Essential Oils Market Worth to Hit $23.96Bn Globally by 2030 – Exclusive Report by The Insight Partners
The global essential oils market is anticipated to grow at a CAGR of 7.2% during 2022-2030.
Pune, India, Nov. 10, 2023 (GLOBE NEWSWIRE) — According to our latest study on “Essential Oils Market Size Report, Forecast to 2030 – COVID-19 Impact and Global Analysis – by Type, Category, Application, and Geography,” the essential oils market is expected to grow from $13.69 billion in 2022 to $23.96 billion by 2030; it is estimated to grow at a CAGR of 7.2% from 2022 to 2030.
In recent years, health trends have been rapidly evolving, with many consumers choosing clean-labeled and organic products over conventional products. With the surging number of people suffering from heart diseases, obesity, high blood pressure, skin disorders, and diabetes and rising health consciousness among people, the demand for organically certified products is increasing. Consumers perceive organic products to be healthier than conventional ones as they are grown following stringent farming practices that avoid using chemical fertilizers, genetically modified organisms (GMOs), synthetic pesticides, antibiotics, and growth hormones. This factor is significantly driving the demand for organic products, which further boosts the demand for organically procured ingredients such as essential oils and propels the growth of the essential oils market.
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Moreover, the organic trend is not only associated with food and beverages. The demand for organic skincare and hair care products, such as shampoos, conditioners, moisturizers, face creams, etc, is also rising simultaneously. Thus, the growing organic industry provides lucrative opportunities to the manufacturers of essential oils as these ingredients are widely used in personal care products, food products, beverages, cosmetics, and home care products. Manufacturers of essential oils are focusing on acquiring organic certification for their products to meet the emerging market demand. They are launching organically certified products to cater to increasing consumer requirements and to gain a competitive position across the organic sector. These factors drive the essential oils market.
The increasing prevalence of skin diseases caused by synthetic ingredients in beauty products and cosmetics fuels the demand for organic skin care products. Thus, manufacturers are launching different organic skin care products. For instance, Lady Green – an organic beauty brand based in France, launched a range of organic make-up and face care products, including face wash, face cream, mascara, and B.B. cream, for blemished, acne-prone skin in February 2021. Such product innovation increases the demand for organic essential oils and is further expected to grow the essential oils market in the forecast period.
Givaudan, Sensient Technologies Corporation, Symrise, International Flavors and Fragrances Inc, Firmenich S.A., MANE, DSM, Elixarome Limited, BORDAS S.A, De Monchy Aromatics are among the key players operating in the essential oils market. These key players adopt product innovation strategies and invest in business expansions to meet consumers’ demands, further driving the essential oils market. For instance, in December 2022, Dabur India, one of the leading consumer product manufacturers based in India, expanded its air freshener product portfolio by launching the ‘Odonil Gel Pack.’ This air freshener is infused with essential oils. Similarly, in February 2021, Natural Sourcing LLC, an American company, launched rosewood essential oil for fragrance application. This rosewood essential oil can also aid in the production of several personal care and skin care products. Such strategic development initiatives by key market players are expected to propel the essential oil market growth in the forecast period.
Impact of COVID-19 Pandemic on Essential Oils Market
Before the outbreak of COVID-19, the demand for essential oil was majorly driven by rising utilization as a natural ingredient in food & beverages, household cleaning products, cosmetics, etc. The essential oils market was also driven by increasing demand from spas and aromatherapy centers and rising demand for essential oil-infused personal care products. However, these industries faced unprecedented challenges after the COVID-19 outbreak in 2020. Essential oil producers faced significant challenges due to supply chain constraints caused by nationwide lockdowns, trade bans, and travel restrictions.
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During the initial phase of the COVID-19 pandemic, the implementation of lockdown restrictions and shutdown of manufacturing units led to a production shortfall, which caused a disproportion in demand and supply. These factors hampered the profitability of various small-scale and large-scale essential oil manufacturers. The bans imposed by various governments in Europe, North America, and Asia Pacific on international travel forced the companies to temporarily put their collaboration and partnership plans on hold. These factors negatively affect the essential oils market across the globe. The manufacturers and application industries faced significant challenges owing to supply chain constraints caused by trade bans, nationwide lockdowns, and travel restrictions. The disruptions in the supply chain created a shortage of raw materials, which negatively affected the production and distribution of various products and increased prices. These factors hampered the profitability of the various end-use industries, such as food & beverages, cosmetics, aromatherapy, household cleaning products, etc., in 2020 and early 2021, hampering the growth of essential oils.
However, in 2021, various economies resumed their operations as governments announced relaxation in the previously imposed restrictions, which fueled the global marketplace. Moreover, manufacturers were permitted to open at full capacity, which helped them overcome the demand and supply gap and other repercussions. As people of many countries were fully vaccinated by 2021, the manufacturers focused on increasing their production to revive their businesses.
Essential Oils Market: Segment Overview
The essential oils market by region is segmented into North America, Europe, Asia Pacific, Middle East & Africa, South & Central America, etc. The market is significantly growing in Asia due to the increasing demand for natural ingredients and the growing influence of ‘clean label products’ among consumers. Due to lifestyle changes, urbanization, and stressful lives, people prefer to take aromatherapies for physical and emotional well-being. Essential oils play a vital role in aromatherapy. Essential oils in cosmetic products act as an antioxidant and possess antibacterial properties. Japan is famous for various cosmetics. Demand for natural and organic cosmetics is growing in Japan. Therefore, the preference for essential oils over artificial ingredients is increasing in cosmetic products. All these factors are expected to propel the essential oils market growth in Asia Pacific in the coming years.
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