Essential Oil and Oleoresins Market

Essential Oil and Oleoresins Market Size Analysis

According to a recent survey conducted by ChemView Consulting, the Global Essential Oil and Oleoresins Market grew at a CAGR of 5.1% between 2017-2021 and is estimated to be US$ 14,598.2Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 5.8% and is expected to reach a valuation of US$ 25,654.1Mn by 2032 end.

The food and beverage sectors mostly employ essential oils, raw components obtained from plants, to improve the flavor and scent of food products. Oleoresins, one of the finest sources of essential oil, are where they are received. These essential oils are particularly well-known for their potent flavour, smell, and health advantages.

Essential oils are volatile chemical molecules or substances extracted from aromatic plants. They are mostly removed through the distillation process and are increasingly employed in foods, beverages, air fresheners, cosmetics, fragrances, and other products.

Oleoresins and essential oils can both be produced through distillation or solvent extraction. In the scent market, essential oils and synthetic compounds are in severe competition because both can be used to enhance the aroma and flavor of food.

Market Dynamic

GROWING DEMAND IN THE FOOD AND BEVERAGE INDUSTRY DRIVES THE GROWTH OF THE MARKET

Since customers are shifting to consuming food products made from natural sources, demand for essential oils and oleoresins has increased across several end-user industries, including drinks, bakery and confectionery, soup, and curry powder.

Solvent extraction is a method used to extract essential oils from botanical sources. They are used in the food and beverage industries because of their distinctive scent. Additionally, they are employed in producing cosmetics and natural perfumes in the fragrance and taste business. These features are expected to cause the market for essential oils and oleoresins to develop significantly during the next years.

Numerous end-user industries, including those in soup, beverage, baking, confectionery, and many others, are experiencing increased demand for essential oils. Consumers’ growing demand for tasty food is another force facilitating the growth of the global essential oils and oleoresins market.

HIGH PRICES OF ESSENTIAL OIL PRODUCTS MAY RESTRAIN THE GROWTH OF THE MARKET

The rise in the cost of premium goods made with essential oils poses a danger to the expansion of the world market for oleoresins and essential oils. When products are expensive on the worldwide market, consumers are frequently demoralized.

Consumers will migrate to consuming goods of similar quality but at a lower price if a product’s price increases. And this will restrain the expansion of the world market for oleoresins and essential oils. Lack of labor for manufacturing processes and retail sales is another factor preventing the worldwide market growth for essential oils and oleoresins.

INCREASE IN DEMAND FOR FEED PHYTOGENICS

A class of organic components called feed phytogenics or plant-based feed phytogenics, including herbs, essential oils, and oleoresins, are employed in animal nutrition. They are crucial in ensuring that livestock receives balanced nutrition. The increase in demand for various animal products including eggs and meat, primarily drives the market for oleoresins.

Growers feed animals with various items that boost their performance and productivity to ensure they get enough nutrients for greater growth and development and, eventually, higher-quality animal products. Depending on the livestock’s nutrient needs and feed consumption, different feed phytogenics are included.

Market Segments Covered in Report

By Type:

• Black Pepper
• Cardamom
• Capsicum
• Turmeric
• Cinnamon
• Others

By Application:

• Food and Beverages
• Confectionery
• Pharmaceutical
• Cosmetics and Personal Care
• Others

By Distribution Channel:

• Direct Sales
• Indirect Sales

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

Which application is increasing in its demand in the anticipated period?

Due to the widespread use of oleoresins, which add a natural flavor and smell to confections and beverages, the food & beverage segment is predicted to lead the market among the various applications of plant extracts. The advantages of using products infused with natural substances, such as oleoresins, are becoming better known to consumers.

Along with this, busy lifestyles, an increase in antibiotic allergies among people, the growing vegan population, and growing awareness of the negative effects of high doses of allopathic medicine all contribute to the growth of this application.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• With a market share of 57.0%, the Asia Pacific region is expected to develop at a substantial rate in the essential oil and oleoresin market over the forecast period. The expansion of related businesses, including pharmaceuticals, food, and drinks, is blamed for the market expansion in the area.
• Due to the region’s expanding food and beverage industry, Europe is predicted to provide tremendous potential opportunities for the essential oil and oleoresins market. The European essential oils and oleoresins market represents 39.1% of the global market.

Competition Analysis

Due to a large number of competitors, there is intense competition in the industry.

The recent developments in the Global Essential Oil and Oleoresins Market:

• In August 2022, a new nutrition center for Trailblazer student-athletes will be established thanks to a five-year agreement between Utah Tech University Athletics and d?TERRA, according to an announcement made on Thursday.

A list of some of the key suppliers present in the market are:

• doTERRA International LLC
• Mountain Rose Herbs, Inc.
• Synthite Industries Ltd.
• Clarion Casein Ltd.
• Universal Oleoresins Private Limited
• Young Living Essential Oils LC
• Natures S.A
• Alchem International Ltd.
• Indena S.p.A
• Kancor Ingredients Ltd.

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectional analysis at global and country levels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.