India Essential Oils Market

India Essential Oils Market Outlook 2035

• India essential oils market valued at US$ 203.5 Mn in 2024
• It is estimated to grow at a CAGR of 7.6% from 2025 to 2035
• India essential oils industry is estimated to reach US$ 455.5 Mn by the end of 2035

Analysts’ Viewpoint on India Essential Oils Market Scenario

India essential oils market is gearing up for continued growth. This could be credited to more number of consumers transition to natural, plant-based wellness and personal care products. Essential oils are made either by steaming or cold pressing aromatic plants including lemongrass, eucalyptus, and sandalwood. They are used in a wide range of applications including aromatherapy, cosmetics, food & beverages, and pharmaceuticals.

The growth of Ayurveda is bound to continue due to consumer awareness and government support through programs like the National AYUSH Mission that supports both - the cultivation and use of AYUSH products (which include essential oils). Another reason for this growth is the increase in consumers accessing essential oils from spas, wellness centers, and through e-Commerce in urban populated places.

Key players in the market have begun to change the environment and address consumers’ concerns regarding purity and adulteration by investing in sustainable sourcing, new distillation technology, and quality certification. Local players like Synthite and regional manufacturers also continue to create pathways for exporting high-value oils, thereby making India a supplier of these products.

Global India Essential Oils Market Overview

India essential oils market encompasses the production and marketing of concentrated plant extracts from aromatic crops such as eucalyptus, lemongrass, sandalwood, and peppermint through steam distillation, solvent extraction, or cold pressing. These oils maintain the original smell of natural plant material as well as a range of active ingredients.

Essential oils are becoming increasingly popular within India for use in aromatherapy, personal care, cosmetics, wellness products, flavoring, and cleaning products marketed for household use. These oils are typically derived from plant materials that are firmly entrenched in Ayurveda and conventional medicine. Consumers ascribe therapeutic uses to essential oils and deploy them for stress relief, skin care, and other adjunct therapies that are aligned with the natural or naturalistic health movement.

Increasing Consumer Shift toward Natural and Holistic Wellness Solutions

With the increasing popularity of yoga, meditation, and spa culture, the use of aromatherapy and relaxation applications has grown, while personal care and cosmetics marketers work to reformulate product lines to include essential oil usage to address clean-label expectations. The transformation has been most evident in urban centers where increased exposure to global wellness trends and rise in e-Commerce platforms have widened consumer access to premium essential oils.

Strategic Investments by Industry Players in Quality, Technology, and Export Expansion

Another important driver to India essential oils market is the proactive involvement of domestic producers as well as multinationals in creating supply chains, exercising quality control, and expanding exports. Poor quality control, adulteration, and lack of standards are typical of the essential oil market.

Companies are engaging with farmers by offering training in high-yield cultivation techniques, contract farming models, and promoting aromatic crop cultivation under schemes such as the National AYUSH Mission.

The backward integration mentioned above secures raw material supply while empowering rural communities with better incomes. On the export front, India is leveraging its abundant low-cost cultivation base and biodiversity to strengthen its position as a supplier to Europe, North America, and Asia-Pacific.

With increasing demand for lemongrass, sandalwood, and peppermint oils globally, Indian players are upscaling production capacities and expanding the distribution networks. Strategic partnerships, brand collaborations, and joint ventures are also helping essential oils to penetrate premium global markets.

Peppermint Essential Oil - a Prominent Type Segment for India Essential Oils Market

• Peppermint oil is highly utilized due to its several uses in pharmaceuticals, personal care, food & beverages, and aromatherapy. As a primary source of menthol, peppermint oil is included in cough syrups, balms, toothpastes, and sweets. In addition to this, India ranks as one of the largest exporters of peppermint oil worldwide, exporting peppermint oil to North America and Europe, thereby creating greater relevancy and revenue for the global market demand.
• The development of agriculture for peppermint oil is well-suited for India's agro-climatic conditions in Uttar Pradesh and nearby states. Farmers widely recognize the cash crop potential to grow peppermint through the utilization of contract farming as well as industry-led training programs for farmers.

Regional India Essential Oils Market Insights

• North India, especially Uttar Pradesh, dominates with large-scale peppermint and mentha production, providing the backbone for India's essential oil exports. Agro-climatic conditions, presence of large number of farmers engaged in agriculture and structure of supply chain for menthol utilized in pharmaceuticals, personal care and confectionary categories can definitely work in favor of this region. Also, a high export orientation and consistent demand from international markets will definitely generate stability for North India to move ahead and retain its position at the top.
• South India is on a growth path driven by high-value specialty oils such as sandalwood, eucalyptus, and lemongrass grown in Karnataka, Tamil Nadu, and Kerala. These are considered premium oils in perfumery, aromatherapy, and wellness. Regional players are investing significant resources to develop distillation practices and obtain global certifications. There are government initiatives undertaken to support sandalwood conservation and cultivation, and these oil crop bases are premium, are the most prominent and relevant on the growth elite list combination supporting South to maintain a strong second place.

Analysis of Key Players in India Essential Oils Market

• The key players in India essential oils market include Synthite Industries, Falcon Essential Oils, BO International, BMV Fragrances, and Mother Herbs, in addition to more well-known international brands like Young Living. Synthite is the leader for the distillation of a variety of spices and oils, where Falcon and BO actively export their aromatics within the confines of Indian regulations.
• These entities actively invest in distillation processes and organic certifications, and work with farmers to stabilize supply as much as possible. With sustainability of source, distribution around the world, and premium oils being their unique selling propositions, these firms have developed a competitive advantage - whether involved in retail-based wellness in India or exporting to the other markets.

India Essential Oils Market Developments

• In May 2023, MANE Kancor officially opened its largest Indian manufacturing campus (Byadgi, Karnataka), a 50-acre site dedicated to expanding spice-extract and natural-ingredients production. In its press release, the company specifically referenced increased capacity for extracts (which included aroma/essential-oil related platforms), local farmer connections, and Make-in-India investments. This facility enhances backward integration (sourcing & first processing), shortens timing to respond to international demand, and positions the Company and the exports for higher value oils and extracts.
• At the CHEMEXCIL Export Award (April 2023) MANE Kancor won the Manufacturer of Essential Oils category for large-scale exporters of cosmetics/essential oils sector (along with safety recognition from the state). Collectively, this indicates strong export performance and operational sophistication. An award from trade promotion councils will help buyers gain confidence (quality/consistency), explore larger global contracts, and tap into other export incentive programs and maximize government and trade-body alignment.
• Each of these players has been profiled in the India Essential Oils industry research report based on parameters such as company overview, financial overview, business strategies, product portfolio, business segments, and recent developments

India Essential Oils Market Snapshot