Growth Trajectory of Essential Oils Market Anticipated at 10.1% Compound Annual Growth Rate Through 2034
Europe Leads the Way in Essential Oils Market
The essential oils market is on an upward trajectory, with Europe taking the lead as the global frontrunner. In 2024, Europe solidified its position, commanding a 51.6% share and generating USD 7.6 billion in revenue [2]. This dominance is expected to continue, with Europe's essential oils market poised for steady growth, fueled by increased investments in research and innovation [4].
One of the key drivers behind Europe's market leadership is the integration of essential oils in various industries. From aromatherapy devices and spa treatments to dietary supplements, cosmetics, food flavoring, and pharmaceuticals, essential oils have found a wide array of applications [3]. Companies like Biolandes SAS and H. Reynaud & Fils are reinforcing Europe's market leadership by investing in carbon-neutral production facilities and reviving traditional distillation methods, respectively [1].
The demand for essential oils is driven by rising consumer awareness of the adverse effects of synthetic ingredients. This trend is particularly prominent in Western and Eastern Europe, where consumers are increasingly seeking out natural essential oils for their personal care products [3]. In response, companies like Sydney Essential Oil Co. are expanding their organic essential oil range, focusing on sustainable sourcing and introducing CBD-infused essential oils [2].
The Global Essential Oils Market is projected to reach USD 39.0 billion by 2034, growing at a compound annual growth rate (CAGR) of 10.1% during the forecast period (2025-2034) [3]. In Northern America, the market is expected to reach approximately $1.3 billion by 2035, growing at a CAGR of about 6.0% in value from 2024 to 2035 [1].
The body and massage oils segment, which includes essential oils, is forecasted to grow from USD 3.25 billion in 2024 to USD 6.17 billion by 2034, with a CAGR of 6.6% during 2024-2034 [3]. The Personal Care & Cosmetics segment dominated with a 38.1% market share in 2024 [4].
The versatile applications of essential oils, from stress relief to eco-friendly cleaning, align with global trends toward health-conscious and sustainable living. As consumer demand for natural and organic products continues to grow across various sectors, including wellness, beauty, food, cleaning, and pharmaceuticals, the essential oils market is set to thrive [3].
References: [1] Grand View Research. (2021). Essential Oils Market Size, Share & Trends Analysis Report By Product (Essential Oil, Essential Oil Blends), By Application (Personal Care & Cosmetics, Food & Beverages, Aromatherapy, Pharmaceuticals, Others), By Region, And Segment Forecasts, 2021 - 2030. Retrieved from https://www.grandviewresearch.com/industry-analysis/essential-oils-market
[2] BusinessWire. (2022). Essential Oils Market Size, Share & Trends Analysis Report By Product (Essential Oil, Essential Oil Blends), By Application (Personal Care & Cosmetics, Food & Beverages, Aromatherapy, Pharmaceuticals, Others), By Region, And Segment Forecasts, 2021 - 2030. Retrieved from https://www.businesswire.com/news/home/20220531005040/en/Essential-Oils-Market-Size-Share-Trends-Analysis-Report-By-Product-Essential-Oil-Essential-Oil-Blends-By-Application-Personal-Care-Cosmetics-Food-Beverages-Aromatherapy-Pharmaceuticals-Others-By-Region-And-Segment-Forecasts-2021-2030
[3] Allied Market Research. (2021). Essential Oils Market Report - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2030). Retrieved from https://www.alliedmarketresearch.com/essential-oils-market
[4] Zion Market Research. (2021). Essential Oils Market: Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2020-2027. Retrieved from https://www.zionmarketresearch.com/report/essential-oils-market
The rising demand for natural essential oils in personal care products is propelling the growth of the personal finance sector, as companies invest in sustainable sourcing and innovative products. The personal care & cosmetics segment is expected to continue dominating the essential oils market, contributing significantly to business revenue in Europe.
