The global essential oils market is projected to grow at a CAGR of 11.8% from 2022 to 2027, reaching a market value of $15.3 billion by 2027.
The market reached a valuation of $8.8 billion in 2022.
Essential oils are increasingly being adopted in various new industries due to their health benefits and minimal side effects.
The demand for essential oils in North America is rising as consumers prioritize a healthy lifestyle and seek ingredient transparency.
In addition, the applications of essential oils in R&D and product development are expanding rapidly.
Market drivers:
- There is a growing demand for aromatherapy products and premium fragrances.
- The modern sedentary lifestyle has led to increased levels of stress and anxiety worldwide, resulting in a higher demand for aromatherapy.
- The fragrance industry has shifted from traditional perfumes to focus on wellness and self-care, with aromatherapy becoming a vital component of fragrance, beauty and wellness products.
The demand for essential oils is expected to surge in countries like China and India, driven by increasing consumer preference and targeted marketing campaigns highlighting the health benefits of essential oils.
The largest market segment for essential oils is the food and beverage industry, where they are used for color, flavor, and fragrance in end products.
