Essential Oils Market Key Insights | Report to 2030

Essential Oils Industry Overview

The global essential oils market size was valued at USD 23.74 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 7.6% from 2024 to 2030. This is attributable to increasing demand from major end-use industries such as food & beverage, personal care & cosmetics, and aromatherapy. Increasing consumption of beer and other alcoholic beverages is expected to enhance the expansion of flavors market.

Essential oils contain complex, volatile chemical compounds, which are known for their antifungal, antibacterial, anti-inflammatory, and antiviral properties. Unlike most of the conventional medicines and drugs, these oils have no major side effects. Such factors are projected to be the major driving factor for market growth. Conventional medicines and drugs are also using pleasant smelling aroma compounds to create appealing products, mainly for chemicals that emit undesirable odors. Essential oils are also steadily replacing most chemicals, drugs, and medicines owing to associated health benefits and decreased the risk of side effects.

Gather more insights about the market drivers, restrains and growth of the Essential Oils Market

Rising demand for convenience and ready-to-eat meals, health, and wellness foods, as well as technological advancements are expected to boost food flavors market growth. Rapid industrialization and increasing consumer disposable incomes in emerging economies such as China and India are also projected to foster the global food flavors market over the forecast period.

Essential oils such as rose, sandalwood, Melissa, and German chamomile, which are widely utilized in aromatherapy application, are expensive owing to the difficult extraction process involved. The high price of key essential oils used in aromatherapy is an important factor behind the slow growth of aromatherapy industry in developing countries such as India, Malaysia, etc. compared to developed countries such as the UK, France, and the U.S. among others. However, growth in GDP and the presence of various untapped market opportunities in Asia Pacific are the major factors attracting aromatherapy industry players to establish and expand their business in emerging economies such as India, China, and Indonesia.

Numerous forests have been chopped down to derive very small amounts of oil. Several arable lands have also been converted into monoculture farming lands to cultivate a single plant or crop to derive a particular oil. Production of these crops and plants is undertaken by large multinational firms that disregard the environment and endanger numerous ecosystems. It is thus becoming increasingly difficult to cultivate enough plants to produce one pound of oil.

Order a free sample PDF of the Market Intelligence Study, published by Grand View Research. 

Key Essential Oils Company Insights

Some of the key players operating in the market include Givaudan, International Flavors & Fragrances Inc., and ROBERTET GROUP.

• Givaudan develops, formulates, and distributes flavor and fragrance solutions worldwide. The company caters its services through two major divisions, namely flavors and fragrances. The company has a global presence across 181 locations with 77 production sites, and 69 creation centers.

• International Flavors & Fragrances Inc. manufactures and supplies a wide range of ingredients and compounds globally. The company operates through three business segments, namely Taste, Scent, and Frutarom. The taste segment includes savory solutions, flavor compounds, nutrition & specialty ingredients and inclusions.

• ROBERTET GROUP develops and distributes specialty ingredients for the flavor, fragrance, cosmetics, food & beverage, and healthcare industries. In addition, the company also develops in-house flavors and fragrances and supplies them to end-use industries for formulating consumer products. The company operates through 4 business divisions, namely natural raw material, flavor, fragrance, and active ingredients. The raw materials division produces a wide range of ingredients such as essential oils, aroma chemicals, fractions, isolates, oleoresins, and floral extracts for aromatherapy, fragrance, flavor, health, and beauty applications.

• VedaOils and BMV Fragrances Pvt. Ltd are some of the emerging participants in the essential oils market.

• VedaOils is a manufacturer and distributor of essential oils, carrier oils, and raw ingredients worldwide. It caters its products to the fragrances, cosmetics, personal care, and aromatherapy industries worldwide.

• BMV Fragrances Pvt. Ltd. manufactures and distributes essential oils and resins worldwide. The company caters its products to the flavors, fragrance, and aromatherapy industries.

Recent Developments

• In October 2023, Azelis, a service provider in the specialty chemicals and food ingredients industry, acquired 100% of the shares of BLH SAS, a distributor of flavors & fragrances focused on the fine perfumery market in France.

• In June 2023, Turpaz Industries announced the acquisition of Food Base, a Hungarian company that specializes in the development and marketing of essential oils, herb extracts and flavors for the food & beverage industry, for a value of USD 9.5 million. (~ 3.3 billion Hungarian Forint).

• In January 2023, PT Indika Energy Tbk (INDY) announced that its diversification into the essential oil industry through its subsidiary, PT Indika Multi Properti (IMP), which acquired a 46% stake in PT Natura Aromatik Nusantara (NAN) for IDR 179.60 billion (~USD 11.55 billion).