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The global #essentialoils market size is projected to reach $15.3 billion by 2027, at a CAGR of 11.8%
The market is growing due to its wide application and increased awareness among consumers globally. Essential oils are being used in new domains as they have various health benefits and less known side effects. The North American region dominates the global essential market, owing to the growing trends of having a healthy lifestyle and consumers being more aware of the ingredients being used in their products. Furthermore, growing applications of essential oils have increased the R&D and new product innovations which are expected to drive the global market in the forecasted period.
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The food and beverages industry continues to incorporate essential oils into multiple products, in line with the upward trend of “clean label.”
The food and beverage industries use essential oils mostly for their color, flavor, and fragrance in the end products, as substitutes for synthetic ingredients. Essential oils are identified for their health benefits, as they are natural ingredients that impart the essence of the source they have been derived from. The largest market segment for essential oils is food and beverage, as consumers are becoming increasingly aware of the health benefits of essential oils, the preferences for food & beverage products with these oils as additives have increased.
Various essential oils used by manufacturers include orange oil, lemon oil, and lime oil. Lemon’s essential oil is widely used in the food and beverage industry as a flavoring agent, such as in fruit juices, jams, and bakery products. With citrus essential oils labeled as safe for consumption by regulatory authorities, the food and beverages industry continue to incorporate these essential oils into multiple products, in line with the upward trend of “clean label.”
Essential oils represent a significant upstream business opportunity for the floriculture market
Floriculture has been associated with the cultivation of exotic and aromatic flowers yielding aromatic essential oils which include rose, jasmine, lavender, and tuberose. Flowers have been known for a long time to be a source of sweet fragrance. Flowers provide one of the most important essential oils which are indispensable in perfumery production. Hence essential oils represent a significant upstream business opportunity for the floriculture market.
Essential oils from flowers, when incorporated into finished products impart various benefits, such as a pleasant aroma in perfumery, shine or conditioning effects in hair care products, and improving the elasticity of the skin.
It is necessary to identify the perfect location for the cultivation of flowering crops based on suitable climatic and soil conditions with minimal use of pesticides and fertilizers to obtain a good yield. It is also essential to carefully monitor the transit of raw materials from field to factory to ensure that the freshness and potency of active ingredients are preserved.
The growth of the essential oils market in Europe is driven by the demand for products being sold as aromatherapy cosmetics to the consumers
Europe is one of the largest markets for essential oil products, owing to the increased awareness of their benefits. Food & beverage companies are innovating to produce various essential oil-based beverages and foods to meet consumer demand. European buyers are preferring value-added food products, and manufacturers are preferring to use essential oils in this domain due to their wide range of applications. The consumers’ growing demand for high-quality environmentally friendly products is expected to drive the market in Europe.
Apart from this, Europe is one of the major importers of essential oil due to the increased consumer demand for aromatherapy products by developing “aromatherapy cosmetics.” The European cosmetics and personal care market is one of the largest in the world and presents an attractive opportunity for suppliers and producers of essential oils from developing countries. The consumer demand for cosmetics products that do not contain chemicals is expected to fuel market growth.
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key players in this market include Cargill, Incorporated (US), DSM (Netherlands), Givaudan (Switzerland), International Flavors & Fragrances Inc. (US), Sensient Technologies Corporation (US), Symrise (Germany), Robertet SA (France), MANE (France), doTERRA (US), NOW Foods (US), Lebermuth, Inc. (US), BIOLANDES (France), Norex Flavours Private Limited (India) and India Essential Oils (India).
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