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Essential Oil Market- Global Industry Insights Opportunity Analysis 2025

28.10.2017 - 04:34

Essential oils are the volatile aromatic oils extracted from flowers, seeds, stem, bark, leaves, roots, and other plant parts. They are also known as ethereal oils, volatile oils or aetherolea. They are called essential oils as they represent the flavor and aroma of the plant from which they are extracted. Essential oil contains many organic compounds such as terpenes, phenols, alcohols, aldehydes, ketones, lactones, coumarins, esters, and ethers. Essential oils are mainly used as aromatic and flavoring agents. They have therapeutic properties which depends on the plant from which it is extracted. For instance, citronella oil is antidepressant, antispasmodic, antiseptic, antibacterial, and anti-inflammatory, whereas lemon oil is antiviral, disinfectant, bactericidal, hemostatic, astringent, febrifuge, and antiseptic. The growing demand for natural products in food and beverages, cosmetics, personal care and healthcare industries, increasing popularity of aromatherapy, and the increasing consumer awareness for benefits of using essential oils and related herbal products are the major market drivers for essential oil industry. The low availability of raw materials is the major factor restraining the growth of essential oil market.

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Essential Oil -Market Taxonomy

On the basis of extraction technique, the global essential oil market is segmented into

Solvent Extraction

Expressed Oils



Carbon Dioxide Extraction


On the basis of product type, the global essential oil market is segmented into




Tea tree

Corn mint






Clover Leaf





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On the basis of application, the global essential oil market is segmented into

Food & Beverages

Cosmetics and personal care

Home care




Distillation is the most commonly used technique for essential oil extraction as it is the most inexpensive and easy method. Various types of distillation techniques such as steam distillation, water distillation, steam and water distillation, and fractional distillation are used for extraction of essential oil. Aromatherapy is the largest application of essential oil as they have potent antidepressant and soothing properties. The hectic fast paced lifestyle of the population due to urbanization and industrialization causes stress related disorders such as depression and anxiety. Thus, there is a growing demand for aromatherapy which in turn is propelling the essential oil market. Essential oils such as lavender oil, tree oil, eucalyptus oil, lemon oil, and peppermint oil are mainly used in aromatherapy.

Essential Oil -Market Outlook

Asia Pacific is projected to show a significant growth in essential oil market, owing to increasing consumer demand for natural oil based products and increase in disposable income. The significant growth in China and India in food and beverages, and healthcare industries, and increasing popularity of aromatherapy is fueling the growth of essential oil market in this region. According to India Brand Equity Foundation (IBEF), trust established by the Department of Commerce, Ministry of Commerce and Industry, the Indian fast moving consumer goods (FMCG) sector is expected to reach US$ 103.7 billion by 2020. FMCG sector in India consists of 19% food and beverages, 31% healthcare, and 50% household and personal care products. These industries are the major consumers of essential oils. Thus, the demand for essential oil will increase in India, propelling the growth of essential oil market in this region in the near future.

Europe dominates in the essential oil market, owing to increasing demand for natural beauty products and cosmetics, medicines, and nutraceuticals. The increasing health awareness amongst youth and increasing geriatric population in countries such as UK, Germany, France, Italy, and Spain has augmented the European essential oil market growth.

The essential oil market in North America is highly developed, owing to high per capita income and stressful lifestyle of the consumer. U.S. is the largest producer of essential oils. This is mainly owing to factor such as increasing stringent regulatory requirements in essential oil market in this region.

In Latin America, Middle East and Africa, factors such as growing urbanization, industrialization, and increasing purchasing power of the consumer is driving the healthcare, cosmetic, and food and beverages industries which, in turn, is increasing the demand for essential oils.

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Key Players in the Global Essential Oil Market

The players in essential oil market are adopting organic and inorganic approaches to retain their market positions. Some key players operating in the essential oil market include Biolandes, doTERRA International, Essential Oils of New Zealand, Farotti SRL, H.Reynaude & Fils, Moksha Lifestyle Products, Sydney Essential Oils Rocky Mountain Oils LLC, Co. Pty Ltd, The Lebermuth Company, West India Species, Inc., and Young Living Essential Oils.