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The essential oil market size is forecast to increase by USD 10.30 billion at a CAGR of 11.43% between 2023 and 2028. The market is experiencing significant growth, driven by the increasing recognition of their health benefits. These natural extracts derived from plants, including Dill Oil, Elemi Oil, Galbanum Oil, Hyssop Oil, Immortelle Oil, Laurel Leaf Oil, Litsea Cubeba Oil, Melissa Oil, Myrrh Oil, Niaouli Oil, Palmarosa Oil, and Parsley Seed Oil, are gaining popularity for their therapeutic properties. A trending innovation in the market is the development of advanced diffusion and delivery systems, enabling essential oils to be used more effectively and conveniently. However, the market faces challenges, such as the increasing availability of counterfeit essential oils, which undermines consumer trust and quality standards. Producers must ensure authenticity and adhere to regulatory guidelines to maintain market credibility.
The market is experiencing significant growth due to the increasing demand for natural and organic products. Key essential oils, including lavender oil, peppermint oil, tea tree oil, eucalyptus oil, lemon oil, rosemary oil, chamomile oil, bergamot oil, ylang ylang oil, frankincense oil, geranium oil, clary sage oil, patchouli oil, sandalwood oil, citronella oil, clove oil, basil oil, cinnamon oil, oregano oil, lemon oil, lemongrass oil, juniper berry oil, grapefruit oil, orange oil, jasmine oil, thyme oil, rose oil, neroli oil, cedarwood oil, and fennel oil, are widely used in various industries such as cosmetics, pharmaceuticals, and food and beverages. These oils are known for their therapeutic properties and are used to treat a range of health conditions, from anxiety and stress to inflammation and pain.
Furthermore, the market is expected to continue growing due to the increasing awareness of the health benefits of natural products and the rising demand for aromatherapy and alternative medicine.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The food and beverages segment is estimated to witness significant growth during the forecast period. Essential oils, including Dill Oil, Elemi Oil, Galbanum Oil, Hyssop Oil, Immortelle Oil, Laurel Leaf Oil, Litsea Cubeba Oil, Melissa Oil, Myrrh Oil, Niaouli Oil, and Palmarosa Oil, are finding significant usage in the food and beverages sector due to the rising health consciousness among consumers. These oils are employed to impart flavors and offer therapeutic benefits to food and beverages. For instance, Basil essential oil is commonly used in Italian cuisine for making sauces, soups, and pasta, as well as in the preparation of salad dressings. Moreover, essential oils such as garlic, thyme, rosemary, oregano, and basil have antimicrobial properties that aid in controlling bacterial growth in food products, thereby enhancing their shelf life and safety.
Furthermore, the market for essential oils in food and beverages is projected to grow as companies continue to introduce new products containing these natural ingredients.
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The food and beverages segment accounted for USD 3.29 billion in 2018 and showed a gradual increase during the forecast period.
Our market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Health benefits of essential oils is the key driver of the market. Essential oils, including Thyme Oil, Rose Oil, Neroli Oil, Cedarwood Oil, Fennel Oil, Marjoram Oil, Helichrysum Oil, Anise Oil, Bay Oil, Cardamom Oil, Carrot Seed Oil, and others, have gained significant popularity due to their numerous health benefits. These oils are extracted from various plants and offer a range of therapeutic properties. For instance, Thyme Oil is known for its antimicrobial and antifungal properties, making it an effective remedy for respiratory issues and skin infections. Rose Oil is renowned for its soothing and calming effects on the skin and mind. Neroli Oil is a potent antioxidant and anti-inflammatory agent, while Cedarwood Oil is a natural deodorant and has insecticidal properties.
Furthermore, fennel Oil is an excellent digestive aid, Marjoram Oil is a muscle relaxant, Helichrysum Oil is a powerful anti-inflammatory, Anise Oil aids in digestion, Bay Oil supports the immune system, Cardamom Oil is a natural antioxidant, and Carrot Seed Oil is rich in vitamins and minerals, making it beneficial for skin health. These essential oils have been used for centuries for their therapeutic properties and continue to be a popular choice for those seeking natural remedies for various health concerns.
Emerging innovation in diffusion and delivery of essential oils is the upcoming trend in the market. Essential oils, such as Thyme Oil, Rose Oil, Neroli Oil, Cedarwood Oil, Fennel Oil, Marjoram Oil, Helichrysum Oil, Anise Oil, Bay Oil, Cardamom Oil, Carrot Seed Oil, and Cumin Oil, have gained significant popularity in recent years due to their numerous health benefits and therapeutic properties. Ultrasonic diffusers represent an emerging innovation in the dissemination and delivery of these essential oils. These devices utilize ultrasonic vibrations to transform essential oils into microparticles, which are subsequently released into the air as a fine mist. This method of diffusion is more effective than traditional techniques, such as heat or fan diffusion, as it safeguards the therapeutic attributes of essential oils and ensures a prolonged fragrance.
Moreover, ultrasonic diffusers are also user-friendly, with features like built-in timers and automatic shut-off mechanisms, making them suitable for both residential and commercial applications.
Increasing availability of counterfeit products of essential oil is a key challenge affecting market growth. Essential oils, derived from plants through distillation, offer unique fragrances and properties representative of their botanical sources. However, the market growth is threatened by the prevalence of counterfeit products. Adulterated essential oils, such as those misrepresented as Thyme Oil, Rose Oil, Neroli Oil, Cedarwood Oil, Fennel Oil, Marjoram Oil, Helichrysum Oil, Anise Oil, Bay Oil, Cardamom Oil, Carrot Seed Oil, and others, pose a significant challenge. These counterfeit products are often made from cheap seed oils or synthetics, lacking the authentic properties of essential oils. For instance, lavender essential oil is frequently adulterated with lavandin oil, which is chemically distinct and commonly used in perfumery.
Furthermore, such deceptive practices not only compromise the quality of essential oils but also tarnish the reputation of leading essential oil brands.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Avi Naturals - The company offers essential oil products such as Ambrette essential oil, Amyris essential oil, Anethi essential oil, Basil essential oil, Bay rum essentila oil.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth due to the increasing awareness and adoption of aromatherapy and natural health remedies. Essential oils derived from plants, such as lavender oil, peppermint oil, tea tree oil, eucalyptus oil, lemon oil, rosemary oil, chamomile oil, bergamot oil, ylang ylang oil, frankincense oil, geranium oil, clary sage oil, patchouli oil, sandalwood oil, citronella oil, clove oil, basil oil, cinnamon oil, oregano oil, lemongrass oil, juniper berry oil, grapefruit oil, orange oil, jasmine oil, thyme oil, rose oil, neroli oil, cedarwood oil, fennel oil, marjoram oil, helichrysum oil, anise oil, bay oil, cardamom oil, carrot seed oil, cumin oil, dill oil, elemi oil, galbanum oil, hyssop oil, immortelle oil, laurel leaf oil, litsea cubeba oil, melissa oil, myrrh oil, niaouli oil, palmarosa oil, parsley seed oil, petitgrain oil, pine oil, ravensara oil, spikenard oil, tarragon oil, verbena oil, wintergreen oil, yarrow oil, valerian oil, tuberose oil, angelica root oil, benzoin oil, black pepper oil, blue tansy oil, cajeput oil, camphor oil, cassia oil, catnip oil, costus oil, cubeb oil, davana oil, dill weed oil, fir needle oil, ho wood oil, and others, are widely used for their therapeutic properties in aromatherapy, cosmetics, food and beverage, and pharmaceutical industries.
Furthermore, the market growth can be attributed to the rising demand for natural and organic products and the increasing popularity of aromatherapy as a stress-relieving and wellness practice.
Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.43% |
Market growth 2024-2028 |
USD 10.30 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.16 |
Key companies profiled |
Aliver Beauty, Avi Naturals, Biolandes SAS, BMV Fragrances Pvt. Ltd., doTERRA International LLC, Eden Botanicals, Elysce, Essential Oils Co, Falcon, Natural Sourcing LLC, NHR Organic Oils, Norex Flavours Pvt. Ltd., Organic Infusions, Phoenix Aromas and Essential Oils LLC, Plant Therapy Inc., Sydney Essential Oil Co. Pty Ltd., Takasago International Corp., The Lebermuth Co. Inc., Ultra International Ltd., VedaOils, Vidya Herbs Pvt. Ltd., Young Living Essential Oils LC, Enio Bonchev Production Ltd., and Essential Oils of New Zealand Ltd. |
Market dynamics |
Parent market analysis, market forecast, market growth inducers and obstacles,market forecast , fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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