Essential Oils Market Report 2026

The essential oils market size has grown rapidly in recent years. It will grow from $19.55 billion in 2025 to $22.82 billion in 2026 at a compound annual growth rate (CAGR) of 16.8%. The growth in the historic period can be attributed to expansion of herbal medicine usage, growth of traditional wellness practices, rising consumer preference for natural fragrances, increasing cultivation of aromatic plants, growth of cosmetics and toiletries sector.

The essential oils market size is expected to see rapid growth in the next few years. It will grow to $42.5 billion in 2030 at a compound annual growth rate (CAGR) of 16.8%. The growth in the forecast period can be attributed to rising demand for therapeutic-grade oils, expansion of pharmaceutical applications, increasing use in stress and sleep management products, growth of natural household cleaning products, innovation in sustainable extraction techniques. Major trends in the forecast period include growing demand for natural and organic ingredients, rising use in aromatherapy and wellness products, increased adoption in clean beauty formulations, expansion of essential oils in functional foods, focus on traceability and purity standards.

The increasing consumer preference for natural products is expected to propel the growth of the essential oils market. Natural products refer to substances derived from living organisms, such as plants, animals, and microorganisms, rather than synthetic or artificially created compounds. Growing awareness and preference for natural and organic options are driving demand for essential oils because they are sourced from plants. For instance, in February 2024, according to IFOAM (International Federation of Organic Agriculture Movements), a Germany-based international organization, the global area under organic farming expanded by 2.5 million hectares in 2023, reaching nearly 99 million hectares. Meanwhile, global sales of organic food increased to approximately 136 billion euros during the same year. Therefore, the increasing consumer preference for natural products is driving the growth of the essential oils market.

Major companies operating in the essential oils market are focused on developing innovative solutions such as microencapsulated essential oils. Microencapsulated essential oils refer to a technology where tiny particles, often on a microscale, encapsulate individual essential oil molecules. For instance, in August 2023, Botanical Innovations, an Australia-based Flavors fragrances and aroma supplier launched the ‘Botanical’s Breath Microencapsulated Essential Oils’. The design of microencapsulation technology enables a controlled and prolonged release of essential oil compounds over time. The array of microencapsulated essential oil powders is transforming sensory experiences and enhancing product effectiveness.

In October 2023, Anima Mundi Herbals, a US-based apothecary offering company acquired Floracopeia for an undisclosed amount. With this acquisition, Anima Mundi aims to add more than 20 essential oils from Floracopeia company. Through this acquisition, Anima Mundi looks forward to expand its geographical presence. Floracopeia is a US-based essential oil manufacturer that specializes in offering botanical medicine.

Major companies operating in the essential oils market are International Flavors & Fragrances Inc., Givaudan SA, Symrise AG, Mane SA, Robertet SA, Firmenich International SA, BIOLANDES SAS, Ungerer Limited, The Lebermuth Company Inc., Sensient Technologies Corporation, Essential Oils New Zealand Limited, Falcon Essential Oils, Aromaaz International, Farroti Essential Oils Pvt. Ltd., Indian Essential Oils, Florihana, Oshadhi Ltd., Floracopeia Inc., Stillpoint Aromatics LLC, Wyndmere Naturals Inc., Aromatherapy Associates Limited, doTERRA International LLC, Young Living Essential Oils LC, Rocky Mountain Oils LLC, Edens Garden, Plant Therapy LLC, Mountain Rose Herbs.

North America was the largest region in the essential oils market in 2025. Asia-Pacific is expected to be the fastest-growing region in the essential oils market during the forecast period. The regions covered in the essential oils market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the essential oils market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The essential oil market consists of sales of essential oil products such as lavender, roman chamomile and hyssop. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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