The Essential Oils Market size is estimated to be valued USD 10.3 billion in 2021 and is expected to reach a value of USD 16.0 billion by 2026, growing at a CAGR of 9.3% in terms of value during the forecast period. In terms of volume, the essential oils market is estimated to account for 253.2 KT in 2021 and is expected to reach at 345.4 KT by 2026, growing at a CAGR of 6.4% during the forecast period. Factors such as an growth in awareness toward preventive healthcare, rise in demand for essential oils in food products with extended shelf life , along with increase in demand for essential oils in cosmetic applications are some of the factors driving to the growth of the essential oils market.
Orange oil, by type, is estimated to hold the largest market share during the forecast period
The market for essential oils, by type, has been segmented into orange, lemon, lime, peppermint, cornmint, citronella, spearmint, geranium, clove leaf, eucalyptus, jasmine, tea tree, rosemary, lavender, and other types. Orange oil account for the largest market during the forecast period owing to the large pool of products available in the market. Orange oil acts as an antispasmodic, sedative, aphrodisiac, anti-inflammatory, and antiseptic. Thus, awareness about the benefits of orange oil led to an increase in its demand from different end-use applications such as food & beverage, aromatherapy, and health care. The demand for essential oil is booming, which is encouraging the manufacturers to increase the production to cater to the growing demand and also explore the market further.
Carbon dioxide extraction, by method of extraction, is projected to grow at the highest CAGR in the essential oils market during the forecast period
The carbon dioxide extraction segment is projected to grow at the fastest rate during the forecast period. The carbon dioxide method extracts superior herbal extracts that find wide use in the flavoring and herbal medicine industries. The positive aspects of this method are that it eliminates potential harmful solvents and prevents environmental pollution and potential harm to human beings. It is an expensive method of extraction, which uses a lower temperature than most of the other methods, ensuring the essential oils are not heat damaged. Thus, it allows the manufacturer to provide the pure form of essential oil for various end use applications.
Food & beverage, by application, is estimated to account for the largest market share during the forecast period
Food & beverage account for the largest market size during the forecast period. Essential oils are identified for their health benefits, as they are natural ingredients that impart the essence of the source they have been derived from. They are used in food & beverages for imparting flavor to the final products, as substitutes to synthetic ingredients. As consumers are becoming increasingly aware of the health benefits of essential oils, the preferences for food & beverage products with these oils as additives has increased.
Asia Pacific is estimated to hold the largest market share during the forecast period
Asia Pacific accounted for the largest share during the forecast period due to the growing demand for meat and meat products in developing and developing countries such as China, India, and South Korea. The USDA is of the view that factors such as increasing disposable income, increase in population, and rapid urbanization have significantly aided in the growth of the market in this region. With the westernization of diets in the various countries in Asia Pacific, the demand for better quality meat has been growing which calls for the need to improve the overall health and productivity of livestock species which further drives the growth of the essential oils market.
Leading companies are Cargill, Inc. (US), DuPont (US), Koninklijke DSM N.V. (Netherlands), dôTERRA International LLC (US), Givaudan SA (Switzerland), Young Living Essential Oils (US), The Lebermuth Company, Inc. (US), Symrise (Germany), Sensient Technologies Corporation (US), Essential oils of New Zealand (New Zealand), Firmenich SA (Switzerland), International Flavors & Fragrances Inc. (US), Mane (France), ROBERTET SA (France), Rocky Mountain Oils LLC (US), BIOLANDES SAS (France), Falcon (India), Farroti (Italy), Indian Essential Oils (India), and Ungerer Limited (UK).
