In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this U.S. Essential Oils Market Report
The U.S. essential oils market by revenue is expected to grow at a CAGR of 7% during the period 2021-2026.
The consumption of the essential oils in the US is estimated at 96.45 kilotons in 2020 and is expected to reach 158.88 kilotons by 2026, growing at a CAGR of 8.67%. The presence of a large volume of buyers in the end-user industries and the rising awareness of natural and organic products among consumers are major factors influencing the US market.
The US is one of the major contributors to the global essential oils market as it is witnessing increasing application in the preventive healthcare industry. Factors such as surging aromatherapy and pharmaceutical application, the increasing demand for "green solution," and the high adoption of natural products over synthetic are the factors expected to contribute to the growth of the essential oils market in the US.
U.S. Essential Oils Market Segmentation
This market research report on the US essential oils market includes a detailed segmentation by product, end-user, geography. In terms of revenue, frankincense essential oil dominated the market and reported over USD 69 million in 2020. Owing to many applications, these are one of the most commonly used necessary commodities in the United States. The orange essential oils experienced the highest demand by volume, followed by peppermint, eucalyptus, lemon, clove, and frankincense essential oil.
The demand for orange essential oil is expected to reach 61-kilo tons by 2026, growing at an impressive CAGR of over 9%. Eucalyptus oil has several applications, and they are majorly used as anti-microbial, antiseptic, deodorizing, and insect repellent agents. Moreover, eucalyptus oil is majorly used in treating wounds, burns, abrasions, sores, and scrape, thereby increasing the application in the healthcare industry. Therefore, eucalyptus oils are expected to witness significant growth both in terms of value and volume.
Several end-user industries drive the demand for essential oils due to several flavors and fragrances. In terms of revenue and volume, the F&B industry held the largest market share in the US essential oils market. However, the demand for essential oils in the cosmetics & personal care industry and spa & relaxation industries are expected to witness the highest growth during the forecast period. This is majorly attributed to the increasing awareness of personal care and wellness.
The essential oils demand in the spa & relaxation industry is expected to witness the highest growth momentum, growing at a CAGR of over 16% between 2021 and 2023 and over 19% between 2024 and 2026. The slow momentum during the period 2021-2023 can be major because of the COVID-19 outbreak. Due to the imposed lockdown and shutting down of spas, resorts, parlors, and salons, the demand for essential oils in the spa & relaxation industry and the cosmetics & personal care industry is growing at a slower pace.
INSIGHTS BY GEOGRAPHY
The U.S. essential oils market share is majorly driven by the high disposable income, the presence of high established end-user industries, high potential growth in several end-user industries, an increasing number of households, and rising demand for aromatherapy and a healthy lifestyle.
Besides, due to a high prevalence of diseases, awareness and the demand for men's grooming products such as beard care, hair care, and others, and increasing demand for natural and organic foods and cosmetics are also boosting the demand for essential oils from end-user industries. In line with this growing trend of natural & organic lifestyle, manufacturers worldwide are increasing their operations and procurement activities to customize the product features depending on end-user applications.
INSIGHTS BY VENDORS
The U.S. essential oils market is highly competitive and moderately consolidated. The US has a moderate number of major players and several small players. Players operating in the industry are focusing on developing innovative products and expanding their product portfolio by making huge investments in R&D.
Although the established players dominate the industry, growth opportunities for other new entrants are also high exist as they target the low end-markets or cities by producing low-cost products. The competitive intensity of the market is higher in Northern and Southern parts of the US due to the large number of end-user industries propelling demand for essential oils.
Rocky Mountain Oils
The Essential Oil Company
Young Living Essential Oils
Key Topics Covered:
1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage 4.1 Market Definition 4.2 Base Year 4.3 Scope Of The Study 4.4 Market Segments
7 Introduction 7.1 Overview 7.2 Raw Material Insights 7.3 Value Chain Analysis 7.4 Profit Margin 7.5 Industry FAQ 7.6 Impact Of Covid-19
8 Market Opportunities & Trends 8.1 Rising Demand For Aromatherapy & Other Natural Therapies 8.2 Increasing Consumption Of Essential Oils By Cosmetics & Personal Care Segment 8.3 Rising Demand For Men's Grooming Products
9 Market Growth Enablers 9.1 Rising Popularity Of Natural And Organic Products 9.2 High Demand From Pharmaceuticals Segment 9.3 High Disposable Income & Increasing Number Of Households
10 Market Restraints 10.1 Strict Regulations On Harvesting & Cultivation Due To Associated Hazards 10.2 Presence Of Alternative Synthetic Substitutes 10.3 Lack Of Traceability In Supply Chain