The global essential oil market is projected to grow at a significant CAGR during the forecast period. Essential oil are highly volatile, aromatic yields obtained from plants. Due to their volatility, they can easily be extracted by the method of steam distillation from different natural sources. The oil-secreting glands are located in fruits, flowers, seeds, wood, leaves, roots, barks, and sometimes are present throughout the body of the plant. The essential oil have been used for centuries for different purposes and regarded with great intrigue, albeit, most of their uses have been lost with time, it is, by and large, acknowledged that people have been extracting them from fragrant plants. Their application for various purposes is gradually changed and not only used for culinary purposes to enhance the sensory appeal. They have also been used for therapeutic purposes, in addition to their application in the fabrication of fragrances and beauty care products. 

The primary factors that drive the growth of the market include the wide variety of applications in which essential oil are used. In addition, it offers many benefits over traditional medications which encourages its adoption. Increased number of peoples shifting towards the natural and organic oil along with the aromatherapy treatment adoption further influences the market growth. However, the higher prices of the oil may hinder the market growth during the forecast period.

Segmental Outlook

The global essential oil market is segmented on the basis of product type and applications. Based on the product types, the market is segmented into lavender oil, orange oil, eucalyptus oil, peppermint oil, lemon oil, rosemary oil, and other oil. Based on the application, the market is segmented into food and beverages, medical, spa & relaxation, and other applications.

Spa & Relaxation Segment to Hold Significant Share in the Market

Amongst the application segment of the market, the spa & relaxation segment holds a significant share in the market growth. The utilization of essential oil in the beauty care products, detergent, soap, and scent industry is of great concern. The generation of essential oil for the preparation of perfumes and scents has expanded enormously on a global level. Salvia, lavender, and thyme species are highly consumed to produce these aromatic yields. Thus, the increased use of these oil in spa & relaxation products is likely to enhance market growth. 

Regional Outlook

The global essential oil market is geographically segmented into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific is estimated to exhibit a significant growth in the global market during the forecast period. This is attributed to the inclination of the population towards well-being and enhanced lifestyles. Along with this, the key players are also covering the untapped market in the region which attracts a huge consumer base which in turn, expands and sets footprints of the players in such a market. Further, Europe is estimated to hold a significant share in the market. The regional growth is attributed to the activities in countries such as Germany and France. These countries import a majority of peppermint and citrus oil for the food and beverage industry. In addition, the European government runs various healthcare programs to enhance consumer knowledge regarding the essential oil and production of therapeutic drugs which in turn, will enhance the growth of the market in the near future.

Global Essential Oil Market by Region 2018, (%)

Market Outlook

Some of the prominent players operating in the global essential oil market include Biolandes SAS, DoTERRA International LLC, Edens Gardens Inc., NOW Foods, Plant Therapy, Inc., Rocky Mountain Oil LLC, Soulflower Co. Ltd., Young Living Essential Oil, and many others. These are the key companies adopting several organic and inorganic growth strategies such as product launches & developments, partnerships, agreements, and acquisitions to strengthen their product portfolios and maintain a competitive position in the global Essential Oil market. 

The Report Covers

• Market value data analysis of 2018 and forecast to 2025.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global essential oil market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.