Global Essential Oils Market Growth Projection (2023-2030)
The global essential oils market size is projected to grow from $11.41 billion in 2023 to $22.41 billion by 2030, exhibiting a compound annual growth rate of 10.13% during the forecast period. Europe is anticipated to contribute to essential oils market growth due to the increasing demand for aromatherapy. North America is anticipated to have the second position in terms of market share owing to the growing demand in the region. The global market remains fragmented owing to the importance of local and private-label brands in different regions.
Factors Driving Essential Oils Market Growth
The market is majorly propelled by the robust trend of green consumerism and by the increasing popularity of natural inputs for sensory-related aspects and food preservation. COVID-19 outbreak surged the demand for the product owing to the claim that these oils enhance health and immunity. The number of individuals who develop eczema during their lifetime has risen, with the prevalence rate peaking in early childhood. Advances in essential oil extraction techniques and the rising awareness of essential oil benefits are key driving forces enhancing the market growth.
Impact of Global Events on Essential Oils Market
The global essential oils market size grew from $13.64 billion in 2022 to $15.21 billion in 2023 at a compound annual growth rate (CAGR) of 11.5%. The war between Russia and Ukraine has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services, and affecting many markets across the globe.
Future Growth and Market Players in Essential Oils Market
The global essential oils market is expected to grow at a CAGR of 7.70% from 2023 to 2032 to reach a value of USD 26.28 billion by 2032. The major players operating in the essential oils 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.