According to Transparency Market Research, the global market for essential oils was valued at USD 17.36 bn in 2017 and is projected to touch USD 27.49 bn by the end of 2022. Between 2017 and 2022, the global market for essential oils is expected to register a CAGR of 9.60%.
Demand for Citrus Oil to be Highest
In terms of product, the demand for citrus oils will remain the highest as it is a popular fragrance and continues to be liked by many. Geographically, Europe is projected to lead the global market with CAGR of 8.8% during the forecast period.
Transparency Market Research observes that the competitive landscape in the global essential oils market is highly fragmented due to presence of numerous players. The low entry barrier, relatively easy techniques of manufacturing essential oils, and low capital investment has made the market easily accessible to various local vendors as well.
In the coming years vendors in the market are expected to expand the applications of their essential oil product line to improve their business opportunities. Some of the key vendors in the market are DoTERRA International LLC, The Lebermuth Co. Inc., Young Living Essential Oils, and Enio Bonchev Production Ltd.
Rising Use in Cosmetic and Skincare Products
The demand for essential oil is forecast to rise at a steady pace through the course of the report’s forecast period. Consumer inclination towards natural product will bode well for the overall market. Leading producers are taking more interest in bio-based and natural products as consumers have become more conscientious about ingredients used in their skincare or beauty products, besides their food and beverages. This could be a result of the rising concerns with regards to pollution and hazards triggered by exposure to certain chemicals. Spurred by this, the global essential oil market is poised to surge at an impressive pace.
In addition to this, the rising use in aromatherapy is a crucial factor fuelling the demand for essential oil around the world. TMR also expects the use of essential oil to rise for adding fragrances in novel beauty and skincare products. These factors are likely to set the tone for robust growth in the global essential oil market.
Lack of Awareness Could Restrain Growth
Despite prevailing growth opportunities, the global essential oil market is slated to witness a few challenges, especially spurred due to their high prices. Furthermore, the as the market continues to reel under lack of awareness among consumers about key benefits of certain essential oil, growth pace will stay restricted.
Nonetheless, increasing knowledge about the use of essential oil in various natural therapies and home remedies could improve growth prospects for the market in the coming years. Furthermore, the rising use of essential oils in food and beverages and cosmetics industry is forecast to create lucrative growth prospects for the market in the forecast period.
TMR predicts the demand for cosmetic and skincare products to rise significantly in the coming years. In addition, the demand for neutraceuticals is expected to scale higher, subsequently paving way for the growth of the global essential oil market.