the global essential oils market the size should go from $10.6 billion in 2021 for 22.3 billion USD by 2030at a CAGR of 9.8% from 2022 to 2030. Consumer awareness of natural and organic personal care products, foods and beverages has compelled manufacturers to focus on natural rather than synthetic products, which has had a significant impact on the global essential oil market.

Several overall health benefits related to essential oils are expected to drive essential oils into demand in pharmaceutical and medical applications. Unlike most conventional drugs and medicines, essential oils do not have significant side effects. Properties of essential oils like these are expected to be a major driver of market growth.

Consumer disposable income is expected to increase, along with the rapid expansion of end-use industries, driving demand for essential oil-based flavors and fragrances. Massages, aromatherapy and other relaxation techniques all benefit from these scents.

Global Essential Oils Market Definition

Essential oil is a hydrophobic liquid containing volatile chemical compounds derived from plants. Essential oils are produced from organic plant materials and must comply with various regulations and standards for companies to trade globally.

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Most of the companies producing essential oils are multinational corporations that initiate various corporate social responsibility (CSR) activities to stay beneficial and maintain a high reputation among their stakeholders.

Dynamics of the global essential oils market

Drivers: Growing consumer preference for natural personal care products

Essential oils are widely used in many end-use industries including food and beverage, cleaning agents, spa and relaxation, medicine, and others as substitutes for conventional products. These oils are mostly derived from plants, fruits, flowers, and other organic materials through distillation and extrusion processes. Essential oils are widely used as flavorings and fragrances in food and aromatherapy applications.

Major end-use industries such as cosmetics and personal care are also increasingly using essential oils to enhance sensory appeal and product value. These oils are believed to firm the skin, promote elasticity, tone the skin, and treat acne, dermatitis, and stretch marks. They also contribute to improved hair, nail and body care, increasing their appeal to women and teenage girls.

Constraints: Limited availability of raw materials

Essential oils are highly concentrated hydrophobic liquids that contain volatile aromatic compounds derived from plant materials such as leaves, stems, roots, flowers and others. Large quantities of plant material are distilled or macerated to obtain often tiny volumes of oils.

Many forests have been cut down to extract very small amounts of oil. Several arable lands have also been converted to monoculture lands to grow a single plant or crop to extract a particular oil. Large multinational companies undertake the production of these cultures and plants which do not respect the environment and endanger many ecosystems. It therefore becomes more and more difficult to grow enough plants to produce a pound of oil.

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Segmentation of the Global Essential Oils Market Research Report

Global essential oils have been segmented based on product, extraction method, application, and region.

By Product Perspective (RevenueUSD billion, 20172030)

  • Orange
  • Corn Mint
  • Eucalyptus
  • Lemongrass
  • Pepper mint
  • Lemon
  • clove leaf
  • Lime
  • Green mint
  • Lavender
  • Others

By Outlook extraction method (RevenueUSD billion, 20172030)

  • Distillation
  • Carbon Dioxide Extraction
  • Extraction by cold press
  • Solvent extraction
  • Other extraction methods (resin tapping and maceration)

By Outlook app (RevenueUSD billion, 20172030)

  • Medical
  • Food and drinks
  • Spa & Relaxation
    • aromatherapy
    • massage oils
    • Personal care
      • Beauty products
      • Toiletries
      • Perfumes
      • Others
  • Household & Home
  • Others

Outlook by region (RevenueUSD billion, 20172030)

  • North America (United States, Canada, Mexico)
  • South America (Brazil, Argentina, Colombia, Peru, Rest of Latin America)
  • Europe (Germany, Italy, France, United Kingdom, Spain, Poland, Russia, Slovenia, Slovakia, Hungary, Czech Republic, Belgium, Netherlands, Norway, Sweden, Denmark, Rest of Europe)
  • Asia Pacific (China, Japan, India, South Korea, Indonesia, Malaysia, Thailand, Vietnam, Myanmar, Cambodia, Philippines, Singapore, Australia and New Zealand, Rest of Asia Pacific)
  • The Middle East and Africa (Saudi Arabia, United Arab Emirates, South Africa, North Africa, Rest of MEA)

The orange sliceby product, holds the largest market share

Based on product type, the market has been segmented into orange, corn mint, eucalyptus, lemongrass peppermint, lemon, clove leaf, lime, spearmint, lavender, and others. Orange essential oil emerged as the largest market segment in 2021 and accounted for 31.1% of market volume. Orange essential oil is widely used in herbal medicine and aromatherapy. Orange oil is made up of two main components, namely terpineol and limonene. Orange oil is one of the most commonly used essential oils as a food flavoring, aroma releaser, and ingredient in cleaning products. It is the essential oil of oranges, scientifically titled Citrus sinensis. Unlike orange juice, orange essential oil can be directly obtained from orange peels after subjecting it to a production process.

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Orange essential oil can be used in various ways to improve the overall health of humans. It is claimed to help prevent the onset of cognitive impairment, detoxify the body, protect the immune system, reduce the occurrence of muscle spasms and stimulate better sleep.

Asia Pacific represents the highest CAGR over the forecast period

On the basis of region, the global essential oils market has been segmented into five segments, namely North America, AsiaPacific, Europe, South America, Middle East and Africa. Globally, Asia-Pacific holds the highest CAGR of 10.1% in the global essential oils market during the forecast period. The demand in this region is mainly attributed to the presence of huge population and various untapped markets which are likely to attract the attention of major players to expand and establish their operations and distribution facilities in this region.

The economic growth of developing countries such as China and India leads to an increase in the population of the urban class, thus driving the sales of essential oils in these countries. The growing demand for essential oils from the flavor and fragrance industry is expected to drive the market growth over the forecast period.

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Main market players

The main preparation companies operating in the global market are MANE, Flavex Naturextrakte GmbH, Firmenich SA, Synthite Industries Ltd., Takasago International Corporation, Symrise, ROBERTET GROUP, International Flavors & Fragrances Inc., Givaudan, Falcon, BMV Fragrances Pvt. Ltd., VedaOils, MOKSHA LIFESTYLE PRODUCTS, Ultra International, Norex Flavors Private Limited and VidyaHerbs.