The essential oils industry is a rapidly growing sector that offers a wide range of products with various health and wellness benefits. In this blog post, we will explore the essential oils industry statistics to provide valuable insights into market trends, consumer preferences, and the overall growth of this thriving industry.
The Latest Essential Oils Industry Statistics Explained
The global essential oils market size was valued at USD 7.03 billion in 2018.
This statistic indicates the total value of the global essential oils market in 2018, which was calculated to be USD 7.03 billion. Essential oils are concentrated plant extracts used in various industries such as cosmetics, pharmaceuticals, and aromatherapy. The market size figure represents the total revenue generated by the sales of essential oils worldwide during that specific year. This information provides insight into the significant economic impact of the essential oils industry and highlights the growing demand for these natural products across different sectors.
The market is projected to expand at a CAGR of 8.6% from 2019 to 2025.
The statement indicates that the market in question is expected to grow at a Compound Annual Growth Rate (CAGR) of 8.6% from the year 2019 to the year 2025. CAGR is a measure used to represent the average annual growth rate of an investment or market over a specified period. In this context, a CAGR of 8.6% suggests that the market is anticipated to increase by an average of 8.6% each year during the mentioned period. This information is valuable for investors and stakeholders as it provides insight into the expected growth trajectory of the market, allowing for better decision-making and strategic planning.
Orange essential oil was the largest product category in 2018, with over 30% share of the global revenue.
The statistic “Orange essential oil was the largest product category in 2018, with over 30% share of the global revenue” indicates that among all the different products available in the market in 2018, orange essential oil garnered the highest revenue share, accounting for more than 30% of the total global revenue generated within that industry. This suggests that orange essential oil was a popular and in-demand product during that time period, potentially attributed to factors such as its fragrance, health benefits, or usage in various industries like aromatherapy, skincare, and food and beverage. This statistic highlights the significant market presence and economic importance of orange essential oil in the global market in 2018.
The majority of essential oils are used in the flavors & fragrances industry accounting for around 43% of the total market share.
The statistic indicates that the flavors & fragrances industry is the largest consumer of essential oils, representing approximately 43% of the total market share. This suggests that a significant portion of essential oils produced globally are utilized in this particular industry for the purpose of enhancing the aroma and taste of various products. Given the widespread use of essential oils in perfumes, cosmetics, food and beverages, household products, and more, it is not surprising that the flavors & fragrances sector commands such a substantial share of the market. The statistic underscores the importance of this industry as a major driver of demand for essential oils, highlighting the significant role they play in shaping consumer experiences and preferences across various sectors.
Europe was the largest market in 2018, accounting for 30.0% of the global revenue share.
This statistic indicates that Europe held the highest market share in terms of revenue in the year 2018, capturing 30.0% of the total global revenue generated within that market. The significance of this statistic lies in Europe’s dominant position compared to other regions worldwide in terms of market size and revenue generation. This suggests that Europe plays a crucial role in the global economy and may dictate trends and influence decision-making in various industries. Understanding the distribution of market share across different regions can provide valuable insights for businesses looking to expand their operations or tailor their marketing strategies to specific regions.
The essential oils market is projected to reach $11.19 billion by 2022.
The statistic “The essential oils market is projected to reach $11.19 billion by 2022” represents the expected total value of the global market for essential oils by the year 2022. This projection indicates significant growth in the essential oils industry, driven by factors such as increasing consumer awareness of natural products, rising demand for aromatherapy and personal care products, and expanding applications of essential oils in various industries including food and beverage, cosmetics, and healthcare. The $11.19 billion figure serves as a forward-looking estimate based on current market trends and forecasts, highlighting the potential economic impact and opportunities within the essential oils market for stakeholders, businesses, and investors.
Medicinal plants are the primary raw materials used to extract essential oils, contributing a revenue forecast to be $1.68 billion by 2025.
The statistic highlights the significant role of medicinal plants as the main source of extracting essential oils and predicts a substantial revenue of $1.68 billion by the year 2025. This suggests a growing demand for essential oils derived from medicinal plants, likely driven by various industries such as cosmetics, aromatherapy, and healthcare products. The forecasted revenue indicates a lucrative market opportunity for businesses operating in the essential oils sector, as well as potential benefits for the agricultural and pharmaceutical sectors involved in cultivating and processing these plants. Furthermore, the statistic underscores the economic importance of sustainable practices in harvesting and utilizing medicinal plants to meet the increasing market demand for essential oils.
The Asia Pacific essential oils market is expected to witness the fastest growth in terms of revenue in the next ten years.
The statistic suggests that the Asia Pacific essential oils market is projected to experience a notable increase in revenue over the next decade at a faster rate compared to other regions. This growth may be attributed to a combination of factors such as increasing consumer awareness and demand for natural and organic products, the expanding applications of essential oils in various industries including aromatherapy, cosmetics, and food & beverages, as well as the presence of key industry players in the region. The growing popularity of essential oils for their various health and wellness benefits is likely to further drive the market growth in the Asia Pacific region, making it a promising market for investors and businesses in the essential oils industry.
Sensual applications of essential oils are predicted to result in a CAGR of 9.7% from 2019 to 2025.
This statistic suggests that the use of essential oils for sensual applications is expected to experience a Compound Annual Growth Rate (CAGR) of 9.7% from 2019 to 2025. A CAGR is a measure of the annual growth rate over a specific period, assuming the growth is steady and compounding. In this context, it indicates that there is anticipated growth in the market for using essential oils for sensual purposes at a relatively strong pace over the specified time frame. This prediction is based on current trends, market analysis, and consumer behavior, indicating an increasing interest in utilizing essential oils for their sensual benefits in various applications.
The North American essential oils market is expected to reach USD 4.59 billion by 2025.
The statistic indicates that the North American essential oils market is projected to grow significantly and reach a market value of USD 4.59 billion by the year 2025. This growth forecast suggests a positive trend in consumer demand and interest in essential oils within the North American region over the coming years. Factors such as increasing awareness about the health benefits of essential oils, rising disposable incomes, and a growing preference for natural and organic products are likely driving this market expansion. Businesses operating in the essential oils industry may benefit from this growing market opportunity and may need to adapt their strategies to capitalize on the increasing demand for these products in North America.
The aromatherapy segment captured significant market share, over 30%, in 2020.
The statistic indicating that the aromatherapy segment captured over 30% of the market share in 2020 suggests that aromatherapy products experienced robust demand and popularity relative to other products within the market during that period. This high market share suggests that consumers were highly interested in and willing to purchase aromatherapy items, such as essential oils, diffusers, and other related products. The significant market share also indicates that the aromatherapy segment may have outperformed competitors in terms of sales and revenue generation, highlighting a potential trend towards increased interest in holistic wellness and self-care practices among consumers in 2020.
In 2021, it is estimated that up to 200,000 tons of essential oils are consumed annually worldwide.
The statistic states that in 2021, it is estimated that as much as 200,000 tons of essential oils are utilized globally on an annual basis. Essential oils are concentrated extracts derived from plants used in various applications such as aromatherapy, cosmetics, and food flavoring. This high consumption level indicates the widespread popularity and demand for essential oils across various industries and sectors. The estimation of 200,000 tons further underscores the significant scale at which essential oils are being produced and utilized worldwide, highlighting the economic and cultural importance of these products in today’s society.
More than 90 essential oils are currently in commercial production.
This statistic indicates that the essential oils industry is thriving, with a wide variety of oils being produced and sold commercially. Essential oils have gained popularity in recent years due to their various therapeutic and aromatic properties, leading to an increase in demand and production. The fact that there are over 90 different essential oils available commercially suggests a diverse market with a range of options for consumers to choose from. This broad selection of essential oils also highlights the versatility and potential applications of these natural products in areas such as aromatherapy, skincare, and wellness.
The essential oil industry will witness a massive gain from the cosmetic industry, growing at over 9% by 2024.
This statistic suggests that the essential oil industry is projected to experience a significant increase in demand and growth, particularly as a result of its usage in the cosmetic industry. The estimated growth rate of over 9% by 2024 indicates a strong and positive trajectory for the essential oil market. This growth is expected to be driven by rising consumer awareness and preferences towards natural and organic ingredients in cosmetics. As more consumers seek products with natural fragrances and therapeutic benefits, the essential oil industry is poised to capitalize on this trend and benefit substantially from its association with the cosmetic sector.
In 2017, the U.S. held a share of over 82% in North America’s essential oils market.
The statistic ‘In 2017, the U.S. held a share of over 82% in North America’s essential oils market’ indicates that the United States dominated the essential oils market within North America during that year, capturing more than four-fifths of the market share. This suggests that the U.S. was a key player in the production and distribution of essential oils within the region, surpassing other North American countries in terms of market presence and influence. Such a high market share can reflect various factors such as the country’s economic strength, production capabilities, consumer demand, and marketing strategies that bolstered its position as a leader in the essential oils industry within North America in 2017.
By 2027, Asia-Pacific is expected to grow with the highest CAGR of 9.3% in the essential oil market.
The statistic indicates that by the year 2027, the Asia-Pacific region is projected to experience the highest Compound Annual Growth Rate (CAGR) of 9.3% in the essential oil market. This suggests that the demand for essential oils in the Asia-Pacific region is anticipated to increase at a significant pace over the specified time frame. Factors such as rising consumer awareness about the benefits of essential oils, increasing disposable income, and a growing focus on natural and wellness products could be driving this exponential growth in the market. As a result, businesses operating in the essential oil industry may find opportunities for expansion and investment in the Asia-Pacific region as it emerges as a key market for essential oils.
Brazil’s essential oil industry is set to grow at a CAGR of 8.5% from 2020 to 2027.
This statistic indicates that the essential oil industry in Brazil is projected to experience a Compound Annual Growth Rate (CAGR) of 8.5% between 2020 and 2027. A CAGR of 8.5% implies that the industry is expected to grow steadily at a consistent rate over the specified time period. This rate of growth suggests a positive outlook for the essential oil industry in Brazil, indicating increasing demand, market expansion, and potentially new opportunities for businesses operating within this sector during the forecast period. Overall, this statistic highlights the potential for significant growth and development within the essential oil industry in Brazil over the next few years.
Australia’s essential oils market is expected to grow at a CAGR of 7.1% during the forecast period 2021-2026.
This statistic indicates that the essential oils market in Australia is projected to experience a Compound Annual Growth Rate (CAGR) of 7.1% over the forecast period spanning from 2021 to 2026. This growth rate signifies a strong upward trend in the demand and consumption of essential oils within the Australian market during the specified time frame. Factors driving this growth may include increasing awareness and preference for natural and organic products, expanding applications of essential oils in various industries such as aromatherapy, skincare, and food and beverage, as well as rising disposable incomes and changing consumer lifestyles. Overall, this forecast suggests a positive outlook for the essential oils industry in Australia, with opportunities for market expansion and evolution.
Lemon essential oil is highly demanded in the essential oils market, and it generated revenue of USD 97 million in 2021.
The statistic provided indicates that lemon essential oil holds a significant position in the essential oils market due to its high demand, as evidenced by its substantial revenue generation of USD 97 million in 2021. This statistic highlights the economic importance and popularity of lemon essential oil among consumers and industries. The revenue figure not only underscores the scale of demand for this specific type of essential oil but also suggests its widespread use in various applications such as aromatherapy, skincare, and household products. Overall, the statistic reflects the significant market presence and financial impact of lemon essential oil in the essential oils industry.
Conclusion
The essential oils industry is experiencing significant growth and widespread popularity worldwide. With increasing interest in natural remedies and wellness practices, the demand for essential oils is expected to continue rising. As consumers become more knowledgeable about the benefits of essential oils, the industry is likely to see continued innovation and expansion in the coming years.
References
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