Essential Oils Market Intelligence

Are you looking for answers on Essential Oils category?

Are you looking for answers on Essential Oils category?

  • What are the key trends in Essential Oils category?
  • Am I paying the right price?
  • Am I working with the right supplier?
  • What are the major challenges and risks in Essential Oils industry?
  • How is Essential Oils industry performing?

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Report Coverage

  • End-use Industry Analysis
  • Seasonality Analysis- Feedstock
  • Mint oil Value Chain Analysis
  • Natural Menthol Production Trends

Table of contents

  1. Essential Oils Executive Summary
  2. Global Essential Oil Industry Outlook
  3. End - use Applications
  4. Supply Market Outlook
  5. Evolution of Sustainable Strategies
  6. Sourcing Strategy for Personal Care Products

 

  1. Essential Oils Market Overview
  2. Industry Overview: Essential Oils
  3. Major Essential Oil Producing Countries
  4. Market Drivers
  5. Market Constraints
  6. End - use Industry Analysis
  7. Seasonality Analysis

 

  1. Essential Oils Mint Oil Market Analysis
  2. Mint Oil Value Chain Analysis
  3. Natural Menthol Production Trends
  4. Synthetic Menthol to Gain Market Share
  5. Impact of Industry Trend Shifts on Menthol Price
  6. India's Natural Menthol Trade Flow
  7. Natural Menthol - Cost Break up
  8. Menthol - Cost Driver and Demand Analysis
  9. US Peppermint and Spearmint Oil - Market Overview

 

  1. Global Production Analysis
  2. Global Export Trend
  3. Cost Break up
  4. Cost Driver and Demand Analysis

 

  1. Essential Oils Clove Oil Market Analysis
  2. Global Production Analysis
  3. Clove Oil Export Trend
  4. Cost Break up
  5. Cost Driver and Demand Analysis

 

  1. Essential Oils Industry Analysis
  2. Porter's Five Forces Analysis
  3. Sustainability Strategies
  4. Technological Evolution

 

  1. Essential Oils Procurement Insights
  2. Procurment Strategy - Best Practices

 

  1. Essential Oils Supplier Analysis
  2. Comprehensive Supplier list
  3. Supplier Benchmarking
  4. Profiling of Key Players
  5. - Robertet
  6. - Biolandes
  7. - HRF
  8. - The Lebermuth Company
  9. - Sydney Essential Oils Co.
  10. Supplier Benchmark Methodology

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Global Market Outlook on Essential Oils 

  • Sustainability strategies were initiated by controlling carbon emission and by-product/waste utilization. Currently, companies engage in sustainability activities by partnering with various stake holders in the E.Oil supply chain
  • Companies mostly engage with distributors along with major flavor houses like IFF, Symrise, Firmenich, Givaudan etc. This is done to dilute the supply risk in E.Oils sourcing, which is a critical element due to supply restriction and high quality requirements

 essential-oils-global-market-sizeIndustry Overview-E.Oils

  • Global E.Oil production is estimated to be in a growth-trend, of 8-9 percent, and it is primarily driven by the growth of few key essentials oils such as orange oil, mint oils, clove oil, and patchouli oil
  • The global edible oil market is set to grow at a CAGR of 8 – 9 percent, from 143,000 tons in 2015 to an estimated 173,000 tons in 2018, and an amount equivalent to $ 11.67 billion by 2022
  • In terms of demand, Asia Pacific is expected to witness the highest growth, of approx. 9 percent, from 2015 to 2022
  • Orange oil leads the segment, by market share of approx. 29 percent during 2016 – 2017 and projected growth of approx. 9 percent/year. Food & beverages segment leads all applications with over 30 percent
  • Europe and Asia Pacific leads in terms of market share (over 40 percent) and projected growth (approx. 9 percent/year)
  • Growing consumer awareness is a key driving factor for the global E.Oil market over the speculated period. A major shift from synthetic to natural additives is seen due to the growth in the organic products industry
  • Growing use of E.Oil in the preparation of natural flavors and fragrances on account of their increasing demand across key end-use industries is also expected to fuel the market growth

Market Drivers 

Increasing consumer awareness about the medical and relaxing properties of E.Oils are the key driving factors of the market. This trend is supported by various government policies intended at improving the environment 

Increasing Demand

  • High consumer awareness and their increasing demand for natural organic ingredients is expected to increase the demand for E.Oils
  • Retail companies are also investing in E.Oil based products, thereby driving demand
  • Demand for lemon oil is expected to increase by a CAGR of 10–13 percent per annum until 2018, significantly driven by high consumer awareness
  • The cosmetics market in Russia is estimated to reach over $ 15 billion in 2015. The cosmetics market is an important driver for lavender oil demand

Government Policies 

  • Sri Lanka, which was earlier the top producer, was overtaken by countries like Indonesia, China, and Vietnam. Sri Lanka still has monopoly over the “true cinnamon” grade, supplying 85–90 percent of the global share (27 percent)
  • The country, to regain its position, has proposed LKR 250 million in its budget in 2016 for the Spice Council to undertake a branding exercise, lease out underutilized fertile government land and to strengthen Cinnamon Research

Market Constraints 

  • Weather fluctuation and seasonality, along with quality issues arising due to poor harvesting and processing techniques adopted in the major producing belts are major constraints of the industry
  • Weather Impact/Seasonality: El Nino, being really strong in 2016/2017, at a degree of +1.5, is not a good sign for Indonesian products, especially cloves and cinnamon. This could impact production, and thereby support the increase in prices in 2017/2018.Since E.Oils are plant derived, supply is dependent on crop seasonality
  • Quality Constraints: Most E.Oils produced in developing countries that invest little in developing the over all production process leads to many supply chain risks and loss of crop yields. E.g. Clove oil produced from Sri Lanka, Madagascar, and Tanzania suffers largely from improperly planned production process
  • Surging ProductionCosts:  Production costs of lemon oil surged by 118 percent in the past five years owing to constant increase in fresh lemon price. Production of citronella grass takes place in a small scale, where handling cost and quality are the main constraints for its use in the pharma and fragrance industry
  • Lower Supply and Labor Cost:  Collection and processing of raw materials are labor intensive processes as majority of the harvesting regions are developing countries. Reduced supply of raw materials, especially spices like clove, cinnamon etc. puts pressure on the E.Oil market

End-use Industry Analysis

  • Essential oils are mostly used in the flavor and fragrances industry, and the industry is expected to grow at the rate of 6 – 7 percent against the demand growth of 3 – 4 percent. The presence of large volume buyers in this segment may push suppliers to increase their product portfolio
  • The global flavor and fragrance market is expected to grow at a CAGR of 6 – 7 percent from 2017 to 2022, and it is anticipated to create a similar demand trend in essential oil consumption
  • Currently, less than 10 percent of the essential oil is used in the personal care segment. FBT and pharmaceutical industry drives the major share of the essential oil business
  • Essential oils are now extensively studied as an alternative for antibiotics in poultry due to apprehensions around the overuse of antibiotics and added health benefits. Example is Cargill's ongoing research of using essential oils derived from thyme, cinnamon and oregano as non-medicated feed additives

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