, in the case of cancer therapy. Therefore, extensive research is being carried out to study the benefits of essential oils in the management of brain cancer. These oils have small-sized molecules that work effectively without hurting the brain. Thus, these products have enormous potential in treating chronic diseases without hurting the surrounding tissues.

The increasing need for relaxing and pleasantly aromatic ambiances at offices is likely to drive the demand for the aromatherapy equipment in the market positively. The expansion of end-use industries in emerging markets has also played a role in propelling the market growth. However, limited availability of raw materials, such as essential oils, and stringent laws in contradiction of harvesting and cultivation are considered to be the restraining factors for the market.

Product Insights

Consumables led the market and accounted for 77.7% share of the global revenue in 2019 owing to increasing therapeutic applications of essential oils for numerous disease conditions. These essential oils possess healing properties, which renders them a lucrative segment in the market. In addition, a wide variety of essential oils available in the market has led to their use through different modes of delivery.

Consumables include carrier oils as well as essential oils. Essential oils comprise single oils and blended oils. Some of the commonly used single essential oils are lavender, basil, rosemary, camomile, cinnamon, tea tree, and clary sage. Blended essential oils are manufactured through mixing one or more single essential oils that interact chemically. These blended oils exhibit a synergistic effect and are more potent.

The equipment segment is expected to witness significant growth over the forecast period due to the introduction of innovative diffusers. The introduction of different types of diffusers has led to an increase in preference for this equipment as they help gain therapeutic benefits from essential oils. Newly introduced diffusers also help controlling moisture and humidity in a particular area, thereby minimizing the risk of itchy eyes, dry skin, and sinusitis.

There are various diffusers available in the market, including ultrasonic, evaporative, heat, and nebulizers. Currently, the prices of most of these diffusers are high on account of lack of availability and awareness of these products, primarily in the emerging economies of Asia Pacific as well as Latin America.

Mode Of Delivery Insights

The topical application segment dominated the market in 2019, accounting for 42.3% share of the overall revenue owing to an increase in preference for topical application of aromatherapy oils for various skin-related problems. Essential oils are proven to be highly effective against chronic skin-related issues. For example, Deep Blue, by DoTERRA, is used topically for pain management and relaxation.

Aerial diffusion is projected to exhibit a lucrative growth rate over the forecast period on account of its effectiveness in cold and flu. The preference for aerial diffusion has increased with the growing demand for diffusers. Evaporative diffusion is also a growing segment, which has led to an increase in the usage of essential and carrier oils through aerial diffusion.

Direct inhalation of essential oils is very effective in treating respiratory disorders. Sinusitis and bronchial congestion, cold and cough, sore throat, influenza, and bronchitis are some of the medical conditions that require direct inhalation of essential oils. Inhaling essential oils is considered to be safe and does not require complex equipment.

Some of the methods of direct inhalation are applying drops of oil on pillow, tissue or handkerchief, using the portable inhaler, and through steam inhalation. Increasing preference of people for natural products has led to high demand for aromatherapy, which is also considered to be a substitute for drugs. Lavender, frankincense, and Roman chamomile are some of the essential oils used extensively through direct inhalation.

Application Insights

The relaxation application segment held the largest share in 2019, accounting for 22.9% share of the overall revenue. This can be attributed to an increase in the number of people suffering from anxiety and stress. Preference for natural and herbal treatment has led people to opt for such products to relieve stress.

The skin and hair care segment is anticipated to exhibit lucrative growth over the forecast period due to a rise in the number of skincare problems. Skin allergies, skin rashes, and acne are some of the disorders that can be treated using aromatherapy. Aromatherapy is also used to alleviate skin flare-ups due to eczema.

Aromatherapy has many natural healing properties. Essential oils derived from plants help in gaining these therapeutic properties. Rising use of essential oils has been observed in treating chronic and acute pain as they offer relief and relaxing benefits. Some of the commonly used aromatherapy oils for pain management are bergamot, chamomile, eucalyptus, jasmine, cypress, juniper, geranium, lavender, rosemary, thyme, and tea tree.

The scar management application segment expected to witness substantial growth over the forecast period as aromatherapy oils help reduce scars caused due to surgery or accidents, which may take a longer time to heal. Diluted lavender oils are used to heal all types of wound scars. It reduces infection, which thereby heals the wound and allows regeneration of new cells.

Distribution Channel Insights

Direct-to-consumer sales accounted for the largest share of 66.5% in 2019 owing to ease of buying and the necessity to smell the product prior to purchase and usage. The emergence of e-commerce is projected to boost market growth, with consumers opting for simple buying procedures.

The direct-to-customer involves multilevel marketing of aromatherapy products. Independent distributors are a major part of these sales that provide manufactured products to the consumers. With respect to aromatherapy, it is crucial to smell fragrances before purchasing the products. Hence, retail stores that offer aromatherapy products are seen to be the largest revenue-generating units.

An increase in internet usage and e-commerce growth are the major factors propelling the growth of e-commerce modules. In most instances, companies offer essential oils, diffusers, and other related products on their websites with additional information on their usage and therapeutic benefits. This facilitates users to understand products in a defined way and promotes sales, thereby accelerating market potential.

The business-to-business segment includes the transactions between manufacturers selling aromatherapy products and different companies, such as commercial organizations. These companies include pharmaceutical companies, wholesalers, and hospitals and clinics.

End-use Insights

On the basis of end-use, the home use segment held the largest share of 39.8% in 2019 owing to the high usage of aromatherapy for therapeutic purposes. Increasing the use of aromatherapy for relaxation, pain management, cold and cough, insomnia, and skin and hair management in the homecare settings is a key factor contributing to the substantial growth of the segment.

Spa and wellness centers accounted for a significant share in the market in 2019. The use of aromatherapy induces soothing and calming effects by acting on the nervous system and also promoting blood circulation. Aromatherapy is also used for quick healing processes and recovery.

Global aromatherapy market share

Aromatherapy is also used in hospital and specialty clinics as it induces improved blood circulation, eases digestion, reduces anxiety, nausea, and stress, and helps in speedy recovery. As it is a non-invasive method, hospitals are adopting aromatherapy to aid patient healing. Thus, a large number of hospitals and clinics are using essential oils to aid in postoperative healing.

Essential oils are used in yoga and meditation centers to induce soothing and calming effects. Aromatherapy reduces stress and anxiety and provides a soothing environment for meditation. Bergamot, sandalwood, ylang, helichrysum, palmarosa, lavender, and chamomile essential oils are the most frequently used in meditation in yoga centers.

Regional Insights

North America accounted for the largest share of 42.7% in 2019 owing to the increasing shift of patients towards natural ingredients for the treatment of stress, anxiety, and depression. Additionally, favorable laws and regulations for essential oil farming are expected to boost the use of diffusers in this region.

Europe is a major producer and consumers of essential oils, such as lavender, citrus oils, coriander, and rosemary. On account of the rising demand for natural beauty and cosmetic products, medicines, and nutraceuticals, the region is witnessing high demand for aroma diffusers capable of dispersing essential oils for treating various mental disorders.

Asia Pacific is expected to emerge as the fastest-growing regional market with a CAGR of 14.1% from 2020 to 2029. Increasing disposable income, coupled with flourishing health and wellness market, especially in developing countries including India, China, Indonesia, and Taiwan, has resulted in increasing demand for essential oils in aromatherapy.

Aromatherapy is the therapeutic use of essential oils to promote mental, physical, and spiritual well-being. Aromatherapy forms an integral part of natural remedies in Arabia and incorporates oils obtained from many healing plants found in the traditional markets of the Middle East and Africa, which, in turn, is expected to drive the demand for aromatherapy products in the region over the forecast period.

Key Companies & Market Share Insights

The industry is fragmented due to the presence of numerous key players as well as a few medium and small regional players. The players in this market face intense competition from each other as well as global companies to meet the rising consumer demand on account of various health benefits associated with the product. An increasing amount of initiatives have been undertaken by the dominant players in order to expand their geographic presence. The presence of untapped growth opportunities in the rapidly growing Asian and MEA economies and growing investments by market players in these regions are anticipated to boost the demand for aromatherapy products. Some of the prominent players in the aromatherapy market include:

  • dōTERRA

  • Young Living Essential Oils

  • Mountain Rose Herbs

  • Edens Garden

  • Frontier Co-op

  • Rocky Mountain Oils, LLC

  • Plant Therapy Essential Oils

  • FLORIHANA

  • Biolandes

  • Falcon Essential Oils

Aromatherapy Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 1.55 billion

Revenue forecast in 2029

USD 4.19 billion

Growth Rate

CAGR of 11.8% from 2020 to 2029

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2029

Quantitative units

Revenue in USD million and CAGR from 2020 to 2029

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, mode of delivery, application, distribution channel, end-use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

The U.S.; Canada; Germany; The U.K.; France; Italy; Spain; Russia; Japan; China; India; South Korea; Singapore; Australia; Argentina; Mexico; Brazil; South Africa; Saudi Arabia; UAE

Key companies profiled

dōTERRA; Young Living Essential Oils; Mountain Rose Herbs; Edens Garden; Frontier Co-op; Rocky Mountain Oils; LLC; Plant Therapy Essential Oils; FLORIHANA; Biolandes; Falcon Essential Oils

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts market share and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2029. For the purpose of this study, Grand View Research has segmented the global aromatherapy market report based on the product, mode of delivery, application, distribution channel, end-use, and region:

  • Product Outlook (Revenue, USD Million, 2016 - 2029)

    • Consumables

      • Essential Oils

        • Singles

          • Herbaceous

          • Woody

          • Spicy

          • Floral

          • Citrus

          • Earthy

          • Camphoraceous

          • Others

        • Blends

      • Carrier Oils

    • Equipment

      • Ultrasonic

      • Nebulizing

      • Evaporative

      • Heat

  • Mode Of Delivery Outlook (Revenue, USD Million, 2016 - 2029)

    • Topical Application

    • Aerial Diffusion

    • Direct Inhalation

  • Application Outlook (Revenue, USD Million, 2016 - 2029)

    • Relaxation

      • Consumables

      • Equipment

    • Skin & Hair Care

      • Consumables

      • Equipment

    • Pain Management

      • Consumables

      • Equipment

    • Cold & Cough

      • Consumables

      • Equipment

    • Insomnia

      • Consumables

      • Equipment

    • Scar Management

      • Consumables

      • Equipment

    • Others

      • Consumables

      • Equipment

  • Distribution Channel Outlook (Revenue, USD Million, 2016 - 2029)

    • DTC

      • Retail

      • E-commerce

    • B2B

  • End-use Outlook (Revenue, USD Million, 2016 - 2029)

    • Home Use

    • Spa & Wellness Centers

    • Hospitals & Clinics

    • Yoga & Meditation Centers

  • Regional Outlook (Revenue, USD Million, 2016 - 2029)

    • North America

      • The U.S.

      • Canada

    • Europe

      • Germany

      • The U.K.

      • France

      • Italy

      • Spain

      • Russia

    • Asia Pacific

      • Japan

      • China

      • India

      • South Korea

      • Singapore

      • Australia

    • Latin America

      • Argentina

      • Mexico

      • Brazil

    • Middle East & Africa

      • South Africa

      • Saudi Arabia

      • UAE

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