The Essential Oils Market is Segmented by Product Type (Orange, Eucalyptus, Cornmint, Peppermint, Citronella, Lemon, Lime, Clove, Spearmint, and Others), Application (Food and Beverages, Medical, Cleaning and Home, Spa and Relaxation and Others) and Distribution Channel (Direct Distribution, MLM Distribution and Retail Distribution). The report covers global opportunity analysis and industry forecast 2026. It is published on Valuates Reports in the Food & Drink Category.
The Essential Oils Market size was valued at USD 8,008.6 Million in 2018 and is expected to grow at a CAGR of 8.7% to reach USD 15,618.8 Million in 2026.
Major factors driving the growth of essential oils market size are: Usage of essential oils in various applications such as flavor & fragrance, aromatherapies, and others. Healing benefits of essential oil are expected to be instrumental in governing peak sales paving the way for essential oils market growth. Wide-scale adoption of essential oils in industrial, commercial, and household applications also drive the global market.
TRENDS INFLUENCING THE GROWTH OF ESSENTIAL OILS MARKET SIZE
An increase in demand for aromatherapy is expected to drive the growth of the essential oil market. Aromatherapy is the practice of using essential oils for therapeutic and cosmetic purposes. The surge in demand for aromatherapy can be ascribed to a number of causes, the most prominent of which is the general increase in income over the last decade. Consumer tastes and preferences have changed toward more complex products as earnings have increased.
Essential oils have become a critical ingredient of choice for food processors as the global food and beverage industry undergoes a gradual but major transformation in terms of ingredient compositions, owing to the growing customer preference for natural and organic products.
As consumer awareness about the harmful health effects of synthetic chemicals used for flavor applications grows, manufacturers are encouraged to use natural ingredients such as essential oils to improve the aesthetic appeal of food products while also improving the nutritional and functional properties. This in turn is expected to drive the growth of the essential oil market.
Regulations encouraging the use of ecologically friendly substances in cosmetics and the food and beverage industries have piqued people's interest in seeking out natural products. The demand for 100 percent plant-based oils that are free of synthetic scents and animal-derived components has skyrocketed in recent years. As a result, the vast majority of people are turning to organic products to improve their health. This is further expected to increase the essential oil market size.
Based on application, the food & beverage category was the most significant segment in the essential oils market. This is due to government rules governing food safety and limiting the use of synthetic tastes and essences in food products. The widespread use of essential oils as a natural element in food preparation is a major driving force.
Based on region, North America was the dominant regional market growing at a CAGR of 8.4% from 2019-2026. This is due to a growth in the use of essential oils in medications and food and beverage products. Asia-Pacific, on the other hand, is predicted to develop at the fastest CAGR during the projection period. The strong growth rate in this segment can be due to the wide range of essential oil applications as well as the large consumer base in the region. Photo appreciation and credit to formulatehealth.com