July 19, 2024

Essential Oils market driven by Increasing Preference for Aromatherapy

The global Aromatherapy Market consists of a variety of natural aromatic plant extracts and essential oils that are widely used for therapeutic relaxation purposes. Essential oils are commonly used in home fragrance products, perfumes, topical rubs, and massage oils to enhance cognitive and emotional well-being. Conditions such as stress, anxiety, insomnia, headaches, and digestive issues are commonly treated through the therapeutic properties of essential oils including lavender, peppermint, eucalyptus, lemongrass, and tea tree. The growing awareness about the benefits of aromatherapy in treating a range of illnesses without any side effects is driving the demand for essential oils worldwide.

The global Aromatherapy Market is estimated to be valued at US$ 6.39 Bn in 2023 and is expected to exhibit a CAGR of 8.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends: There has been a notable rise in the adoption of aromatherapy practices among consumers in recent years. Factors such as growing health consciousness, inclination toward plant-based natural remedies, and widespread promotion through product endorsements on social media have boosted the popularity of aromatherapy worldwide. Moreover, the relaxation and stress-relieving properties of essential oils are fueling their demand across spas, massage parlors, and self-care therapies. Increasing disposable incomes and opportunities in direct sales multi-level marketing models have encouraged many new entrants to join the aromatherapy industry. Manufacturers are launching innovative product formats including diffusers, candles, and room sprays infused with essential oils to expand their consumer base. Additionally, ongoing research to validate the clinical efficacy of aromatherapy is strengthening consumer confidence in these natural remedies.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the aromatherapy market is moderate as major capital investment is not required to enter the market. However, established brands have strong customer loyalty which poses a challenge for new entrants.
Bargaining power of buyers: The bargaining power of buyers is moderate given the availability of substitutes. However, buyers have preferences for certain aromas as per their needs.
Bargaining power of suppliers: The bargaining power of suppliers is moderate since raw materials for aromatherapy products are available from numerous suppliers globally.
Threat of new substitutes: The threat of substitutes is moderate as other alternative therapies like yoga, meditation exist. However, aromatherapy provides unique therapeutic effects through aroma.
Competitive rivalry: The competitive rivalry in the aromatherapy market is high owing to the presence of numerous international and local players.

Key Takeaways
The global aromatherapy market is expected to witness high growth. Regional analysis comprises: Europe dominates the global aromatherapy market and is expected to grow at a CAGR of 7.5% during forecast period. This can be attributed to growing consumer preference for alternative therapies. North America is the second largest market for aromatherapy and is projected to witness significant growth.

Key players operating in the aromatherapy market are doTERRA International, Koninklijke DSM N.V., International Flavors & Fragrances Inc., Symrise, Eden Garden, Young Living Essential Oils, Frontier Natural Products Corporation, Rocky Mountain Oil, Mountain Rose Herbs, Plant Therapy Inc., Thann-Oryza Co. Ltd, G Baldwin & Co., Ouwave Aroma Tech Co. Ltd, RyohinKeikaku Co. Ltd, and Isagenix International LLC. doTERRA International is the market leader in aromatherapy and offers over 150 essential oils and blends. Symrise provides natural solutions for beauty, nutrition and wellbeing segments.

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  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it