Essential Oils Market Forecast and Growth 2031

The essential oils market size is projected to reach US$ 24.39 billion by 2031 from US$ 14.26 billion in 2023. The market is expected to register a CAGR of 6.9% during 2023–2031. The rising preference for organic oils is likely to remain a key trend in the essential oils market.

Essential Oils Market Analysis

Essential oils are known to exhibit antioxidant, antimicrobial, and anti-infective properties. Scientific evidence suggests that stress, sleep disorders, immunity disorders, and depression can be alleviated with the use of essential oils, as they impart a calming effect on the body to reduce stress and anxiety. Moreover, essential oils can be used in the production of household cleaning products and air fresheners to mask unpleasant odors. Therefore, the market for essential oils is expected to catapult in response to not only the rising awareness about the health benefits, especially post-pandemic, but also due to their popularity in promoting freshness in a livable environment.

Essential Oils Market Overview

Essential oils are extracted from plants via steam distillation and mechanical processes such as cold pressing. As essential oils induce relaxation due to their unique scent and flavor, they are widely preferred in end-use industries such as food & beverages, aromatherapy, personal care, cosmetics, and animal feed. Lemon, lavender, rosemary, and tea tree are among the well-known essential oils.

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Essential Oils Market: Strategic Insights

Essential Oils Market

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  CAGR (2023 - 2031)

  6.9%
• Market Size 2023
  US$ 14.26 Billion
• Market Size 2031
  US$ 24.39 Billion

Market Dynamics

GROWTH DRIVERS

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FUTURE TRENDS

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OPPORTUNITIES

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Key Players

• Cargill Incorporated
• Givaudan
• Sensient Technologies Corporation
• International Flavors and Fragrances Inc
• Firmenich SA
• MANE
• DSM
• Elixarome Limited
• BORDAS S A

Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Type

• Lemon
• Tea tree
• Lavender
• Rosemary
• Eucalyptus

Category

• Organic and Conventional

Application

• Food & Beverages
• Cosmetics & Personal Care
• Aromatherapy
• Household Cleaning Products

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Essential Oils Market Drivers and Opportunities

Increasing Popularity of Aromatherapy Favors Essential Oils Market

As aromatherapy has clinically proven to elevate mood and cognitive performance because of its calming, antidepressant, and anti-stress effects, it is no longer considered a supplementary therapy, but it is now a mainstream therapy. Thus, as the popularity of aromatherapy grows, the adoption of essential oils will subsequently increase because they are the major therapeutic agents used in the therapy. These factors are anticipated to drive the demand for essential oils in aromatherapy, which will cohesively fuel the market for essential oils globally.

Surging Demand for Organic Products Drives Essential Oils

In recent years, health trends have been rapidly evolving, with many consumers choosing clean-labeled and organic products over conventional products. With the surging number of people suffering from heart diseases, obesity, high blood pressure, skin disorders, and diabetes, the demand for organically certified products is increasing. Consumers perceive organic products to be healthier than conventional ones as they are grown following stringent farming practices that avoid chemical fertilizers, genetically modified organisms (GMOs), synthetic pesticides, antibiotics, and growth hormones. This factor is significantly driving the demand for organic products, which further boosts the demand for organically procured ingredients such as essential oils and propels the market study.

Essential Oils Market Report Segmentation Analysis

Key segments that contributed to the derivation of the essential oils market analysis are type, category, and application.

• Based on type, the essential oils market is divided into lemon, tea tree, lavender, rosemary, eucalyptus, and others. The lemon segment held the largest market share in 2023.
• By category, the market is segmented into organic and conventional. The conventional segment held a larger share of the market in 2023.
• In terms of application, the market is categorized into food & beverages, cosmetics & personal care, aromatherapy, household cleaning products, and others. The food & beverages segment dominated the market in 2023.

Essential Oils Market Share Analysis by Geography

The geographic scope of the essential oils market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.

The essential oils market in North America is significantly growing with the thriving personal care & cosmetic industry. Further, there is a growing trend of using natural, vegan, and organic cosmetic products among consumers in the region due to a growing preference for chemical-free products, which tends to increase the sales of natural and organic essential oils. Moreover, consumers in the region are ready to pay extra for products that claim clean labels and are natural. Also, the growing food & beverage industry with rising consumption of products with natural ingredients is expected to drive the essential oils market growth in North America.

Essential Oils Market Report Scope

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Essential Oils Market News and Recent Developments

The essential oils market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for innovations, business expansion:

• doTERRA – a US-based essential oil company, announced the launch of new sustainably sourced and natural essential oils. These newly launched essential oils include eucalyptus essential oil and guaiac wood essential oil. (Source: doTERRA, Press Release, 2022)
• Phoenix Flavors and Fragrances, a leading compounder and developer of high-performance fragrances and flavors, announced the acquisition of Innovative Fragrances Inc. (IFI), an Atlanta-based developer and compounder of fragrance compounds that serve a diverse set of end markets, including candle, personal care, home fragrance, and other air fresheners. This acquisition of IFI aligns with the vision to create a market-leading developer of high-performance flavors and fragrances, supported by a strong team of regulatory experts and perfumers to meet customer-specific requirements and needs. (Source: Phoenix Flavors and Fragrances, Newsletter, 2022)

Essential Oils Market Report Coverage and Deliverables

The “Essential Oils Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles