Essential Oils Market Size, Share, Growth, Trends, Company Analysis, Regional Insights and Forecast 2020 - 2027

Published Date : Dec 2020 | No. of Pages : 250 Pages | Category : Chemical and Material

The global Essential Oils market size is expected to be worth around US$ 473.30 kilotons by 2027, according to a new report by Vision Research Reports.

The global Essential Oils market size was valued at US$ 247.07 kilotons in 2019 and is anticipated to grow at a CAGR of 7.4% during forecast period 2020 to 2027.

Growth Factors

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 . Several health benefits related to essential oils are projected to drive their demand in pharmaceutical and medical applications. Unlike most of the conventional medicines and drugs, essential oils have no major side effects. Such traits of essential oils are projected to be the major factor for market growth. In addition, rising prevalence of health problems, such as cardiovascular problems, Alzheimer’s, and bronchitis, is creating more demand for beneficial essential oils in aromatherapy applications.

Essential oils are majorly composed of terpenes and their oxygenated derivatives, which usually include monoterpenes and sesquiterpenes. They are present in specialized cells/glands in various plants and the position of these glands varies depending upon the morphology and physiology of the plant. During manufacturing process, these glands are ruptured by pressing or by application of heat, which emanates aroma. The product is composed of aromatic compounds, which are volatile as well as hydrophobic in nature.

Rising demand for organic products is another factor influencing consumer trends. Further implementation of regulations favoring the use of environmentally friendly ingredients in 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, majority of the population is turning to organic products to gain health benefits.

Report Highlights

The orange oil emerged as the prominent product segment in 2019 with a volume share of approximately 23.0%. Major end-use industries such as cosmetics are progressively using orange essential oil for developing sensory appeal and improving the product value. This oil is believed to promote elasticity and firm and tone up the skin. 

Peppermint oil is also considered one of the most versatile essential oils as it can be used internally, topically, and aromatically. The major ingredients present in this oil are menthone and menthol. 

Spa and relaxation held the largest volume share of more than 39.0% in 2019 and is projected to witness significant growth over the forecast period. The growth of this segment has been primarily attributed to the changing lifestyle of consumers around the world. 

Food and beverage emerged as one of the major application segments in 2019 with a volume share of 38.6% and is expected to expand at the fastest CAGR from 2020 to 2027.

Personal care emerged as another important segment within spa and relaxation in the global market. Essential oils are majorly used in cosmetics, toiletries, and fragrances. In personal care, they are used in various applications, including beautifying the hair and skin, makeup, and color cosmetics.

Direct selling emerged as the key sales channel in 2019 with a volume share of over 70.0%. Increasing awareness among people regarding essential oil has given rise to more retail sales, especially through convenience stores.

In line with this, they attract and recruit several consumers as independent distributors by offering compensation plans and providing attractive discounts as well as gifts.

Europe dominated the market with a share of 43.65% in 2019 in terms of volume. Presence of organizations such as the European Federation of Essential Oils (EFEO) has benefitted the industry growth in Europe. EFEO was formed to promote and safeguard the interests of stakeholders across the market value chain.

Asia Pacific is projected to witness the fastest growth over the forecast period. The growth in this region is primarily attributed to the presence of a large population, along with various untapped markets, which are likely to attract key players’ attention to expand and establish their operation and distribution facilities in this region.

The outbreak of coronavirus in China in December 2019 and further spread to Italy have led to a lockdown in the country to prevent the spread of contagion. Due to the increasing number of patients and rising death count in the country, the Government has taken some preventive measures such a shutting down of industrial and commercial firms, such as manufacturing units, plants, shops, and factories, thus hampering production as well as import-export. These factors are estimated to result in huge economic losses in the region, which is further estimated to hamper the market growth in the short term.

Key Players

  • Sydney Essential Oil Co. (SEOC)

  • Biolandes SAS

  • India Essential Oils

  • H. Reynaud & Fils (HRF)

  • Young Living Essential Oils

  • DoTerra

  • Essential Oils of New Zealand

  • Farotti S. R. L.

  • Flavex Naturextrakte GmbH

  • West India Spices Inc.

  • Falcon

  • Ungerer Limited

  • The Lebermuth Company

  • Rocky Mountain Essential Oils

  • Moksha Lifestyle Products

Market Segmentation

  • Product Outlook

    • Acorus Calamus

    • Ajowan

    • Basil

    • Black pepper

    • Cardamom

    • Carrot Seed

    • Cassia

    • Cedarwood

    • Celery

    • Cinnamon

    • Citronella

    • Ciz-3 Hexanol

    • Clove

    • Cornmint

    • Cumin Seed

    • Curry Leaf

    • Cypress

    • Cypriol

    • Davana

    • Dill Seed

    • De-Mentholised Peppermint

    • Eucalyptus

    • Fennel

    • Frankincense

    • Garlic

    • Ginger

    • Holy Basil

    • Juniper Berry

    • Lavender

    • Lemon

    • Lemongrass

    • Lime

    • Mace

    • Mustard

    • Neem

    • Nutmeg

    • Orange

    • Palmarosa

    • Patchouli

    • Pepper Mint

    • Rosemary

    • Spearmint

    • Tea Tree

    • Turmeric

    • Vetiver

    • Others

  • Application Outlook 

    • Medical

      • Pharmaceutical

      • Nutraceuticals

    • Food & Beverages

      • Bakery

      • Confectionery

      • Dairy

      • RTE meals

      • Beverages

      • Meat, Poultry & Seafood

      • Snacks & Nutritional Bars

    • Spa & Relaxation

      • Aromatherapy

      • Massage Oil

      • Personal Care

      • Cosmetics

        • Hair Care

        • Skin Care

        • Sun Care

        • Makeup and color cosmetics

      • Toiletries

        • Soaps

        • Shampoos

        • Men's Grooming

        • Oral Care

        • Baby Care

      • Fragrances

        • Perfumes

        • Body Sprays

        • Air fresheners

    • Cleaning & Home

      • Kitchen Cleaners

      • Floor Cleaners

      • Bathroom Cleaner

      • Fabric Care

  • Sales Channel Outlook 

    • Direct Selling

    • Others

  • Regional Outlook 

    • North America

      • The U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • France

      • The U.K.

    • Asia Pacific

      • China

      • India

      • Japan

      • Taiwan

      • South Korea

      • Singapore

      • Australia

    • Middle East & Africa

    • Central America

    • South America

The Essential Oils market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.

The report provides size (in terms of volume and value) of Essential Oils market for the base year 2019 and the forecast between 2020 and 2027. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.

This report focuses on the global Essential Oils market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Essential Oils market development in United States, Europe and China.

It is pertinent to consider that in a volatile global economy, we haven’t just conducted Essential Oils market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.

In terms of production side, this report researches the Essential Oils capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.

In terms of consumption side, this report focuses on the consumption of Essential Oils by regions (countries) and application.

Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Essential Oils market. These figures have been provided in terms of both revenue and volume for the period 2016 to 2027. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.

With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Essential Oils market companies.

Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Essential Oils market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.

The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.

Overall, this is an in-depth research report specifically for the Essential Oils industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.

The Essential Oils market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Essential Oils market.

Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Essential Oils market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.

Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Essential Oils market. These factors have benefited the growth of the global market for Essential Oils. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.

New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Essential Oils. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).

In this study, the years considered to estimate the market size of Essential Oils are as follows:

  • Historic Year: 2016-2019
  • Base Year: 2020
  • Forecast Year 2020 to 2027

Reasons to Purchase this Report:

- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players

Research Methodology:

In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.

This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.

Market Size Estimation

Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).

The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.

Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.

All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.

Market Breakdown and Data Triangulation

After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.

Secondary Sources

Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.

Primary Sources

 In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.

The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.

The study objectives of this report are:

  • To analyze and study the global market capacity, production, value, consumption, status (2016-2019) and forecast (2020-2027);
  • Focuses on the key manufacturers, to study the capacity, production, value, market share and development plans in future.
  • Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
  • To define, describe and forecast the market by type, application and region.
  • To analyze the global and key regions market potential and advantage, opportunity and challenge, restraints and risks.
  • To identify significant trends and factors driving or inhibiting the market growth.
  • To analyze the opportunities in the market for stakeholders by identifying the high growth segments.
  • To strategically analyze each submarket with respect to individual growth trend and their contribution to the market
  • To analyze competitive developments such as expansions, agreements, new product launches, and acquisitions in the market
  • To strategically profile the key players and comprehensively analyze their growth strategies.

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