The global essential oil isolate market is expected to grow at a CAGR of 10.9% during the forecast period, 2023–2031.
Essential oil isolates are highly concentrated compounds obtained from plants with a specific scent, which are extensively used by the fragrance manufacturing companies. They are often used in aromatherapy as basic perfume or in oils, soaps, candles, and cosmetic products. The purest essential oil isolates are obtained from jasmine, eucalyptus, lavender, corn mint, lemon, clove, tea tree, and orange. Also, they're a good source of bioactive compounds and antimicrobial and antioxidants properties; hence they are witnessing huge demand from the pharmaceutical sector. For instance, eucalyptus essential oil improves immunity and helps to cure cough and cold and relieve pain caused by arthritis.
The market’s most prominent driver is the rising awareness regarding natural and organic products among the customers. The increasing number of small, medium, and large scale manufacturers across the globe provide impetus to market growth. The manufacturers are applying differential strategies to sustain in the raging competition. Some players are hiring celebrities to promote their newly launched essential oil isolates.
Rising health consciousness among consumers, changing lifestyle, social media influence, and increasing spending power drive the market growth. The essential oils and essential oil isolates are extensively used in aromatherapy. Consumers are inclining toward aromatherapy to improve metabolism, blood circulation, digestion, and hormonal function. The global market for aromatherapy was valued at USD 1.3 billion in 2018 and is expected to grow with a CAGR of 10.4%. As per the article published by Sciencedirect, aromatherapy suitsa large number of people. In research, about 3000 patients were given aromatherapy, and only 1.67% of the patients have faced any complications.
The growing awareness among consumers regarding beauty and health is a significant factor driving the essential oil isolates market. The increasing demand for natural cosmetic products across the globe provides an impetus to market growth; as per the statistics given by Statista, the natural cosmetic market was valued at around USD 800 million in 2019 and is expected to grow with a CAGR of 6.6%. India, China, and Brazil are leading contributors to the market due to rising consumer spending on cosmetic and personal care products. As per the report published by the Ministry of Economy and Industry, the Indian beauty and personal care industry was valued at USD 8 billion in 2018 and is expected to grow at a CAGR of 6%.
The rapidly growing pharmaceutical industry will have a great impact on the essential oil isolates market in the near future. The global pharmaceutical market value was USD 1,204.8 billion in 2018. Essential oil isolates such as aniseed oil isolates, agarwood oil isolates, benzoin oil isolates, bitter orange oil isolates, black pepper oil isolates, among others are extensively used in the pharmaceutical and personal care products owing to their various benefits. For instance, Aniseed oil is highly effective in the treatment of whooping cough, cramps, colic, bronchitis, rheumatism, flatulence migraines, headaches, muscular aches, and pains. Likewise, black pepper oil isolate is helpful in the treatment of chills, colds, muscular aches, exhaustion, rheumatism, pain relief, flu, increase circulation, physical & emotional coldness, nerve tonic, and fevers. Cajuput oil isolate helps efficiently with infections like bronchitis, laryngitis & colds. It is also effective in asthma, sinusitis and sore throat etc. Bitter orange oil is effective in providing relief from colds, flu, mouth, constipation, flatulence, gums, slow digestion, and stress.
The Asia-Pacific’s essential oil isolate market is bolstered by the rising awareness regarding beauty, which is subsequently driving the demand for cosmetic products in India, China, Japan, and South Korea. For instance, as per the report published by the Ministry of Economy and Industry, India’s per capita spending on beauty and personal care products was around USD 6.3 in 2015. Asia-Pacific is the hub for manufacturers of essential oil isolate due to the easy availability of raw material and low labor costs. Apart from this, the booming agriculture sector is bolstering the market growth in the region. Asia-Pacific is the largest producer of corn, clove, lemon, and orange, among others, which are primary ingredients for essential oil isolate.
North America is also a significant region in the essential oil isolate market owing to the huge pharmaceutical market and the presence of prominent healthcare and pharmaceutical players. In the year the 2018, North America alone has accounted for 48.9% of the global pharmaceutical market. Also, as per a report published by ACS Publications, U.S. is the largest importer of the essential oil (USD 2,721 million), the U.S. consumes around 40% of the total global essential oil. After U.S. the second larger importer of essential oil is Europe account for around 30% followed by Japan with 7% of the global imports.
Also, as per the report published by ACS Publications, Africa is among the largest producer and consumers of essential oils. The region is largely export essential oils to U.S., Europe, Japan, among others.
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