"Market Intelligence that Adds Flavour to Your Success"

Essential Oils Market Size, Share Analysis, By Type (Citrus (Orange, Lemon, Grapefruit, Lime, and Others), Eucalyptus, Lavender, Rosemary, Tea Tree, Peppermint, and Others), By Application (Food & Beverages, Personal Care & Cosmetics, Spa & Relaxation, Pharmaceuticals & Medicinal Formulations, and Others), By Distribution Channel (Direct Distribution, MLM Distribution, and Retail Distribution), and Regional Forecast, 2024-2032

Last Updated: July 01, 2024 | Format: PDF | Report ID: FBI101063



Play Audio Listen to Audio Version

The global essential oils market size was valued at USD 11.41 billion in 2023 and is projected to grow from USD 12.47 billion in 2024 to USD 27.82 billion by 2032, exhibiting a CAGR of 10.55% during the forecast period. Europe dominated the essential oils market with a market share of 43.65% in 2023.

Essential oils are non-water soluble liquids containing unstable aroma compounds of the plants. The global market is majorly propelled by the robust trend of green consumerism among the increasing popularity of natural inputs for sensory-related aspects and food preservation.

The COVID-19 pandemic has positively impacted the global ethereal oils market. The increased demand for aetheroleum oils, as these oils claim to enhance health and immunity. According to industry experts, amid the chaotic pandemic situation, people should incorporate ethereal oil in daily life to improve their immune system and achieve a healthy and calm mind. The numerous ethereal oils such as tea tree oil, peppermint oil, and eucalyptus oil, which have the potential for aromatherapy and antibacterial and antiviral qualities, increased the demand for the products during this pandemic.

Essential Oils Market Trends

Increasing Application of the Product across Multiple Industries to Bolster the Market Growth

Traditionally, aetheroleum oil is widely utilized in food and beverages and aromatherapy. However, in recent years, the increasing application of the product in several industries, such as pharmaceuticals, cosmetics, and personal care, is anticipated to drive product sales. Besides, essential oils help in improving skin tone, skin glow, heal damages, and provide deep nourishment for skin and hair. These benefits boost their adoption in skin care and hair care products. This factor is anticipated to drive the product demand in the upcoming years. For instance, in September 2022, INEOS Hygienics, a U.K.-based healthcare products manufacturer, launched a range of high-performance handwashes. These products are formulated using ‘INEOS DNA’ fragrance technology, containing purifying ethereal oils and phytoncides. Furthermore,

Request a Free sample to learn more about this report.

Essential Oils Market Growth Factors

Rising Inclination toward Aromatherapy to Drive the Aetheroleum Oils Market Growth

Aromatherapy is also referred to as essential oil therapy. Since the last decade, customers have become more selective about their personal care product uses. Although many similar products are available, high-quality products and competitive prices will satisfy customer needs and increase product loyalty. Therefore, rising expenditure on the research and development of more effective products, processes, services, and technologies is predicted to impact the market growth positively. According to the National Institutes of Health - National Center for Complementary and Integrative Health (NCCIH), American consumers spend approximately USD 30.2 billion on aromatherapy on an annual basis.  The robust growth incentive to the hospitality and tourism sector has brought greater benefits of aromatherapy within reach of common consumers. This trend, coupled with the increased utilization of natural active components in pharmaceutical and cosmetic formulations, has further boosted the global essential oil market growth.

Increasing Demand for Natural Ingredients to Spur Market Growth

The product has a vital role in the natural preservation of foods amidst the rising concern for synthetic food additives and their long-term harmful effects. Several clinical studies involving ethereal oils in the concentration range of 0.5–20 microliters per gram have shown antibacterial actions in the foods such as meat products, fish, fresh meat, milk, dairy products, and cooked rice. There has been an important synergy established utilizing preservation methods along with such oils. Thus, the greater push for research and development in ethereal oils incorporation as a food additive is anticipated to provide further impetus to the global Essential Oils Market growth.

The global food and beverages industry is undergoing a gradual yet substantial transition concerning ingredient formulations. The rising customer's inclination toward natural and organic products has made ethereal oils a crucial ingredient of choice for food processors. There has been a steady surge in the customer's understanding of the harmful health effects of synthetic chemicals added for flavor applications. Producers are thus encouraged to utilize natural inputs to increase the aesthetic appeal of food products alongside improving their nutritional and functional properties. 


High Prices of the Product May Hinder Product Growth in Developing Economies

Ethereal oils are a very concentrated product. Henceforth, one pound of lavender oil consumes around 250 pounds of lavender flowers. The declining supplies of aromatic plants possess a greater risk to the growth of the plant-based volatile oils market. The solid, and ever-rising demands against constrained supply are bound to create high price scenarios discouraging its utilization across different application sectors in developing economies. Thus, the high price of the product may impede the market growth in the upcoming years.

Essential Oils Market Segmentation Analysis

By Type Analysis

Citrus to Hold the Major Share Backed by Increasing Popularity among Consumers

By type, the market is classified into citrus, eucalyptus, lavender, rosemary, tea tree, and others. The citrus segment is further classified into orange, lemon, grapefruit, and lime. The citrus segment held a dominant share of the market in 2022. Citrus-based ethereal oils such as orange and lemon oil dominate the global marketplace due to their availability, superior functional and organoleptic characteristics, and strong demand dynamics.

Orange and lavender ethereal oils lead the global market due to their active principles for oral and topical applications. The food and beverages sector is the leading application of plant-based volatile oils, which act as natural antimicrobials. These oils have exhibited practical inhibitory actions against spoilage-causing microbes. The processed foods having savory organoleptic profiles, such as meat, fish, cheese-based foods, soups, and sauces, can thus be suitable food matrices for incorporating citrus-based oils.

To know how our report can help streamline your business, Speak to Analyst

By Application Analysis

Wide Applications of the Product in the Food & Beverages Segment to Hold Major Share

Based on application, the market is categorized into food & beverages, personal care & cosmetics, spa & relaxation, pharmaceuticals & medicinal formulations, and others.

The food and beverage segment is expected to account for the largest share during the forecast years. Food and beverages remain preferred matrices for incorporating plant-based volatile oils. The addition of ethereal oils to food products increases the shelf-life, storage stability, and sensory characteristics of various edibles.

The flavors and fragrances application segment utilizes significant quantities of plant-based volatile oils in the global marketplace. The application spectrum of aetheroleum oils is further expected to expand based on the reported antiparasitic, anti-toxigenic, and insecticidal traits.

By Distribution Channel Analysis

Increasing Product Awareness will Propel the Retail Distribution Channel Sales

Based on distribution channel, the market is categorized into direct distribution, MLM distribution, and retail distribution.

The direct distribution segment holds the largest share of the global market. Consumers want to experience the product and feel the oil’s fragrance. Furthermore, the companies established a strong network through direct distribution channels. Therefore, the segment is anticipated to hold the dominating share of the market. With increasing product knowledge among individuals, they have started purchasing through different retail channels, including supermarkets, specialty stores, and online stores. Hence, the retail distribution segment is anticipated to grow at a double-digit CAGR during the forecast period.


Europe Essential Oils Market Size, 2023 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample

The market in Europe stood at 4.58 billion in 2022, and the region is predicted to continue dominating the global market in the upcoming years. The developed market of the European Union has recognized some of the components of plant-based volatile oils such as carvacrol, carvone, cinnamaldehyde, and citral, p-cymene as legally registered flavoring.  Cosmetic producers in Europe are inclining heavily toward including ethereal oils in their formulations. The growing demand for aromatherapy in major markets of Germany, France, and the U.K. is expected to further contribute to the growth of the global market.

To know how our report can help streamline your business, Speak to Analyst

North America is predicted to be the second-most prominent region in terms of market share. The demand for the product in the region is expected to experience promising growth over the next few years in light of the increasing consumption of natural ingredients containing cosmetic products, new product launches, and rising disposable income.

The markets in South America and Asia Pacific are anticipated to witness significant growth during the forecast period. Several factors, including rising concerns toward aging, UV effects, and hair fall, are likely to fuel growth in these regions. Moreover, the consumers in these regions are ready to spend a huge amount of money on personal care and cosmetics products, which is anticipated to support the market's steady growth.

Emerging and urbanization economies of the Middle East and Africa are expected to become global hotspots in the plant-based volatile oils market during the upcoming years. Additionally, the players operating in the global market are expanding their distribution network to increase their prominence in the regional market, which is predicted to support the steady growth of the regional market.

List of Key Companies in Essential Oils Market

Industry Consolidation is a Priority for Prominent Companies in the Market

The global market remains largely fragmented owing to the prominence of local and private-label brands in different regions. Nevertheless, technological advancements resulting in superior product characteristics are key for the sustainable growth trajectory of plant-based volatile oils. Companies such as Givaudan International SA, International Flavors and Fragrances Inc., and Symrise AG embark on mergers and acquisitions activities to increase their prominence in the market. Companies focus on reformulating their strategies such as new product developments, technological developments, mergers, and acquisitions to achieve a stable market share. For instance, in October 2023, Anima Mundi, a New York-based apothecary company, acquired Floracopeia, an essential oil company. Through this acquisition, Anima Mundi expanded its product portfolio by adding more than 20 specific essential oils.



  • December 2022 – Dabur India, India’s one of the leading consumer products manufacturers, expanded its air freshener products by launching the “Odonil Gel Pack”. This product is infused with essential oils.

  • June 2021 – Bella Vita Organics, an Indian Ayurveda skincare & personal care company, launched a range of luxurious essential oils in nine different types, including lavender, orange, and basil. These products will help to reduce blemishes, acne, dark spots, excess oil production, inflammation, rashes, and hair fall.

  • February 2021 - Natural Sourcing LLC, an American company, launched rosewood essential oil for fragrance applications under its brand Praan Naturals. This rosewood essential oil can also help to produce several personal care and skin care products. 

  • October 2020 - dōTERRA International, an international health and wellness company, launched essential oil products such as bath bars, toothpaste, and hand wipes. The company also launched essential oil diffusers.

  • June 2020 - India-based company Wow Skin Science launched a range of essential oils, Peppermint, Jasmine, Frankincense Nse, Lemon, and Eucalyptus, to meet beauty and wellness needs.


An Infographic Representation of Essential Oils Market

To get information on various segments, share your queries with us

The research report includes qualitative and quantitative insights into the market. It also offers a detailed analysis of the global market share, size, and growth rate for all possible market segments. Various key insights presented in the report are an overview of related markets, competitive landscape, recent industry developments such as mergers & acquisitions, regulatory scenario in critical countries, and key industry trends.

Report Scope & Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 10.55% over 2024 to 2032


Value (USD Billion)


By Type

  • Citrus

    • Orange

    • Lemon

    • Grapefruit

    • Lime

    • Others

  • Eucalyptus

  • Lavender

  • Rosemary

  • Tea Tree

  • Peppermint

  • Others

By Application

  • Food & Beverages

  • Personal Care & Cosmetics

  • Spa & Relaxation

  • Pharmaceuticals & Medicinal Formulations

  • Others

By Distribution Channel

  • Direct Distribution

  • MLM Distribution

  • Retail Distribution

By Region

  • North America (By Type, Application, Distribution Channel, and By Country)

    • U.S. (By Application)

    • Canada (By Application)

    • Mexico (By Application)

  • Europe (By Type, Application, Distribution Channel, and By Country)

    • Germany (By Application)

    • France (By Application)

    • Italy (By Application)

    • Spain (By Application)

    • U.K. (By Application)

    • Rest of Europe (By Application)

  • Asia Pacific (By Type, Application, Distribution Channel, and By Country)

    • China (By Application)

    • India (By Application)

    • Japan (By Application)

    • Australia (By Application)

    • Rest of Asia Pacific (By Application)

  • South America (By Type, Application, Distribution Channel, and By Country)

    • Brazil (By Application)

    • Argentina (By Application)

    • Rest of South America (By Application)

  • Middle East and Africa (By Type, Application, Distribution Channel, and By Country)

    • South Africa (By Application)

    • UAE (By Application)

    • Rest of ME&A (By Application)

Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 11.41 billion in 2023 and is projected to reach USD 27.82 billion by 2032.

Growing at a CAGR of 10.55%, the market will exhibit steady growth during the forecast period (2024-2032).

The citrus segment is expected to be the leading segment during the forecast period.

Increasing demand for aromatherapy is a key factor driving the market growth.

Biolandes SAS, Givaudan International SAS, International Flavors and Fragrances Inc., and Symrise AG are a few of the leading players in the market.

Europe dominated the market in terms of revenue share in 2023.

The food & beverages segment holds the major share in the global market.

Increasing product application in several industries is a key market trend.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • 2019-2032
  • 2023
  • 2019-2022
  • 200

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Client Testimonials

“We are quite happy with the methodology you outlined. We really appreciate the time your team has spent on this project, and the efforts of your team to answer our questions.”

- One of the largest & renowned medical research centers based in the U.S. on a report on the U.S. NIPT Market.

“Thanks a million. The report looks great!”

- Feedback from a consultant on a report on the U.S. Beef Market.

“Thanks for the excellent report and the insights regarding the lactose market.”

- Brazil based company specializing in production of protein ingredients.

“I liked the report; would it be possible to send me the PPT version as I want to use a few slides in an internal presentation that I am preparing.”

- Global Digital Services Agency on a report on the Global Luxury Goods Market.

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.