Growth Trend of Essential Oils Sector Expected at 10.1% Compound Annual Growth Rate by 2034
Europe Dominates Global Essential Oils Market in 2024
In 2024, Europe led the Global Essential Oils Market, commanding a 51.6% share and generating USD 7.6 billion in revenue. Europe solidified its position as the global leader in the essential oils market, with a market value of approximately USD 7.6 billion.
Lavender oil led the market, holding a 24.8% share. Notably, H. Reynaud & Fils (HRF), a French company based in Provence, revived traditional distillation methods for its lavender oils and launched a premium line of perfumery-grade oils. HRF secured a sustainability certification and is exploring partnerships with luxury cosmetic brands.
Meanwhile, in North America, the Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Inflation Reduction Act have spurred over USD 600 billion in investments in clean energy and manufacturing, which could potentially boost the essential oils market in the region.
The Global Essential Oils Market is projected to reach USD 39.0 billion by 2034. The compound annual growth rate (CAGR) of the market is 10.1% during the forecast period (2025-2034).
The Personal Care & Cosmetics segment dominated the market in 2024, with a 38.1% market share. The Essential Oils Market is growing rapidly due to rising consumer demand for natural and organic products across various sectors, including wellness, beauty, food, cleaning, and pharmaceuticals.
Retail Distribution held a 56.2% share in the market in 2024. Companies like Young Living Essential Oils have enhanced their global distribution network, focusing on Asia-Pacific markets, and introducing new blends targeting stress relief and immune support.
In Australia, The Sydney Essential Oil Co. has expanded its organic essential oil range, focusing on sustainable sourcing from Australian farmers and introducing a new line of CBD-infused essential oils.
India Essential Oils is working on eco-friendly packaging to reduce plastic waste and has introduced AI-driven quality control for purity testing. The company has also expanded its export market to Europe, offering competitively priced oils like eucalyptus and peppermint.
Bulgaria's Ministry of Agriculture is promoting organic farming, including the cultivation of aromatic plants for essential oils. Biolandes SAS, a French company, is collaborating with research institutes to develop bioactive essential oils for pharmaceuticals. Biolandes has also invested in carbon-neutral production facilities and launched a traceability program for their lavender and rosemary oils, ensuring ethical sourcing.
The vegetable oil price index reached 155.7 points in June 2025, a 2.3% increase from the prior month and 18.2% higher than June 2024. While a global figure specific to all essential oils combined isn’t stated, data from aromatherapy carrier oils and segments such as jasmine oil indicate a multi-billion dollar market size by 2034.
In summary, while the exact total global essential oils market projection is not directly given, related aromatherapy and essential oil segments project multi-billion dollar expansions by 2034, driven by natural product demand, applications in cosmetics and wellness, and strong regional market growth, especially in North America and Asia-Pacific.
[1] https://www.marketsandmarkets.com/PressReleases/essential-oils.asp [2] https://www.grandviewresearch.com/industry-analysis/pomegranate-seed-oil-market [3] https://www.grandviewresearch.com/industry-analysis/egg-yolk-oil-market [4] https://www.marketsandmarkets.com/PressReleases/aromatherapy-carrier-oils.asp
- The essential oils market, particularly in sectors such as health-and-wellness, nutrition, and food-and-drink, is projected to mirrors the growth of the multi-billion dollar aromatherapy market, reaching USD 39.0 billion by 2034, driven by consumer demand for natural and organic products.
- In the realm of health-and-wellness, companies like Young Living Essential Oils are expanding their global distribution network, introducing new blends for stress relief and immune support, and targeting Asia-Pacific markets.
- Adopting a lifestyle that emphasizes healthy diets and fitness-and-exercise can be complemented by essential oils, as demonstrated by CBD-infused essential oils produced by The Sydney Essential Oil Co. in Australia.
