The essential oils market is evaluated at US$2.940 billion for the year 2019 and is projected to grow at a CAGR of 12.63% reaching the market size of US$6.761 billion by the year 2026. Essential oils are extracts of various parts of beneficial plants concentrated into oils. The oils are obtained through the mechanical pressing method or distillation. The oils keep the smell of the plant from which they are extracted.
The increase in the stress levels of people around the world due to hectic work schedules and various other reasons has led to people seeking methods for relaxation, which is anticipated to propel aromatherapy and hence essential oil market during the forecast period. Also, the changing preference of consumers for cosmetics and their increasing inclination towards natural cosmetics has led to increased demand for cosmetic products containing essential oils, which is anticipated to bolster the growth of the essential oils market during the forecast period. Also, as the consumers have become more aware of what they eat and what ingredients does it contain, there are increased concerns regarding food additives and hence they are being replaced by natural alternatives like some essential oils. This, in turn, is anticipated to propel market growth in the coming years.
In short term, the recent outbreak of the novel coronavirus disease led to disruption of supply chain and hindrance in manufacturing of products with essential oils due to the lockdown and Covid-19 safety measures. But after the lifting of lockdown in most parts of the world, the manufacturing activities came to their normal. However, Covid-19 led to an increase in the stress levels of people around the world, which led to the increased interest of people towards essential oils for relaxation purposes. The pandemic saw a boost in the demand for essential oils and due to which the essential oils have been more popular since then, which is expected to surge the essential oils market in the coming years.
The Essential Oils market has been classified based on type, application, and geography. By type, the market has been classified based on Lavender oil, Lemon oil, Orange oil, Peppermint oil, Cornmint oil, Citronella oil, Clove leaf oil, Eucalyptus oil, Tea tree oil, and others. On the basis of application, the segmentation has been done into Food & beverages, Cosmetics & personal care, Aromatherapy, and others. Geographically, the market for Essential Oils has been distributed into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.
The rise in prevalence of stress and anxiety
One of the key factors supplementing the Essential Oils market growth is the rising prevalence of stress and anxiety across the world, as essential oils are used in aromatherapy to relieve stress and anxiety. According to the National Health Survey, Australian Bureau of Statistics (2017–18), 13% or 2.4 million of adults in Australia reported high or very high levels of psychological distress, which has seen a 12% increase from 2014–15 (11.7% or 2.1 million Australians). According to WHO, one-fourth of the population of Europe suffers from anxiety or depression every year. According to the Anxiety and Depression Association of America (2020), 31% of adults are estimated to experience an anxiety disorder at some point in their life.
According to American Psychological Association (2019), more than 75% of adults report having symptoms of stress, including sleeping problems and headaches. Also, a high level of work-related stress has been reported over the years, which is anticipated to propel the essential oils market during the forecast period. According to Annual Statistics of Health and Safety Executive, UK Government, published in November 2020, 828 thousand workers in the UK are suffering from work-related stress, depression, or anxiety as of 2019-20.
The report shows that the prevalence of work-related stress, depression, or anxiety has increased over the years with a prevalence rate of around 1500 per 100,000 workers reported in 2014-15 which rose to 2,440 per 100,000 workers in 2019-20. National Institute for Occupational Safety and Health, United States reported in their workplace stress statistics that 75% of the workers report having more stress than previous generations. Due to such an increase in stress levels across the globe, more people are seeking aromatherapy and making use of essential oils for relaxation and stress relief, which is anticipated to bolster the market growth during the forecast period.
The rise in demand for natural cosmetic products
There is a rise in the awareness of the benefits of natural ingredients in cosmetic products among people. This has led to a rise in the demand for cosmetic products having natural ingredients like essential oils. The essential oils are widely used in the natural cosmetics industry and the rise in demand for natural products is anticipated to bolster the essential oils market during the forecast period. Various companies that deal in cosmetics are launching their cosmetic brands and new cosmetic products looking at the high demand for natural products. For instance, in October 2018, the French cosmetics company L’Oréal launched its organic brand ‘La Provençale Bio’ for the French supermarket sector. As per the company, the brand has been launched to cater to the high demand for natural beauty products which is rapidly increasing.
This increasing demand for natural cosmetic products and companies launching new organic cosmetic brands and products is impacting the Essential Oils market positively and is anticipated to surge the market growth during the forecast period.
European to hold a prominent share in the market
Geographically, the European region is anticipated to hold a significant market share in the Essential Oils market owing to the widespread use of essential oil in cosmetics and the popularity of aromatherapy in the region. The Asia Pacific region is anticipated to witness substantial growth due to the rising population and rapid urbanization in the region coupled with the increased popularity of natural products in the region, leading to a surge in the consumer base for products containing natural ingredients like essential oils. This is anticipated to boost the essential oils market in the region during the forecast period.
Prominent/major key market players in the Essential Oils market include doTERRA International LLC, Givaudan SA, and Young Living Essential Oils, among others. The players in the Essential Oils market are implementing various growth strategies to gain a competitive advantage over its competitors in this market.
Major market players in the market have been covered along with their relative competitive strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the Essential Oils market.
|Market size value in 2019||US$2.940 billion|
|Market size value in 2026||US$6.761 billion|
|Growth Rate||CAGR of 12.63% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||doTERRA International LLC, Givaudan SA, Young Living Essential Oils, The Lebermuth Company, Sensient Essential Oils, Rocky Mountain Oils LLC, BIOLANDES SAS, Falcon, Ungerer & Company, H. Reynaud & Fils, KATO Flavors & Fragrances|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the essential oils market size by 2026?
A1. The essential oils market is projected to reach a market size of US$6.761 billion by 2026.
Q2. What is the size of global essential oils market?
A2. Essential Oils Market was valued at US$2.940 billion in 2019.
Q3. What are the growth prospects for the essential oils market?
A3. The global essential oils market is projected to grow at a CAGR of 12.63% over the forecast period.
Q4. Which region holds the largest market share in the essential oils market?
A4. Geographically, the European region is anticipated to hold a significant market share in the essential oils market owing to the widespread use of essential oil in cosmetics and the popularity of aromatherapy in the region.
Q5. What factors are anticipated to drive the essential oils market growth?
A5. The changing preference of consumers for cosmetics and their increasing inclination towards natural cosmetics has led to increased demand for cosmetic products containing essential oils, which is anticipated to bolster the growth of the essential oils market.