The global essential oils market size reached US$ 11.2 billion in 2022. Looking forward, the market is expected to reach US$ 18.8 billion by 2028, exhibiting a growth rate of 8.7% during 2023-2028. The market is growing due to the rising incidence of skin conditions such as eczema.
The major players operating in the market are Takasago International Corporation, Flavex Naturextrakte GmbH, Firmenich SA, Synthite Industries Ltd., ROBERTET GROUP, International Flavors & Fragrances Inc., Norex Flavours Private Limited, and BMV Fragrances Pvt. Ltd.
Europe is expected to witness dynamic growth with a CAGR of 8.7% during the forecast period due to the prosperous economic climate. The seven largest essential oil processing companies in the world are based in Europe.
The ingredients citrus fruits, eucalyptus, lavender, rosemary and tea tree hold the largest market shares. In 2020, demand for essential oils from citrus fruits such as lemon or orange dominated the market in global demand, followed by lavender in second place.
Demand for premium and exotic essential oils is growing, especially from emerging markets. Technological advancements in production processes are enabling manufacturers to produce high-quality oils more efficiently and cost-effectively.
In 2022, the average essential oil import price per ton amounted to $25,567, remaining relatively stable year-over-year. India is a leading essential oil producer and exporter thanks to its biodiversity.
The global essential oils market size was valued at USD 10.47 billion in 2022 and is projected to grow at a CAGR of 10.13% between 2023 and 2030 to reach USD 22.41 billion by 2030. European countries are actively using oils across various applications and spa and naturopathy applications drive regional sales. The rising prevalence of eczema and other skin conditions is contributing to the increased use of essential oils for treating these conditions.