ESSENTIAL OIL MARKET ANALYSIS

Regional Analysis

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.