According to a report from Research Dive, the global essential oils market is expected to generate a revenue of $20,497.61 million by 2028, increasing from $10,349.81 million in 2020, and grow at a CAGR of 9.20% during the forecast period.
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Some highlights of the report include:
- The essential oils market flourished during the pandemic due to perceived health benefits of oils.
- Regional insights foresee the European essential oils market to register the highest revenue of $8,854.97 million during the analysis period.
- The citrus type sub-segment is forecasted to garner a maximum revenue of $4,907.12 million during the forecast period. Extensive use of citrus essential oils in-home care products due to its antibacterial properties is expected to contribute to the growth of the sub-segment.
- The food & beverages sub-segment of the essential oils market garnered a revenue of $3,745.10 million in 2020 and is further expected to generate a revenue of $7,460.75 million by the end of 2028. The main attributor behind this growth is the benefits of using essential oils in food to prevent viral infections caused by synthetic preservatives.
- Market drivers include the rising popularity of essential oils in food and beverages industry as well as in aromatherapy, which is expected to fuel the growth of the essential oils market during the forecast period.
- Market restraints include the cost of the essential oils being higher compared to the regular oils. This is expected to be one of the major factors to hinder the market growth during the forecast period.
Key Market Players & Strategies
- Cargill, Inc.
- Koninklijke DSM N.V.
- dôTERRA International LLC
- Givaudan SA
- Young Living Essential Oils
- The Lebermuth Company, Inc.
- Sensient Technologies Corporation
- Essential oils of New Zealand
These players are working on developing strategies such as product development, merger and acquisition, partnerships and collaborations to sustain the market growth.