The global essential oils market was valued at USD 12.47 billion in 2024 and is projected to expand to USD 27.82 billion by 2032. This reflects a compound annual growth rate (CAGR) of 10.69% from 2025 to 2032. In 2024, Europe led the market with a commanding 43.46% share.
Essential oils are hydrophobic liquids containing volatile aromatic compounds derived from plants. The market's growth is strongly driven by the rising trend of green consumerism, along with increasing demand for natural ingredients in sensory applications and food preservation.
Information Source: https://www.fortunebusinessinsights.com/industry-reports/essential-oils-market-101063
Impact of COVID-19
Pandemic-Fueled Surge in Demand
The COVID-19 pandemic had a positive effect on the essential oils market, leading to a significant increase in demand. Consumers turned to essential oils for their perceived health and immunity-boosting properties. Leading brands like Young Living Essential Oils and doTERRA reported notable growth in sales during the period.
Market Segmentation
Citrus Segment Leads the Market
By type, the market is segmented into citrus, lavender, peppermint, eucalyptus, tea tree, rosemary, and others. The citrus segment holds the largest market share, owing to its functional benefits, pleasant aroma, high availability, and consistent demand from consumers.
Food & Beverages as the Dominant Application
Based on application, the market includes food & beverages, personal care & cosmetics, spa & relaxation, pharmaceuticals & medicinal formulations, and others. The food & beverages category is expected to maintain the largest share throughout the forecast period due to the oils' contribution to flavor, shelf life, and product stability.
Direct Distribution Takes the Lead
In terms of distribution channels, the market is divided into direct distribution, retail distribution, and MLM distribution. Direct distribution accounts for the largest share, supported by consumers’ interest in experiencing product fragrances before purchasing.
Market Report Highlights
This report provides: