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.
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.
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. This 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 since essential oil due to their natural origin helps manufacturers claim their products to be natural and free from artificial chemicals.
Essential oils such as peppermint, spearmint, and orange are in high demand in Canada. With the growing prevalence of health issues and other lifestyle diseases, consumers have realized the importance of essential oil products. Essential oils of herbs and spices origin are rising in demand. This demand is rising because of globalization as consumers demand new, innovative, and international flavors. Moreover, a busy lifestyle and less time for cooking have increased the demand for processed foods as they are convenient which further opens new possibilities for essential oil use. The increasing awareness about health & hygiene drives the demand for convenience food and consumer products manufactured using natural ingredients in the country. Similarly, the demand for premium consumer products among the high-income population is expected to drive the essential oils market.
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.
Europe remains one of the important markets for companies that produce essential oils due to its regulatory environment. Major companies of Europe leading in this market are Symrise (Germany), ROBERTET SA (France), MANE (France), and NHR Organic Oils (UK).
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).
