The global essential oil market demonstrates a highly concentrated competitive landscape with leading players capturing maximum market share and creating high entry barriers for new ventures, states a new research report by Transparency Market Research (TMR). With a significant rise in product and service extensions by key companies, the competition within this market is likely to intensify in the years to come.
Over the coming years, players are expected to engage into new partnerships and the acquisition of distributors in a bid to escalate their sales and expand across the world, reports the market study.
Rising Demand for Natural Products to Boost Global Essential Oil Market
“The increasing shift of consumers towards natural products is influencing the global market for essential oil substantially,” says an analyst at TMR. With the increasing concerns over the environmental pollution from chemicals, consumers have begun to take interest in being aware of the ingredients present in food items, beverages, skin care products, and cosmetics, which is compelling producers to utilize bio-based and natural products more and more. This, as a result, is reflecting greatly on the sales of essential oil across the world.
According to TMR, the opportunity in the worldwide essential oil market is expected to worth US$17.36 bn by 2017. Analysts predict the market to further rise at a CAGR of 9.60% over the period from 2017 to 2022 and reach a value of US$27.4 bn by the end of the forecast period.
Although the future of this market looks thriving, it may face obstacles in its growth trajectory from the high price of essential oils and the dearth of awareness among consumers regarding their benefits over the next few years, however, the increasing demand for essential oil in aromatherapy and various natural remedies are expected to propel this market in the near future, notes the research study.
Demand for Essential Oil to Remain Strong in Food and Beverages and Personal Care and Cosmetics Industries
As per the report, the food and beverages and the personal care and cosmetics industries have surfaced as the key application areas for essential oil, globally, and are expected to retain their position in the years to come. Currently, citrus oil is enjoying a greater demand than other types of essential oil across the world. This trend is anticipated to remain so over the next few years, with citrus oil continuing as the most valued product in this market.
Europe has emerged as the leading regional market for essential oil, thanks to the high demand for natural nutraceuticals and cosmetics and beauty products. However, the growth of the Europe market for essential oil will slowdown in the years to come due to saturation. North America, which closely follows the European market, is predicted to register a steady rise in its market share over the next few years, states the research report.
The review is based on a report by Transparency Market Research (TMR), titled “Essential Oil Market (Product Type - Spice Oil, Spice Seed Oil, Citrus Oil, Herb Oil, and Perfumery Oil; Extraction Method – Distillation, Solvent, and Cold Pressing; Application - Personal care and cosmetic, Food and beverage, Pharmaceuticals, Aromatherapy, and Industrial; Sales Channel - Specialty store, Modern Trade, Drug Stores, and Online Store) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2017–2022.”
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