Essential Oils Market Set to Exhibit Tremendous Growth in Coming Years
A number of factors such as the booming demand for aromatherapy, surging customer preference for natural products, and increasing consumption of essential oils in the cosmetics and food and beverage industries are expected to drive the essential oils market growth during the forecast period (2021–2030). According to P&S Intelligence, the market generated a revenue of ~$11 billion in 2020. In recent years, the escalating use of essential oils at spas has become a prominent market trend, owing to the rising public awareness of skincare treatments.
The burgeoning demand for aromatherapy is one of the primary growth drivers for the market. Aromatherapy refers to an alternative treatment process that utilizes naturally harvested essences to support, harmonize, and balance the mental and physical health of patients. This treatment process uses essential oils as they activate the smell receptors in the nose, which convey information to the brain through the nervous system. The oil is also used to treat anxiety or chronic stress, fatigue, skin problems, depression, and respiratory infections.
At present, the essential oils market is fragmented in nature, due to the presence of few companies such as Frontier Co-op, dōTERRA International LLC, PublicGoods, Plant Therapy Inc., Organic Aromas, Rocky Mountain Oils LLC, REVIVE Essential Oils LLC, Young Living Essential Oils, NOW Health Group Inc., Edens Garden, Majestic Pure Cosmeceuticals, and Vitruvi. These market players are mostly focusing on product launches to gain a competitive edge. For instance, in August 2020, Young Living Essential Oils announced a series of new products, such as Ecuadorian oregano oil and cassia oil.
Categories under the essential oils market are orange, eucalyptus, cornmint, peppermint, citronella, lemon, lime, clove, spearmint, rosemary, lavender, and others. Among these, the orange category generated the highest revenue in 2020, as the consumption of orange oil helps in improving the skin, hair, nail, and hair quality. The oil is used to treat stretch marks and acne, improve skin blood flow, rejuvenate skin, and loosen up nearby tissues. Moreover, the vast availability of oranges in India, Mexico, and China will also support the growth of this category in the foreseeable future.
Geographically, the European region is expected to hold the largest share in the essential oils market during the forecast period. This can be primarily attributed to the growing public awareness of the health benefits of such oils in the region. Moreover, the increasing preference for natural products in Europe will lead to the high-volume consumption of essential oils in the cosmetics and food and beverage industries in the region. Both these industries are using such oils in innovative ways to develop better products for their customers.
Whereas, the Asia-Pacific (APAC) essential oils market is expected to showcase the fastest growth during the forecast period. This will be due to the surging availability and rising affordability of essential oils in the region. Additionally, the improving lifestyles of people and mounting awareness about such oils will facilitate the market growth in the region in the foreseeable future. Besides, the escalating awareness about the outcomes of aromatherapy and the booming number of patients suffering from chronic diseases will also augment the demand for essential oils in the region in the coming years.
Thus, the increasing public awareness of aromatherapy and surging demand for natural products will fuel the market growth in the years to come.