According to a new report Transparency Research, the Global Essential Oil Market, “The essential oil market is booming and is forecasted to grow $27.49 billion by 2022. This reflects a huge growth from 2017 when the market was valued at $17.36 billion. The growth is projected at a CAGR of 9.60% during the forecast period ranging from 2017 to 2022.
Booming beauty and personal care industry is driving sales in the market and is boosting growth in the industry. The increasing use of essential oils in aromatherapy is mainly responsible for boosting growth. The report mentions that improving lifestyles and rising demand for personal care and increase in wellness activities such as aromatherapies have created a rising demand for the essential oil market.
The market consists of highly fragmented and competitive suppliers. The report states, “Such a fragmented presence is mainly due to the presence of innumerable players in the market. Many companies are focusing on improving their oil product manufacturing techniques, thereby enhancing customer retention by providing quality essential oils.”
The essential oil market has a low entry barrier coupled with relatively easy techniques of manufacturing — and this “intensifies competition” the report explains.
Key strategies for companies in this market include achieving product differentiation, improving geographical reach, and increasing manufacturing capacity.