North America Essential Oil Market Outlook, 2028

Nestled within the vast expanse of North America lies a blossoming treasure trove of nature's aromatic wonders, collectively known as the North America Essential Oil Market. From the pristine forests of Canada to the sunny climatic fields of the United States and the vibrant landscapes of Mexico, this region boasts a diverse array of botanical riches that have been meticulously distilled and harnessed into fragrant elixirs. Canada, with its boreal forests, gifts us with the crisp and invigorating scents of canola and peppermint oil, while the United States, spanning from the aromatic lavender fields of Washington to the citrus groves of Florida, offers a tantalizing tapestry of aromas. Meanwhile, Mexico, with its lush jungles and ancient herbal traditions, contributes exotic oils like oregano and lime oil. Together, these nations craft a symphony of fragrances that captivates the senses and enchants the world, making North America an indispensable hub of essential oil excellence. American essential oil producers export their products to countries across the globe, with the United Kingdom, Germany, and Japan being some of the prominent destinations.

According to the research report "North America Essential Oil Market Outlook, 2028," published by Bonafide Research, the North America Essential Oil market was valued at near to USD 7.20 Billion in 2022. Globally, North America asserts itself as a formidable contender in the essential oil market, securing the second-largest market share, following closely behind Europe. The continent's dedication to quality, sustainability, and innovation has propelled it to this prominent position, making it an essential player in the worldwide landscape of essential oils. As consumers across the globe continue to embrace the benefits of aromatherapy and holistic well-being, North America's essential oil market is poised to further flourish, contributing its fragrant and diverse bouquet to the global market's ever-evolving tapestry. The North America Essential Oil Market is categorized on the basis of countries like United States, Canada, and Mexico. Among these, the United States undoubtedly stands as the dominant force, commanding the largest market share. With its diverse ecosystems, extensive essential oil production, and a thriving wellness industry, the U.S. has established itself as a powerhouse in the region; the essential oil market is expected to grow at more than 6.48% CAGR from 2023 to 2028. Following the United States, Canada also shares the significant share. Canada engages in a dynamic import and export trade of essential oils, reflecting the country's participation in the global essential oil market. The essential oil market in Canada is experiencing a remarkable surge in growth, driven by evolving consumer preferences and a growing interest in holistic wellness. The Mexico Essential Oil market is projected to reach market size around USD 1.1 Billion by 2028. Mexico's fertile soil and diverse climate provide an ideal environment for cultivating a wide variety of aromatic botanicals, making it a hotspot for essential oil production. Among the most highly produced raw materials are lavender, native to the highlands, which yields its soothing essence; eucalyptus, with its invigorating properties; and the zesty treasures of citrus fruits, such as oranges and lemons, which offer their vibrant oils.

Within this landscape, the food and beverages industry stands out as the dominant player, holding the largest market share. Essential oils are increasingly sought after in this sector for their natural flavors and fragrances, which enhance the sensory appeal of a wide range of products, including beverages, confectionery, and baked goods. Consumers are gravitating towards these natural alternatives in pursuit of healthier and more authentic taste experiences. However, it is noteworthy that the aromatherapy industry is witnessing remarkable growth, holding the largest CAGR among all essential oil applications in North America. Aromatherapy, a holistic wellness practice that leverages the therapeutic properties of essential oils, has gained substantial popularity in recent years. People are turning to essential oils for stress relief, relaxation, and overall well-being, creating a burgeoning demand for these natural remedies. Beyond the realms of flavor enhancement and aromatherapy, essential oils are finding applications in the healthcare and cleaning industries. In healthcare, their antimicrobial, antifungal, and anti-inflammatory properties are being harnessed in various products, such as topical creams, ointments, and even as complementary therapies. Moreover, the cleaning industry is incorporating essential oils into environmentally friendly and non-toxic cleaning solutions, meeting the growing demand for eco-conscious and safe cleaning practices. Indeed, the use of essential oils in the cosmetics industry is also experiencing significant growth in North America. Essential oils have gained popularity among consumers seeking natural and holistic skincare and beauty solutions.

The market is divided into two categories based on the nature of essential oils; conventional and organic. Because of their accessibility, affordability, and extensive application in a variety of industries, conventional oils have historically dominated the essential oil market in North America. However, there has been a discernible movement in consumer tastes, which points to the potential for organic essential oils to overtake conventional ones in the near future. Consumers today are more conscious of their impact on the environment and their health, and they look for items that share their ideals of sustainability and purity. Growing interest in organic and natural alternatives, including essential oils, has been sparked by this trend. Essential oils from organically produced plants that weren't treated with synthetic pesticides or chemicals are said to be more pure and environmentally beneficial. In addition to the consumer market, manufacturers and suppliers are also responding to consumer demand for cleaner and greener products by moving toward organic essential oils.

By the method of extraction of essential oils, the market is classified into different processes which are Distillation, Cold press extraction, Carbon dioxide extraction, Solvent extraction, and other extraction methods (resin tapping and maceration). The most widely used method for extracting essential oils in the North America is distillation, particularly steam distillation. This method is preferred for its efficiency and ability to extract essential oils from various plant materials, including flowers, leaves, stems, and roots. Steam distillation involves passing steam through plant material, causing the essential oils to evaporate and then condense into a separate container. It is a gentle method that typically preserves the aromatic and therapeutic qualities of the oils. Many essential oils commonly found in the U.S., Canada, and Mexico market, such as lavender, eucalyptus, and peppermint oils, are often produced through steam distillation. Cold press extraction, also known as cold-pressing or expression, is another method used for citrus oils like orange and lemon oils. It involves mechanically pressing the oils from the peels of citrus fruits, and it is known for producing high-quality oils that retain their natural fragrance. In Canada the most common method for extracting canola oil is solvent extraction. Carbon dioxide extraction, and other methods like resin tapping and maceration are used for specific essential oils and specific plant material.

Direct distribution, retail distribution, MLM (multilevel marketing) distribution, online, and others (craft fairs and trade shows, home parties and workshops, beauty salons, alternative medicine practitioners, etc.) are the several ways that essential oils are distributed. Various routes are commonly used to distribute essential oils in North America, although direct distribution, particularly through multi-level marketing (MLM) firms, has a substantial market share. Independent distributors, particularly those selling essential oils, frequently adopt a direct sales approach for MLM businesses. A wide network of representatives from these MLM businesses promotes and market essential oils and associated items. A sizeable market share was also controlled by the retail distribution channel, which included huge retail chains as well as stores selling natural products and health foods. With the rise in popularity of online shopping, consumers now have a convenient way to research and buy essential oils from a variety of brands and product alternatives. Online retail platforms are frequently favored by customers because they make it simple for them to compare costs, read reviews, and access a wide variety of essential oils. While alternative healthcare practitioners and beauty salons, as well as trade exhibits, home parties, and seminars, all contribute to the industry, they have a smaller market share than the aforementioned distribution channels.

Start-ups

• Young Living, one of the largest essential oil companies globally, hosts an annual convention in the United States. This event typically features product launches, educational sessions, and keynote speakers discussing the benefits and uses of essential oils.

• The Alliance of International Aromatherapists (AIA) holds a biennial conference that focuses on aromatherapy research, education, and networking. While the AIA conference occurs every two years, it often alternates between locations in North America.

• Revive is a California-based startup that offers a wide range of essential oils at affordable prices. They focus on providing pure and high-quality oils without the premium price tag, making aromatherapy more accessible to a broader audience.

• Vitruvi is a Canadian-based company that specializes in producing high-quality essential oils and diffusers. They have gained popularity for their sleek and minimalist design aesthetic, making them a favorite among consumers interested in both the aesthetics and therapeutic benefits of essential oils.

Companies Covered in this reports:

Symrise AG ,International Flavors & Fragrances, Royal DSM N.V., Givaudan SA, Cargill, Incorporated, Sensient Technologies Corporation, Robertet Group, Mane SA, Young Living, Phoenix Aromas & Essential Oils, LLC,BASF SE, Takasago International Corporation, doTerra, NOW Foods, The Lebermuth Company Inc., KAO Corporation, Edens Garden and Ultra International B.V.

Considered in this report:

• Geography: North America
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:

• North America Essential Oil market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type:

• Citrus (Oranges, Tangerines/ Mandarins, Lemons and Limes, Grapefruit)
• Rosemary Oil
• Geranium Oil
• Lavender Oil
• Rose Oil
• Peppermint Oil
• Clove leaf Oil
• Eucalyptus Oil
• Citronella Oil
• Clove Bud Oil
• Jasmine Oil
• Tea Tree Oil
• Others (Dill Seed, Saffron, Grapeseed Oil, Cumin Seed, Nutmeg, Cedarwood, Frankincense, Sandalwood, Sage, Clove bud, Myrrh Oil, Juniper Berry, Cardamom, Black pepper, Ginger, Cinnamon, Basil, Spearmint oil, Jasmine oil, Turmeric, Vetiver, Acorus Calamus, Ajowan, Carrot Seed, Cassia, Celery, Curry Leaf, Cypriol, Davana, Fennel, Garlic, Ylang ylang)

By Application:

• Food & beverages
• Cosmetics
• Aromatherapy
• Healthcare
• Home care
• Other applications (feed, insecticides, and paints)

By Nature:

• Conventional
• Organic

By Method of Extraction:

• Distillation
• Cold press extraction
• Carbon dioxide extraction
• Solvent extraction
• Other extraction methods (resin tapping and maceration)

By Distribution Channel:

• Direct Distribution
• Retail Distribution
• Mlm Distribution
• Online
• Others (Craft Fairs and Trade Shows, Home Parties and Workshops, Beauty Salons, Alternative Medicine Practitioners, etc.)

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Essential Oil industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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Manmayi Raval

Research Consultant

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