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The organic essential oils market size is forecast to increase by USD 2.97 billion at a CAGR of 8.1% between 2023 and 2028.
The organic essential oils industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The food and beverage segment is estimated to witness significant growth during the forecast period.
The global market for organic essential oils is witnessing significant growth, particularly in the food and beverage segment. This sector's revenue share was substantial in 2023, driven by the rising consumer preference for natural ingredients and the addition of flavors and therapeutic benefits to food and beverages. Basil oil, for instance, is a popular choice in Italian cuisine, used extensively in making sauces, soups, pasta, and salad dressings. companies are introducing food and beverage products infused with organic essential oils, catering to this trend. The health and wellness sector is another major consumer of organic essential oils.
These oils' antimicrobial, antifungal, anti-inflammatory, and therapeutic properties make them essential in skincare, haircare, spa & relaxation, and aromatherapy products. Biotechnology is also playing a crucial role in the production of organic essential oils through methods like cold press extraction and CO2 extraction. Ethical production practices and the use of natural origins are increasingly important to consumers, further boosting market growth. The food and beverage industry's environmental impact is a concern, leading to the demand for natural alternatives to synthetic chemicals. Organic farming and green chemistry are gaining popularity as sustainable solutions. The versatility of organic essential oils extends to various end-use industries, including cosmetics, alcoholic beverages, household cleaning products, and healthcare.
Regulatory scrutiny and the availability of natural product alternatives are key challenges for market players. Despite these challenges, the market is expected to continue its growth trajectory, driven by the increasing demand for natural wellness solutions.
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The Food and beverage segment was valued at USD 1.88 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 35% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Europe's the market is experiencing significant growth due to their widespread usage in various industries, including pharmaceuticals, cosmetics, and food and beverages. Germany, the UK, France, and Spain are key markets for organic essential oils in Europe, driven by the increasing demand for healthier alternatives and multiple applications. Food and beverage and cosmetics manufacturers are introducing new products with organic essential oils as ingredients, catering to the rising consumer preference for natural and organic products. Aromatherapy, a popular alternative medicine practice in Europe, is another significant contributor to the market's expansion. France, Germany, the UK, Austria, and Switzerland are some of the leading countries where aromatherapy is commonly used.
The therapeutic benefits of essential oils, such as antimicrobial, antifungal, anti-inflammatory, and antiviral properties, make them an attractive choice for consumers seeking natural wellness solutions. Organic farming practices and ethical production methods are essential considerations for consumers in the health and wellness sector. The environmental impact of production and the use of synthetic chemicals are also becoming increasingly scrutinized. As a result, there is a growing trend towards natural origins and chemical-free cosmetics and household cleaning products. CO2 extraction and cold press methods are popular techniques used to ensure high-quality and purity of essential oils. Emerging economies are also showing an interest in natural wellness solutions, with cosmetics, alcoholic beverages, and household cleaning products being the major sectors driving the demand for organic essential oils.
The versatility of essential oils, from their use in aromatherapy to their therapeutic benefits, makes them an integral component of personal care and cosmetics, food and beverage, and household cleaning products.
Our 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.
The organic essential oils 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 organic essential oils market 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, organic essential oils market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
Avi Naturals - The company specializes in providing a range of authentic essential oils, including frankincense, black pepper, cardamom, clove bud, fennel seed, ginger, and juniper berry oils. These organic essential oils are sourced meticulously to ensure their natural purity and potency. Each essential oil offers unique aromatic and therapeutic benefits, making them valuable additions to various personal care and wellness applications.
The industry 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 industry 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.
Organic essential oils have gained significant traction in various end-use industries, including skincare, flavors and fragrances, spa and relaxation, food and beverage, and personal care and cosmetics. The growth trajectory of this market is driven by the increasing demand for natural and organic products, as consumers become more conscious of their health and wellness. Orange essential oil, with its distinct citrusy aroma and numerous therapeutic benefits, is a popular choice in these industries. Its antimicrobial, antifungal, and anti-inflammatory properties make it an ideal ingredient for various applications. The aromatherapy industry has long utilized orange essential oil for its calming and uplifting effects.
Its versatility extends to the food and beverage sector, where it is used as a natural flavoring agent. In the spa and relaxation segment, orange essential oil is often used in massage oils and body lotions to promote relaxation and rejuvenation. The health benefits of organic essential oils are not limited to personal use. They also find application in the food and beverage industry, where they serve as natural flavor enhancers and additives. In household cleaning products, they offer a more eco-friendly alternative to synthetic chemicals. The market for organic essential oils is subject to regulatory scrutiny, as governments and regulatory bodies seek to ensure the purity and quality of these products.
Organic farming practices, ethical production methods, and biotechnology are key areas of focus in this regard. The emergence of cold press extraction methods and CO2 extraction techniques has led to the production of high-quality essential oils, further boosting market growth. These methods ensure the preservation of the natural properties of the essential oils, making them more desirable to consumers. The versatility of organic essential oils extends to various end-use industries, including haircare, where peppermint oil is widely used for its invigorating properties. In the cosmetics industry, they are increasingly being used as substitutes for synthetic chemicals, as consumers seek out chemical-free alternatives.
The environmental impact of essential oil production is also a key consideration, with a growing focus on sustainable and eco-friendly practices. Organic farming and green chemistry are two areas where significant progress is being made in this regard. The market for organic essential oils is not without challenges, however. The high cost of production and the need for large quantities of raw materials make it a niche market. Additionally, the availability and accessibility of certain essential oils, such as Davana oil derived from flowers, can impact market dynamics. Despite these challenges, the market for organic essential oils is expected to continue growing, driven by the increasing demand for natural and organic products and their numerous therapeutic benefits.
As consumers continue to prioritize their health and wellness, the demand for high-quality, natural essential oils is likely to remain strong.
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Market Scope |
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Report Coverage |
Details |
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Page number |
165 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.1% |
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Market growth 2024-2028 |
USD 2968.8 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.3 |
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Key countries |
US, Germany, The Netherlands, Canada, and Japan |
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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 Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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