The global essential oils market size is estimated to be valued at USD 8.8 billion in 2022 and is projected to reach USD 15.3 billion by 2027, recording a CAGR of 11.8% in terms of value.
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 food and beverage industries use essential oils primarily for their color, flavor, and fragrance in the end products.
The European essential oil market growth is attributed to the consumer demand for aromatherapy cosmetics
The European demand for essential oils is because of the rising aromatherapy sector. European buyers prefer value-added food products, and manufacturers prefer 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 European market. Apart from this, the region 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. Due to its regulatory environment, Europe remains an important market for companies that produce essential oils. Major companies of Europe leading in this market are Symrise (Germany), ROBERTET SA (France), MANE (France), and NHR Organic Oils (UK).
The North American Essential Oils Market is Primarily Driven by Growth in the US and Canadian Markets
The US market dominated the North American essential oils market in 2021. It is the largest country in terms of the import and export of essential oils globally. The consumption of essential oil products in the US is considerably high. Products with all-natural ingredients are increasing in popularity because of increasing awareness about health, wellness, and sustainable lifestyle. Consumers are ready to spend extra on products that claim to be natural and organic. It is leading manufacturers of food and beverage and other industries like cosmetics to introduce essential oil in their formulations to satisfy consumer demand and capitalize on the trend. Essential oils, with their natural origin, help manufacturers claim their products to be natural and free from artificial chemicals.
This report includes a study on the marketing and development strategies, along with the product portfolios of leading companies. It consists of profiles of leading companies, such as 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).
