Essential Oils Market: Current Analysis and Forecast (2021-2027)
Emphasis on Type (Orange, Eucalyptus, Lavender, Peppermint, Citronella, Lemon, Tea Tree, Clove, Spearmint, and Others); Method of Extraction (Distillation, Carbon Dioxide Extraction, Cold Press Extraction, Solvent Extraction, and Others); Application (Food and Beverages, Pharmaceuticals, Cosmetic & Personal Care, Home Care, and Others); and Region and Country
The essential oils market is expected to grow at a CAGR of ~9% during the forecast period. Key factors influencing the growth of the essential oils market are the increase in demand for aromatherapy, the growing uses of essential oils in food & beverage, and cosmetic products. Aromatherapy refers to a range of traditional, alternative, or complementary therapies that use essential oils. Moreover, essential oils help in reducing nausea, pain and body aches, anxiety, agitation, stress, depression, fatigue, and insomnia. Stress, depression, and fatigue are some common problems rising with the increasing urbanization. Furthermore, the food industry primarily uses essential oils as flavorings, they represent a source of natural antimicrobials for food preservation.
Insights Presented in the Report
“Amongst type, orange essential oil category held prominent market share in 2020”
Based on type, the market is classified into orange, eucalyptus, lavender, peppermint, citronella, lemon, tea tree, clove, spearmint, and others. In 2020, orange essential oil accounted for a significant share of the global essential oils market. Revenue growth of this segment is being driven by antimicrobial activity and pain relief benefits of orange essential oil. It has d-limonene as its main antimicrobial agent which makes orange essential oil a potential antimicrobial agent. Moreover, the orange essential oil has natural antioxidants which can help in reducing inflammation.
“Amongst methods of extraction, the distillation category accounted for a substantial share in the market”
On the basis of the method of extraction, the essential oils market has been divided into distillation, carbon dioxide extraction, cold press extraction, solvent extraction, and others. Among these, the distillation method of extraction held a significant share in the global essential oils market in 2020 and is expected to grow at a robust rate during the forecast period. The efficiency of the distillation extraction method is the main factor driving the growth of this segment. Moreover, distillation is a process involving the conversion of a liquid into a vapor that is subsequently condensed back to liquid form. Distillation effectively removes inorganic compounds such as metals, nitrate, and microorganisms.
“Europe held a prominent share in the global essential oil market”
Europe held a significant share in the global essential oil market and is expected to grow at a robust growth rate during the forecast period. Increasing demand for aromatherapy and growth in research & development activities are driving the growth of this market in Europe. Another reason for the growth of the essential oils market is that European consumers are looking for more natural ways to improve and maintain their health. As a result, the demand for essential oils is increasing in Europe. It is expected that this trend will continue, as essential oils offer many beneficial properties.
Some of the major players operating in the market include Cargill Inc., Firmenich SA, Rocky Mountain Oils LLC, Young Living Essential Oils LC., Sydney Essential Oil Company, Essential Oils of New Zealand Ltd., Robertet SA, The Lebermuth Company Inc., Givaudan SA, West India Spices Inc. among others.
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts
- The report presents a quick review of overall industry performance at one glance
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
- The study comprehensively covers the market across different segments
- Deep dive country-level analysis of the industry
Customization Options:
The global essential oils market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.
Table of Contents
Analyzing the historical market, estimating the current market, and forecasting the future market of essential oils, three major steps are undertaken to create and analyze its adoption across the globe. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the essential oils industry. Post assumption and validation of market numbers through primary interviews, we employed a bottom-up approach to forecast the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:
Seek More Details About Research Methodology
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of essential oils through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the essential oils market, we conducted a detailed secondary analysis to gather current market insights and share for different segments & sub-segments for major regions. The major segment is included in the report by type, method of extraction, and application. Further regional and country-level analyses were conducted to evaluate the overall adoption of essential oils globally.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of essential oils. Further, we conducted factor analysis using dependent and independent variables such as high traction towards natural and plant-based oils and an increase in demand for aromatherapy. A thorough analysis was conducted for demand and supply-side scenarios considering an increasing investment, top partnerships, mergers and acquisitions, business expansion, and product launches in the essential oils industry.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global essential oils market, and market shares of each segment. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the bottom-up approach were applied to arrive at the market forecast to 2027 for different segments and subsegments across the major regions globally. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of value (US$) and the adoption rate of essential oils across the major markets
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the essential oils market. Also, the growth strategies adopted by these players to compete in the fast-growing market.
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants by Stakeholders and Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global essential oils market. Data was split into several segments & sub-segments post studying various parameters and trends in the area of type, method of extraction, and application.
The main objective of the Essential Oils market study
The current & future market trends of the global essential oils market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends would determine the overall attractiveness of the market at a country level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of satellite transponders in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
- Segment in the study include the area of type, method of extraction, and application
- Defined analysis of the regulatory framework for the essential oils industry
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
- Analyze the current and forecast market size of essential oils for the major countries
- Major regions/countries analyzed in the report include North America (US, Canada, Rest of North America), Europe (Germany, UK, France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, Australia, Rest of Asia-Pacific), and Rest of World
- Company profiles of the essential oils market players and the growth strategies adopted by them to sustain the growing market
Deep dive country-level analysis of the industry
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