Market Overview

The global Aromatic Essential Oils market was valued at USD 8.31 billion in 2022 and expected to grow at a CAGR of 9.2% during the forecast period. Aromatic essential oils are highly concentrated liquids that are extracted from various parts of plants such as leaves, flowers, roots, stems, and bark. They are known for their aromatic properties and are used in a variety of applications such as perfumes, aromatherapy, and natural remedies. These oils are obtained through a process of steam distillation, cold pressing, or solvent extraction, and are prized for their therapeutic benefits as well as their fragrance.

Aromatic essential oils have been used for centuries for their medicinal and therapeutic properties. They are known to have antibacterial, antifungal, antiviral, and anti-inflammatory properties, and can be used to treat a variety of health conditions such as anxiety, depression, insomnia, headaches, and digestive problems. They are also used in the beauty and skincare industry for their nourishing and hydrating properties.

Some popular aromatic essential oils include lavender, peppermint, tea tree, eucalyptus, chamomile, and lemon. These oils are widely available in health food stores, online retailers, and specialty shops, and are used in a variety of ways such as diffusing, topical application, or inhalation. It is important to note that essential oils are highly concentrated and should be used with caution, and under the guidance of a healthcare professional.

The global market for aromatic essential oils is expected to experience significant growth in the coming years, driven by the increasing demand for natural and organic products. Aromatic essential oils are widely used in the food and beverage, cosmetic and personal care, and pharmaceutical industries, among others.

The growing popularity of aromatherapy and natural remedies is also driving the demand for aromatic essential oils. In addition, the increasing awareness about the therapeutic benefits of essential oils and the rise in disposable income are expected to contribute to the growth of the market.

However, the market is also facing some challenges such as the availability of counterfeit products and the high cost of genuine essential oils. The lack of standardization in the industry and the shortage of raw materials in some regions are also hindering the growth of the market.

North America and Europe are the largest markets for aromatic essential oils, due to the high demand for natural and organic products in these regions. However, the Asia-Pacific region is expected to grow at a faster rate, due to the increasing awareness about the therapeutic benefits of essential oils and the rise in disposable income in countries such as China and India.

Overall, the global market for aromatic essential oils is expected to grow significantly in the coming years, driven by the increasing demand for natural and organic products and the growing popularity of aromatherapy and natural remedies.

Report Scope

Impact of COVID

The COVID-19 pandemic has had a mixed impact on the global market for aromatic essential oils. While the demand for essential oils has remained relatively stable, the supply chain disruptions and the closure of retail stores have impacted the distribution and sales of these products.

On the one hand, the pandemic has led to an increased demand for natural and organic products, including essential oils, as consumers become more health-conscious and seek out products that can boost their immunity and help them relax. As a result, the demand for essential oils used in aromatherapy and personal care products has remained stable.

However, the pandemic has also led to supply chain disruptions, which have affected the production and distribution of aromatic essential oils. The closure of borders, restrictions on transportation, and shortage of raw materials have led to delays and disruptions in the supply chain, affecting the availability of essential oils in some regions.

Furthermore, the closure of retail stores and the shift towards online shopping have impacted the sales of essential oils. While online sales of essential oils have increased, the closure of physical stores has led to a decline in sales in some regions.

Overall, the impact of COVID-19 on the global market for aromatic essential oils has been mixed. While the demand for essential oils has remained stable, the supply chain disruptions and the closure of retail stores have impacted the distribution and sales of these products.

Type Insights

Orange Oil: Orange oil is one of the most widely used essential oils, due to its refreshing and uplifting properties. It is used in various applications, such as aromatherapy, personal care products, and food and beverage flavoring.

Lemon Oil: Lemon oil is another popular essential oil, known for its cleansing and purifying properties. It is used in various applications, such as household cleaning products, personal care products, and food and beverage flavoring.

Peppermint Oil: Peppermint oil is a versatile essential oil, known for its cooling and soothing properties. It is used in various applications, such as aromatherapy, personal care products, and food and beverage flavoring.

Lavender Oil: Lavender oil is a popular essential oil, known for its calming and relaxing properties. It is used in various applications, such as aromatherapy, personal care products, and household cleaning products.

Eucalyptus Oil: Eucalyptus oil is a refreshing and invigorating essential oil, known for its respiratory benefits. It is used in various applications, such as aromatherapy, personal care products, and household cleaning products.

Tea Tree Oil: Tea tree oil is a versatile essential oil, known for its antibacterial and antifungal properties. It is used in various applications, such as skincare products, hair care products, and household cleaning products.

Rosemary Oil: Rosemary oil is a stimulating and invigorating essential oil, known for its cognitive and memory-enhancing properties. It is used in various applications, such as aromatherapy, personal care products, and food and beverage flavoring.

Jasmine Oil: Jasmine oil is a luxurious and exotic essential oil, known for its romantic and aphrodisiac properties. It is used in various applications, such as perfumes, personal care products, and aromatherapy.

Geranium Oil: Geranium oil is a balancing and uplifting essential oil, known for its hormonal and emotional benefits. It is used in various applications, such as skincare products, perfumes, and aromatherapy.

Clove Leaf Oil: Clove leaf oil is a warm and spicy essential oil, known for its analgesic and antiseptic properties. It is used in various applications, such as dental care products, food and beverage flavoring, and aromatherapy.

Method of Extraction Insights

Distillation: This method involves the use of steam to extract the essential oil from the plant material. It is the most commonly used method for extracting essential oils and accounts for a significant share of the market.

Carbon dioxide extraction: This method involves the use of carbon dioxide to extract the essential oil from the plant material. It is a relatively new method but is gaining popularity due to its ability to extract high-quality oils.

Cold press extraction: This method involves the use of a mechanical press to extract the essential oil from the plant material. It is commonly used for citrus oils such as orange, lemon, and lime oils.

Solvent extraction: This method involves the use of solvents such as hexane or ethanol to extract the essential oil from the plant material. It is commonly used for delicate flowers such as jasmine and rose oils.

Application Insights

Food & beverages: Aromatic essential oils are widely used in the food and beverage industry for flavoring and adding fragrance to food products. This segment accounts for a significant share of the market.

Cosmetics & toiletries: Aromatic essential oils are widely used in cosmetics and toiletries such as perfumes, soaps, shampoos, and lotions. This segment accounts for a significant share of the market.

Aromatherapy: Aromatic essential oils are commonly used in aromatherapy for their therapeutic properties such as stress relief, relaxation, and mental clarity. This segment is growing in popularity and accounts for a significant share of the market.

Home care: Aromatic essential oils are used in home care products such as air fresheners, candles, and cleaning products for their fragrance and disinfectant properties. This segment accounts for a moderate share of the market.

Health care: Aromatic essential oils are used in various health care applications such as massage, natural remedies, and alternative therapies. This segment accounts for a moderate share of the market.

Regional Insights

North America: North America is one of the largest markets for aromatic essential oils, due to the high demand for natural and organic products in the region. The United States is the largest market for aromatic essential oils in North America, driven by the growing popularity of aromatherapy and natural remedies.

Europe: Europe is also a significant market for aromatic essential oils, driven by the high demand for natural and organic products in the region. The United Kingdom, France, and Germany are the largest markets for aromatic essential oils in Europe.

Asia-Pacific: The Asia-Pacific region is expected to grow at a faster rate, due to the increasing awareness about the therapeutic benefits of essential oils and the rise in disposable income in countries such as China and India. Japan, China, and India are the largest markets for aromatic essential oils in the Asia-Pacific region.

Latin America: The market for aromatic essential oils in Latin America is relatively small, but it is expected to grow in the coming years, driven by the increasing demand for natural and organic products in the region. Brazil is the largest market for aromatic essential oils in Latin America.

Middle East and Africa: The market for aromatic essential oils in the Middle East and Africa is also relatively small, but it is expected to grow in the coming years, driven by the increasing demand for natural and organic products in the region. South Africa is the largest market for aromatic essential oils in the Middle East and Africa.

Competitive Analysis

Some of the major companies operating within the market are Cargill, Inc. (US), DuPont (US), Koninklijke DSM N.V. (Netherlands), dôTERRA International LLC (US), Givaudan SA (Switzerland), Young Living Essential Oils (US), The Lebermuth Company, Inc. (US), Symrise (Germany), Sensient Technologies Corporation (US), Essential oils of New Zealand (New Zealand), Firmenich SA (Switzerland), International Flavors & Fragrances Inc. (US), Mane (France), ROBERTET SA (France), Rocky Mountain Oils LLC (US), BIOLANDES SAS (France), Falcon (India), Farroti (Italy), Indian Essential Oils (India), and Ungerer Limited (UK). These players are focusing on product innovation, expansion, and partnerships to strengthen their market position and meet the growing demand for Aromatic Essential Oils globally.

Recent News

·         In June 2022, Ixom has acquired Australian Botanical Products (ABP) and supports its expansion within the growing essential oils market segment. Aromatic Ingredients will join Australian Botanical Products (ABP) within Ixom’s Life Sciences business unit and will eventually become part of Australian Botanical Products (ABP) at its Hallam site.

By Type

·         Orange oil

·         Lemon oil

·         Lime oil

·         Peppermint oil

·         Cornmint oil

·         Citronella oil

·         Spearmint oil

·         Geranium oil

·         Clove leaf oil

·         Eucalyptus oil

·         Jasmine oil

·         Tea tree oil

·         Rosemary oil

·         Lavender oil

·         Other

By Method of Extraction

·         Distillation

·         Carbon dioxide extraction

·         Cold press extraction

·         Solvent extraction

·         Other extraction method

By Application

·         Food & beverages

·         Cosmetics & toiletries

·         Aromatherapy

·         Home care

·         Health care

·         Others

Why to buy this Report?

The report provides quantitative and qualitative aspect for the market in terms of value and volume, along with supporting market trends, challenges, restraints.

The report provides an in depth analysis from both production and consumption point of view at the regional and country level. Key Factors considered within the report scope are Production capacity by countries/regions, average price, consumption ratio, revenue earned and gross margin.

The report provides competitive analysis of around 30-50 companies operated in the market, these companies are bifurcated into niche players, the leaders and major contenders. The companies are analyzed in terms of following factors such as:

§  Business Model

§  Production Capacity, Revenue, Sales, Gross Margin

§  Key Business Strategy

§  SWOT Analysis

In terms of competitive landscape, the report provides distinctive factors that would help the end user in taking a key decision within the business:

§  Company Share Analysis from 2018-2022

§  Company Analysis by Revenue and Sales

§  Company Production Capacity, Gross Margin

§  Company Share Analysis by Application/End Use

§  Company Share Analysis by Product/Specification

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