Asia-Pacific Essential Oil Market Outlook, 2028

Nestled amidst the lush landscapes of the Asia Pacific region lays a treasure trove of aromatic wonders, where nature's essence takes center stage in the form of essential oils. From the fragrant orchards of Thailand to the serene tea plantations of Sri Lanka, this diverse and vibrant region is a cornucopia of botanical delights. Asia Pacific's essential oils market is a symphony of scents and cultures, where ancient traditions meet modern wellness trends. The intoxicating aroma of lavender fields in the Himalayas, the zesty burst of citrus from Australian groves, and the soothing embrace of Japanese hinoki wood oils all find their place in this olfactory tapestry. As consumers seek holistic well-being and sustainable living, Asia Pacific's essential oils market continues to flourish, offering a fragrant journey through the bountiful landscapes and centuries-old wisdom of this remarkable region. Countries like India, China, and Indonesia have a long history of using essential oils in Ayurveda, Traditional Chinese Medicine, and other indigenous healing systems. The artistry of essential oil extraction is not just a trade but a cultural heritage, passed down through generations, connecting people to the land and the aromatic treasures it bestows. From the ancient rituals of Ayurveda in India to the traditional Balinese healing ceremonies, essential oils play a pivotal role in holistic wellness and spiritual practices across the region.

According to the research report "Asia Pacific Essential Oil Market Outlook, 2028," published by Bonafide Research, the Asia Pacific Essential Oil market was valued at near to USD 4.45 Billion in 2022. The essential oil market in the Asia Pacific region is experiencing unprecedented growth and transformation. With a rich tapestry of botanical resources and traditional knowledge, this market has emerged as a global powerhouse in recent years. As consumers increasingly prioritize natural and holistic approaches to health and well-being, the demand for essential oils has surged. Moreover, the Asia Pacific region's focus on sustainability and eco-conscious practices has further propelled this growth. Many companies are now investing in environmentally friendly cultivation and extraction methods, ensuring that the production of essential oils aligns with the principles of responsible sourcing. In the dynamic landscape of the essential oil market in the Asia Pacific region, China stands as a dominant force and thus the China Essential Oil market was valued at near to USD 1.67 Billion in 2022. With its vast and diverse geography, China boasts an extensive array of botanical resources, contributing to its leading role in the production and export of essential oils. From the fragrant fields of lavender in Yunnan to the aromatic tea plantations of Fujian, China's essential oil industry spans a wide spectrum of scents and applications. Following closely behind China's prominence, Japan and India emerge as significant players in this aromatic journey. Japan, renowned for its meticulous attention to detail and centuries-old traditions, produces high-quality essential oils such as hinoki wood and yuzu, cherished both for their therapeutic properties and cultural significance. Meanwhile, India's rich heritage of Ayurveda and spice cultivation lends itself to the production of essential oils like sandalwood, basil, and frankincense, capturing the essence of wellness and spirituality.

The report has been divided into categories based on the types of essential oils. Citrus oils (Oranges, Tangerines/Mandarins, Lemons and Limes, Grapefruit), Geranium oils, Lavender oils, Rose oils, Peppermint oils, Clove leaf oils, Eucalyptus oils, Citronella oils, Clove Bud oils, Jasmine oils, Tea Tree oils, and others (Dill seeds, Saffron, Grapeseed oils, Cumin seeds, Nutmeg, Cedarwood oils, Frankincense oils, 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).
The citrus oils dominate the Chinese market but one of the most commonly used essential oils in China is eucalyptus oil. Eucalyptus oil is known for its soothing effects on respiratory issues and is often used in traditional Chinese medicine for its therapeutic benefits in treating coughs and congestion. Lavender oil and rosemary oil also have a growing presence in the Chinese market. One of the essential oils that are most commonly produced in Japan is yuzu essential oil. Yuzu (Citrus junos) is a citrus fruit native to East Asia and is especially popular in Japanese cuisine and culture and dominates the china market. In Australia country, tea tree oil, known for its antiseptic and medicinal properties, is primarily cultivated in the northern regions of New South Wales and Queensland.One of the most notable oil produced in South Korea is the Korean Pine (Pinus koraiensis), which is primarily grown for its pine needle essential oil. Lavender essential oil is beloved for its calming and soothing properties and in whole Asaia pacific region it also shows the great CAGR for the year 2023-2028.

Based on the Application segment, the report is further distinguished into Food & beverages, Cosmetics, Aromatherapy, Healthcare, Home care, and other applications (feed, insecticides, and paints). In Asia Pacific region, the food and beverages industry has indeed been one of the primary sectors where essential oils find extensive usage. Essential oils are commonly used in food products, such as flavorings and fragrances, to enhance the taste and aroma of various dishes and beverages. Additionally, they are employed in the production of herbal teas, candies, and even alcoholic beverages. The food industry values essential oils for their natural and aromatic qualities, as well as their potential health benefits when used judiciously. Looking to the future, the homecare industry in Asia Pacific is poised to witness significant growth in the usage of essential oils. Essential oils, known for their antimicrobial, antifungal, and aromatic properties, can serve various purposes in homecare products. These include air fresheners, cleaning agents, laundry detergents, and personal care items like soaps and candles. As Chinese consumers increasingly prioritize eco-friendly and natural alternatives in their households, the demand for essential oils in homecare products is likely to rise. Manufacturers also explore the development of innovative and sustainable solutions in response to this trend.

By the Nature of essential oils, the report is further categorized into Conventional type and Organic type. The essential oil market in Asia Pacific was indeed experiencing a shift towards organic essential oils, reflecting a broader global trend towards natural and organic products. Consumers in Asia Pacific, like in many other parts of the world, were becoming more health-conscious and environmentally aware, which led to an increased interest in organic and natural alternatives. While organic essential oils were gaining popularity, it's essential to notice that conventional essential oils still held the highest market share. This was primarily because conventional essential oils were more widely available, often at a lower price point, and were used in a variety of industries, including food, cosmetics, and personal care.

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). In Asia Pacific, the distillation method is one of the most widely used processes for extracting essential oils and dominates the market. This process is particularly popular for extracting essential oils from a variety of aromatic plants, such as lavender, eucalyptus, and peppermint, which are commonly used in traditional Asia Pacific medicine, aromatherapy, and cosmetics. Cold press extraction, which is often used for citrus fruits like oranges and lemons, is also employed in Asia Pacific, especially for obtaining citrus essential oils used in food and beverage flavorings. Carbon dioxide extraction, known for producing high-quality essential oils, used in more specialized applications and industries and holds the highest CAGR for 2023-2028. Solvent extraction, while effective, is less common in Asia Pacific due to concerns about residual solvents in the final product and a preference for more natural extraction methods.

According to the distributional channel of essential oils, 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.). In Asia Pacific, the retail distribution channel traditionally played a significant role in the essential oil market and also holds the largest CAGR. Essential oils are commonly available in retail stores, including health food stores, pharmacies, and specialty beauty shops. Consumers browse and purchase these products in physical stores, which made retail distribution a prominent channel. Online distribution has also been growing rapidly in Asia Pacific, with the rise of e-commerce platforms. Many consumers in Asia Pacific prefer the convenience of shopping online, and essential oils have become increasingly accessible through popular online marketplaces and dedicated e-commerce websites. Direct distribution holds the largest market share whereas, the MLM (Multi-Level Marketing) distribution channels have been present but have smaller market shares compared to retail and online distribution. The Others category, which includes craft fairs, trade shows, home parties, and beauty salons, also contribute to the essential oil market but not have as extensive reach as the other distribution channels.

During lockdowns and economic uncertainties, consumer spending on non-essential items, including aromatherapy and wellness products, declined. This impacted the demand for essential oils used in these sectors. The pandemic disrupted global supply chains, affecting the import and export of essential oils and raw materials. This led to shortages and delays in production, impacting the availability of certain essential oils. The pandemic also heightened awareness of health and wellness, leading to increased interest in natural remedies and aromatherapy. This boosted the demand for essential oils believed to have therapeutic benefits. Many people turned to do-it-yourself (DIY) projects with essential oil usages and self-care routines during lockdowns. Essential oils were used in homemade cleaning products, personal care items, and for relaxation, stimulating sales in these areas.

Start-ups

• AromaEasy is a direct-to-consumer essential oil brand that sells a variety of essential oils, diffusers, and other products. The company has risen over $100 million in funding and is one of the most popular essential oil brands in China.

• Plant Apothecary is a natural skincare brand that uses essential oils and other plant-based ingredients. The company's products are sold in over 20 countries and have been featured in publications such as Vogue and Harper's Bazaar.

• The International Aromatherapy Conference and Trade Show is a leading event for the aromatherapy industry in Asia. The event features educational sessions, product demonstrations, and networking opportunities.

• The Essential Oils Summit is a conference and trade show for the essential oil industry in Australia. The event features educational sessions, product demonstrations, and networking opportunities.

Companies Covered in this report:

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, Mangalam Organics Limited, doTerra, KAO Corporation and Ultra International B.V.

Considered in this report:

• Geography: Asia Pacific
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:

• Asia Pacific 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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