Essential Oil Market

Essential Oil Market Outlook (2024 to 2034)

The global essential oil market, as revealed in a newly published study by Fact.MR, is projected to be valued at US$ 24.94 billion in 2024. Worldwide demand for essential oils is evaluated to increase at a CAGR of 9% and reach a market value of US$ 59 billion by the end of 2034. The main factor driving the increasing popularity of essential oils is the rising emphasis on well-being and health in several parts of the world.

A positive perception of aromatherapy is also driving demand for essential oils as a complementary medicine for improving wellness and health. These oils are used for several purposes, such as aromatherapy, cooking, cosmetics & personal care, fragrance, and others.

Certain volatile and complex chemical compounds are present in essential oils, imparting their anti-inflammatory, antibacterial, antifungal, and antiviral properties. Several conventional drugs and medicines are now being incorporated with pleasant-smelling aroma compounds to create appealing products, especially those chemicals that emit undesirable odors. These oils are also used as an effective replacement for drugs, chemicals, and medicines due to decreased risks of side effects and associated health benefits.

Growing demand for ready-to-eat and convenience meals and wellness foods along with constant technological advancements in the production process are contributing to the expansion of the essential oil market size. The rising need for fragrances and flavors utilized in foods & beverages and personal care products is creating opportunities for providers of essential oils and aroma compounds.

• Sales of essential oils in Japan are projected to rise at a CAGR of 9.5% from 2024 to 2034.
• East Asia is estimated to account for 23.1% of the global essential oil market share by the end of 2034.
• The market in Canada is analyzed to expand at 9.5% CAGR through 2034.
• Worldwide demand for essential oils for use in personal care & cosmetic products is forecasted to increase at a CAGR of 9.5% and reach a market value of US$ 26.92 billion by 2034.

Report Attribute	Detail
Essential Oil Market Size (2024E)	US$ 24.94 Billion
Forecasted Market Value (2034F)	US$ 59 Billion
Global Market Growth Rate (2024 to 2034)	9% CAGR
Market Share of Conventional Essential Oil (2034F)	53.3%
North America Market Share (2034F)	24.3%
South Korea Market Growth Rate (2024 to 2034)	9.8% CAGR
Key Companies Profiled	Young Living Essential Oils; Now Health Group, Inc.; doTERRA; Rocky Mountain Oils, LLC; Ultra International B.V.; NHR Organic Oils; AOS Product Pvt. Ltd.; BMV Fragrances Pvt. Ltd.; Lebermuth Inc.; Van Aroma; Ugerer and Company; Flavaroma; Sensient Technologies Corporation; Givaudan SA; Falcon Essential Oils.

What is Responsible for Increasing Popularity of Essential Oils?

“Pharmaceutical Industry Generating High Demand for Essential Oils”

Plant-based oils are comprised of several compounds, such as terpenes, terpenoids, and phenols, which are used for health assistance and medical standards. These compounds are utilized as essential ingredients in therapeutic drugs and pharmaceutical agents.

Carvacrol compounds are present in several essential oils, which are utilized for lowering cholesterol levels, losing weight, and improving gut symptoms. They are becoming more popular for cancer-fighting and pain-reducing agent properties.

“Multi-level Marketing Benefiting Essential Oil Manufacturers”

Several key manufacturers of essential oils are embracing multi-level marketing techniques to reach out to a larger base of consumers and expand their business. The rising population of health-conscious consumers is stimulating demand for essential oils for their health benefits, which is resulting in their growing availability at retail stores, especially through convenience stores.

What is Adversely Impacting the Sales Growth of Essential Oils?

“Rising Demand for True-label and Natural Products”

There is an increased demand for natural products, which are free from any type of harmful chemicals. Increasing concerns about the use of fertilizer sprays and pesticides are also limiting demand for essential oil as the key ingredients used in its production contain harmful compounds. There are certain disadvantages of using chemically processed ingredients and thereby giving preference to true-label products. These factors are impeding essential oil market growth.

How are New Companies Expanding Their Market Presence?

“Focus on R&D Activities for Improving Functionality of Essential Oils”

Startups are investing highly in R&D activities to improve the functionality of essential oils in end-use industries, such as cosmetics, food, animal nutritional products, and pharmaceuticals. New market players need to focus more on the introduction of new essential oil blends to match consumer preferences. They are using natural and organic ingredients for producing essential oils.

Country-wise Insights

As per the newly published analysis by Fact.MR, a market research and competitive intelligence provider, in North America is evaluated to account for 24.3% of the global market share by the end of 2034. Increasing demand for essential oils is owing to the rising preference for a healthy lifestyle along with ingredient transparency. The growing use of essential oils in pharmaceuticals and supplements is widening opportunities for market players in North America.

What is the Sales Outlook for Essential Oils in the United States?

“Increasing Sales of Essential Oils Due backed by High Demand for Natural Ingredients”

Attribute	United States
Market Value (2024E)	US$ 2.65 Billion
Growth Rate (2024 to 2034)	9.4% CAGR
Projected Value (2034F)	US$ 6.54 Billion

The United States is evaluated to hold a 45.6% share of the North American market by 2034. More consumers in the country prefer products made with the use of natural ingredients, which is a significant essential oil market trend. They are spending significantly on cosmetics and personal care products, which is further increasing demand for essential oils for their sustainability approach.

What is Contributing to Increased Consumption of Essential Oils in China?

“Growing Trend of Aromatherapy Increasing Consumption of Essential Oils”

Attribute	China
Market Value (2024E)	US$ 2.73 Billion
Growth Rate (2024 to 2034)	9% CAGR
Projected Value (2034F)	US$ 6.48 Billion

China is projected to hold 47.5% share of the market in East Asia by the end of 2034. Market growth in the country is attributed to its significant position as one of the exporters of some precious oils as well as extracts, including jasmine extract, frankincense oil, Davana oil, spice oils, sandalwood oil, and others. Suitable weather conditions required for agriculture, ample availability of required raw materials, and low-cost labor are responsible for the increased production of essential oils.

What is the Demand Outlook for Essential Oils in Japan?

“Deep Rooted Tradition of Multi-purpose Application of Essential Oils”

Attribute	Japan
Market Value (2024E)	US$ 1.61 Billion
Growth Rate (2024 to 2034)	9.5% CAGR
Projected Value (2034F)	US$ 4 Billion

Japan is forecasted to occupy a share of 29.4% of the East Asian market by 2034-end. Essential oils have been used in Japan since ancient times, significantly impacting food, aromatherapy, traditional medicine, and agriculture due to their inherent biological properties, such as antioxidant, antimicrobial, anti-inflammatory, and antiviral effects.

Category-wise Insights

As stated in the newly published report by Fact.MR, citrus oil is becoming more popular for its invigorating and refreshing scents, thereby appealing to more consumers. Further, vibrant fragrances are generally utilized in candles, air fresheners, and perfumes for uplifting atmospheres. Potential therapeutic properties of citrus oils, such as stress reduction, immune support, and mood enhancement, are contributing to their increased demand.

Why is Use of Conventional Essential Oil Higher?

“Perceived Health Benefits in Comparison to Synthetic Drugs”

Attribute	Conventional Essential Oils
Segment Value (2024E)	US$ 13.44 Billion
Growth Rate (2024 to 2034)	8.9% CAGR
Projected Value (2034F)	US$ 31.46 Billion

Conventional essential oils are evaluated to account for a 53.3% share of the global market by the end of 2034. Growing demand for these oils is attributed to their perceived benefits compared to synthetic drugs and aligning well with the popular principles of herbal medicines.

Why are Essential Oils Extensively Used in Personal Care & Cosmetic Products?

“High Use of Essential Oils in Aromatherapy and Grooming Applications”

Attribute	Personal Care & Cosmetics
Market Value (2024E)	US$ 10.82 Billion
Growth Rate (2024 to 2034)	9.5% CAGR
Projected Value (2034F)	US$ 26.92 Billion

The personal care & cosmetics segment is projected to occupy a share of 45.6% by 2034. Essential oils are used for personal care within spas & relaxation centers as they are utilized in stress-relieving therapies. In addition, their growing use in makeup, hair & skin, and color cosmetics is also driving demand. Their rising use in cleaning gums, mouth, and teeth, as well as in shampoos, soaps, and baby products, is generating lucrative opportunities for market players.

Competitive Landscape

Key players in the essential oil market are actively working on new product launches, acquisitions, mergers, collaboration, and others.

For instance :

• Azelis, a leading provider of food ingredients and specialty chemicals, acquired 100% of BLH SAS’s shares in October 2023. BLH SAS is a key distributor of fragrances and flavors for fine perfumery in France.
• Turpaz Industries announced the acquisition of Food Base in June 2023. Food Base, based in Hungary, specializes in marketing and developing essential oils.

Fact.MR provides detailed information about the price points of leading essential oil manufacturers positioned across the world, sales growth, production capacity, and speculative technological expansion, in this newly published market report.

Segmentation of Essential Oil Market Research

• By Type :

  • Citrus
  • Nuts
  • Herbs & Spices
  • Flowers
  • Mint
  • Others

• By Nature :

  • Organic
  • Conventional

• By End Use :

  • Food & Beverages
  • Personal Care & Cosmetics
  • Pharmaceuticals

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • MEA