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Organic Essential Oils Market Size, Share & Industry Analysis, By Type (Orange Oil, Lemon Oil, Eucalyptus Oil, Peppermint Oil, Lavender Oil, Tea Tree Oil, Others), By Application (Food & Beverage, Personal Care & Cosmetics, Pharmaceuticals) And Regional Forecast 2022-2029

Region : Global | Report ID: FBI104997 | Status : Ongoing

 

KEY MARKET INSIGHTS

Essential oils are unique aromatic compounds that are extracted from the plants for various end-use applications. The demand for organic essential oils is mainly attributed to the rising demand from the end-use industries such as food, cosmetics and personal care, and pharmaceuticals, due to its aroma imparting properties. There are numerous health benefits associated with organic essential oils such as relieving anxiety, insomnia, and stress, coupled with possessing anti-inflammatory and antimicrobial properties. Organic essential oils such as peppermint, rosemary, and lime help in digestion and alleviate unhealthy cravings. Thus, these factors have cumulatively aided in market growth.


The organic essential oils are widely used in aromatherapy for elevating a person’s health and mood. It also helps in relieving respiratory disinfection and decongestion. The increasing prevalence of health problems such as bronchitis and cardiovascular ailments has led to the growing demand for essential oils in aromatherapy. Further, the essential oils are utilized in various personal care products such as body wash, face cream, and hair oils as it helps in relieving skin problems such as psoriasis, scars, and acne.


The surging demand of consumers for organic products owing to their perceived benefits and detrimental health effects of synthetic chemicals and pesticides has influenced the market growth. This has also led to many processed food manufacturers to incorporate organic essential oils in their products such as in cakes, smoothies, and cocktails. Further, many organic essential oils have antimicrobial and antioxidant properties which inhibit bacterial growth in the food by acting as a natural preservative, which in turn has contributed in market growth. 


The organic essential oils are manufactured by highly sophisticated, labour-intensive process. Along with that, the process is costly and requires a vast amount of plant material to produce a significant amount of essential oil; thereby, impacting the overall price of the product. For instance, Carrement Belle, a French perfume manufacturer mentions, to produce 1 kg of neroli requires 6000 kg of orange blossom, which in turn acts as an impeding factor in the market growth.


Key Market Driver -

Growing Demand for Organic Products

Key Market Restraint -

High Price of Organic Essential Oils


Key Players Covered:


The key companies operating in the global organic essential oils market are Sydney Essential Oil Co., Biolandes SAS, India Essential Oils, Young Living Essential Oils, H. Reynaud & Fils, Eden Botanicals, Plant Therapy Inc., VedaOils, Biotique Essential Oils Group (BEEG), and Starwest Botanicals, Inc.


The orange oil segment is likely to hold a prominent share in the market owing to its active utilization in oral and topical applications. The orange essential oil helps in extending the shelf life of the food by preventing the growth of fungi along with enhancing the organoleptic properties of both sweet and savoury flavoured processed foods.


Food and beverage is one of the major application segment of organic essential oils and is anticipated to account for larger share in the market. The increasing demand for natural, safe, and organic food products worldwide plays a major role in boosting segment growth.


Regional Analysis:


Europe is anticipated to hold the major share in the market owing to the growing inclination of cosmetic manufacturers towards incorporating organic essential oils in the products. Along with this, the booming cosmetics sector in the region has supported the market growth. According to the Cosmetics Europe 2017, the European cosmetics market grew by 1.3% from the previous year. Further, the presence of organizations such as European Federation of Essential Oils (EFEO) has laid down various guidelines to safeguard and promote the utilization of essential oils, which plays a major role in fuelling the regional market growth.


Asia Pacific is likely to exhibit fastest growth in the market due to the presence of various untapped markets such as India, Japan, and China which offer numerous opportunities for growth. Countries such as China and India have a large consumer base and factors such as rising disposable incomes and rapid urbanization the consumers are willing to pay the premium product prices. Further, the rise in awareness about the health benefits, applications, and functionalities of organic essential oils have contributed in driving the regional market growth.


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Segmentation






















 ATTRIBUTE


  DETAILS

By Type




  • Orange Oil

  • Lemon Oil

  • Eucalyptus Oil

  • Peppermint Oil

  • Lavender Oil

  • Tea Tree Oil

  • Others (Rosemary Oil & Jasmine Oil)



By Application




  • Food & Beverage

  • Personal Care & Cosmetics

  • Pharmaceuticals



By Geography




  • North America (U.S., Canada, and Mexico)

  • Europe (Germany, France, Italy, Spain, U.K., Russia, and Rest of Europe)

  • Asia Pacific (China, India, Japan, Australia, and Rest of Asia Pacific)

  • South America (Brazil, Argentina, and Rest of South America)

  • Middle East & Africa (South Africa, UAE, and Rest of ME&A)



Key Industry Developments



  • In August 2020, Essential Candy launched healthy hard candies incorporated with pure organic essential oils and is free from any artificial colours or preservatives. The candies were introduced by the company in the U.S. to help consumers suffering from cancer, as a palatable solution for the side effects of chemotherapy.

  • In January 2020, Vitamin Shoppe, LLC, a specialty omni-channel retailer announced the launch of Vthrive brand, a new premium line of vitamins, minerals, and organic essential oils in the U.S. due to the consumers demand for high quality natural ingredients which are free from any artificial chemicals.


  • Ongoing
  • 2021
  • 2018-2020

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