Global Essential Oils Market to Witness Propelling Growth with the Rising Demand by End-Users

Essential oils are extracted from plants. During the extraction, the oil brings out the scent, flavor, or essence with it. Each essential oil gets its distinguishing essence from this extracted scent.

Essential oils are compounds extracted from plants. The oils capture the plant’s scent and flavor, or “essence.” Unique aromatic compounds give each essential oil its characteristic essence. Cold pressing and distillation are the processes essential oils are extracted from the trees and plants.

Essential oil has many applications especially in the cosmetic and makeup industry, and aromatherapy, which has added to the growth of the essential oils market. It is used in the cosmetic industry mainly to create perfumes, elevate creams, and body washes with fragrances. Essential oils are also used by aromatherapists to offer healing treatments to patients with severe psychological stress and depression. There are many essential oils available in the market. Lavender, peppermint, tea tree, lemon, sweet orange, eucalyptus, orange, and chamomile are some of the most popular essential oils.

These beneficial factors of essential oils are expected to flourish the global essential oils market in the forthcoming years, according to a recent report by Research Dive.

Recent Advances in the Essential Oils Market

According to a report published by Research Dive, the leading players of the global essential oils market include Symrise, The Lebermuth Company, Inc., Givaudan SA, Koninklijke DSM N.V., Young Living Essential Oils, DuPont, Essential oils of New Zealand, Cargill, Inc., Sensient Technologies Corporation, and dôTERRA International LLC among many others.

These industry players are investing a lot of efforts on the research and development of smart and unique strategies to sustain the growth of the market. These strategies include product launches, mergers and acquisitions, collaborations, partnerships, and refurbishing of existing technology.

Some of the recent developments of the essential oils market are as follows:

• In November 2020, Symrise AG, a leading producer of flavors and fragrances, signed a purchase agreement with Sensient Technologies Corporation, a global manufacturer of colors and scents based out of Milwaukee, USA to acquire their fragrance and aroma chemicals activities which include a wide variety of aroma molecules and fragrances both from natural and renewable sources.
• In July 2021, Givaudan, the global leader in fragrance creation, entered into a definitive agreement with Privi Speciality Chemicals Limited, a leading manufacturer of aroma and fragrance chemicals in India.  This agreement is aimed to reinforce production capabilities of Givaudan for the global specialty fragrance ingredients.

The agreement is also aimed to establish a new greenfield production plant in Mahad, a South Mumbai city. This plant is expected to manufacture small-volume fragrance ingredients of medium to high complexity.

• In July 2021, Sensient Technologies Corporation, a global manufacturer of colors and flavors completed its acquisition of Flavor Solutions, Inc., a leading flavor development company. The acquisition is expected to expand the flavor portfolio of Sensient by extending its traditional flavor offering, savory reaction flavors, natural shelf-life, and taste-modulation technology platforms.

Impact Analysis of COVID-19 on the Essential Oils Market

The COVID-19 pandemic has impacted the global economy in a negative way. Many companies went bankrupt while others were closed down temporarily. On the other hand, essential oils market has experienced a prosperous growth during the critical pandemic period. The beneficial properties of essential oils are the main factors behind the growth of the market. Apart from being used as an alternative to spices and herbs in cooking food, essential oils are also extensively used in aromatherapy and manufacturing of cosmetic product. Many industry leaders are focusing on the enhancing the growth of the market in the post pandemic period.