Essential Oils Market

The global essential oils market is projected to experience continued growth with a forecasted CAGR of +2.9% in volume and +4.7% in value from 2022 to 2030, reaching 339K tons and $10.2B respectively. Italy, Germany, and China are the top consuming countries while the United States leads in both imports and exports. Production of essential oils increased by 5.3% in 2022, with Brazil, Italy, and China as the top producers. Import volume rose by 1.2% in 2022, with the United States and Germany as key importers. Export volume increased by 2.5% in 2022, led by Brazil, the United States, and India. France has the highest export price per ton while Brazil has the lowest. Overall, the market shows a positive trend in consumption, production, imports, and exports over the last decade.

Market Forecast

Driven by increasing demand for essential oils worldwide, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +2.9% for the period from 2022 to 2030, which is projected to bring the market volume to 339K tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +4.7% for the period from 2022 to 2030, which is projected to bring the market value to $10.2B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Essential Oils

Global essential oils consumption rose modestly to 270K tons in 2022, with an increase of 4.2% against 2021 figures. The total consumption volume increased at an average annual rate of +5.1% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Global consumption peaked in 2022 and is likely to see steady growth in years to come.

The global essential oils market size rose modestly to $7.1B in 2022, picking up by 3.6% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, the total consumption indicated prominent growth from 2012 to 2022: its value increased at an average annual rate of +5.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +15.9% against 2020 indices. Over the period under review, the global market hit record highs at $7.4B in 2017; however, from 2018 to 2022, consumption stood at a somewhat lower figure.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were Italy (34K tons), Germany (29K tons) and China (27K tons), together comprising 33% of global consumption.

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the leading consuming countries, was attained by Italy (with a CAGR of +33.0%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, the largest essential oils markets worldwide were Italy ($693M), France ($604M) and the United States ($569M), with a combined 26% share of the global market.

Italy, with a CAGR of +31.6%, saw the highest rates of growth with regard to market size in terms of the main consuming countries over the period under review, while market for the other global leaders experienced more modest paces of growth.

In 2022, the highest levels of essential oils per capita consumption was registered in Ireland (1,603 kg per 1000 persons), followed by Italy (568 kg per 1000 persons), Switzerland (485 kg per 1000 persons) and Germany (351 kg per 1000 persons), while the world average per capita consumption of essential oils was estimated at 0.5 kg per 1000 persons.

In Ireland, essential oils per capita consumption expanded at an average annual rate of +4.1% over the period from 2012-2022. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: Italy (+32.9% per year) and Switzerland (-0.8% per year).

Production

World Production of Essential Oils

In 2022, production of essential oils increased by 5.3% to 260K tons, rising for the second consecutive year after three years of decline. The total output volume increased at an average annual rate of +5.2% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2015 when the production volume increased by 23%. As a result, production attained the peak volume of 270K tons. From 2016 to 2022, global production growth remained at a lower figure.

In value terms, essential oils production stood at $5.6B in 2022 estimated in export price. Overall, the total production indicated resilient growth from 2012 to 2022: its value increased at an average annual rate of +5.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +5.6% against 2020 indices. The pace of growth was the most pronounced in 2015 with an increase of 32%. Over the period under review, global production attained the maximum level at $7.2B in 2017; however, from 2018 to 2022, production failed to regain momentum.

Production By Country

The countries with the highest volumes of production in 2022 were Brazil (37K tons), Italy (35K tons) and China (34K tons), together comprising 41% of global production. India, Germany, France, Spain, Argentina, Mexico, the UK, Madagascar, Pakistan and Poland lagged somewhat behind, together comprising a further 33%.

From 2012 to 2022, the biggest increases were recorded for Poland (with a CAGR of +34.7%), while production for the other global leaders experienced more modest paces of growth.

Imports

World Imports of Essential Oils

In 2022, supplies from abroad of essential oils increased by 1.2% to 197K tons, rising for the fifth consecutive year after two years of decline. The total import volume increased at an average annual rate of +3.3% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth was the most pronounced in 2013 when imports increased by 11% against the previous year. Global imports peaked in 2022 and are likely to continue growth in the immediate term.

In value terms, essential oils imports stood at $4.9B in 2022. Overall, total imports indicated a moderate expansion from 2012 to 2022: its value increased at an average annual rate of +4.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +10.3% against 2020 indices. The pace of growth appeared the most rapid in 2017 when imports increased by 15%. Over the period under review, global imports attained the peak figure at $5.1B in 2018; however, from 2019 to 2022, imports remained at a lower figure.

Imports By Country

In 2022, the United States (46K tons), distantly followed by Germany (21K tons), the Netherlands (15K tons), Indonesia (10K tons) and the UK (9.4K tons) represented the largest importers of essential oils, together committing 52% of total imports. The following importers - Ireland (8.9K tons), France (8.8K tons), China (7.7K tons), India (6.2K tons), Singapore (5.3K tons), Italy (4.6K tons), Spain (4.5K tons) and Malaysia (4K tons) - together made up 25% of total imports.

From 2012 to 2022, average annual rates of growth with regard to essential oils imports into the United States stood at +4.2%. At the same time, the Netherlands (+25.0%), Malaysia (+9.8%), Italy (+9.6%), Indonesia (+7.7%), Ireland (+4.7%), France (+3.5%), India (+3.1%) and Germany (+2.0%) displayed positive paces of growth. Moreover, the Netherlands emerged as the fastest-growing importer imported in the world, with a CAGR of +25.0% from 2012-2022. Spain, China and the UK experienced a relatively flat trend pattern. By contrast, Singapore (-1.7%) illustrated a downward trend over the same period. The Netherlands (+6.6 p.p.), the United States (+1.9 p.p.) and Indonesia (+1.8 p.p.) significantly strengthened its position in terms of the global imports, while China, Singapore and the UK saw its share reduced by -1.5%, -1.7% and -2.1% from 2012 to 2022, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the United States ($1B) constitutes the largest market for imported essential oils worldwide, comprising 21% of global imports. The second position in the ranking was held by France ($433M), with an 8.9% share of global imports. It was followed by Ireland, with an 8.1% share.

From 2012 to 2022, the average annual rate of growth in terms of value in the United States totaled +6.1%. The remaining importing countries recorded the following average annual rates of imports growth: France (+5.4% per year) and Ireland (+11.6% per year).

Import Prices By Country

The average essential oils import price stood at $24,574 per ton in 2022, approximately reflecting the previous year. Over the last decade, it increased at an average annual rate of +1.5%. The growth pace was the most rapid in 2017 when the average import price increased by 16% against the previous year. Over the period under review, average import prices hit record highs at $29,662 per ton in 2018; however, from 2019 to 2022, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was France ($49,340 per ton), while Malaysia ($8,322 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Ireland (+6.6%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Essential Oils

In 2022, global exports of essential oils rose modestly to 187K tons, picking up by 2.5% on 2021. The total export volume increased at an average annual rate of +3.2% over the period from 2012 to 2022; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2013 with an increase of 19%. Over the period under review, the global exports reached the maximum in 2022 and are likely to see gradual growth in years to come.

In value terms, essential oils exports reduced modestly to $4.4B in 2022. In general, total exports indicated a perceptible increase from 2012 to 2022: its value increased at an average annual rate of +4.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +1.8% against 2020 indices. The most prominent rate of growth was recorded in 2017 with an increase of 17%. Over the period under review, the global exports hit record highs at $4.9B in 2018; however, from 2019 to 2022, the exports failed to regain momentum.

Exports By Country

In 2022, Brazil (33K tons), the United States (23K tons), India (17K tons), China (16K tons) and the Netherlands (15K tons) was the key exporter of essential oils in the world, constituting 56% of total export. The following exporters - Mexico (8K tons), Argentina (6.7K tons), Germany (6K tons), Italy (5.9K tons), France (5.7K tons), Spain (5.3K tons), the UK (4.9K tons) and Indonesia (4.9K tons) - together made up 25% of total exports.

From 2012 to 2022, the biggest increases were recorded for the Netherlands (with a CAGR of +41.1%), while shipments for the other global leaders experienced more modest paces of growth.

In value terms, the United States ($605M), France ($388M) and India ($349M) constituted the countries with the highest levels of exports in 2022, together comprising 31% of global exports. Brazil, China, the Netherlands, Germany, Argentina, Italy, the UK, Indonesia, Mexico and Spain lagged somewhat behind, together comprising a further 46%.

In terms of the main exporting countries, the Netherlands, with a CAGR of +32.0%, recorded the highest rates of growth with regard to the value of exports, over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

In 2022, the average essential oils export price amounted to $23,438 per ton, waning by -5.8% against the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +1.2%. The pace of growth was the most pronounced in 2017 an increase of 14%. Over the period under review, the average export prices reached the maximum at $27,056 per ton in 2019; however, from 2020 to 2022, the export prices failed to regain momentum.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was France ($68,338 per ton), while Brazil ($9,714 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Brazil (+7.8%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform