essential oils market

The food and beverage industry is gradually transforming . The shift towards healthy and organic food is fuelling the demand for essential oils . As per a report by Fortune Business Insights , the global essential oils market is expected to rise at a CAGR of 9.65 % between 2019 and 2025 . Fortune Business Insights in a new study , titled “ ESSENTIAL OILS MARKET : GLOBAL MARKET ANALYSIS , INSIGHTS AND FORECAST , 2015-2026 ” predicts that essential oils play a crucial role in food and beverages , pharmaceuticals , and cosmetics industry . Essential oils are used in aromatherapy , which is likely to gain prominence , especially among people in urban areas . The growing inclination for aromatherapy among the population is expected to offer an upthrust to the essential oils market growth .
According to the report , the global market for essential oils was worth US $ 7.03 Bn in 2018 and is anticipated to reach US $ 14.6 Bn by 2026 . This shows that the essential oils market size is expected to increase in the forthcoming years . The increasing importance for herbal and natural treatment across the world is fuelling demand for essential oils . In order to enhance the flavor , some manufacturers add synthetic chemicals to food products which can adversely affect the health . Hence , manufacturers are compelled to use a natural and organic product such as essential oils to make the food product more aesthetically appealing .
Essential Oils Market to Gain from Rising Demand from Food & Beverages Sector
Essential oils demand is increasing at a rapid pace in the food and beverages sector . As per the report , this sector holds a 46.1 % share in the global market , which expands the essential oils market share . Increasing FDA approvals of essential oils in this sector is expected to positively impact the market . Biological properties such as insecticidal , antiparasitic , and anti-toxigenic offered by these oils is one of the primary factors for their rising preference in food and beverages industry . Use of essential oil in food products increases their shelf-life and storage capability .
North America and Europe Collectively Lead the Market
The market in North America and Europe is expected to witness higher CAGR during the forecast period ( 2019-2026 ). This is attributable to the presence of a large number of manufacturers in these regions . A large number of cosmetic production firms present in Europe is likely to surge regional market growth . The developed market in the U . S . and European Union are responsible for constant growth in the market . The demand for aromatherapy - a well-known form of alternative medicine is increasing in some of the leading markets of Germany , the U . K ., and France will propel the sales of the market . This will further increase the essential oils market revenue in the forecast years .
South America and Asia Pacific are anticipated to grow considerably in the market owing to better economic condition . Rising urban class population especially in India and China is likely to bolster the essential oils sales in these countries .
Rising R & D Activities and Launch of Innovative Extraction Techniques to Bolster Demand for Essential Oils
“ Growing research and development ( R & D ) activities on essential oils will help manufacturers to understand the benefits of essential oils . Botanists are also getting involved in several extraction techniques , which will amplify the demand for essential oils ,” said a lead analyst at Fortune Business Insights . “ Customer preference is shifting towards green and sustainable products , which are multifunctional in nature . This shift will stimulate growth in the market ,” he added .
Growing hospitality and tourism industry is escalating demand for aromatherapy . This , along with the rising usage of natural active products in cosmetics and pharmaceuticals , is boosting the essential oils market growth .
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https :// www . fortunebusinessinsights . com / press-release / north-america-fats-and-oils-market- 9163