Essential Oils Market Overview, Future and Forecast Report to 2028

Posted on 2022-07-07 by researchinsights in Chemicals // 0 Comments

Essential Oils Industry Overview

The global essential oils market size was valued at USD 18.6 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 7.4% in terms of revenue from 2021 to 2028.

The market is expected to be driven by increasing demand from major end-use industries, such as food and beverage, personal care and cosmetics, and aromatherapy. Unlike most conventional medicines and drugs, essential oils have no major side effects. Such traits of the product are projected to be the major driving factor for market growth.

Gather more insights about the market drivers, restrains and growth of the Global Essential Oils Market

Increasing consumer awareness regarding natural and organic personal care products and food and beverages has forced the manufacturers to shift their focus from synthetic to natural products which have acted as one of the major forces impacting the global essential oils market. Several health benefits related to essential oils are projected to drive their demand in pharmaceutical and medical applications.

Rising demand for organic products is another factor influencing consumer trends. Further implementation of regulations favoring the use of environmentally friendly ingredients in the cosmetics and food and beverage industry has awakened people’s interest to seek products made from natural ingredients. The industry has witnessed a sharp increase in demand for 100% plant-based products that are devoid of synthetic fragrances and animal-derived components. As a result, the majority of the population is turning to organic products to gain health benefits.

Key raw material suppliers include Essential Oils Company, Kao Chemicals, The Fragrance Foundation, The Chemical Company, and Phoenix Aromas and Essential Oils, LLC. Companies such as Biolandes, India Essential Oils, Young Living Essential Oils, and others have integrated their operations to provide raw materials as well as manufacture the final product in order to cut down on raw materials procurement and operation costs. This also helps companies to cater to the other industries served by the raw materials such as perfumes and deodorants and food and beverages.

Rising demand for oranges, lemon, corn mint, and other similar crops owing to the increasing population is expected to push prices even higher over the forecast period. Global water scarcity, natural disasters, and other factors created a food shortage in recent years leading to high prices for basic commodities and crops. Prices of other plants and crops have increased tremendously in recent years owing to supply shortfall, climate changes, overpopulation, and decreasing arable land leading to higher oil prices. Consumers are increasingly being pressurized to shell out massive amounts per ounce of oil to gain the benefits of these products.

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