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Essential Oils Market Research Report - Global Forecast till 2027

Essential Oils Market Research Report: Information by Type (Orange Oil, Lemon Oil, Peppermint Oil, Corn Mint Oil, Citronella Oil, Spearmint Oil, Clove leaf Oil, Eucalyptus Oil and others), Application (Food & Beverages, Personal Care, Aromatherapy, Air Care and others) and Region (North America, Europe, Asia-Pacific and the Rest of the World) - Forecast till 2027

ID: MRFR/F-B & N/1492-HCR | February 2021 | Region: Global | 90 pages

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Essential Oils Market Overview 

The Essential Oils Market is expected to grow at a significant rate of 11.18% from 2020 to 2027 to reach a market value of USD 22.50 Billion by the end of 2027. Essential oils are concentrated natural oils, usually extracted from plants that are used for medicinal and therapeutic properties. Moreover, the use of essential oils enhanced since the inclination of people towards an organic natural lifestyle. Essential oils are today used for many purposes. The essential oils market has been growing steadily over the past couple of years. In fact, research and development have uncovered new essential oils for public use. The market is a fairly profitable one for essential oil producers. Furthermore, this profitability will sustain over the forecast period for the producers. Essential oils are highly popular for all the hidden benefits they have for people. Essential oils market caters to all genders.

Scientifically speaking, essential oils are hydrophobic liquids that contain chemical compounds in a concentration that benefits the human body. Essential oils are truly multipurpose because they are used for different purposes like pain relief, beauty-boosting, aromatherapy, etc. Thus, the market caters to different consumer segments and is diverse. The essential oils are also diverse in their source of extraction. Every plant product has some oils. When these oils are isolated in high concentration for human use, they are put in use as essential oils. Some common essential oils are lemongrass, rosehip, eucalyptus, avocado, and jojoba. 

Therefore, there are many types of essential oil in current use. Different essential oils have different benefits. The varied benefits of essential oils are a reason behind their extensive use. People use essential oils for their natural benefits. Nowadays, people trust pure and natural products because they are without any adulteration. Essential oils are potent and effective natural products that are trusted by people. The inclination towards using 100 percent natural and pure products is an advantage for the market. Therefore, the essential oils market has been growing steadily since 2019.

COVID 19 Analyses

The COVID 19 pandemic proved as a setback to the global market as the global supply chain broke down. The essential oils market depends a lot on exotic ingredients and plant extracts. It is, therefore, necessary that the supply chain works properly so that the producers can regularly supply to the market. The COVID 19 pandemic erected obstacles in mobility and logistics that affected the supply of essential oils. Moreover, a dearth of manufacturing workers also affected the market. People’s focus moved from cosmetics to other essential products. 

However, market experts believe the market will bounce back in the post-pandemic phase. The shift towards self-care and the use of medicinal products will also support the recovery of this segment. The pandemic phase took the growth rate down by few notches, but the growth rate will recover in the coming years. A return of normalcy post mass vaccination is a positive factor for essential oils market growth. 

Market Dynamics 

The key drivers of the market  

There are many key drivers of growth in the essential oils industry. The key drivers of the market support essential oils market growth in a certain period. The essential oil market demand in different areas of application like cosmetics is a key driver of the market. Moreover, another key driver of the essential oils market is the essential oil market demand for use in soaps, medicinal therapy, and general use. The public demand for aromatic products and air care products also drives growth in themarket. The popularity of aromatherapy in solving different issues for the general public is also a key driver of the market. The essential oil market demand for therapeutic oils in the case of COVID 19 prevention is also a key driver of the essential oils market. 

The significant opportunities of the market

In the subsequent waves of the COVID 19 pandemic, people are trying to find at-home prevention for the virus. The increased dependence on essential oils is an opportunity for the essential oil producers for the forecast period. The essential oil producers can exploit untapped markets based on the demand for therapeutic essential oils. The best essential oils on the market for COVID 19 prevention are peppermint oil, eucalyptus oil, and neem oil. Present industrialization of developing countries like India is also an opportunity to decrease the gaps in the essential oil supply chain. 

Market Restraints

According to the essential oil industry statistics, the global essentials oil market has some restraints at the present time. The restraints on logistics and mobility still exist. If the source of ingredients is far from the production venue as it happens with most exotic essential oils, there are restraints on the market expansion. The major producers need to address these restraints before ramping up the production. These restraints also affect the final price of the products on the essential oils industry. 

Market growth challenges

Similar to market restraints, growth challenges also exist in the essential oils market. Any industry needs new products and upgrades to survive. The market also needs to step out of the box and discover new blends for sale. The convenient sourcing and simplification of the extraction process are also a challenge. If these challenges are resolved, the essential oils market size will increase beyond the predicted size. 

Cumulative growth analysis 

Overall, the essential oils market looks towards growth in the forecast period. According to this market report, the essential oils market has a growth rate of 8.79% till 2027. The growth rate is a healthy one and points towards steady growth of the market. The market report also states that the market size will grow and reach a valuation of USD 22.50 Billion by the end of 2027. The essential oils market will expand over the forecast period. 

Segment Overview 

The fresh market divides into different segments depending on different criteria. For example, the major criterion of market segmentation is product type.

By Type

The type segment bases upon the source of the essential oil. The best essential oils on the market are orange oil, lemon oil, tea tree oil, and citronella oil. 

By Application

The global market also segments into different categories based on the application field. For example, the categories include food and beverages, aromatherapy, and personal care. There is a whole foods market essential oils segment that has oils used in foods.

Regional Overview 

By regions, the market disperses over major regional markets of North America, Europe, and the Asia Pacific. According to the essential oil industry statisticsthe majority of the market size belongs to the European region. Moreover, the essential oil industry statistics also point that the North American region is the second biggest regional market for essential oils. In the essential oils segment, the essential oils market in India is growing. Market experts say that growing consciousness of self-care and therapy is a reason behind this phenomenon. 

Competitive landscape 

There are many key players in the essential oils industry that dominate the competitive landscape for the market. 

The key players of the fresh market essential oils segment are as follows. 

  • G Baldwin & Co 

  • doTerra 

  • Rocky Mountains Oil 

  • Young Living Essential Oils 

  • Mountain Rose Herbs 

  • Ryohin Keikaku Co., Ltd. 

The analysis of the competitive landscape reveals that the key players are dispersed over different regional markets. The key players belong to the USA, UK, and Japan. Some emerging key players also belong to India. It is, therefore, unsurprising that the essential oils market in India is growing. The key players need to experiment and isolate newer essential oils to meet the demand of the consumers. 

Recent Developments 

  • The direct sales channel commands the major chunk of the product distribution channel because people are more aware of essential oils application. 

  • Asia Pacific region is the fastest-growing regional market for essential oils as people grow more conscious about their benefits. 

  • Demand for natural fragrances also supports the growth of the global essential oil market. 

Report Overview 

The global market outlook or overview is as follows:

  • Market Overview

  • COVID 19 Analysis

  • Market Dynamics

  • Segment Overview

  • Regional Analysis

  • Competitive Landscape

  • Recent Developments

The above report on the global essential oils market explains the major growth trends of the market. Secondly, the report keeps the present situation of the essential oils market while predicting for the forecast period. Thirdly, it throws light on the market dynamics of the segment in the discussion. Moreover, this report also covers the basic segmentation of the market and its regional analysis. The report emphasizes the competitive landscape of the market and its recent developments. The above report is a comprehensive report that considers different associated factors before arriving at a conclusion about the market scenario. 

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Frequently Asked Questions (FAQ) :

The regional market of Europe will generate the highest revenue by the end of 2027.

The overall growth percentage for the essential oils market in the forecast period is 11.18%.

The orange essential oil and peppermint oil will emerge as major product types in the forecast period.