ESSENTIAL OIL MARKET ANALYSIS

Essential Oil MarketSize and Trends

Among extraction techniques, distillation segment is the dominant technique, as it is the most inexpensive and easy method. Among application, aromatherapy is the largest segment, as it has potent antidepressant and soothing properties. Growing prevalence of depression due to hectic and stressful lifestyle and work environments, coupled with growing urbanization, is in turn, is increasing demand for aromatherapy. Thus increasing growth of the essential oil market.

The market in Asia Pacific is projected to witness significant growth, owing to increasing demand for natural oil-based products and growing disposable income among the populace. The growing in the food and beverages, and healthcare industries in China and India, as well as increasing inclination towards aromatherapy are fueling growth of the essential oil market in the region. According to India Brand Equity Foundation (IBEF)—trust established by the Department of Commerce, Ministry of Commerce and Industry—the fast moving consumer goods (FMCG) sector in India is expected to reach US$ 103.7 billion by 2020. FMCG sector in India consists of 19% food and beverages, 31% healthcare, and 50% household and personal care products. These sectors are major consumers of essential oils. Thus, the demand for essential oil is expected to increase in India, in turn, propelling growth of the essential oil market in Asia Pacific.

Europe holds a dominant position in the essential oil market, owing to increasing demand for natural beauty products and cosmetics, medicines, and nutraceuticals in the region.