Global Essential Oil Market Size is Estimated to Reach USD 21.54 billion by 2031, Growing at a CAGR of 8.1%: Straits Research
Primarily, essential oils are utilized in cosmetics and toiletries, food, and beverages. Increased consumer preference for natural and organic products, whether in cosmetics, food or other product categories, is the primary factor driving market expansion. In response, manufacturers operating in these industries have developed products with natural additives. In addition to factors such as rapid industrialization, an increase in disposable income, and an improvement in the standard of living in emerging economies, the increase in the use of essential oils by a variety of end-user industries contributes to the expansion of the market.
New York, United States, Feb. 07, 2024 (GLOBE NEWSWIRE) -- The leaves, stems, flowers, bark, roots, and other parts of a plant are used to extract essential oils, which are also referred to as volatile oils, aetherolea, and ethereal oils. Essential oils are created through the steam and water distillation of a variety of herbs and plants, including orange, eucalyptus, cornmint, peppermint, citronella, lemon, lime, clove, and spearmint. These oils have real plant essence and volatile aroma compounds. Essential oils are primarily used in food, drink, cosmetics, and toiletries. The main factor driving market expansion is rising consumer preference for natural and organic products, whether in cosmetics, food, or other product categories. Manufacturers in these sectors have created goods with natural additives in response. The increased use of essential oils by a variety of end-user industries helps the market grow, in addition to elements like quick industrialization, an increase in disposable income, and an improvement in the standard of living in emerging economies.
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*Growing Popularity of Aromatherapy Drives the Market*
According to Straits Research, *“**The global essential oil market size was valued at USD 10.69 billion in 2022. It is projected to reach USD 21.54 billion by 2031, growing at a CAGR of 8.1% during the forecast period (2023-2031).”* As hectic lifestyles and schedules become more common, people turn to therapies that relieve stress and promote relaxation. Lavender, mandarin, and rose essential oils, for example, have a calming and energizing effect on the body and mind. Oils with potent aromas, like lavender, are used in spa and aromatherapy treatments. They are known to support physical, mental, emotional, and spiritual well-being as well as sound sleep. Due to their high concentration, essential oils must be diluted with a carrier oil before being applied directly to the body. The aforementioned factors have led to an increase in the use of essential oils in aromatherapy. Essential oil therapy is another name for aromatherapy. Over the past ten years, consumers have become pickier in how they use personal care products. Despite the fact that there are many products on the market that are similar to one another, superior quality and aggressive pricing will boost customer satisfaction and brand loyalty. Market expansion is anticipated to benefit from rising research and development spending on more effective goods, services, processes, and technologies. Aromatherapy is now more widely available to the general public thanks to the hospitality and tourism industries' strong growth incentives. This pattern has helped the market for ethereal oils grow, along with the increased use of natural active ingredients in pharmaceutical and cosmetic formulations.
*Wider Application of Essential Oils in the Pharmaceutical Industry gives an Opportunity for Exponential Growth*
Essential oils have been used to promote personal hygiene and population health. They are becoming more well-liked among doctors and researchers because of their well-known anti-inflammatory and antibacterial healing properties. By supporting the immune system, essential oils help treat cancer, digestive issues, and other diseases. They are also used to stop acute respiratory illnesses. Therefore, it is anticipated that over the course of the forecast period, the market will grow due to the emerging applications of essential oils in the pharmaceutical sector. The main components of medicinal herbs are essential oils, which have been widely used in many different industries and are known to have biological properties dating back to antiquity. Important biological properties like antibacterial, antioxidant, antiviral, and insecticidal are present in essential oils. These distinctive qualities have led to their increased acceptance and use in a variety of fields around the world. Intriguingly, parts of essential oils are used in a variety of pharmaceutical applications, creating opportunities for the market for essential oils to grow in the future.
*Regional Analysis *
North America Essential Oil Market Share is expected to grow at a CAGR of 8.23% during the forecast period. The region has benefited from government initiatives by increasing investment in natural rather than synthetic alternatives. Market participants have been helped in maintaining their operations by the rise in popularity of "Green solutions," herbal essential oils like peppermint, orange, clove, and others. The pharmaceutical and aromatherapy industries in North America have seen an increase in demand for essential oils as a result of changes in lifestyle and a rise in disposable income, which supports the market's expansion. People with busy schedules seek out relaxation methods like spa treatments and aromatherapy. The market for essential oils is anticipated to be significantly driven by industries like pharmaceuticals and food and beverages. Because of advancements in the field of essential oil extraction and concentration levels, the average price of oils has decreased. The demand for essential oils from consumers is expected to increase, and their use in cosmetics and personal care products will also likely increase, which will boost the market in this region.
Europe is expected to witness dynamic growth with a CAGR of 8.7% in the essential oil market during the forecast period. Essential oils are now used in many different applications across the world thanks to the prosperous economic environment in the European region. Europe is home to the seven largest essential oil processing businesses in the world. The main factors influencing essential oil sales in Europe are applications in spas and naturopathy. The European market is expanding as a result of rising public awareness of health and hygiene. The development of end-use industries and rising consumer awareness of the benefits of essential oils are credited for this quick growth. The existence of organizations like the European Federation of Essential Oils has helped the industry grow in Europe (EFEO). To advance and defend the interests of all parties involved in the market value chain, EFEO was founded. The organization is also in talks with the EU Commission and EU Parliament to introduce or modify essential oil legislation. These trends have aided in the area's market expansion.
*Key Highlights*
· Based on the product, the global essential oil market is bifurcated into orange, eucalyptus, peppermint, citronella, cornmint, lemon, clove, lime, and spearmint. The orange segment is the highest contributor to the market and is expected to grow at a CAGR of 9.1% during the forecast period.
· Based on the application, the global essential oil market is bifurcated into food and beverage, medical, cleaning and home, spa and relaxation, and others. The food and beverages segment is the highest contributor to the market and is expected to grow at a CAGR of 8.24% during the forecast period
· North America region is the highest contributor to the market and is expected to grow at a CAGR of 8.23% during the forecast period.
*Competitive Analysis:*
The global essential oil market's major key players are *Takasago International Corporation, Firmenich SA, Synthite Industries Ltd, Flavex Naturextrakte GmbH, Symrise, MANE, ROBERTET GROUP, Givaudan, Falcon, Norex Flavours Private Limited, International Flavors & Fragrances Inc., MOKSHA LIFESTYLE PRODUCTS, BMV Fragrances Pvt. Ltd., VedaOils, Ultra International, and VidyaHerbs*.
*Market News:*
· In May 2022, VedaOils launched a chemical-free range of soap-making supplies to assist the soap-making process in the Soap Industry.
· In January 2022, Symrise acquired Schaffelaarbos to expand its global pet nutrition market in European Union.
*Global Essential Oil Market: Segmentation*
*By Product*
· Orange
· Eucalyptus
· Peppermint
· Citronella
· Cornmint
· Lemon
· Clove
· Lime
· Spearmint
*By Application*
· Food and beverage
· Medical
· Cleaning and home
· Spa and relaxation
*By Source *
· Fruits & vegetables
· Herbs & spices
· Flowers
*By Method of Extraction*
· Distillation
· Carbon dioxide extraction
· Cold press extraction
· Other extraction methods
*By Regions*
· North America
· Europe
· Asia-Pacific
· LAMEA
*Get Detailed Market Segmentation @ **https://straitsresearch.com/report/essential-oil-market/segmentation*
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