The global essential oils market revenue was valued at USD 12.47 billion in 2024 and is projected to grow from USD 13.66 billion in 2025 to USD 27.82 billion by 2032, registering a strong CAGR of 10.69% during the forecast period. In 2024, Europe accounted for the largest market share, representing 43.46% of the global total.
Essential oils are concentrated, plant-derived hydrophobic liquids containing volatile aromatic compounds. Their demand continues to rise globally, driven by the increasing preference for natural and organic products, particularly in food preservation, personal care, and sensory applications. This shift reflects a broader consumer trend toward eco-friendly and sustainable alternatives.
The COVID-19 pandemic further accelerated market growth as consumers increasingly used essential oils for their perceived health, relaxation, and immunity-enhancing benefits. Oils such as tea tree, peppermint, and eucalyptus became especially popular for their calming properties and potential antibacterial and antiviral effects, boosting sales in the aromatherapy segment.
Information Source: https://www.fortunebusinessinsights.com/industry-reports/essential-oils-market-101063
Market Segmentation
By Product Type:
Citrus oils hold a dominant position in the global market due to their wide availability, pleasant aroma, and versatile applications. Their functional benefits make them essential across industries, particularly in food and beverages, where they are used for flavoring, preservation, and stability enhancement.
By Distribution Channel:
Direct sales lead the distribution landscape, as consumers often prefer to assess the fragrance and quality of essential oils in person before purchase—especially for wellness and personal care products. This personalized buying approach enhances brand trust and customer loyalty.
Key Highlights of the Report
Market Dynamics
Growing awareness regarding the harmful effects of synthetic additives has fueled a global shift toward natural alternatives such as essential oils, valued for their antimicrobial and preservative capabilities. These oils are increasingly utilized in meat, dairy, and cereal-based food products.
However, the high cost of production remains a major restraint. The extraction process is resource-intensive—for instance, producing one pound of lavender oil requires approximately 250 pounds of lavender flowers—posing challenges in price-sensitive markets.
Regional Insights
Europe remains the leading regional market, supported by its robust cosmetics sector and growing interest in aromatherapy, particularly across Germany, France, and the United Kingdom. North America follows as the second-largest market, showing steady growth driven by the rising popularity of natural health and wellness products among consumers.