The global essential oils market size is estimated to reach USD 35.5 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 7.4% from 2021 to 2028. The growth can be attributed to the rising awareness regarding the health benefits of naturally sourced oils and the growing inclination of people towards aromatherapy. Additionally, increasing demand from major end-use industries such as food and beverage and personal care, and cosmetics is likely to have a positive impact on the market.
Essential oils are generally distilled or extracted directly from plant matter to derive the most concentrated essence or oil. Distillation may be a steam contact or direct water contact process where plant leaves, stems, roots, and flowers are leached for their essences and flavors. Raw material for essential oils varies from product to product, based on the type of oil required.
Key companies are entering into long-term contracts with domestic and international suppliers and distributors to diversify their sources, control prices, and maintain the quality of raw materials. Mergers, acquisitions, joint ventures are the major expansion strategies adopted by players to strengthen their position in the market as well as expand their regional presence.
Europe was the dominating region in 2020 and is predicted to witness a CAGR of 7.4% over the forecast period. This is attributed to the strong presence of the food and beverage industry coupled with high disposable income and high standards of living of the consumers.
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In 2020, the orange oil segment accounted for over 9.47% revenue share on account of growth in the end-use industries such as spa and relaxation and medical
The lemon oil segment is projected to witness a CAGR of 8.1% by 2028 owing to its usage in a variety of skincare, haircare, and cosmetic products
The food and beverages segment was the second largest application segment in 2020 due to the ascending demand for natural, safe, and minimally processed food products across the globe
As of 2020, Europe was the leading region and accounted for more than 45.0% of the market revenue share. North America was the second-largest region and is expected to witness a CAGR of 7.4% in the coming years
The spa and relaxation was the dominant application segment in terms of both revenue and volume in 2020 owing to the busy lifestyle, hectic schedules, growing aging population, and rising urban dwelling
Grand View Research has segmented the global essential oil market based on product, application, sales channel, and region:
Essential Oil Product Outlook (Volume, Tons; Revenue, USD Thousand, 2017 - 2028)
Essential Oil Application Outlook (Volume, Tons; Revenue, USD Thousand, 2017 - 2028)
Food & Beverages
Meat, Poultry & Seafood
Snacks & Nutritional Bars
Spa & Relaxation
Makeup and color cosmetics
Cleaning & Home
Essential Oil Sales Channel Outlook (Volume, Tons; Revenue, USD Thousand, 2017 - 2028)
Essential Oil Regional Outlook(Volume, Kilotons; Revenue, USD Million, 2017 - 2028)
Middle East & Africa
List of Key Players of Essential Oil Market
Takasago International Corporation
Flavex Naturextrakte GmbH
Synthite Industries Ltd.
International Flavors & Fragrances Inc.
Norex Flavours Private Limited
BMV Fragrances Pvt. Ltd.
MOKSHA LIFESTYLE PRODUCTS
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