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Global Essential Oils Market to Grow at a CAGR of 8.8% between 2020 and 2025.

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"According to a new report by EMR titled, ‘Global Essential Oils Market Report and Forecast 2020-2025’, the global essential oils availability stood at a volume of 177.6 thousand metric tons in 2019. The availability of essential oils is expected to grow at a CAGR of 8.8% between 2020 and 2025 to attain a volume of 294.5 thousand metric tons by 2025."

The global essential oils market is being aided by the thriving fragrance and cosmetics industries. The demand for essential oils in the sectors is increasing to manufacture products like perfumes, body scrubs, lotions, and face cream, due to their therapeutic and soothing properties. In emerging economies like the Asia Pacific and the Middle East and Africa, the industry is expected to witness a robust growth due to the rising disposable incomes and growing health concerns coupled with the positive health impact of essential oils on the senses. In the developed regions, the increased demand for premium quality products is aiding the industry. The rising popularity of essential oils variants such as mentha oil, orange oil, and clove is propelling the market forward. While the leading clove oil producer is Indonesia, accounting for over 75% of its global production, the leading orange oil producer is Brazil, occupying over half of the global orange oil production, followed by the United States. Based on end-user demand, the highest growth rate for essential oils is expected to come from the flavour and fragrance industry, projected to grow at a rate of 6-7% till 2022, followed by pharmaceuticals industry, which uses lemon oil, eucalyptus oil, etc., due to their medicinal properties.

The rising demand for natural products over artificial ones, particularly from the personal care and cosmetics sector, is influencing manufacturers to opt for natural items, thus, aiding the essential oils industry, globally.  In November 2019, Givaudan (SWX: GIVN), a leading player in the flavours and fragrances industry, announced its plan to acquire Ungerer & Company, a US-based flavour and fragrance specialty ingredients business, particularly dealing in essential oils. The acquisition will help Givaudan expand its leadership in the fast-growing local and regional specialty ingredient segment. Ungerer’s expertise is expected to provide Givaudan with a rich palette of predominantly natural ingredients for the creation of flavours and fragrances, fulfilling the demand for its end customers in such specialties.

Market Breakup by Types, Applications, and Regions:

  • Based on types, the global essential oils industry can be divided into mentha oil, orange oil, peppermint oil, and clove oil, among others. 
  • The essential oils find their applications in sectors like flavour and fragrance, industrial, and pharmaceuticals, among others.  
  • Region-wise, the global essential oils market can be divided into North America, the Asia Pacific, Europe, Latin America, and the Middle East and Africa.

Key Findings of the Report:

  • The growing demand for natural or organic products with the rising health concern among consumers is driving the growth of global essential oils industry. 
  • The growing cosmetics and personal care sector is providing further impetus to the industry growth.
  • Increasing urbanisation and rising disposable incomes, leading to a rise in per capita spending on grooming, particularly in the emerging economies, are further propelling the industry forward.  
  • With rapidly advancing technology and diversification in products' range, the industry is witnessing a further growth.

Key Offerings of the Report:

  • The EMR report provides a detailed overview of the global essential oils market for the periods (2015-2019) and (2020-2025).
  • The historical (2015-2019) and forecast (2020-2025) information for the types, applications, and regions of the global essential oils industry have also been provided in the report by EMR.
  • The trade data has been analysed by providing an insight into the value and volume of the major exporting and importing countries.
  • An analysis of feedstock seasonality had also been provided within the report.
  • It provides an assessment of the market based on the Porter’s Five Forces model, along with SWOT and value chain analysis.

The major players in the global essential oils market are Robertet Group, Biolandes SA, Sydney Essential Oil Co., Lebermuth, Inc, Young Living Essential Oils, Ungerer Limited, and Farotti Srl. The comprehensive report by EMR looks into the market share, capacity, and latest developments like mergers and acquisitions, plant turnarounds, and capacity expansions of these major players.

About Us:

EMR is a leading business intelligence firm, providing custom and syndicated market reports along with consultancy services for our clients. We serve a wide client base ranging from Fortune 1000 companies to small and medium enterprises. Our reports cover over 100 industries across established and emerging markets researched by our skilled analysts who track the latest economic, demographic, trade and market data globally.

At EMR, we tailor our approach according to our clients’ needs and preferences, providing them with valuable, actionable and up-to-date insights into the market, thus, helping them realize their optimum growth potential. We offer market intelligence across a range of industry verticals which include Pharmaceuticals, Food and Beverage, Technology, Retail, Chemical and Materials, Energy and Mining, Packaging and Agriculture.

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"Global Essential Oils Market: By Type: Mentha Oil, Orange Oil, Peppermint Oil, Clove Oil; By Application: Flavour and Fragrance, Industrial, Pharmaceuticals; By Region: North America, Europe, Asia Pacific, Latin America, Middle East & Africa; Historical Production and Consumption (2015-2019); Production and Consumption Forecast (2020-2025); SWOT Analysis; Price Analysis; Trade Analysis; Feedstock Seasonality Analysis; Value Chain Analysis; Procurement Strategy; Cost Analysis; Competitive Landscape & Supplier Analysis; Manufacturing Process; Production Cost Analysis and Project Economics"

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