The global essential oils market size was valued at US$ 20.99 billion in 2022 and is expected to hit US$ 43.87 billion by 2032 with a registered CAGR of 7.70% from 2023 to 2032.
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The eroupe essential oils market size was reached at US$ 9.45 billion in 2022 and is predicted to touch US$ 20.11 billion by 2032 growing at a CAGR of 7.90% between 2023 to 2032.
Europe region accounted 50% market share in 2022. The growth of essential oils market in Europe region is being driven by existence of companies in the region. In addition, growing awareness about the advantages provided by essential oils is also driving the growth of Europe essential oils market. Moreover, the rising population is contributing towards the growth of Europe essential oils market.
Asia-Pacific, on the other hand, is expected to develop at the fastest rate during the forecast period. India and China dominate the essential oils market in Asia-Pacific region. The expansion of essential oils market in Asia-Pacific region is attributed to the wide availability of raw materials as well as low cost of labor. In addition, the large number of consumers is also supporting the expansion of essential oils market in the region.
One of the key factors driving the growth of global essential oils market is growing applications of essential oils in various end use industries. The growing trend of using organic and natural products is paving way for the expansion of global essential oils market. The shift in consumer preference and taste is providing lucrative opportunities for expansion of worldwide essential oils market over the forecast period.
The rising usage of essential oils in pharmaceuticals is driving the demand for essential oils on a large scale in global market. The rising prevalence of certain ailments is resulting into the surge in demand for essential oils in healthcare and pharmaceutical sectors. Aromatherapy, commonly known as essential oils is a therapeutic and aesthetic treatment that uses essential oils. The essential oils can help to enhance mind, body, and emotional and physical wellness.
The other factors driving the growth of global essential oils market is growing research and development activities. The major market players are continuously investing in such activities for introduction of new products in the global market. The government are also assisting market players for manufacturing products which are environmentally friendly in nature. Thus, this factor is boosting the demand for essential oils in the market.
The regions such as Asia-Pacific and Europe have large number of essential oil manufacturers. These market players are concentrating their efforts on improving their manufacturing technology in order to reduce resource consumption and increase productivity. The market players are also concentrating their efforts on increasing profitability by streamlining the value chain and restructuring the business process. The market players conduct feasibility studies to cultivate crops that have never been produced in the field before in order to gain novel raw materials for the development of new products in the global essential oils market.
|Market Size by 2032
|USD 43.87 Billion
|Growth Rate from 2023 to 2032
CAGR of 7.70%
|Europe Market Share in 2022
|Spa and Relaxation Segment Market Share in 2022
|2023 to 2032
|Product, Application, Sales Channel, Type, Method of Extraction, Geography
|Takasago International Corporation, Flavex Naturextrakte GmbH, Firmenich SA, Synthite Industries Ltd., ROBERTET GROUP, International Flavors & Fragrances Inc., Norex Flavours Private Limited, BMV Fragrances Pvt. Ltd., MOKSHA LIFESTYLE PRODUCTS, Ultra International
The orange oil segment dominated the essential oils market in 2022. The orange oil is an essential oil derived from the rind of the citrus sinensis fruit. The orange oil is a by product of the evaporation of orange juice. The rising living standards and disposable income are likely to boost global sales of orange oil.
The lemon oil segment is predicted to hit fastest growth rate from 2023 to 2032. Lemon oil is an essential oil that is well known for its energizing, zesty aroma. During the projected period, demand for natural food flavors such as lemon essential oil is expected to rise in emerging nations such as India and China. This factor is driving the growth of the segment.
The spa and relaxation segment accounted market share of around 47% in 2022. The essential oils are primarily used to lubricate the skin and reduce friction during massage. This aids in giving the skin surface a smooth glide and easy workability. Some of the additional benefits include moisturizing the skin and functioning as a base or carrier oil used in aromatherapy. All these factors are driving demand for essential oils in spas and relaxation centers.
The food and beverage segment is projected to develop strong growth during the forecast period. Several essential oils contain antibacterial and antioxidant characteristics that help to keep bacteria at bay in the kitchen. They operate as natural preservatives in the food industry, progressively replacing dangerous synthetic preservatives in the food industry, progressively replacing dangerous synthetic preservatives. Cooking with plant extracts such as cinnamon, oregano, clove oil, and thyme inhibits the growth of fungi and yeasts, extending the life of food.
The direct selling segment dominated the essential oils market in 2022 with revenue share of 46%. In a non-retail setting, direct selling entails selling things directly to customers. Instead, sales take place from home, at work, on the internet, or at other non-store venues. The direct selling eliminates various product distribution intermediaries, including regional distribution centers and wholesalers. These factors are boosting the growth of the segment.
The online sales segment is expected to witness strong growth over the forecast period. The online sales channel or e-commerce platform is gaining momentum in global market. The reason being rise in adoption of smart phones and internet penetration. In addition, the benefits such as discounts and free home delivery are supporting the growth of sales of essential oils through online sales channel or e-commerce platform.
Segments Covered in the Report
By Sales Channel
By Method of Extraction
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