Essential Oils Market

Essential Oils Market Size and Share:

The global essential oils market size was valued at USD 13.2 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 25.2 Billion by 2033, exhibiting a CAGR of 8.4% during 2025-2033. Europe currently dominates the market, holding a significant market share of over 49.4% in 2024. This region is chiefly driven by high consumer demand for natural and organic products across key industries such as personal care, food and beverages, and aromatherapy.

The global essential oils market is primarily propelled by heightening customer shift towards organic and natural products, boosted by escalating awareness related to their health advantages. Increasing need in key sectors, including aromatherapy, personal care, and cosmetics, significantly improves market expansion. In addition, proliferating applications in food and pharmaceuticals sectors, combined with the magnifying inclination toward environmentally friendly and sustainable solutions, foster demand. Beneficial government policies endorsing ethical sourcing and organic products further fortify the market growth globally. Moreover, technological advancements in extraction processes, along with the growing adoption of wellness routines in spas and at-home treatments, also contribute significantly to market expansion. These factors collectively drive innovation and consumption, bolstering the global essential oils market.

The United States is a crucial market in the global essential oils sector, chiefly boosted by escalating customer need for natural and organic products across industries like wellness, personal care, and food. For instance, as per industry reports, in the U.S., 43% of millennials and gen Z consumers prefer natural skincare, compared to 31% of the overall population. Furthermore, amplifying utilization of essential oils in household cleaning products, aromatherapy, and skincare highlights this growth. The market also significantly benefits from advanced production technologies, robust distribution networks, and high consumer awareness of therapeutic benefits. Moreover, a strong preference for sustainable and traceable products aligns with the growing wellness and self-care trends, which, in turn, is acting as a growth-inducing factor. Besides this, the presence of leading players and innovation in product formulations are strengthening the U.S. market's position globally.

Essential Oils Market Trends:

Escalating Consumer Awareness

The elevating customer awareness regarding the health advantages associated with organic and natural products is a prime driver in the global essential oils industry. This inclination towards natural ingredients is attributed to a comprehensive understanding and propelled requirement for products that are certified as beneficial, safe, and clean. For instance, as per industry reports, approximately 54% of customers prefer skincare products with transparent and clean ingredients lists, with around 35% customers seek products that are integrated with plant-based ingredients. Furthermore, customers are rapidly becoming more informed, mainly due to the easy availability of information online, and are actively navigating for substitutes of chemical-based or synthetic products. In addition, magnifying educational initiatives by governmental organizations and private firms to spread awareness about the advantages of natural components such as essential oils are significantly facilitating the market expansion. Moreover, the accelerating focus on lucidity in ingredient sourcing and the verification of organic products is further boosting the market growth globally.

Rising Product Utilization for Therapeutic and Medicinal Usage

Essential oils are extensively being leveraged in conventional drugs across numerous cultures, and their therapeutic attributes are currently being acknowledged and utilized in modern wellness practices and healthcare sector. They are rapidly being deployed for a broad range of applications, generally including treatment of particular disorders, pain management, and stress reduction. Products such as tea tree oil, heavily used for treating acne and other skin issues, is expected to reach nearly 8 kilotons in demand by 2024 due to increasing consumer interest in natural skincare solutions. Furthermore, the notable emergence of aromatherapy, where essential oils are typically leveraged to improve overall psychological as well as physical well-being, is significantly impacting the market expansion. In addition, therapists and medical professionals are increasingly incorporating essential oils into their treatment methodologies, facilitated by elevating efforts in scientific research that validates their effectiveness. Additionally, the heightening emphasis on immunity and overall health is further fueling the requirement for essential oils in both supportive and preventive care.

Increasing Imposition of Favorable Regulatory Support

Favorable regulations and policies promoting natural and organic products have had a significant impact on the essential oils market. Government bodies and international organizations are increasingly recognizing the benefits of natural products and are formulating standards and guidelines that facilitate their production, certification, and marketing. For instance, a hectare of crops produces 15-25 kg of essential oil, generating a net annual income of approximately USD 1,200 – USD 1,800 per hectare, depending on soil conditions. Furthermore, these regulations often promote ethical sourcing, quality control, and transparent labeling, thereby building consumer trust and confidence. In addition to this, governments are providing incentives, funding, and support to farmers and manufacturers to encourage the production of natural ingredients, such as essential oils. This proactive regulatory environment not only ensures the safety and integrity of the products but also fosters innovation and growth within the industry. Moreover, this institutional support acts as a catalyst in the market, providing a structured and supportive framework that aligns with the global shift towards natural and sustainable living.

Essential Oils Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global essential oils market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on product, application, sales channel, and region.

Analysis by Product:

• Cedarwood Oil
• Eucalyptus Oil
• Lavender Oil
• Lemongrass Oil
• Rosemary Oil
• Tea Tree Oil
• Ylang Ylang Oil
• Others
   

Tea tree oil holds the largest market share in the global essential oils market's product segment, driven by its versatile applications across key industries. Renowned for its antimicrobial, anti-inflammatory, and skincare properties, tea tree oil is a vital component in personal care, cosmetics and pharmaceutical products. Moreover, the increasing consumer shift toward natural and organic solutions significantly contributes to its market prominence, particularly in developed regions where demand for chemical-free alternatives continues to grow. Additionally, its widespread use in aromatherapy and therapeutic applications appeals to health-conscious consumers seeking holistic wellness solutions. Expanding utilization in various formulations, such as acne treatments, wound care, and anti-fungal products, further underscores its importance. With strong consumer preference and a growing focus on eco-friendly and sustainable products, tea tree oil remains a dominant force within the essential oils market.

Analysis by Application:

• Medical
  • Pharmaceutical
  • Nutraceuticals
• Food and Beverages
  • Bakery and Confectionery
  • Beverages
  • Meat, Poultry and Seafood
  • Others
• Spa and Relaxation
  • Aromatherapy
  • Personal Care
  • Cosmetics
  • Toiletries
  • Others
• Cleaning
  • Kitchen Cleaners
  • Floor Cleaners
  • Bathroom Cleaner
  • Others
• Others
   

Spa and relaxation lead the market with around 46.5% of market share in 2024. This segment is primarily driven by increasing consumer focus on holistic wellness and stress management. Essential oils, valued for their therapeutic properties, are widely used in aromatherapy and massage therapies to promote relaxation, mental clarity, and emotional well-being. Moreover, the rising adoption of wellness routines in spas, resorts, and wellness centers globally has fueled demand for high-quality essential oils. Furthermore, the growing trend of at-home spa treatments has contributed significantly to the segment's expansion. With consumers seeking natural remedies for stress relief and improved mental health, the demand for essential oils like lavender, eucalyptus, and peppermint continues to grow. This segment's dominance is further supported by innovation in product offerings and the integration of essential oils in premium wellness experiences, along with increasing incorporation of essential oils in personal care, cosmetics, and toiletries.

Analysis by Sales Channel:

• Offline Stores
• Online Stores
   

Offline stores lead the market with around 45.0% of market share in 2024. Offline stores are principally driven by their ability to provide consumers with direct access to products and personalized customer service. Supermarkets, specialty stores, and retail chains offer a wide variety of essential oils, allowing customers to explore product options physically and make informed decisions based on scent and quality. The trust associated with purchasing from brick-and-mortar outlets further reinforces their dominance, as customers often value the authenticity and reliability of products purchased in person. Moreover, offline stores benefit from the growing consumer demand for natural and organic products, which are prominently displayed in health and wellness sections. In addition, such physical retail spaces effectively capture impulse purchases and foster brand loyalty, solidifying their position as a leading sales channel in the essential oils market.

Regional Analysis:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

In 2024, Europe accounted for the largest market share of over 49.4%. The European market for essential oils is chiefly driven by robust demand across industries such as food and beverages, personal care, and aromatherapy. The region heavily benefits from a well-established consumer base that values natural and organic products, bolstered by stringent regulations promoting sustainable and eco-friendly practices. Furthermore, key markets, including Germany, France, and the United Kingdom, contribute significantly due to their strong distribution networks and significantly propelling demand for natural oils. For instance, as per industry reports, between August 2023 and August 2024, the United Kingdom's essential oil imports rose by £6.82 million (46.9%), from £14.5 million to £21.3 million, reflecting growing demand for essential oils in the UK. The rising adoption of essential oils in alternative medicine and wellness trends further enhances market penetration. In addition, the presence of numerous leading manufacturers and innovative product launches tailored to consumer preferences solidify Europe’s leadership in this segment.

Key Regional Takeaways:

United States Essential Oils Market Analysis

In 2024, the United States accounted for a share of 93.2% of the North American market. The market is largely driven by rising consumer demand for natural and organic products in health, wellness, and personal care.  Essential oils are rapidly becoming well-liked among health-conscious consumers looking for natural cures, skincare products, and aromatherapy. The market has grown dramatically as a result of increased awareness of its therapeutic benefits, which include immunological support, better sleep, and stress alleviation.

Another significant force is the food and beverage sector, which uses essential oils as natural preservatives and flavorings. The use of several essential oils in culinary goods has increased since the U.S. FDA designated them as generally recognized as safe (GRAS). Demand has also been strengthened by the growing use of natural and clean-label components in food manufacturing.

Strong distribution networks, such as e-commerce sites, have helped the U.S. market by increasing the accessibility of essential oils. Prominent companies like Young Living and doTERRA control the market by using multi-level marketing techniques to attract customers and providing a wide range of products. For instance, in October 2024, dōTERRA launched a new wellness-focused product line, featuring two Frankincense essential oil products. The company also unveiled its limited-edition The Escape Series, an essential oil trio. Additionally, the demand for essential oils in professional settings has been fueled by the growing popularity of spa services and wellness tourism in the United States. Consumer preferences are also in line with an emphasis on sustainability and organic farming methods, which encourages producers to develop new products to meet the rising demand.

Asia Pacific Essential Oils Market Analysis

Growing consumer awareness of the advantages of natural and herbal goods, especially in nations like China, India, and Japan, is propelling the Asia-Pacific essential oils market. Essential oils are popular in wellness applications because of the region's long history of using natural components in traditional treatment, including Ayurveda and Traditional Chinese treatment. With essential oils being used in skincare, haircare, and fragrance products, the Asia-Pacific cosmetics and personal care sectors are expanding significantly. The use of products based on essential oils has also been aided by urbanization trends and the growing disposable income of the middle class.

Furthermore, essential oils are being used extensively in the Asia-Pacific food and beverage sector as flavorings and preservatives, especially in the manufacturing of processed foods, beverages, and confections. Another important factor in making essential oils more widely available to consumers is the expansion of e-commerce platforms.

Latin America Essential Oils Market Analysis

The increasing demand for natural and organic products, especially in nations like Brazil, Mexico, and Argentina, is fueling the essential oils industry in Latin America. The biodiversity of the area provides a wealth of raw materials for the manufacture of essential oils, including eucalyptus and citrus oils, which are used extensively in cleaning products, cosmetics, and aromatherapy. Demand has been strengthened by growing knowledge of essential oils' health advantages as well as the growing use of complementary and alternative treatment techniques. In keeping with worldwide clean-label trends, the Latin American food and beverage sector is likewise using essential oils as natural flavorings. Additionally, by meeting global demand, the region's export-focused essential oil production contributes to market expansion.

Middle East and Africa Essential Oils Market Analysis

The Middle East and Africa essential oils market is driven by the culture of this region to use natural and organic products in personal care, wellness, and food industries. The expanding contemporary need for essential oils in aromatherapy and cosmetics is complemented throughout the Middle East by the traditional usage of aromatic oils in wellness and beauty regimens. Natural resources like eucalyptus and tea trees are abundant throughout Africa, supporting the production of essential oils for both local and international markets. Other motivators in this area include the usage of essential oils in natural household cleaning products and their acceptance in alternative medicine practices. Additionally, people are being encouraged to include essential oils in their daily routines by the growing popularity of global wellness trends.

Competitive Landscape:

The market is highly competitive, characterized by a mix of established players and emerging entrants. Key market participants are actively focusing on expanding their product portfolios through innovations, acquisitions, and collaborations to strengthen market positioning. Moreover, increasing consumer demand for natural and organic products drives intense competition, prompting firms to invest heavily in research and development. Regional and local players also pose significant competition by catering to niche markets and offering cost-competitive products. Additionally, sustainability initiatives, such as eco-friendly sourcing and carbon-neutral production, are increasingly becoming differentiating factors. The market is also influenced by evolving regulatory standards, which require players to maintain high product quality and transparency, further intensifying the competitive landscape.

The report provides a comprehensive analysis of the competitive landscape in the essential oils market with detailed profiles of all major companies, including:

• Biolandes
• doTerra
• Essential Oils of New Zealand Ltd.
• Falcon Essential Oils
• Farotti S.R.L.
• FLAVEX Naturextrakte GmbH
• H. Reynaud & Fils
• India Essential Oils
• Moksha Lifestyle Products
• Rocky Mountain Oils LLC
• Sydney Essential Oil Co. (SEOC)
• The Lebermuth Company
• Ungerer Limited
• Young Living Essential Oils
   

Latest News and Developments:

• October 2024: Tholi Oil, an Omaha-based company, has launched a campaign for essential oils-infused sandals. The company aims to raise USD 77,000 to complete production and make the innovative product available to a wider audience. The campaign offers backers an opportunity to be part of a wellness-focused product revolution.
• July 2024: Young Living celebrated its 30th anniversary during the YL30 International Grand Convention, held from July 17–20, 2024, at the Salt Palace Convention Center in Salt Lake City, Utah. The event brought together Brand Partners and wellness enthusiasts worldwide to share knowledge and reinforce their commitment to well-being. As part of the celebration, the company introduced new products, continuing its legacy of innovation in natural wellness solutions. This milestone marked three decades of the global community’s dedication to purpose and abundance.
• October 2023: Azelis acquired BLH SAS, a French distributor of premium fragrance ingredients, to expand its essential oils and natural ingredient offerings. This acquisition strengthened Azelis' global position in flavors and fragrances, complementing previous acquisitions of Quimdis (France), Vigon (U.S.), and Ashapura (India).
• May 2023: Young Living, an essential oils company, introduced two new blends: Season Essentials™ and Red Cedar Bliss™. The Season Essentials™ blend offers a refreshing inhalation experience, ideal for springtime, while the Red Cedar Bliss™ blend features premium oils designed to support immunity. These innovative products reflect Young Living's commitment to creating oil-infused solutions for health and wellness.
• January 2023: PT Indika Energy Tbk entered the essential oil sector through its subsidiary, PT Indika Multi Properti (IMP), acquiring a 46% stake in PT Natura Aromatik Nusantara (NAN). This strategic move aligns with INDY’s diversification efforts, expanding its portfolio into essential oil manufacturing in Indonesia. The acquisition, now fully effective, marks a significant step in strengthening INDY’s presence in the natural ingredients industry.

Essential Oils Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the essential oils market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global essential oils market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the essential oils industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.