Essential oil is a value added product that can uplift weakening agricultural industries across the globe. It can be defined as any concentrated, hydrophobic liquid comprising unstable aroma compounds obtained from natural sources. They are generally extracted through drilling, expression and solvent extraction. They find application scope ranging from the manufacture of perfumes and cosmetics, for flavoring foods and drinks, and for scenting incense and household cleaning products.
Increasing demand for natural & organic based products in food & beverages and cosmetics is expected drive essential oil market growth. The introduction of groundbreaking as well as traditional flavors & fragrances in food & beverages and cosmetics industries is rising at a robust pace and is expected to fuel industry growth. Essential oils are primarily derived from leaves, barks, stems, roots and flowers.
Rising income levels along with the growth of trade activities across borders is another major driving factor for the essential oil market. The latest progress in the field of aromatherapy has provided new opportunities for industry participants to capitalize on. They are also extensively utilized in medical industry as food supplements that nurture good health. In addition, several essential oils are also being outwardly deployed as feedstock in chemical processing applications.
Organizations such as European Federation of Essential Oils (EFEO) and International Fragrance Organization are ensuring innovation, R&D and encourage the production of essential oils competently. Food & beverages were the principal application section and accounted for over 35% of the industry sales in 2016. Substantial financial growth in developing regions of Asia Pacific and Latin America along with growing convenience food consumption is expected to compliment industry growth.
Europe was the largest regional player with over 40% of the revenue market share in 2016. The majority of essential oil trade occurs in the European Union, the North American Free Trade Area (NAFTA), and South America and East Asia. Key industry participants operating the global essential oil market include Farroti Srl, Essential Oils of New Zealand, West India Spices Inc., Sydney Essential Oil & Co., The Lebermuth Company Inc., Moksha Lifestyle Products, India Essential Oils, Ungerer Limited, Young Living Essential Oils, and Rocky Mountain Essential Oils