"We Envision Growth Strategies Most Suited
to Your Business"
The Global Essential Oils Market is estimated to rise at a remarkable CAGR of 9.65% during the forecast period, 2019 – 2026. Fortune Business Insights in a new study, titled “ESSENTIAL OILS: GLOBAL MARKET ANALYSIS, INSIGHTS AND FORECAST, 2015-2026” offers a detailed overview on factors enabling growth predominant in the market.
The rising trend of the green and sustainable environment is propelling growth in the market. The increasing popularity of organic and natural components in food products to ensure food preservation contributes to the essential oils market growth. According to the report, the global market for essential oils was worth US$ 7.03 Bn in 2018 and is anticipated to hit US$ 14.6 Bn by 2026.
The food and beverage industry is evolving in terms of ingredients/inputs and this has necessitated the use of essential oils. Moreover, the use of synthetic chemicals in food has harmful and adverse health effects. Hence, manufacturers are encouraged to use chemical-free ingredients such as essential oils. This will not only enhance the taste but retain the functional and nutritional properties of food.
Companies Focus on Introducing New Essential Oil Varieties to Sustain the Fierce Competition
The global essential oils market is fragmented owing to the presence of global and regional players. The key players are thus developing superior quality products owing to the rapid technological advancements. This is the primary factor for sustainable growth of the essential oils market.
The essential oils market sees an upward growth trajectory as companies are adopting innovative strategies such as product expansions to surge their essential oils market share. For instance, Young Living expanded its product offerings to Southeast Asia markets in November 2018. dōTERRA introduced a custom-designed label for essential oil bottles in July 2019.
This unique extended-text label accommodates two languages to add the extra required information. This was done in accordance with the new regulations and keeping in mind the aesthetics of the product. Some of the other players functioning in the global market are Biolandes SAS, Symrise AG, Phoenix Aromas & Essential Oils LLC, Givaudan International SA, Now Foods, Enio Bonchev Production Ltd., International Flavors & Fragrances Inc., The Lebermuth Company, Inc., and Ultra International B.V.
To get a detailed report summary and research scope of this market, click here:
Rising Demand for Citrus-based Essential Oils
The lavender and orange-based essential oils have a leading position in the market. This is attributable to their wide use in oral and topical medications. These oils are predominantly used in food and beverages as a natural anti-microbials. Citrus-based essential oils are expected to lead the global marketplace owing to their strong demand.
In addition to this, these oils are versatile, effective, and contain antioxidants that help to relieve stress. These oils are well-known for eliminating germs and fighting against pathogens. Driven by these benefits, the demand for citrus-based essential oils is likely to increase in the forthcoming years. Due to the increasing availability of these oils, the essential oils market size is expected to go up during the forecast period (2019-2026).
Escalating Demand for Aromatherapy in the U.K. to Propel Growth in the Market in Europe
The U.S. and European Union markets exhibit high demand and application of essential oils. Considering this, North America and Europe are expected to lead the global market in the forecast period. As per the report, the market in North America was valued at US$ 1.79 billion in 2018.
On the other hand, the cosmetic manufacturers in Europe are planning to focus on including essential oils in their cosmetic formulations. Furthermore, the demand for aromatherapy is increasing in countries such as France, the U.K., and Germany, which is projected to surge the essential oils revenue by 2026.
Apart from these two regions, South America and Asia Pacific are also expected to witness considerable growth. This is ascribable to the rapid urbanization and extensive use of essential oils.
The global essential oils market can be segmented into the following categories: