Essential Oils Market Intelligence

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. Procurement 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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Essential Oils Market Analysis and Global Outlook 

  • 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 market analysis shows that the key producer of Mint Oils is India (80 percent), Orange Oils is Brazil (58 percent) and Clove Oil is Indonesia (76 percent)

  • Cost of essential oils in key regions 2018/2019: Mint Oils, India: $42–45/kg, Orange Oil, Brazil: $8.3–10.9/kg and Clove Oil, Indonesia: $23.7–27/kg

  • The essential oil industry market rends indicate that sustainability initiatives and technology investments will improve yield rates

  • The essential oils market, on the basis of end-use is divided into 

Food, Beverages & Tobacco
Perfumes & Cosmetics
Household & Personal Care
Aromatherapy & Dental Care
Paper & Print
Textiles and Adhesives, and
Medicines & Veterinary


Essential Oils Industry Overview

  • Global Essential 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
  • Most of the developing countries such as India, Indonesia, and Brazil are the key producers and exporters of several E.Oils in the global essential oil market 
    Some trends and practices arising in the industry include Steam Distillation, Supercritical CO2 Extraction, Hydro Distillation and Hydro-Steam Distillation.
    The major clove oil producing countries are Indonesia and Madagascar. Indonesia dominates the production of eugenol from clove leaf oil. Most of the Indonesian clove oil output is absorbed by local derivative manufacturers
    The current orange oil markets are dependent on the US harvest. The production cost is dependent on the supply of raw materials from major regions such as the US

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.

Why You Should Buy This Report

  • The report details the industry trends, cost breakup and price analysis, driver and demand analysis of essential oils like spearmint, mint oil, orange oil, etc. and their derived products.

  • It lists the key market drivers and constraints of the essential oils market in India, USA, Brazil and other countries. 

  • The report explains the Porter’s five force model of the essential oils industry and lists out the best procurement strategies. 

  • Benchmarking of essential oil suppliers like Robertet, Biolandes, Sydney Essential Oils, etc.

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