The global Essential Oils Market size was valued at USD 11.41 billion in 2023. The market is projected to grow from USD 12.47 billion in 2024 to USD 27.82 billion by 2032, exhibiting a CAGR of 10.55% during the forecast period.
Aetheroleum oils are termed non-water soluble liquids comprising unstable aroma compounds of the plants. The global market is mostly driven by the robust trend of green consumerism among the growing popularity of natural products for sensory-related aspects and food preservation.
Fortune Business Insights™ mentioned this in a report titled “Essential Oils Market, 2024-2032.”
Segments
Citrus to Dominate Market Owing to Increasing Popularity among Consumers
On the basis of type, the market is divided into eucalyptus, rosemary, citrus, lavender, tea tree, peppermint, and others. The citrus segment holds the largest Essential Oils Market share owing to their superior functional, availability, organoleptic characteristics, and strong demand dynamics.
Food & Beverages Segment to Hold the Market Share Owing to Increasing Demand for Oils
According to application, the market is divided into spa & relaxation, food & beverages, personal care & cosmetics, pharmaceuticals & medicinal formulations, and others. The food & beverages segment is anticipated to hold the largest share during the forecast period. The segment is expected to grow due to the addition of ethereal oils to food products that increase the sensory characteristics of various edibles, shelf-life, and storage stability.
Growing Awareness about the Product to Drive the Direct Distribution Channel Sales
As per distribution channel, the market is segmented into direct distribution, MLM distribution, and retail distribution. The direct distribution segment leads the market with the largest market share. Increasing consumer demand to feel the oil’s fragrance is expected to drive market growth.
Report Coverage-
The report offers:
- Major growth drivers, restraining factors, opportunities, and potential challenges for the market.
- Comprehensive insights into regional developments.
- List of major industry players.
- Key strategies adopted by the market players.
- Latest industry developments such as product launches, partnerships, mergers, and acquisitions.
Drivers & Restraints-
Growing Demand and Need for Natural Ingredients to Foster Market Growth
The use of plant-based volatile oil has a vital role in the natural preservation of foods despite the increasing distress of synthetic food additives and their long-term harmful effects. Ethereal oils have shown antibacterial actions in foods such as milk, fish, meat products, fresh meat, dairy products, and cooked rice.
Ethereal oils are very concentrated products. Further, one pound of lavender oil consumes around 250 pounds of lavender flowers. The ever-rising demand against constrained supply is bound to create high-price scenarios, hindering its utilization across different application sectors in developing economies.
Regional Insights-
Europe to Dominate the Market Share Owing to Plant-based Volatile Oils
Europe is anticipated to dominate the market share in 2022. The producers of cosmetics in Europe are inclining heavily toward including ethereal oils in their formulations. The increasing popularity and demand for aromatherapy in the U.K., Germany, and France is anticipated to further contribute to the Essential Oils Market growth.
North America is anticipated to have second position in terms of market share. The demand for the product in the region is anticipated to witness noteworthy growth during the projected period.
Competitive Landscape-
Industry Association a Priority for Prominent Companies in the Market
The global market remains primarily fragmented owing to the importance of local and private-label brands in different regions. Prominent companies, such as International Flavors and Fragrances Inc., Givaudan International SA, and Symrise AG, embark on acquisitions and mergers to increase their importance in the marketplace.
List of Key Players Present in the Report:
- Biolandes SAS (France)
- Givaudan International SA (Switzerland)
- International Flavours and Fragrances Inc. (U.S.)
- Symrise AG (Germany)
- Enio Bonchev Production Ltd. (Bulgaria)
- The Lebermuth Company, Inc. (U.S.)
- Essential Oils of New Zealand (New Zealand)
- Phoenix Aromas & Essential Oils LLC (U.S.)
- Sydney Essential Oil Co. (Australia)
- Young Living Essential Oils (U.S.)
