The market structure of the essential oil industry is dynamic in nature. As per a research report by Markets and Markets, the market of essential oils is expected to rise by an 8.83% CAGR from 2017-2022,in terms of value, rising to an approximate value of $11.19 US billion. This is primarily due to the growth of three major essentials oils:
MARKET TREND OF ESSENTIAL OILS
Essential oils find use in a number of different sectors including spa, aroma therapies, food & beverage, wellness, cleaning, cosmetics, and medicines among others. Among all the sectors, the highest growth is expected to occur in the spa & relaxation sector with a projected CAGR of 11% during 2016-2022. This is caused by an increased use of oils in this sector caused by increasing popularity of therapies and consumers disposable income. Food & beverage comes next followed by the medicinal sector, a report by Allied Market Research.
On the overall, the market is characterized by different categories, namely type of product, extraction method, application, and region. However, in the global essential oil industry, the stage at which the products maximum value addition is observed is manufacturing.
MAJOR SHAREHOLDER OF THE GLOBE
A major share of overall revenue of the essential oil market comes from Europe, based on geographical classification. However, with an increasing demand for natural cosmetic products accompanied by the rise in essential oil solutions adoption across different sectors, the Europe region is likely to maintain its dominant position throughout the analysis period.
But in the dominance of Europe, India is still the leading Asia-Pacific market by maintaining a hold.The segment of essential oil industry catering to flavor and fragrance products is predicted to rise by 6-7% during 2017-2022. The leading essential oil suppliers of the region include Brazil, India, and Indonesia.
The essential oil statistics show that the main suppliers for mint, orange and clove are India (80 percent), Brazil (58 percent) and Indonesia (76 percent) respectively.