Essential Oils Market Report and Forecast 2024-2032

According to the report, the global essential oils market is projected to grow at a CAGR of 9.6% between 2024 and 2032 reaching a value of approximate USD 20.53 billion by 2032. Aided by the increasing demand for natural and organic products, along with the growing applications of essential oils in various industries, the market is expected to grow significantly by 2032.

Essential oils, also known as volatile oils, are aromatic compounds extracted from plants. They are used in a wide range of products including aromatherapy, personal care products, healthcare products, and food & beverages. Apart from their aromatic properties, essential oils are also known for their potential health benefits, including anti-inflammatory, antibacterial, and antioxidant properties.

The increasing consumer preference for natural and organic products is driving the global essential oils market growth. With the growing awareness of the potential adverse effects of synthetic chemicals, consumers are shifting towards natural alternatives, leading to a surge in demand for essential oil-infused products. Moreover, the rising trend of health and wellness has further contributed to the increasing popularity of essential oils, as they are a key component in aromatherapy, a complementary therapy increasingly used to promote emotional and physical well-being.

The expanding applications of essential oils in various industries also play a significant role in propelling the essential oils market development. In the cosmetic and personal care industry, essential oils are used for their fragrances and potential skin health benefits. The food and beverage industry utilises essential oils as natural flavouring agents, and the pharmaceutical industry is researching and developing various applications for essential oils due to their potential antimicrobial and anti-inflammatory properties.

Further, the growing demand for clean label products in the food and beverage industry has led to an increased focus on essential oils as viable flavour and preservation agents. With the rise of health-conscious consumers and the increasing popularity of clean and simple ingredient lists, essential oils have emerged as a critical component in the formulation of various food products, thereby boosting the essential oils market expansion.

The global essential oils market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa. Europe accounts for a significant portion of the essential oils market share, particularly due to the high demand in countries like France, Germany, and the UK where natural personal care products and aromatherapy have a significant market presence. North America is another prominent market, with the U.S. being a significant contributor due to its large health-conscious and natural products-seeking population. The Asia Pacific region is anticipated to witness the fastest growth owing to increasing disposable income and growing awareness regarding the health benefits of essential oils.

Market Segmentation

The market can be divided based on type, application, and region.

Market Breakup by Type

• Mentha Oil
• By End Use

 Tobacco
 Cosmetics
 Confectionery
 Pharmaceuticals
 Oral Care
 Others

• Orange Oil
• By End Use

 Personal Care
 Food
 Pharmaceuticals
 Others

• Peppermint Oil
• By End Use

 Personal Care
 Food
 Pharmaceuticals
 Others

• Clove Oil
• By Product

 Clove Leaf Oil
 Clove Stem Oil
 Clove Bud Oil

• By Application

 Food & Beverages
 Household Care
 Pharmaceuticals
 Tobacco
 Fabric Care

Market Breakup by Application

• Flavour and Fragrance
• Industrial
• Pharmaceuticals

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the global essential oils market. Some of the major players explored in the report are as follows:

• Lebermuth, Inc.
• Sydney Essential Oil Co.
• Biolandes SA
• Young Living Essential Oils
• Givaudan SA
• Farotti SRL