Essential oils are non-water soluble liquids containing unstable aroma compounds of the plants. The global market is majorly propelled by the robust trend of green consumerism among the increasing popularity of natural inputs for sensory-related aspects and food preservation.
The COVID-19 pandemic has positively impacted the market worldwide. There have been reports of the huge increase in demand for essential oils, as these oils claim to enhance health and immunity. According to industry experts, amid the chaotic pandemic situation, people should incorporate ethereal oil in daily life to improve their immune system and achieve a healthy and calm mind. The pandemic has raised global awareness to improve the body's immune system. Apart from healthy eating and regular exercise, increased immunity can also be achieved from a healthy and calm mind, including aromatherapy. This is in line with growing awareness of holistic medicine and organic product utilization. The demand for products such as tea tree oil, peppermint oil, and eucalyptus oil, which have potential as aromatherapy and antibacterial and antiviral qualities is increased during this pandemic period.
Factors Encouraged The Essentail Oil Demand
Increasing Application of the Product Across Multiple Industry --Traditionally, this oil is widely utilized in food and beverages and aromatherapy, but, in recent years, the increasing application of the product in several industries such as pharmaceuticals, cosmetics, and personal care is anticipated to drive product sales. For instance, in August 2020, EO, an ethereal oil-infused hand sanitizer brand, announced its partnership agreement with Alaska Airlines to provide travelers ethereal oil-infused hand sanitizing wipes to help fliers feel more comfortable and relaxed.
Rising Inclination towards Aromatherapy to Drive Essential Oils Market Growth -- Aromatherapy is also referred to as essential oil therapy. Since the last decade, customers have become more selective about their personal care product uses. Although many similar products are available, high-quality products and competitive prices will satisfy customer satisfaction and increase product loyalty. Therefore, rising expenditure on the research and development of more effective products, processes, services, and technologies are predicted to impact the market growth positively. The robust growth incentive to the hospitality and tourism sector has brought greater benefits of aromatherapy within reach of common consumers. This trend, coupled with increased utilization of natural active components in pharmaceutical and cosmetic formulations, has further boosted the ethereal oils market.
Increasing Demand for Natural Ingredients to Spur Market Growth -- Essential oils have a vital role in the natural preservation of foods amidst the rising concern for synthetic food additives and their long-term harmful effects. Several clinical studies involving ethereal oils in the concentration range of 0.5–20 microliters per gram have shown antibacterial actions in the foods such as meat products, fish, fresh meat, milk, dairy products, and cooked rice. There has been an important synergy established utilizing preservation methods along with such oils. Thus, the greater push for research and development in ethereal oils incorporation as a food additive is anticipated to provide further impetus to the ethereal oils market. The global food and beverages industry is undergoing a gradual yet substantial transition concerning ingredients formulations. The rising customer's inclination towards natural and organic products has made ethereal oils a crucial ingredient of choice for food processors. There has been a steady surge in the customer's understanding of the harmful health effects of synthetic chemicals added for flavor applications. Producers are thus encouraged to utilize natural inputs to increase the aesthetic appeal of food products alongside improving the nutritional and functional properties.
Food and Beverages Segment to Hold Major Share
Based on application, the market is categorized into food and beverages, personal care and cosmetics, pharmaceuticals and medical formulations, and others.
The food and beverage segment is expected to account for the largest essential oils market share during the forthcoming years. Food and beverages remain preferred matrices for incorporating plant-based volatile oils. The addition of aetheroleum oils to food products increases the shelf-life, storage stability, and sensory characteristics of various edibles.
The flavors and fragrances application segment utilizes significant quantities of plant-based volatile oils in the global marketplace. The application spectrum of aetheroleum oils is further expected to expand based on the reported antiparasitic, anti-toxigenic, and insecticidal traits.
