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Essential oils are referred to as concentrated extracts derived from plant parts including barks, herbs, and leaves. These are aromatic essences with high volatility and flavoring attributes that are extremely sought-after in-home care and cleaning, cosmetics, food and beverage, and aromatherapy.
In recent years, the use of essential oils in manufacturing soaps, beautifying agents, cleaning gels, and shampoos has increased significantly around the world. Moreover, the growing popularity of aromatherapy has also contributed to a steadily increasing use of essential oils for massage, inhalations, and bath.
Market Overview:
According to noted essential oil provider AromaTech, the global market for essential oils is expected to record a CAGR of 8.6% between the years 2020 and 2025. This emerging market is driven primarily by the therapeutic properties and health benefits of essential oils. As a result of their numerous benefits, the application of essential oils has now spread into many different industries. Their use in food and beverage and medicine has surged because these organic oils have no side effects. The rapid growth of the essential oils market can also be attributed to the fact that millions of health-conscious consumers are now looking for natural and organic products. With the advent of innovative extraction techniques and increasing R&D activities, this market trend is expected to get stronger in the years to come.
The prominence of online sales is another key factor that has significantly driven the growing demand for essential oils. Apart from the existing over-the-counter sales, almost all importers and wholesalers have now launched their online stores to serve an expanding pool of buyers worldwide.
Important Market Trends:
High Demand for Lavender Essential Oil: Owing to the benefits it possesses, there has been an increasing trend in the demand for lavender essential oils. It has been scientifically established that lavender essential oils can relieve muscle tension, promote speedy recovery from irritated and scarred skin, disinfect and soothe inflamed skin, relieve flatulence, relieve muscle spasms, and eliminate harmful bacteria. This mild sedative is also used in aromatherapy to relax the brain waves by reducing stress. Because of its calming properties, lavender oil is used by individuals suffering from insomnia as a sleep aid. Along with carrier oil, diluted lavender oil is also used for moisturizing chapped and aging skin. A proven anti-septic, it has also been used in hair care for eliminating dandruff, nits, and lice.
North America Drives the Market: In recent years, it has been observed that North America has been the biggest contributor in the global market, as far the growth of essential oils is concerned. As a result of a fast-paced lifestyle, the stress level amongst individuals has increased drastically in the developed regions over the last few years. Experts suggest that this has been a critical factor behind the growth of the essential oil market in this region. Also, as a result of the region’s rising disposable income, the consumers are capable of spending a premium amount on healthy and natural products. The spa and aromatherapy industries in North America has further increased the region’s demand for essential oils because of a rise in the number of recreational and lifestyle users. Finally, the energy and health drinks sector in North America has also witnessed an increasing demand for essential oils.
Other Regional Markets: After North America, the markets in Europe and the Asia Pacific also hold tremendous potential for essential oils. In Europe, the application of essential oils in the cosmetics manufacturing segment will probably be critical to this growth rate. On the other hand, the demand for essential oils in the Asia Pacific may benefit from the region’s growing health sector looking to make use of new, natural ingredients in medicines.
