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The global essential oils market is projected to grow at a CAGR of 7.9% from 2024 to 2030, according to a new report published by Verified Market Reports. The report reveals that the market was valued at $23.3 billion in 2023 and is expected to reach $40.12 billion by the end of the forecast period.
The following are three points outlined by Verified Market Reports as to why the essential oils market is booming:
- Rising Consumer Demand for Natural Products: The increasing preference for natural and organic products is driving the growth of the essential oils market. Consumers are becoming more health-conscious and are seeking alternatives to synthetic chemicals in personal care, food, and health products. Essential oils, known for their therapeutic properties, are gaining popularity in aromatherapy, skincare, and food and beverage applications.
- Expansion in the Food and Beverage Industry: The food and beverage industry is increasingly incorporating essential oils as natural flavoring agents. With a growing demand for clean-label products, manufacturers are opting for essential oils to enhance flavor and aroma without artificial additives. This trend is particularly strong in the natural and organic segments, where consumers are willing to pay a premium for products that align with their health and wellness goals.
- Increasing Applications in the Pharmaceutical and Cosmetic Industries: Essential oils are finding expanding applications in the pharmaceutical and cosmetic industries due to their antimicrobial, anti-inflammatory, and antioxidant properties. In the pharmaceutical sector, they are being used in the formulation of natural remedies and supplements, while in cosmetics, they are key ingredients in skincare, haircare, and personal care products. The growing awareness of the benefits of essential oils in these industries is fueling market growth.
