1. The global essential oil market has huge growth potential
With the advancement of science and technology, mankind has more in-depth research on essential oils, the application of essential oils is also more extensive, you can see the shadow of essential oils from high-end perfumes to daily-use care products, to all kinds of nutrition and health products.
For example, peppermint oil, whose main component is Menthol, has been proven by modern medicine to have a variety of medical effects, it is widely used in medicines, health care products, healthy foods, and daily consumer products. In addition, hundreds of essential oils such as eucalyptus oil, rose essential oil, tea tree essential oil, cinnamon oil, rosemary essential oil, etc., all have different health effects.
The cultivation, processing, and application of essential oils have developed into a huge industry. Humans consume more than 100,000 tons of essential oils every year. The more widely used essential oils, such as eucalyptus oil and peppermint oil, consume tens of thousands of tons per year.
According to a survey report recently released by Grand View Research, the global essential oil market demand in 2020 is about 247.08 kilotons, and it is expected to grow at a compound annual growth rate (CAGR) of 7.5% from 2021 to 2027.
In the global market, the consumption of essential oils in aromatherapy is mainly concentrated in Europe, North America, Japan, and other regions. The total consumption of these countries accounts for about 80% of the global essential oil consumption market, while consumption in other regions is relatively small.
Among them, the aromatherapy essential oil market in Europe is mature, with annual consumption accounting for nearly one-third of the overall cosmetics market, and the consumption scale is huge. Orange essential oil and lavender essential oil can be used for topical application and oral administration, because of their wide application range and good use effect, they are in a leading position in the essential oil market.
In the food and beverage industry, they are mainly used as natural antibacterial agents. They have an effective inhibitory effect on spoilage microorganisms.
In the next few years, the main reasons for the steady growth of the global essential oil market are:
(1). Consumers have gradually increased their awareness of the health hazards of synthetic compounds, and they prefer natural, plant-based, and safer ingredients. Global food, beverage, pharmaceutical, and cosmetic manufacturers need to find a green, natural active ingredients to improve product safety and market competitiveness, which greatly promotes the growth of the essential oil market.
Essential oils are still the first choice for natural additives in bakery and dairy products, rest foods, and other foods and beverages. For example, adding essential oils to foods such as fish, milk, dairy products, vegetables, fruits, and rice can not only enrich the taste but also play an antibacterial and antiseptic effect in the preservation of food.
(2). With the increasing disposable income and the pursuit of a higher quality of life, aromatherapy and relaxation therapy have become increasingly popular. Essential oils are composed of some very small molecules. Essential oil molecules enter the body from the nasal respiratory tract through breathing. They can send information directly to the brain, affecting emotions and other functions of the body, they are currently widely used in beauty salons, SPA health centers, etc.
For example, with the outbreak of COVID-19, consumers are paying more attention to their own health (such as antibacterial, improving resistance) and emotions (such as relaxation, calmness), and these are exactly the areas where essential oils can be effective.
(3). Essential oils play an important role in the manufacture of aromatherapy oils, candles, and other aromatherapy products. The growth of the aromatherapy product market has promoted the growth of the essential oil market.
In addition to being used as spices, pharmaceutical raw materials, and food additives, plant essential oils are also often used as synergists for pesticides in the agricultural field, so there are still many application scenarios for essential oils. Judging from the current overall market, the market prospects of essential oils are extremely impressive.