Essential Oils Market to Reach $11.67 Billion by 2022, Says Beroe Inc

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.

Key Findings:

• Individual commodity supply-demand dynamics, market and regional dynamics are the triggers for short and medium-term volatility and trends among essential oils. 
• Global procurement from multiple regions is a better option as this would safeguard against regional supply disruptions that may arise due to natural calamities or political instability.
• The Supercritical CO2Extraction method produces the best quality of oil as CO2 is inert and does not react with the constituents present inside the oil and so almost all of the constituents are preserved maintaining the natural characteristics of the oil.
• A short-term procurement strategy is recommended to mitigate supply chain disruption risks, however, in the long term building relationships at the farm level will further standardize the quality and supply of the essential oils.
• The leading suppliers in the market having a relatively large geographical footprint and product portfolio include Robertet, Biolandes, Sydney Essential Oils (SEOC), H. Reynaud & Fils (HRF), and Sydney Essential Oils (SEOC).
• The majority of the raw material for essential oils is harvested between the months of March and September and so November-January is the lean period where procurement should be limited as there are high chances of prices being on the higher side. 

The research methodology adopted for the report included:

• Experts with twenty years of domain experience
• Interaction with buyers
• Inputs from supply chain partners

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:

Market Overview:

• Industry Overview: Essential Oils
• Major Essential Oils Producing Countries
• Market Drivers
• Market Constraints
• End-use Industry Analysis
• Seasonality Analysis

Mint Oil Market Analysis:

• Mint Oil Value Chain Analysis
• Natural Menthol Production Trends
• Synthetic Menthol to Gain Market Share
• Impact of Industry Trend Shifts on Menthol Price
• India’s Natural Menthol Trade Flow
• Natural Menthol –Cost Break-up
• Menthol –Cost Driver and Demand Analysis
• US Peppermint and Spearmint Oil Market Overview

Orange Oil Market Analysis:

• Global Production Analysis
• Global Export Trend
• Cost Break-up
• Cost Driver and Demand Analysis

Clove Oil Market Analysis:

• Global Production Analysis
• Clove Oil Export Trend
• Cost Break-up
• Cost Driver and Demand Analysis

Industry Analysis:

• Porter’s Five Forces Analysis
• Sustainability Strategies
• Technological Evolution

Procurement Insights:

• Procurement Strategy –Best Practices

Supplier Analysis:

• Comprehensive Supplier list
• Supplier Benchmarking
• Profiling of Key Players
  • Robertet
  • Biolandes
  • HRF
  • The Lebermuth Company
  • Sydney Essential Oils Co.
• Supplier Benchmark Methodology

About Beroe Inc.:

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

Media Contact:
Debobrata Hembram
debobrata.hembram@beroe-inc.com