Expansion of Essential Oils Market Forecasted at 10.1% Compound Annual Growth Rate Through 2034
Growth in the Essential Oils Market: A Boost Towards Natural and Sustainable Living
The essential oils market is experiencing a significant surge, driven by rising consumer demand for natural and organic products across various sectors. This trend is particularly prevalent in Western and Eastern Europe, where awareness of synthetic ingredients is on the rise.
According to projections, the global essential oils market is expected to reach an impressive USD 39.0 billion by 2034. While the specific size of the essential oils market itself is not directly stated, related markets provide useful proxies. For instance, the Body and Massage Oils Market, which includes essential oils as a component, is projected to grow from USD 3.25 billion in 2024 to USD 6.17 billion by 2034, with a compound annual growth rate (CAGR) of 6.6% during the forecast period 2024-2034.
In 2024, Europe led the market, commanding a 51.6% share and generating USD 7.6 billion in revenue. Lavender oil led the market, holding a 24.8% share. The Personal Care & Cosmetics segment dominated with a 38.1% market share in 2024, while Retail Distribution held a 56.2% share.
The growth of the essential oils market is fueled by increased investments in research and innovation for multifunctional oils, and it is integrated into various industries such as aromatherapy, cosmetics, food flavoring, and pharmaceuticals.
Notable developments in the market include H. Reynaud & Fils reviving traditional distillation methods for lavender oils and launching a premium line of perfumery-grade oils. Sydney Essential Oil Co. has expanded its organic essential oil range, focusing on sustainable sourcing and CBD-infused oils. Young Living Essential Oils has enhanced its global distribution network, focusing on Asia-Pacific markets. Biolandes SAS has invested in carbon-neutral production facilities and launched a traceability program for lavender and rosemary oils.
In the United States, the Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Inflation Reduction Act have spurred over USD 600 billion in investments in clean energy and manufacturing. This shift towards sustainability may further boost the demand for essential oils in the future.
Bulgaria's Ministry of Agriculture is promoting organic farming and cultivation of aromatic plants for essential oils through its National Action Plan for Organic Production. India Essential Oils has introduced AI-driven quality control and expanded its export market to Europe.
The essential oils industry is poised for continued growth, aligning with global trends towards health-conscious and sustainable living. The compound annual growth rate (CAGR) of the Essential Oils Market is 10.1% during the forecast period (2025-2034).
[1] Source: MarketsandMarkets [5] Source: Allied Market Research
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