Essential oils are compounds extracted from plants. Oil extracted from the plant have an essence, which is obtained through distillation or cold pressing.

Inkwood research estimates that the market for essential oils market will grow with an anticipated CAGR of 8.10% by revenue and CAGR of 7.59% in Tons during the forecast period, and will reach the revenue of $16224.79 million by 2027. The base year considered for the market study is 2018 & the forecasted period is between 2019 & 2027.

The global essential oils market is driven by the following factors:

• Rising preference for natural personal care
• Demand for flavours and fragrances
• Favourable government regulations
• Essential oils in agrochemicals

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Essential oils are used in several end-user industries. Major end-user industries such as personal care and cosmetics are also increasingly utilizing essential oils to improve its appeal and product value. A high proportion of products with synthetic and chemical content dominates the natural beauty and personal care market. Essential oils are believed to promote elasticity, skin tone, as well as treat acne, dermatitis, stretch marks, and skin tightening. Most of the consumers of the essential oils are women and teenage girls. The high purchasing power and growing consumer awareness, regarding the adverse effects of chemicals in toiletries and cosmetics, are responsible for an increase in the preference of naturally sourced products. Increasing consumer disposable income is also expected to remain a key driver for this industry.

Orange oil is the leading segment in terms of revenue in the global essential oils market with around 9.18% market share in 2018.  Orange oil has many domestic uses. They are used mostly in food and beverages. The orange oil is made out of the orange peels through cold pressing. It has a light and citrusy aroma and is rich in antioxidant d-limonene, which helps in detoxification, and has health, and therapeutic benefits. It is the most inexpensive oil that is readily available in the market and blends easily with other citrus oils. As the orange oil has antiseptic properties, it is used in cleaning products like room freshening sprays. Orange essential oils have a cheering, calming, and relaxing effect, which helps reduce pulse rate. It is also used in aromatherapy as it can stimulate the strength of the immune system and eliminate airborne bacteria.

On the other hand, global essential oils market growth is hindered by restricted access to raw materials, lack of awareness in developing markets, and the high cost of products. Essential oils are concentrated liquid aromatic compounds derived from the plant.  Large quantities of plant matter have to be distilled or quite often derive minimum volumes of oils. Several forests have to be cut down to obtain these oils. With bare minimum lands available, it is becoming increasingly difficult to cultivate enough plants to produce one pound of oil. Renowned perfume manufacturers have partnered with local flower harvesters, and families with heritage farming activities access to around 10 to 15 tons of particular flower per year. Numerous popular oils including lavender, rose, iris, jasmine, sandalwood cannot be synthesized artificially in laboratories and need to be sourced from actual plant matter.

Report scope of the global essential oils market covers segmentation analysis of product and application.

Market by Product:

• Orange
• Eucalyptus
• Cornmint
• Peppermint
• Citronella
• Lemon
• Lime Solutions
• Clover Leaf
• Spearmint
• Others

Market by Application:

• Medical
• Food and beverages
• Spa and relaxation
• Cleaning and home
• Others

On the basis of geography, the global essential oils market has been segmented into four major regions:

• North America Essential Oils Market: The United States & Canada
• Europe Essential Oils Market: United Kingdom, France, Germany, Italy, Spain, Russia, and Rest of Europe
• Asia Pacific Essential Oils Market: China, Japan, India, South Korea, Taiwan, Indonesia, Singapore, Australia, and the rest of Asia Pacific
• Rest of World: Latin America, Middle East, & Africa

North America is the largest market geographically, with a market share of 37.99% in terms of revenue in 2018. North America’s dominance is accredited due to the presence of a majority of the key players in the region. Moreover, governments have started taking initiatives to help the region in expanding its investment in natural substances rather than having synthetic substitutes. The increase in demand for ‘Green Solution,’ herbal essential oils such as orange, peppermint, clove, and others are helping the market players to sustain their businesses. In North America, several organizations are providing evidence-based information, and they educate consumers regarding different types of essential oils, the potential benefits, and side effects of essential oils. Such efforts have resulted in high awareness regarding essential oil usage in the region, benefitting the market.

The Asia Pacific is the fastest-growing regional market in the forecasted period. Asia-Pacific includes countries such as India, China, Indonesia, Japan, Singapore, and others. Health concern of consumers is increasing in developing countries such as China and India, which is likely to trigger a shift in consumer preferences from synthetic toward natural products. The food and beverage industry is expected to rise due to the growing population in the region. The economic growth of developing countries such as China and India is leading to a rise in the urban class population, thereby driving the sales of essential oils in these countries. Increasing demand for essential oils from flavors & fragrance industry is expected to boost the market growth over the forecast period.

Global Essential oils market has been segmented on the basis of product, application, and region. The product segment is further sub-segmented into Spearmint, Clover Leaf, Eucalyptus, Peppermint, Cornmint, Lemon, Orange, Citronella, Lime Solutions, and others. The market for essential oils by application is divided into food and beverages, cleaning and home, spa and relaxation, medical, and others.

The market has a number of players, and some of the key players involved in global essential oils market are:

• Young Living Essential Oils
• Biolandes
• doTERRA International, LLC
• Moksha lifestyle products
• Others

In July 2019 Young Living Essential Oils acquired Nature’s Ultra. Nature’s Ultra will operate independently to provide industry-leading products that are certified with natural, organic, and gluten-free highest quality oil-infused products.

Key findings of the global essential oils market are:

• North America leads the global essential oils market by capturing the largest market share of around 37.99% in 2018.
• The Asia-Pacific essential oils market is anticipated to grow at the highest CAGR of XX% during the forecast period of 2019-2027.
• Orange oil segment accounts for the largest share in the essential oils market, and is projected to grow at a CAGR of XX% during the forecasted period.
• Food and beverage in the essential oils market are projected to grow fastest in the market at CAGR of XX% during the forecast period.