Global Essential Oils Market by Product (Peppermint, Orange), by Application (Food & Beverages, Spa & Relaxation) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global essential oils demand was 247.08 kilotons (in 2020) and is forecast to rise at a compound annual rate of 7.5% between 2020-2027. Major end-use industries such as food, beverage, personal care, cosmetics and aromatherapy are expected to drive the market. Essential oils have many health benefits that will drive demand for medical and pharmaceutical applications. Essential oils are free from side effects, which is a major advantage over conventional drugs and medicines. These attributes are expected to drive market growth. Additionally, the increasing prevalence of health issues such as Alzheimer's and cardiovascular disease is driving more people to use essential oils for aromatherapy.

Another factor that influences consumer trends is the rising demand for organic products. People are more inclined to choose products with natural ingredients due to the increasing number of regulations that encourage the use of eco-friendly ingredients in cosmetics and food and beverage industries. There has been a significant increase in demand for 100% plant based oils, which are free from synthetic fragrances and animal-derived ingredients. To reap the health benefits of organic products, the majority are turning to them.

The majority of consumers use essential oils for many purposes. They can be used to enhance the air quality at home, such as by adding essential oils to aroma pots or aroma diffusers. These diffuse oils in the form of atomized particle and are also used in aroma baths by adding essential oils to the water. Essential oils are used by young women to make homemade cosmetics due to their natural content as well as medicinal benefits.

Essential oils are made from organic plant matter. Companies must comply with various regulations and standards in order to trade internationally. Multinational corporations are the majority of essential oil producers. They engage in Corporate Social Responsibility (CSR), to maintain a positive reputation and keep their shareholders happy. Large corporations often overlook the environmental effects of their operations.

International organizations like the United Nations (UN), and the European Union(EU) have established specific guidelines and regulations for the cultivation, harvesting, processing, and storage of flowers and aromatic crops. The United Nations Industrial Development Organization, (UNIDO), and the Food and Agriculture Organization are responsible for overseeing and controlling post-harvest processing in developing countries, mainly for essential oils, herbs, spices, and spices. To represent, protect and promote the interests of European essential oil production and trade, the European Federation of Essential Oils was also created by the EU.

Product Insights

With a volume share of around 23.0%, orange oil was the most prominent product segment for 2019. Cosmetics and other major end-use industries are increasingly using orange essential oil to increase their sensory appeal and product value. It is believed that this oil promotes skin elasticity, firmness, and toning. It can also be used to treat acne, dermatitis and stretch marks. It is also known to improve the quality of hair, nails, skin, and skin. This oil has gained popularity with young women. The segment is expected to grow due to the growing number of working women and their increasing disposable income.

Peppermint oil can also be used topically and internally. It is considered one of nature's most versatile essential oils. Menthone and menthol are the main ingredients in this oil. Peppermint oil can be used to treat headaches, cold, sinusitis, and muscle pain. There are two types of buyers in the peppermint oil industry: local and international. Small-scale chemical, flavoring, pharmaceutical and food companies are local/domestic customers. The international buyers can be classified as personal healthcare, cosmetics flavor and fragrance, or aromatherapy industries with a global footprint, which triggers the need for these oils.

Application Insights

The largest share of spa and relaxation was more than 39.0% in 2019, and it is expected to continue growing over the forecast period. This segment's growth is primarily due to the changing lifestyles of consumers all over the globe. Aromatherapy is a growing market because of the need for stress-relieving therapies.

Food and beverages emerged as one the most important application segments in 2019, with a volume share 38.6%. It is expected that it will expand at the fastest CAGR between 2020 and 2027. The increasing demand for safe and natural food products around the world is a major factor in expanding the scope of essential oils' use in food and beverage applications. These oils have antimicrobial properties that help to preserve food and beverages for longer periods of time. This application segment is also growing because of the increasing focus by food and beverage companies on increasing product shelf lives without compromising quality.

Another important market segment in spa and relaxation is personal care. Essential oils are used extensively in cosmetics, perfumes, and toiletries. They are used in a variety of personal care applications such as beautifying hair and skin, color cosmetics, and makeup.

These oils can also be used to clean the teeth, gums and mouth and in shampoos, soaps, and baby products. Essential oils are also used in general hygiene. The essential oil industry is seeing positive changes due to increased awareness of organic and natural products. They are used extensively in perfumes, body sprays and air fresheners.

Sales Channel Insights

With a volume share exceeding 70%, direct selling was the most popular channel for sales in 2019. The increasing awareness of essential oils has led to increased retail sales, particularly through convenience stores. DoTerra Essential Oils and Young Living Essential Oils are two of the top companies in this market. They have used multi-level marketing strategies to grow their business and increase their sales. Many wholesalers and importers have also launched websites to sell their products online. Distributing the products will become more complicated as many sellers are focusing on selling online to expand their geographical reach.

They offer attractive discounts and gifts, and also offer compensation plans to attract consumers. DoTerra has reached 5 million customers worldwide in the last few years. 70% of these customers are wholesale. These platforms increase awareness, boost sales and help to expand the reach of products.

Regional Insights

Europe held a 43.65% market share in 2019, in terms of volume. The industry's growth has been aided by the presence of organizations like the European Federation of Essential Oils. EFEO was created to protect and promote the interests of all stakeholders in the market value chain. The European Commission and the EU Parliament are currently in talks to amend or create legislation regarding essential oils. These trends have benefited the market growth in the region. The key factors driving Europe's strong market growth are easy access to feedstock and the presence of many industry players. Key end-use industries are growing because of the presence of a more developed economy. DOMINATING

Asia Pacific will experience the fastest growth during the forecast period. This region's growth is due to its large population and untapped markets. These factors will attract the attention of key players to establish and expand their operations and distribution facilities.

Coronavirus was discovered in China in December 2019. It has since spread to Italy. This lockdown is to stop the spread of the virus. The Government took preventive measures to reduce the number of people infected and the death rate. It also shut down commercial and industrial businesses, including shops and manufacturing units. This has hampered both import-export and production. These factors will cause huge economic losses for the region and may also hamper market growth in the near term.

Market Share Insights & Key Companies

Due to the large number of industry players, the market is fragmented. Market competition will increase if there is greater integration of market players involved in raw material sourcing and distribution. The demand for essential oils is affected by technological progress and a high level of price competition. Markets are also characterised by different market sizes and balanced production capacities. This will lead to lower profit margins and less competition among existing players. The following are some of the major players in the essential oils industry:

• Sydney Essential Oil Co. (SEOC)

• Biolandes SAS

• India Essential Oils

• H. Reynaud & Fils (HRF)

• Young Living Essential Oils

• DoTerra

• New Zealand Essential Oils

• Farotti S. R. L.

• Flavex Naturextrakte GmbH

• West India Spices Inc.

• Falcon

• Ungerer Limited

• The Lebermuth Company

• Rocky Mountain Essential Oils

• Moksha Lifestyle Products

Up Market Research published a new report titled “Essential Oils Market research report which is segmented by Product (Peppermint, Orange), by Application (Food & Beverages, Spa & Relaxation), By Players/Companies DoTerra, Young Living Essential Oils, Sydney Essential Oil Co (SEOC), Moksha Lifestyle Products, Biolandes SAS, Farotti S R L, Falcon, Essential Oils of New Zealand, Ungerer Limited, West India Spices Inc, The Lebermuth Company, India Essential Oils, Flavex Naturextrakte GmbH, H Reynaud & Fils (HRF), Rocky Mountain Essential Oils”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Essential Oils Market Report Segments:

The market is segmented by Product (Peppermint, Orange), by Application (Food & Beverages, Spa & Relaxation).

Essential Oils Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Essential Oils Market

Overview of the regional outlook of the Essential Oils Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Essential Oils Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Essential Oils Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Peppermint

                2. Orange

                1. Food & Beverages

                2. Spa & Relaxation

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Essential Oils Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Essential Oils Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.