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The global essential oils market size was valued at USD 7.03 Billion in 2018 and is projected to reach USD 14.6 Billion by the end of 2026, exhibiting a CAGR of 9.65% in the forecast period (2019-2026).
Essential oils are hydrophobic/non-water soluble liquids containing volatile aroma compounds of the plants. The global essential oils market is majorly propelled by the robust trend of ‘green’ consumerism amidst the growing popularity of natural inputs for food preservation and sensory-related aspects.
The global food and beverages industry is undergoing gradual, yet significant transition concerning ingredients formulations - the growing consumer's inclination towards natural and organic products have made essential oils a crucial ingredient of choice for food processors.
There has been a gradual increase in the consumer's understanding about the detrimental health effects of synthetic chemicals added for flavor applications; manufacturers are thus encouraged to utilize natural inputs such as essential oils for increasing the aesthetic appeal of food products alongside improving the nutritional and functional properties, which will contribute significantly to the global essential oils market growth.
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These oils have a crucial role to play in the area of natural preservation of foods amidst the growing concern for synthetic food additives and their long-term detrimental effects. Various clinical studies involving essential oils in the concentration range of 0.5–20 microliters per gram have exhibited antibacterial actions in the foods such as fresh meat, meat products, fish, milk, dairy products, vegetables, fruit and cooked rice. There has been significant synergy established utilizing mild preservation methods along with the essential oils. The greater push for R&D in essential oils incorporation as a food additive is expected to provide further impetus to the market.
The strong growth incentive to the tourism and hospitality sector has brought superior benefits of aromatherapy within reach of common consumers. This trend, along with increased utilization of natural active components in pharmaceutical and cosmetic formulations, have further boosted the global essential oils market.
The dwindling supplies of aromatic plants posses a greater risk to the growth of the market. The strong and ever-rising demands against constrained supply are bound to create high price scenario discouraging its utilization across different application sectors.
"Citrus-based Essential Oils Dominate in Global Marketplace owing to their Availability, Strong Demand Dynamics, and Superior Functional and Organoleptic Characteristics"
Orange and lavender based oils are leading in the global essential oils market owing to their active principles that are utilized for topical and oral applications. Food and beverages sector is the leading application of such oils which act as natural antimicrobials. These oils have exhibited effective inhibitory actions against spoilage causing microbes. The processed foods having savory organoleptic profiles such as meat, fish, cheese-based foods along with soups and sauces can thus be suitable food matrices for the incorporation of citrus-based essential oils.
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Food and beverages remain preferred matrices for the incorporation of essential oils. The addition of essential oils to food products not only enhances the sensory characteristics but also increases the shelf-life and storage stability of a variety of edibles. Flavors and fragrances application utilizes significant quantities of these oils in the global marketplace. The application spectrum of essential oils is further expected to expand based on the reported anti-toxigenic, antiparasitic, and insecticidal traits.
"Europe and North America dominate the global essential oils market share"
The developed markets of the European Union and the U.S. have recognized some of the components of essential oils such as carvacrol, carvone, cinnamaldehyde, Citral, p-cymene, etc. as a legally registered flavoring. The cosmetic manufacturers in Europe are inclining heavily towards the inclusion of essential oils in their formulations. The growing demand for aromatherapy in major markets of France, Germany, U.K., is expected to further contribute to the sales of such oils, boosting the global essential oils market revenue as a result.
Emerging and urbanizing economies of Asia Pacific and South America are expected to become hotspots in the global essential oils market during the forecast period (2019-2026).
North America Essential Oils Market Size, 2018
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"Industry Consolidation remains as a key priority of Prominent Companies in the Market "
The global essential oils market remains largely fragmented owing to the prominence of local and private-label brands in a different region. Nonetheless, technological advancements resulting in superior products characteristics is key for the sustainable growth trajectory of the global essential oils market.
The essential oil industry is undergoing a rapid transformation – intense mergers and acquisitions activities in the global essential oils market has gradually increased buyer concentration, making it challenging for small firms to survive in the industry. Nonetheless, the overall fragmented industry structure provides a window of opportunity for private label brands to make their mark. Widening their supplier’s base, coping-up with recent technological advancements, and sustainably sourcing the raw materials are some of the key strategies that can assist smaller and larger firms alike.
The report provides qualitative and quantitative insights on the essential oils market and detailed analysis of global essential oils market size and growth rate for all possible segments in the market. The market is segmented by type, application, and geography. On the basis of type, the market is categorized into citrus, eucalyptus, lavender, rosemary, tea tree, and others. Food & beverages, personal care & cosmetics, pharmaceuticals, and others are the key applications covered in the study. Geographically, the market is segmented into five major regions, which are North America, Europe, Asia Pacific, South America, and the Middle East & Africa. The regions are further categorized into countries.
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Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape in the global essential oils market. Various key insights provided in the report are the overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in key countries, and key industry trends.
Fortune Business Insights says that the value of the global essential oils market was USD 7.03 Billion in 2018
The essential oils market is projected to reach USD 14.6 Billion by 2026.
The essential oils market will grow at the rate of 9.65% CAGR.