Essential oils: Key market research findings
- Europe dominates the market geographically
- The food and beverages segment accounts for a majority of the market’s revenue
- Key vendors – Aura Cacia, The Body Shop, Bath & Body Works, Bon Vital’, Earthly Body, Edens Garden, Fabulous Frannie, Khadi Natural, Natures Alchemy, Now Foods, and The Massage Oil Shop
Technavio’s market research analysts predict the global essential oils market to grow at a CAGR of over 8% between 2016 and 2020. Essential oils are used for fragrance, flavor, and therapeutic purposes. Rising incomes, changing lifestyles, and a desire for greater variety in food are some of the key factors that will drive growth in this market during the forecast period. During 2015, Europe dominated the global essential oils market by accounting for more than 41% of the overall market share. Consumer awareness regarding the health benefits offered by organic products will drive growth in the essential oils market in Europe during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the essential oils segments based on the product.
“Aromatherapy is becoming increasingly popular among the end-users, and as a result, a number of cosmetics brands are using essential oils in their products and promoting their products by highlighting their aromatherapy advantages. Such innovations are triggered by the demand from consumers who are willing to pay more for cosmetics products with added benefits. Besides, aromatherapy body creams, aromatherapy moisturizers, aromatherapy perfumes, and even aromatherapy lipsticks are rapidly gaining traction in the market,” says Amber Chourasia, Lead Analyst, Lab Automation and Health and Wellness, Technavio Research.
By 2020, the food and beverage segment is expected to account for over 30% of the market share to continue its dominance over the global essential oils market. People are increasingly replacing herbs with essential oils to get more nutritional value in their food and beverages. Rising health concerns among consumers will spur a rise in the demand for natural and organic products in the market. Furthermore, essential oils such as Clary Sage, Mentha, and Lavandula Officinalis Bitter Almond Oil are used in the creation of beverages that not only have health benefits but are also refreshing and revitalizing.
Aura Cacia, The Body Shop, Bath & Body Works, Bon Vital’, Earthly Body, Edens Garden, Fabulous Frannie, Khadi Natural, Natures Alchemy, Now Foods, and The Massage Oil Shop comprise the key vendors in the market. The global essential oil market is highly fragmented and competitive owing to the presence of several well-established regional and global vendors. The competitive environment in this market is expected to intensify with an increase in product or service extensions. The high adoption of essential oils among end-users has encouraged the influx of private labels and new vendors in the market. The competition among vendors is expected to increase as they enter into partnerships or acquire distributors to increase their sales and expand their businesses worldwide.
A more detailed analysis is available in the Technavio report, Global Essential Oils Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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