The increasing popularity of aromatherapy for the relaxation of the mind and body, shift of people toward natural products, and widening application of essential oils in food and beverages and personal care products are the key driving factors for the market. Due to the aforementioned factors, the global essential oils market was valued at $10.8 billion in 2020.
In 2020, due to the COVID-19 pandemic, the global essential oils market suffered due to the multiple lockdowns, affected import and export services, stoppage in the functioning of manufacturing facilities, reduced workforce, and other factors. Raw material and intermediate goods that were shipped from various locations could not reach their destinations locations within the designated timeframe, being stranded at ports. Furthermore, due to the lockdowns, salons, massage centers, and other facilities that use essential oils were closed, which further created a reduction in the demand for essential oils.
The essential oils market is categorized into food & beverage, cosmetics & toiletries, aromatherapy, homecare, healthcare, and others, based on applications. Among these, the aromatherapy category is expected to witness the fastest growth during the forecast period. This would mainly be because aromatherapy provides a natural treatment for stress, anxiety, depression, and other mental illnesses.
The market has been categorized into distillation, carbon dioxide extraction, cold press extraction, solvent extraction, and others on the method of extraction. Among these, the distillation method is projected to hold the largest market share in the forecast period, reaching $xx million in 2030. Distillation is the process of separating the components in a mixture by evaporating the vapor and then condensing it into a liquid. Because different plants require varying pressures, periods, and temperatures, the distillation method allows for the modification of the temperature based on the plant species, thus making it an effective and exact approach for obtaining the purest compounds.
Geographically, the Asia-Pacific (APAC) region is expected to witness the fastest growth in the forecast period owing to the increase in the availably and affordability of essential oils. Furthermore, the improvement in the lifestyle of people and rise in the awareness about these products are expected to drive the market in the region. In addition, with the increasing awareness about the outcomes of aromatherapy and increasing number of patients with chronic diseases, coupled with the advancement in technology and rising medical tourism, the market is witnessing growth.
The players in the essential oils market are constantly introducing new products in order to expand their customer base. In October 2020, dōTERRA International LLC launched lemon eucalyptus essential oil, which is derived from the lemon-scented blue gum eucalyptus plant. The product is claimed to encourage a positive environment with its scent, while adding it to a diffuser balances the sweetness or aromas.
In August 2020, Young Living Essential Oils announced a series of new products that included a skincare line, diffusers, essential oil blends, and essential-oil-infused wearable rings, to improve home, family, and self-care during the stressful COVID-19 pandemic.
The major players operating in the global essential oils market are dōTERRA International LLC, Plant Therapy Inc., Rocky Mountain Oils LLC, Young Living Essential Oils, Edens Garden, Vitruvi, Frontier Co-op, PublicGoods, Organic Aromas, REVIVE Essential Oils LLC, NOW Health Group Inc., and Majestic Pure Cosmeceuticals.