01 October, 2019
RALEIGH, North Carolina, October 1, 2019 - The global market for essential oils is projected to grow at a CAGR of 8-9 percent until 2022, to reach a total volume of 150,000 MT, according to Beroe Inc., a procurement intelligence firm. The market is primarily driven by the demand for essential oils such as orange oil, mint oils, clove oil, and patchouli oil by end-user industries.
India is the largest producer of mint oils, manufacturing 80 percent of the global supply, while Indonesia is the largest supplier for clove oil (76 percent) and Brazil is the largest supplier of orange oil (58 percent). Europe and the Asia Pacific have the highest market share of over 40 percent and the highest projected growth of approximately 9 percent per year till 2022.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
The essential oils market is driven by a greater awareness regarding their health and wellness benefits and an increasing demand for natural products. A major shift from synthetic to natural additives is being seen due to the growth in the organic products industry. Challenges faced by the market include supply consolidation issues due to the fragmented nature of the market, weather fluctuations and seasonality. Quality issues are also a major concern for the essential oils market.
Based on end-user demand, the highest growth rate for essential oils is from the flavor & fragrance industry, projected to grow at a rate of 6-7 percent till 2022, followed by pharma industry, with a growth rate of 4.5 percent in the same period and then industrial applications, with a growth rate of 4.1 percent. Essential oils are also being extensively studied for alternative applications, such as use as a healthier alternative for antibiotics in poultry.
The research methodology adopted for the report included:
Sustainability initiatives have become an integral part of the essential oils supply chain due to the high supply risk involved at the farm level. Sustainability strategies are initiated by controlling carbon emission and by-product/waste utilization. Currently, companies engage in sustainability activities by partnering with various stakeholders in the essential oils supply chain.
The report also includes:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com