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The Organic Essential Oils Market size is projected to increase by USD 2.54 billion and the market size is estimated to grow at a CAGR of 7.51% between 2022 and 2027. Health benefits associated with organic essential oils are the key factor driving the growth of the market. Essential oils such as lavender, basil, tea tree, and lemongrass have a number of health benefits that are popular with consumers. Basil essential oil is a natural relaxing oil that helps to reduce stress. Basil essential oil contains chemical compounds such as eugenol, lemongrass, and linalool that help reduce skin inflammation. Lavender essential oil acts as a skin tonic. Lavender essential oil helps to control hair loss. Tea tree essential oil helps strengthen the immune system. Therefore, growing awareness among consumers about the health benefits which, in turn, will drive the growth of the market during the forecast period.
The market shows an accelerating CAGR during the forecast period.
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This market report extensively covers market segmentation by application (food and beverage, personal care and cosmetics, and pharmaceuticals), type (orange oil, mint oil, lemon oil, eucalyptus oil, and others), and geography (Europe, North America, APAC, South America, and Middle East and Africa). Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
Market Dynamics
The food & beverage industry, personal care & cosmetics industry, and aromatherapy industry share a common interest in harnessing the benefits of essential oils. These oils, known for their aroma imparting properties, are not only prized for their fragrance but also for their antifungal properties, making them valuable in various applications. In the food & beverage industry, essential oils are used to enhance flavors and aromas in products ranging from beverages to baked goods. Similarly, in the personal care & cosmetics industry, these oils are incorporated into skincare and beauty products for their aromatic and therapeutic properties.
Aromatherapy, a branch of complementary medicine, utilizes essential oils to promote physical and psychological well-being. Research studies continue to explore the potential health benefits of essential oils, leading to advancements in both conventional medicines and alternative therapies. Conferences and online seminar materials serve as platforms for knowledge exchange and collaboration within the essential oil industry. These events provide valuable insights into the latest research findings, applications, and trends, driving innovation and growth in this dynamic sector.
Rising demand for aromatherapy is the primary trend in the market. Aromatherapy is an alternative medical practice that involves the use of plant materials, such as essential oils. Aromatherapy helps to reduce anxiety, relieve depression, increase energy levels, speed up the healing process, eliminate headaches, enhance cognitive performance, induce sleep, strengthen the immune system, relieve pain, improve digestion, and increase circulation.
Additionally, growing awareness of their medicinal uses has made them popular in the home for relaxation, treating insomnia, improving mood, relieving pain, and more. Therefore, the growing popularity of aromatherapy among consumers will drive the growth of the market during the forecast period.
The increasing availability of counterfeit products is a challenge that affects the growth of the market. Essential oils are extracted from plants through distillation and show the characteristic scent and properties of the plant from which they are extracted. However, counterfeit products contain cheap seed oils and do not have the properties of essential oils. Some counterfeit products are mixed with synthetic products to create a plant scent.
Moreover, one of the most common adulterated essential oils is lavender essential oil. Occasionally lavender oil is sold under the name lavender oil. Lavandin oil is chemically dissimilar from lavender oil and is often used in perfumery. Such fake products will harm the brand image of leading essential oil brands. Therefore, the growing prevalence of counterfeit products will impede market growth and forecasting during the forecast period.
Orange oil is a widely used in the organic essential oil. The growing demand for natural products and components across the globe and the versatility that orange oil offers to be used for a variety of applications are some of the key factors that are increasing the demand for the orange oil segment. In addition, pure orange oil is used to prepare high-end healthcare products for aromatherapy as well as to flavor food. Growing demand for aromatic oils in the hospitality sector will drive the growth of the orange oil segment in the market during the forecast period.
In the market, the demand is driven by various industries including the food & beverage, personal care & cosmetics, and aromatherapy sectors. These oils, known for their antifungal, antibacterial, anti-inflammatory, and antiviral properties, cater to diverse end-use industries such as food, cosmetics, personal care, and pharmaceuticals. The industry relies on plants as sources, leveraging the aromatic compounds found in them. Pricing, patents, and research studies influence market dynamics, while consumer buying behavior shapes demand, particularly in the food and beverages, beauty and personal care, and aromatherapy segments. Key stakeholders contribute to the industry's growth through collaborations and innovations showcased in conferences and online seminar materials.
The market share growth by the food and beverages segment will be significant during the forecast period. The food and beverage segment is witnessing increased use of essential oils as consumers become increasingly health conscious and demand natural ingredients in food and beverages. Organic essential oils are used to add flavor and medicinal benefits to foods and beverages.
The food and beverages segment was valued at USD 1.76 billion in 2017.
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Changing consumer preferences will negatively impact the market growth. For example, consumers, especially millennials, prefer ethnic and spicy flavors. At the same time, the number of newly launched products with spicy flavors is also increasing. The popularity of exotic spicy flavors like Korean gochujang, Philippine adobo, and Piri Piri chilli is growing among consumers. These factors will have a positive impact on the growth of the market during the forecast period.
Europe is estimated to contribute 38% to the growth of the global market during the forecast period
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Technavio’s analysts have elaborately explained the regional market trends and drivers that shape the market during the forecast period. Europe is witnessing a high demand due to their many health benefits and applications across many sectors such as pharmaceuticals, cosmetics, food, and beverages. Germany, the UK, France, and Spain are among the main markets in Europe.
Furthermore, due to growing consumer awareness of natural home remedies, Europe is rapidly appearing as a significant market for aromatherapy products. The growing craze for aromatherapy and healthier lifestyles among consumers will increase the demand among cosmetic manufacturers and healthcare facilities in the region, thereby driving the growth of the regional market during the forecast period.
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.
The market report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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 research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is witnessing significant growth across various industries, including the food & beverage, personal care & cosmetics, and aromatherapy sectors. These oils are prized for their antifungal, antibacterial, and anti-inflammatory properties, driving innovation in green chemistry and sparking merger and acquisition (M&A) activity. However, this growth is accompanied by regulatory scrutiny and the challenge of finding suitable product substitutes. Essential oils like orange, peppermint, and davana are extracted using various methods such as distillation, CO2 extraction, and cold press extraction. They find applications in food, beverages, cosmetics, and aromatherapy, offering benefits like respiratory disinfection, stress relief, and antioxidant properties. With increasing consumer demand for natural products and transparency in ingredients, the market is poised for continued expansion, especially in developing countries where concerns over synthetic and substandard products are driving preference for natural alternatives.
Further, the market is witnessing robust growth, driven by demand from the personal care & cosmetics and aromatherapy industries. These oils, renowned for their antifungal and antibacterial properties, are derived from various sources like orange, peppermint, and rosemary through methods such as distillation and steam distillation. With rising consumer interest in natural products, organic essential oils are increasingly preferred for their natural preservative properties and suitability for oral and topical applications. They cater to diverse needs, from addressing skin problems like psoriasis and acne to offering decongestion and relaxation in spa treatments. As awareness grows about their benefits and origins, these oils continue to gain traction in the market, appealing to consumers seeking a healthier lifestyle and sustainable options.
Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.51% |
Market growth 2023-2027 |
USD 2.54 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.31 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 38% |
Key countries |
US, Canada, Japan, Germany, and The Netherlands |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Avi Naturals, BMV Fragrances Pvt. Ltd., Eden Botanicals, FLAVEX Natural Extracts GmbH, Givaudan SA, International Flavors and Fragrances Inc., Koninklijke DSM NV, Mane Kancor Ingredients Pvt. Ltd., Moksha Lifestyle, NHR Organic Oils, Norex Flavours Pvt. Ltd., Organic Infusions, Plant Therapy Inc., Robertet SA, Symrise AG, Synthite Industries Pvt. Ltd., Takasago International Corp., Ultra International Ltd., VedaOils, and Vidya Herbs Pvt. Ltd. |
Market dynamics |
Parent market growth analysis, Market forecasting, Market growth inducers and obstacles, 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 report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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