The global essential oils market size was valued at USD 8.8 billion in 2022 and is expected to grow at a CAGR of 11.8%, reaching a value of $15.3 billion by 2027. The data highlights the growth potential of the essential oil industry over the next few years. A recent research study examines industry trends in the market, focusing on aspects such as essenital oils pricing, patents, conference and online seminar materials, key stakeholders, and consumer buying behavior. The market is experiencing growth driven by major end-use industries like food and beverages, beauty and personal care, and aromatherapy. Essential oils are increasingly being utilized in various industries due to their health benefits and minimal side effects. In North America, the demand for these oils has been bolstered by the increasing preference for a healthy lifestyle and ingredient transparency. Furthermore, the applications of essential oils in research and development (R&D) and product development are expanding rapidly, indicating a promising global market outlook in the years to come.
What are essential oils?
Essential oils are concentrated liquids extracted from plants, typically through methods like distillation or cold pressing. They capture the aromatic compounds, or “essence,” of the plant from which they are derived. These oils contain the characteristic fragrance and properties of the plant, and they are used in various applications, including aromatherapy, personal care products, natural medicine, and even food flavoring.
Essential oils have been used for centuries for their therapeutic and medicinal properties. They are believed to have various health benefits, such as reducing stress, improving mood, alleviating pain, and supporting overall well-being. However, it’s essential to use them carefully and according to guidelines, as they are highly concentrated and potent substances that can cause adverse reactions if misused.
Some key trends in the essential oils market include:
1. Growing Consumer Interest in Natural Products: Consumers were increasingly seeking natural and organic products, leading to a rise in demand for essential oils. Many people were turning to essential oils for aromatherapy, personal care, and home care, driven by a preference for natural ingredients.
2. Health and Wellness Trends: The wellness and health-conscious movement contributed to the popularity of essential oils. Essential oils were being used in aromatherapy, massage, and as alternatives to synthetic fragrances in personal care products.
3. Rising Demand in the Food and Beverage Industry: Essential oils were gaining traction in the food and beverage sector, especially in the development of natural flavors. They were being used as flavor enhancers and natural preservatives in various food and beverage products.
4. E-commerce Growth: The essential oils market was experiencing increased online sales. E-commerce platforms provided consumers with convenient access to a wide range of essential oils, contributing to market growth.
5. Sustainability and Ethical Sourcing: Consumers were becoming more aware of sustainability issues, and there was a growing demand for ethically sourced and sustainably produced essential oils. Companies were increasingly focusing on transparency in their supply chains.
Lavender Oil is Gaining Traction for Its Multipurpose Role
Lavender Oil is an essential oil obtained from steam distillation from the spikes of certain species of lavender. Although lavender is native to France and the western Mediterranean regions, it is now cultivated worldwide. Lavender oil can benefit the skin in numerous ways. It could lessen acne, help even skin tone, and reduce wrinkles. It can even be used to treat other things, such as improving hair health and digestion.
Request Sample Pages: https://www.marketsandmarkets.com/requestsampleNew.asp?id=119674487
The food and beverages industry continues to incorporate essential oils into multiple products, in line with the upward trend of “clean label.”
Essential oils are identified for their health benefits, as they are natural ingredients that impart the essence of the source they have been derived from. The largest market segment for essential oils is food and beverage, as consumers are becoming increasingly aware of the health benefits of essential oils. The food and beverage industries use essential oils primarily for their color, flavor, and fragrance in the end products.
Food and beverage manufacturers most common essential oils include orange oil, lemon oil, cardamom essential oil, peppermint oil, and lime oil. Lemon essential oil is widely used in the food and beverage industry as a flavoring agent, such as fruit juices, jams, and bakery products. With citrus essential oils labeled as safe for consumption by regulatory authorities, the food and beverages industry continues to incorporate these essential oils into multiple products, in line with the upward trend of “clean label.” Clean labels and positive nutrition are gaining traction among consumers, especially the Millennials and Gen Z. Stringent food standards and consumer awareness regarding the health issues associated with artificial food additives promote the consumption of natural ingredients such as essential oils. Food and beverage brands are incorporating the clean label trend in new product developments, and therefore the trend is strongly driven by supply-side initiatives.
The North American Essential Oils Market is Primarily Driven by Growth in the US and Canadian Markets
The US market dominated the North American market in 2021. It is the largest country in terms of the import and export globally. The consumption of essential oil products in the US is considerably high. Products with all-natural ingredients are increasing in popularity because of increasing awareness about health, wellness, and sustainable lifestyle. Consumers are ready to spend extra on products that claim to be natural and organic. It is leading manufacturers of food and beverage and other industries like cosmetics to introduce essential oil in their formulations to satisfy consumer demand and capitalize on the trend. With their natural origin, help manufacturers claim their products to be natural and free from artificial chemicals.
Consumers have realized the importance of essential oil products due to the growing prevalence of health issues and other lifestyle diseases. Essential oils of herbs and spices origin are rising in demand. Essential oils such as peppermint, spearmint, and orange are in high demand in Canada. This demand is rising because of globalization as consumers demand new, innovative, and international flavors. Moreover, a busy lifestyle and less time for cooking have increased the demand for processed foods as they are convenient, which further opens new possibilities for essential oil use. The increasing awareness about health & hygiene drives the demand for convenience food and consumer products manufactured using natural ingredients in the country. Similarly, the demand for premium consumer products among the high-income population is expected to drive the essential oils market.
Top Companies in the Essential Oils Market
Key players in this market include Cargill, Incorporated (US), DSM (Netherlands), Givaudan (Switzerland), International Flavors & Fragrances Inc. (US), Sensient Technologies Corporation (US), Symrise (Germany), Robertet SA (France), MANE (France), doTERRA (US), NOW Foods (US), Lebermuth, Inc. (US), BIOLANDES (France), Norex Flavours Private Limited (India) and India Essential Oils (India).
Key Questions Addressed by the Essential Oils Market Report:
1. How big is the market for essential oils?
2. What is the estimated growth rate (CAGR) of the global essential oils market?
3. What are the major revenue pockets in the essential oils market currently?
4. Which region is projected to account for the largest share of the essential oils market?
5. Which players are involved in manufacturing of essential oils?
Get 10% Free Customization on this Report: https://www.marketsandmarkets.com/requestCustomizationNew.asp?id=119674487
About MarketsandMarkets™
MarketsandMarketsTM has been recognized as one of America’s best management consulting firms by Forbes, as per their recent report.
MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.
Earlier this year, we made a formal transformation into one of America’s best management consulting firms as per a survey conducted by Forbes.
The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.
Built on the ‘GIVE Growth’ principle, we work with several Forbes Global 2000 B2B companies – helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.
Media Contact
Company Name: MarketsandMarkets™ Research Private Ltd.
Contact Person: Mr. Aashish Mehra
Email: Send Email
Phone: 18886006441
Address:630 Dundee Road Suite 430
City: Northbrook
State: IL 60062
Country: United States
Website: https://www.marketsandmarkets.com/Market-Reports/essential-oil-market-119674487.html