Essential Oil Market Size Worth USD 61.83 Billion by 2034 | Towards FnB

According to Towards FnB, the global essential oil market size is evaluated at USD 28.24 billion in 2025 and is anticipated to surge USD 61.83 billion by 2034, reflecting at a healthy CAGR of 9.1% from 2025 to 2034. This strong growth trajectory is supported by the widening adoption of essential oils across industries such as aromatherapy, food & beverages, cosmetics, and pharmaceuticals.

Ottawa, Dec. 02, 2025 (GLOBE NEWSWIRE) -- The global essential oil market size stood at USD 25.88 billion in 2024 and is predicted to increase from USD 28.24 billion in 2025 to reach around USD 61.83 billion by 2034, according to a report published by Towards FnB, a sister firm of Precedence Research. As Europe continues to dominate the market bolstered by its mature flavors and fragrances sector the industry is also witnessing increased innovation in extraction practices, particularly in sustainable distillation and solvent-based technologies.

The growth of essential oils is being driven by user' move towards holistic and natural wellness, which tops their usage in aromatherapy, food and beverages, personal care, and traditional medicines too.

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Essential Oil Market Key Highlights:

By region, Europe dominated the global market in 2024, supported by the continued expansion of the flavors and fragrances industry.
By region, Asia Pacific is expected to grow at a notable CAGR from 2025 to 2034, driven by rising awareness of the benefits of essential oils.
By product type, the citrus oil segment held the largest market share in 2024, owing to its high availability and accessibility.
By product type, the jasmine oil segment is projected to grow steadily between 2025 and 2034, due to its wide-ranging applications beyond personal care.
By extraction method, the distillation segment accounted for the largest share in 2024, thanks to its cost-effectiveness, ease of use, and suitability for large-scale production.
By extraction method, the solvent extraction segment is expected to expand at a 5% CAGR from 2025 to 2034, as it is highly effective in isolating desired compounds.
By source, the fruits & citrus segment dominated the market in 2024, supported by abundant availability and extensive use in food & beverages, cosmetics, and aromatherapy.
By source, the flowers segment is anticipated to grow at a significant CAGR over the forecast period, fueled by the natural appeal and therapeutic benefits of floral essential oils.
By distribution channel, the B2B segment held the largest share in 2024, driven by expanding distribution networks across multiple industries.
By distribution channel, the online retail segment is expected to grow at a strong CAGR from 2025 to 2034, as consumers increasingly prefer convenient access to diverse essential oil products.
By end-use industry, the food & beverage segment led the market in 2024, benefiting from global demand for natural flavors and preservatives.
By end-use industry, the pharmaceutical segment is projected to expand at a 5% CAGR between 2025 and 2034, supported by the analgesic, antimicrobial, and anti-inflammatory properties of essential oils.

Essential Oil Market Insights & Outlook

Essential oils are the compounds that are extracted from plants, and their scent and flavor are named as ‘essence”. Different aromatic elements give every essential oil its characteristics. The essential oils are gained with the assistance of distillation (via water or steam) or mechanical procedures like cold pressing. The path the oils are created is crucial, as essential oils are obtained with the help of chemical procedures, which are not chosen as true essential oils. The chemicals in each essential oil can develop areas of the limbic system, which is a part of the brain that plays a crucial role in behaviors, emotions, long-term memory, and sense of smell, too.

Major Importers of the Essential Oil Market:

Worldwide, the three most important importers of Essential oils are Ukraine, Paraguay, and Vietnam. Paraguay has topped the globe in terms of Essential oils by importing 59,380 shipments, which is replaced by Ukraine with 49,124 shipments, and Vietnam, which takes the third position with 35,128 shipments.
The globe has imported most of the Essential oils from the United States, India, and China, too.
As per the global data, the globe has imported 223,861 shipments of Essential oils during the period June 2024 to May 2025. These imports were being supplied by 12,052 exported to 15,817 worldwide buyers, which marks a growth rate of 183% as compared to the leading twelve months.
During this time, in May 2025 alone, the globe imported 20,048 Essential Oil shipments.

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New Trends in the Essential Oil Market:

Growing Demand for Organic and Natural Products: One of the main drivers of the essential oils industry is the developing user move towards organic and natural products. Consumers are becoming more aware of the ingredients used in their daily personal care products, finding alterations that are carried out as healthier and safer.
Aromatherapy and Wellness: The growing attention of aromatherapy has mainly developed the demand for essential oils. Essential oils are extensively utilised in aromatherapy for their stress-reduction, relaxation, and mood-refining properties. Oils like lemon, lavender, and frankincense are specifically cherished for their different advantages.
Unique Essential Oil Blends: One of the main trends in the industry is the growth of unique essential oil mixtures that serve different advantages. For example, essential oils are the most accessible due to their soothing and relaxing characteristics. Hence, brands are now integrating various oils to make products that align with particular needs.
Multi-Functional Products: The demand for multi-functional products is also apparent in the essential oil soap sector. Consumers are seeking items that serve different advantages in a single formulation. For example, soaps that have antibacterial characteristics or the liquid soaps that serve aromatherapy advantages are gaining attention.
Classification in Food and Beverage: Essential oils such as peppermint, citrus( lemon, orange), and clove are heavily utilised as natural flavoring agents and protectives in regular food, confectionery, and beverages because of their antimicrobial characteristics and user choice for the natural ingredients.

Government Support for the Essential Oil Market:

A total of 90 essential oil distillation units have been officially installed across Northeast India that serves the gap between farm manufacturing and industry needs, which fills the gap between industry and farm manufacturing. These units assist value addition at the local level, which makes the region a main player in the essential oils market.
In May 2025, a farmer collected essential oil from the patchouli plants at the time of distillation by using the traditional kettle machine at the patchouli production center in Lhoong village, Aceh Besar Regency, Aceh. It is the Deputy Minister of Industry, Fisol Riza, who has declared that the value of exports of essential oil items in the year 2024 has reached 4.2 trillion, which is the highest level in five years.

Comparison Between 5 Grades Essential Oil

Grade	Purity	Extraction Method	Common Uses	Therapeutic Value	Price Range
Food Grade	100% pure, approved for internal use by FDA	Steam distillation, cold pressing	Cooking, flavoring, dietary supplements	Medium (safe for consumption)	Medium to High
Therapeutic Grade	100% pure, no additives or fillers	Steam distillation, cold pressing	Aromatherapy, medicinal, topical applications	High (best for health and wellness benefits)	High
Perfume Grade	Diluted, may contain synthetic ingredients	Chemical extraction, solvent-based	Fragrance in perfumes, cosmetics	Low (mainly for scent purposes)	Low to Medium
Cosmetic Grade	Diluted, often blended with carrier oils	Various methods including solvent extraction	Skincare products, hair care, lotions, creams	Medium (suitable for external use only)	Medium

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Recent Developments in the Essential Oil Market

In August 2025, Saje Natural Wellness, a top company in North America that is 100% plant-oriented essential oil remedies, revealed Ulta Beauty as the brand's primary-ever national retail partner.
In November 2025, Imro” ah Ikarini, which is an researcher at the Research Center for Food Technology and Processing (PRTPP) of the National Research and Innovation Agency (BRIN) has displayed the outcomes of research on the growth of pulsed electric field technology that is integrated with ohmic -assited hydrodistillation (OAHD) to develop the manufacturing and quality of essential oils form the orange peel wastage.
In November 2025, Trove Borneo, which is a new brand of luxury essential oils that come from the rich flora of Sarawak, was officially revealed with a limited-edition release of 500 sets.
In October 2025, Kohler, a top leader in bath and kitchen, revealed the launch of Spring Essential oils, a new addition to its developing profile of wellness products. This stretching underlines Kohler’s loyalty to giving immersive, updated experiences that change every day routine.

Impact of AI in the Essential Oil Market

Artificial intelligence is influencing the essential oil market in multiple stages, beginning with how botanical crops are grown and sourced. Growers now use AI models that interpret satellite images, soil readings, and temperature data to pinpoint ideal harvest times for plants such as lavender, peppermint, eucalyptus, and lemongrass. These tools also flag early signs of stress or pest pressure, allowing farmers to intervene before the quality of the oil-bearing plants declines. As a result, producers can secure higher yields and more consistent chemical profiles.

Extraction and distillation operations have also changed. Instead of relying solely on technician experience, producers use machine learning to test hundreds of possible combinations of distillation temperatures, pressure levels, and extraction durations. The system then recommends the exact parameters that protect heat-sensitive terpenes and increase output. This approach is especially valuable for essential oils where even small shifts in distillation curves alter aroma, purity, and therapeutic activity. AI has strengthened quality assurance as well. Computer vision and AI-enhanced spectroscopy scan each batch for color deviations, adulteration markers, and undesired chemical signatures. These tools help manufacturers catch synthetics or diluted material, a persistent issue in the global essential oil trade.

Essential Oil Market Dynamics

Driver: Sustainable Choices in the Essential Oils Industry

The essential oil sector is being driven by the rigid user move towards organic, natural, and holistic wellness products. Main factors count on the developed alertness of essential oils' therapeutic advantages that stretch the uses across different industries and the rising demand for clean-label products. The application of essential oils for physical and psychological health is a main driver, specifically for stress management and relaxation. A big “green consumerism” is encouraging an urge for natural inputs in cosmetics, food, personal care, and household items, too.

Opportunity: Scientific Developments to look after

The future of essential oils is closely linked to scientific validation and research. Current studies are discovering the therapeutic advantages of essential oils that provide evidence-based assistance for their application in different health and wellness uses. As more scientific data becomes accessible, the acceptance and credibility of the essential oils in conventional healthcare will continue to develop.

The essential oils are being heavily mixed with current medicine, which serves as an alternative and supplementary diagnosis option. Healthcare professionals are classifying the capability of essential oils in mental health, pain tracking, and chronic disease management. This implementation is heading to the growth of the latest therapies and products that mix regular medicine with the therapeutic benefits of essential oils.

Challenge: Counterfeit products in the Essentia oil sector

Despite the fast development of the organic essential oil industry, it experiences particular challenges. One of the main problems is the growth in fake products, which not only mismanages users but can also be toxic due to the application of synthetic ingredients. These kinds of fake oils are back in terms of therapeutic advantages of the actual organic essential oils and can lead to allergic reactions or other negative health effects.

Essential Oil Market Regional Analysis

The Europe dominated the essential oil market in 2024, as many countries in Europe, including France, Germany, the UK, and Italy, are at the top of accepting essential oils in material cosmetics. Germany has a rigid industry for natural and organic cosmetics, and essential oils are heavily mixed into products that are crafted for wellness and skin health. France, which has a rich fragrance industry, is including essential oils in high-end perfume and skincare items. In the U.K., the urge for environmentally friendly and natural products has made a developing market for essential oils, while in Italy, the essential oils are being utilised greatly in both acceptable beauty solutions and luxury skincare.

The Asia Pacific Region is Expected to be a Notable Region in the Foreseeable Period. The tourism, spa, and hospitality sectors in the Pacific are including essential oils into their services to serve guests with a comprehensive wellness experience. Countries like Indonesia, Thailand, and Bali have been known for their premium wellness tourism, that have spas serving diagnoses that include essential oils for their therapeutic and soothing advantages. Essential oils exporters are capitalizing on this trend by providing essential oils to the growing wellness tourism sector. From facials and massages to aromatherapy baths, essential oils are becoming an integral part of the luxury spa and hospitality industry, that are further driving the urge for high-quality oils in the region.

Growing Essential Oil Market in China:

The development of China’s Essential oil industry is being driven by the growing user awareness of wellness and health, growing disposable incomes, and a growing demand for organic and natural products. The stretching middle class finds alternate therapies for skincare, stress relief, and overall wellness that complete this urge. Furthermore, the encouragement of regular holistic health and Chinese medicine practices and markets the acceptability of aromatherapy.

Essential Oil Market Report Scope

Report Attribute	Key Statistics
Base Year	2024
Forecast Period	2025 to 2034
Growth Rate from 2025 to 2034	CAGR of 9.1%
Market Size in 2025	USD 28.24 Billion
Market Size in 2026	USD 30.80 Billion
Market Size by 2034	USD 61.83 Billion
Dominated Region	Europe
Fastest Growing Region	Asia Pacific
Regions Covered	North America, Europe, Asia-Pacific, Latin America and Middle East & Africa

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Essential Oil Market Segmental Analysis

Product Type Analysis

Which Product Type Dominated the Essential Oil Market in 2024?

The citrus oil segment dominated the essential oil market in 2024, as they have a refreshing and light aroma which develops mood, develops the soul, and improves mood too. As most of the citrus essential oils contain notes, the soft and attractive smell of minty, floral, a hint of woody aroma, and spicy will create a much comfortable and cozy feeling.

The citrus essential oil is perfect for aromatherapy due to its energizing aroma. Furthermore, the application of citrus essential oils is regularly being pushed for both physical and mental well-being.

The different types of citrus oil are sweet orange, Bergamot, Lime, Mandarin, Grapefruit, Tangerine, Neroli, and Petitgrain essential oils.

The Jasmine Oil Segment is Expected to Rise Fastest During the Forecast Period

Jasmine essential oil, which comes from Southeast Asia, is being valued all over the world for its unique healing and soothing characteristics. It is a valuable essential oil that comes from the sensitive and fragrant blossoms of the jasmine plant. It is known as the “Queen of Flowers", and jasmine oil is favoured for its appealing fragrance and different health advantages. It has essential components like linalool, benzyl acetate, and methyl jasmonate that serve various benefits like improved skin texture and increased relaxation.

Extraction Method Analysis

Which Extraction Method in Essential Oil Market Held the Largest Share in 2024?

The distillation segment has dominated the essential oil market in 2024, as this method is widely used in the essential oil sector, accounting for more than 93% of the oil volume developed globally. This dominance showcases the procedure’s scalability, reliability, and smoothness for many applications. The steam distillation is the most utilised procedure to obtain essential oils from natural sources. The procedure includes transitory steam with the help of plant material to gasify essential oil elements. Oil vapours and steam compress together and are classified through density separations.

The Solvent Extraction Segment is Expected to Rise Fastest During the Forecast Period

Solvent extraction receives bigger yields as compared to steam distillation for several plant materials. The procedure operates smoothly for waxes, risings, and other non-predictable compounds. Several extraction platforms grow recovery productivity. Solvent selection greatly affects extraction smoothness, safety needs, and product quality, too. Hexane delivers perfect extraction potential but needs overall removal for food uses.

Source Analysis

Which Source Segment Dominated the Market in 2024?

The fruits & citrus segment has dominated the essential oil market in 2024, because of their versatile uses, pleasant aromas, and likely convenient, inexpensive extraction and relatively mass procedures. Like other plant materials that need complicated steam distillation, citrus oils are plentiful in the fruit’s peel and can be extracted by using a simple and heat-free procedure named expression or cold-pressing. This procedure is inexpensive, quick, and results in a highly aromatic oil that is convenient to the fruit’s perfume.

The Flowers Segment is Expected to Rise Fastest During the Forecast Period

Essential oils from flowers have been linked to popular medications for centuries. Such naturally received oils are witnessing a demand in popularity since they have a plethora of nutrients that support complete wellbeing and health. Essential oils are flower and plant-derived evergreen oils that serve outstanding aroma-therapeutic benefits.

Every oil carries the particular qualities of the plant from where it was extracted. These oils are heavily focused and quite strong, which makes them beneficial for a variety of diseases.

Distribution Channel Analysis

Which Distribution Channel Dominated the Essential Oil Market in 2024?

The business-to-business segment dominated the essential oil market in 2024, as its main sector, with several supply chain channels linking producers to other businesses. These operations concentrate on serving large quantities of high-purity materials for usage as raw ingredients in food, cosmetics, fragrance, and other sectors. Essential oil producers frequently have an indirect sales link to serve their products directly to businesses. This channel is heavily famous for the development of e-commerce. Such distributors sell large volumes of the essential oils (liters, kilograms, or gallons) to other organizations. They concentrate on serving constant quality and competitive pricing for their B2B users.

The Online Retail Segment is Expected to Rise Fastest During the Forecast Period

Essential oils are being sold online in small and dark-coloured bottles to prevent the oils from light, which can cause them to degrade. Crafted labels and packaging are utilised to attract users and differentiate in the crowded industry. Since essential oils are strong and need minute usage, online retailers provide information on accurate dilution and application procedure.

Order completion is a main operational point of view. Selections range from small businesses carrying all shipping and packing to big companies that outsource completion to a third-party logistics.

End-Use Analysis

The food & beverage segment dominated the essential oil market in 2024, as they are gaining attention as high-effect contents that serve bold, functional, and natural flavors. These extremely focused plant extracts are being valued for their clear-label status, wellness-forward positioning, and intense aroma, too. They are specifically famous in trendy item spaces, such as gourmet desserts, beverages, and plant-based meals, too.

Essential oils deliver a strong aroma and depth to desserts, which enables brands to stick out in nostalgia or luxury categories.

The Healthcare & Pharmaceutical Segment is Seen to Rise Fastest During the Forecast Period

Essential oils are heavily used as an active ingredient and an excellent element of pharmaceutical products. Some of the prevalent essential oils utilised in pharmaceutical uses include eucalyptus, clove oil, and peppermint, too. The pharmaceutical characteristics of plants are contributed to the essential oils and are linked to their chemical composition. Heavy operations have been carried out to use essential oils for the cure of several infectious diseases with the assistance of pharmaceutical remedies.

By Grade/Quality Analysis

Which Grade/Quality Segment Led the Essential Oil Market in 2024?

The Therapeutic Grade Segment Dominated the Essential Oil Market in 2024. These grade essential oils are the highest quality and are prevalently utilised in holistic health, aromatherapy, and wellness practices too. These oils are being extracted from the plants with the help of procedures that protect their natural chemical mixture, making sure that their therapeutic characteristics remain undamaged.

Therapeutic-grade oils experience a strict testing procedure, which includes Gas Chromatography-Mass-Spectrometry 9GC-MS) testing, that makes sure the oil’s chemical composition and purity align with that from which it came.

The Food-Grade Segment is Seen to Rise Fastest During the Forecast Period

Food-grade essential oils are accepted for internal usage, as they are safe for use in beverages, cooking, and other edible products. These oils are heavily regulated to make sure they align with food safety standards, which means they are free from harmful contaminants and chemicals, too. Food-grade essential oils must align with rigorous standards that are established by regulatory bodies such as the Food and Drug Administration (FDA) or the European Food Safety Authority (EFSA). Such regulations make sure the oils are safe for human consumption when utilised appropriately.

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Essential Oil Market Top Companies:

doTERRA International, LLC
Young Living Essential Oils
Givaudan SA
International Flavors & Fragrances Inc. (IFF)
Symrise AG
Firmenich International SA
Robertet Group
MANE SA
Sensient Technologies Corporation
Takasago International Corporation
Biolandes SAS
Lebermuth Company, Inc.
Essential Oils of New Zealand
Mountain Rose Herbs
NOW Foods

Segment Covered in the Report

By Product Type

Citrus Oils (orange, lemon, lime, bergamot, grapefruit)
Lavender Oil
Tea Tree Oil
Peppermint Oil
Rosemary Oil
Eucalyptus Oil
Chamomile Oil
Jasmine Oil
Others (clove, thyme, frankincense, sandalwood)

By Extraction Method

Distillation (steam & water distillation)
Cold Press Extraction
Solvent Extraction
CO₂ Extraction
Resin Tapping & Other Emerging Techniques

By Source

Fruits & Citrus
Herbs & Spices
Flowers
Leaves
Woods & Barks
Roots & Seeds

By Distribution Channel

Business-to-Business (B2B)
Business-to-Consumer (B2C)
Specialty Stores
Supermarkets & Hypermarkets
Online Retail

By End-Use Industry

Food & Beverage
Personal Care & Cosmetics
Healthcare & Pharmaceuticals
Home Care & Cleaning
Spa & Wellness Centers
Industrial Manufacturing

By Grade/Quality

Therapeutic Grade
Food Grade
Industrial Grade

By Region

North America

U.S.
Canada

Asia Pacific

China
Japan
India
South Korea
Thailand

Europe

Germany
UK
France
Italy
Spain
Sweden
Denmark
Norway

Latin America

Brazil
Mexico
Argentina

Middle East and Africa (MEA)

South Africa
UAE
Saudi Arabia
Kuwait

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