Essential Oil Market Report 2024 (Global Edition)

Global Essential Oil Market Report 2024 Market Size Split by Type Outlook: (Orange, Peppermint, Lemon, Lavender, Lime, Rosemary, Cornmint, Spearmint, Geranium, Clove Leaf, Rose, Coriander, Tea Tree, C...

Essential Oil Market Report Description

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Competitive Landscape of the Essential Oils Market

The market for essential oils is extremely fragmented, with many small and medium-sized businesses competing. Nonetheless, a few major companies control the majority of the market. These businesses are well-established in the industry and are renowned for providing a large selection of premium essential oils. They also spend a lot of money on R&D and product development in order to maintain their competitive edge. The market is quite competitive, and new competitors are constantly joining it. Companies will need to set themselves apart through product innovation, quality, and branding as the market grows in order to keep their competitive advantage.

In June 2023, Food Base is, a Hungarian firm that specializes in the creation and marketing of essential oils, herb extracts, and flavors for the food and beverage sector. Turpaz Industries announced that it has acquired Food Base for USD 9.5 million—approximately 3.3 billion Hungarian Forint. (Source:https://www.turpaz.co.il/Files/Acquisition-of-control-in-a-Hungarian-Company-Food-Base.pdf) In July 2022, DoTERRA's expansion into India resulted in remarkable growth. Given that doTERRA sources its essential oils from Asia, the Pacific, the Middle East, Africa, and India, having an operational presence in India makes strategic sense for the company's international expansion. (Source: https://news.doterra.com/IndiaMarketOpening) In September 2021, The innovation center of MANE KANCOR was established in Angamaly with an emphasis on advancements in nutraceutical goods, natural color solutions, culinary flavor solutions, personal care ingredients, and natural shelf-life solutions. (Source: https://www.mane.com/media/mane-kancors-new-innovation-centre-inaugurated-at-angamaly) In July 2021, Sensient expanded its flavor portfolio by adding savory reaction flavors, natural shelf-life extender technologies, and taste-modulation platforms for sweetness enhancement and salt reduction to its traditional flavor offering through the acquisition of Flavor Solutions, Inc. (US). (Source: https://investor.sensient.com/news-and-events/press-releases/news-details/2021/Sensient-Technologies-Acquires-Assets-of-Flavor-Solutions-Inc/default.aspx) In February 2021, France's Myrissi was acquired by Givaudan. Myrissi's AI experience would help Givaudan suggest novel organoleptic methods to customers, enabling Givaudan's long-term Fragrance & Beauty strategy. (Source:https://www.givaudan.com/media/media-releases/2021/givaudan-acquire-myrissi)

Top Companies Market Share in Essential Oil Industry: (In no particular order of Rank)

• Cargill
• Incorporated (US)
• DSM (Netherlands)
• Sensient Technologies Corporation (US)
• Symrise (Germany)
• Givaudan (Switzerland)
• International Flavors & Fragrances Inc. (US)
• Robertet SA (France)
• NOW Foods (US)
• MANE (France)
• doTERRA (US).
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Regional Analysis of the Essential Oils Market

Which Region Dominates the Essential Oils Market in 2024?

According to Cognitive Market Research, North America currently dominates the Essential Oils market, and the region is expected to have significant growth during the projected period. It is the world's largest importer and exporter. In the US, a significant amount of essential oil products is consumed. Growing awareness of wellness, health, and sustainable living has led to a rise in the popularity of products made entirely of natural components. Consumers are willing to pay a premium for natural and organic products. In an effort to meet customer demand and take advantage of the trend, top producers of food and drink, as well as other sectors like cosmetics, are including essential oils in their formulas. Help producers assert that their products are natural and devoid of synthetic chemicals due to their natural nature.

Which Region is Expanding at the Fastest CAGR?

Asia-Pacific is expected to make significant gains during the projected period, with the greatest compound annual growth rate (CAGR). The Asia Pacific essential oil sector is projected to grow as a result of escalating customer knowledge of products that are organic or natural, as well as rising disposable income. China, India, and Japan are among the nations with the highest growing demand for essential oils in the food and beverage, personal care, and aromatherapy industries. The region's strong agricultural foundation guarantees a plentiful supply of raw materials, which boosts output even more. Demand is also increased by growing wellness trends like yoga and meditation, as well as a desire for holistic health solutions. Western habits and rapid urbanization also influence market expansion.

The current report Scope analyzes Essential Oil Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Netherlands, Switzerland, Belgium)
• Asia-Pacific (China, Japan, Korea, India, Australia, Philippines, Singapore, Malaysia, Thailand, Indonesia, Rest of APAC)
• South America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East and Africa (Saudi Arabia, Turkey, Nigeria, UAE, Egypt, South Africa, GCC Countries, Rest of MEA)

The above graph is for illustrative purposes only.

North America Essential Oil

According to Cognitive Market Research, the global Essential Oils market size was estimated at USD 24514.6 Million, out of which North America held the major market share of more than 40% of the global revenue with a market size of USD 9805.84 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.2% from 2024 to 2031.

• According to Cognitive Market Research, the US had a major share in the Essential Oils market with a market size of USD 7736.81 million in 2024 and is projected to grow at a CAGR of 6.0% during the forecast period. The U.S. has an increase in DIY wellness trends and aromatherapy techniques.
• The Canada Essential Oils market had a market share of USD 1176.70 million in 2024 and is projected to grow at a CAGR of 7.0% during the forecast period. Canada’s advantageous laws promote the use of natural substances in consumer products.
• The Mexico Essential Oils market is projected to witness growth at a CAGR of 6.7% during the forecast period, with a market size of USD 892.33 million in 2024.

Europe Essential Oil

According to Cognitive Market Research, the global Essential Oils market size was estimated at USD 24514.6 Million, out of which Europe held the market share of more than 30% of the global revenue with a market size of USD 7354.38 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.5% from 2024 to 2031.

• The United Kingdom Essential Oils market had a market share of USD 1235.54 million in 2024 and is projected to grow at a CAGR of 7.3% during the forecast period. In the UK, Demand for sustainable products is being driven by a large number of environmentally conscious consumers.
• The France Essential Oils market is projected to witness growth at a CAGR of 5.7% during the forecast period, with a market size of USD 676.60 million in 2024.
• According to Cognitive Market Research, the German Essential Oils market size was valued at USD 1456.17 million in 2024 and is projected to grow at a CAGR of 6.7% during the forecast period. In Germany, essential oils are used extensively for medicinal purposes in pharmaceuticals.
• The Italy Essential Oils market is projected to witness growth at a CAGR of 5.9% during the forecast period, with a market size of USD 632.48 million in 2024.
• The Russia Essential Oils market is projected to witness growth at a CAGR of 5.5% during the forecast period, with a market size of USD 1139.93 million in 2024.
• The Spain Essential Oils market is projected to witness growth at a CAGR of 5.6% during the forecast period with a market size of USD 603.06 million in 2024
• The Luxembourg Essential Oils market is projected to witness growth at a CAGR of 6.6% during the forecast period, with a market size of USD 227.99 million in 2024.
• The Portugal Essential Oils market is projected to witness growth at a CAGR of 6.3% during the forecast period, with a market size of USD 154.44 million in 2024.
• The Greece Essential Oils market is projected to witness growth at a CAGR of 6.8% during the forecast period, with a market size of USD 88.25 million in 2024.
• The Rest of Europe's Essential Oils market is projected to witness growth at a CAGR of 5.2% during the forecast period, with a market size of USD 1139.93 million in 2024.

Asia Pacific Essential Oil

According to Cognitive Market Research, the global Essential Oils market size was estimated at USD 24514.6 Million, out of which Asia Pacific held the market share of around 23% of the global revenue with a market size of USD 5638.36 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.0% from 2024 to 2031.

• According to Cognitive Market Research, the China Essential Oils market size was valued at USD 2537.26 million in 2024 and is projected to grow at a CAGR of 9.5% during the forecast period. Essential Oil surges in China due to the popularity of essential oil-based personal care products growing as a result of rapid urbanization and rising disposable incomes.
• The Japan Essential Oils market is projected to witness growth at a CAGR of 8.5% during the forecast period, with a market size of USD 778.09 million in 2024.
• The India Essential Oils market had a market share of USD 676.60 million in 2024 and is projected to grow at a CAGR of 11.8% during the forecast period. India's growing consumer interest in Ayurvedic products and natural cures .
• The South Korean Essential Oils market is projected to witness growth at a CAGR of 9.1% during the forecast period, with a market size of USD 563.84 million in 2024.
• The Australian Essential Oils market is projected to witness growth at a CAGR of 9.7% during the forecast period, with a market size of USD 293.19 million in 2024.
• The South East Asia Essential Oils market is projected to witness growth at a CAGR of 11.0% during the forecast period, with a market size of USD 389.05 million in 2024.
• The Rest of Asia Pacific Essential Oils market is projected to witness growth at a CAGR of 9.8% during the forecast period, with a market size of USD 400.32 million in 2024.

South America Essential Oil

According to Cognitive Market Research, the global Essential Oils market size was estimated at USD 24514.6 Million, out of which Latin America held the market share of around 5% of the global revenue with a market size of USD 1225.73 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.4% from 2024 to 2031.

• According to Cognitive Market Research, the Brazil Essential Oils market size was valued at USD 524.61 million in 2024 and is projected to grow at a CAGR of 8.0% during the forecast period. Essential oils flourished in Brazil due to the use of essential oils in perfume and fragrance formulations.
• Argentina's Essential Oils market had a market share of USD 205.92 million in 2024 and is projected to grow at a CAGR of 8.3% during the forecast period. Argentina's increasing health consciousness.
• Colombia Essential Oils market is projected to witness growth at a CAGR of 7.2% during the forecast period, with a market size of USD 109.09 million in 2024.
• Peru Essential Oils market is projected to witness growth at a CAGR of 7.6% during the forecast period, with a market size of USD 100.51 million in 2024.
• Chile Essential Oils market is projected to witness growth at a CAGR of 7.7% during the forecast period, with a market size of USD 88.25 million in 2024.
• The Rest of Latin America's Essential Oils market is projected to witness growth at a CAGR of 6.5% during the forecast period, with a market size of USD 197.34 million in 2024.

Middle East and Africa Essential Oil

According to Cognitive Market Research, the global Essential Oils market size was estimated at USD 24514.6 Million, out of which the Middle East and Africa held the major market share of around 2% of the global revenue with a market size of USD 490.29 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.7% from 2024 to 2031..

• The GCC Countries Essential Oils market is projected to witness growth at a CAGR of 8.5% during the forecast period, with a market size of USD 209.84 million in 2024. Essential Oil sales flourish due to the high demand for luxurious essential oil-based personal care products.
• The Egypt Essential Oils market is projected to witness growth at a CAGR of 8.0% during the forecast period, with a market size of USD 51.48 million in 2024.
• The South Africa Essential Oils market is projected to witness growth at a CAGR of 8.7% during the forecast period, with a market size of USD 77.47 million in 2024. Essential Oils sales flourished in South Africa due to the growing use of home care products as a result of consumers' desire for chemical-free alternatives.
• The Turkey Essential Oils market is projected to witness growth at a CAGR of 7.2% during the forecast period, with a market size of USD 42.17 million in 2024.
• The Nigeria Essential Oils market is projected to witness growth at a CAGR of 6.8% during the forecast period, with a market size of USD 51.48 million in 2024.
• The Rest of the MEA Essential Oils market is projected to witness growth at a CAGR of 6.7% during the forecast period, with a market size of USD 57.85 million in 2024.

Essential Oil Market Analysis

How are Segments Performing in the Global Essential Oils Market?

Essential Oils Market Type Segment Analysis

According to Cognitive Market Research, orange are likely to dominate the Essential Oils Market over the forecast period. due to their capacity to improve the appearance of skin, hair, and nails, which increases their appeal to young ladies. Major end-use industries are increasingly using orange essential oil to enhance product value and provide sensory appeal. It is thought to increase the skin's elasticity, firmness, and tone. Acne, dermatitis, and stretch marks are also known to be treated with it. Furthermore, the primary drivers of this market are anticipated to be the increasing number of working women and their expanding discretionary income.

The peppermint is the fastest-growing segment in the Essential Oils Market. Because of its cooling, revitalizing, and medicinal qualities, peppermint essential oil is utilized extensively. It is prized in aromatherapy for reducing tension, increasing vitality, and improving concentration. Because of its calming and antibacterial properties, it is frequently found in personal care products like toothpaste, mouthwash, and skincare products. Peppermint oil is a common natural flavoring ingredient in candies, drinks, and desserts in the food and beverage business. It is also utilized in medicinal applications to treat nausea, migraines, and digestive problems, making it a flexible part of many different sectors.

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Essential Oil Industry. Request a Free Sample PDF!

Essential Oils Market Application Segment Analysis

According to Cognitive Market Research, the food & beverages segment holds the largest share of the market. Essential oils are frequently used as natural flavorings and preservatives in the food and drink industry. Sweets, drinks, baked items, and savory foods all benefit from the flavor and scent of oils like lemon, orange, and peppermint. By extending product shelf life, their antibacterial qualities assist in satisfying consumer demand for clean-label and chemical-free substitutes. Functional meals and drinks that give health advantages like better digestion and immunological support also contain essential oils. Their utilization in numerous food and beverage industries worldwide is being fueled by growing customer preference for natural ingredients.

In the Essential Oils Market, aromatherapy has been expanding at a rapid pace. In aromatherapy, essential oils are crucial, a technique that uses natural fragrances to improve mental and physical health. Lavender, eucalyptus, and chamomile oils are popular for promoting relaxation, reducing tension, and elevating mood. The limbic system of the brain is thought to be stimulated by inhaling or diffusing essential oils, which affects feelings and bodily reactions. Aromatherapy is used in wellness centers, spas, and homes to treat conditions like anxiety, sleeplessness, and exhaustion. The use of essential oils is growing in popularity in aromatherapy around the world due to the growing desire for non-invasive treatments and increased awareness of holistic health.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Essential Oil Source Outlook: Segment Analysis

Essential Oils Market Source Segment Analysis

According to Cognitive Market Research, the flowers segment holds the largest market share. Essential oils made from flowers, like lavender, rose, jasmine, and chamomile, are in high demand because of their special fragrant and medicinal qualities. These oils' calming, soothing, and mood-enhancing properties make them popular in aromatherapy, cosmetics, and perfumery. Due to their anti-inflammatory and moisturizing properties, floral essential oils are also frequently used in skincare products. Demand for natural and organic products across industries is being driven by growing customer preference. The availability of seasonal raw materials and high production costs, however, make it difficult to supply the rising demand worldwide.

In the Essential Oils market, the rapidly growing sector is the fruits & vegetables category. Fruits and vegetables like orange, lemon, lime, and ginger produce essential oils that are highly sought after for their varied uses and revitalizing scents. These oils are frequently utilized as natural preservatives and taste enhancers in the food and beverage sector. Citrus oils are prized in cosmetics and personal care products for their skin-brightening and energizing qualities. Furthermore, essential oils derived from fruits and vegetables are frequently utilized in aromatherapy due to their elevating and mood-enhancing properties. The market for essential oils derived from fruits and vegetables is expanding due to rising customer demand for natural ingredients and clean-label products.

• Fruits & vegetables
• Herbs & spices
• Flowers

Essential Oil Method of Extraction Outlook: Segment Analysis

Essential Oils Market Method of Extraction Segment Analysis

According to Cognitive Market Research, the distillation segment dominates the market. Aromatic compounds undergo distillation. In the global market for essential oils, distillation is the most cost-effective technique, and it may be done near the plant where the oil is produced using basic equipment. This might be explained by its ability to preserve the advantages of oil and its affordability. Because it is easy to use and requires little capital, steam distillation is very common. The most popular technique for removing and separating essential oils and oleoresins from plants for use in natural products is steam distillation. Since the components of the oil do not thermally decompose, the amount of steam may be regulated. The most popular extraction process in the market for essential oils is distillation, especially steam distillation because it is effective and maintains the oil's medicinal and fragrant qualities. This technique is used to extract oils from plants, including peppermint, eucalyptus, and lavender. Steam distillation is becoming more popular due to the growing need for pure, high-quality essential oils in the food and beverage, personal care, and aromatherapy sectors. Its capacity to extract enormous amounts of oil while preserving the inherent integrity of the plant's essence is what makes it so popular.

Carbon dioxide extraction is projected to be the fastest-growing segment in the Essential Oils market. The market for essential oils is seeing a rise in demand for the carbon dioxide (CO2) extraction method since it can yield pure, high-quality oils without the use of chemicals or excessive heat. This technique preserves delicate aromatic components and increases the overall medicinal advantages by extracting essential oils using compressed CO2. In particular, CO2 extraction is preferred for removing oils from delicate plants, such as flowers and herbs, where preserving the aroma's integrity is essential. Producers are increasingly choosing the CO2 extraction process as consumer demand for high-end, natural, and pure essential oils increases.

• Distillation
• Carbon dioxide extraction
• Cold press extraction
• Other extraction methods

Author's Detail

Sneha Mali

Research Analyst at Cognitive Market Research

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I am a research analyst working in various domains including the Consumer Goods domain, and my primary responsibility is to conduct thorough research on various subjects and provide valuable insights to support client requirements. I have knowledge of research methodologies, and data mining which enables me to analyze large data sets, draw meaningful conclusions, and communicate them effectively. I stay up-to-date with the latest research trends, methodologies, and technologies to ensure that my research is accurate, relevant, and impactful.

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