Summary

In the heart of Canada, essential oils have become more than just fragrant drops in a bottle; they're a source of well-being that transcends seasons. Canadians have embraced these aromatic elixirs with open arms, incorporating them into their daily routines. From the crisp, invigorating scent of peppermint oil on a frosty winter morning to the soothing embrace of lavender oil on a summer evening, essential oils have woven themselves into the fabric of Canadian life. In cozy homes, yoga studios, and even bustling city offices, these natural wonders find their place, offering relief from the stresses of modern life and connecting people to the beauty of the great outdoors. From the majestic forests of British Columbia, where fir and cedar wood oils are extracted, to the lavender fields of Ontario and Quebec, each province contributes its unique essence to this flourishing industry. In Canada, the production and sale of essential oils are subject to strict rules and standards to ensure safety and quality. Health Canada oversees the regulation of essential oils, classifying them as natural health products. In 2020, Canada shipped 965 tons of essential oils and in 2019; Canada shipped 753 tons of essential oils. This shows that the demand for essential oils in Canada is increasing the volume of essential oil consumed in Canada per year is likely to be higher than the amount shipped, as some essential oils are produced domestically. Additionally, some essential oils are imported into Canada and then re-exported.

According to the research report "Canada Essential Oil Market Overview, 2028," published by Bonafide Research, the Canada Essential Oil market was valued at near to USD 0.71 Billion in 2022. 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. One prominent trend is the increasing demand for natural and sustainable products. The diverse climate in Canada greatly influences the types of plants that can be cultivated for essential oil production. In regions with colder climates, such as the Canadian Prairies, encompassing Alberta, Saskatchewan, and Manitoba, is known for growing and distilling oils from plants like peppermint and wild sage. The Maritimes, including provinces like Nova Scotia and New Brunswick, also play a role in the essential oil market by producing oils from botanicals that thrive in their coastal climates. In Canada, several festivals and events are linked with the essential oil market, celebrating the aromatic and therapeutic qualities of these natural treasures. "Lavender Festival" held in various provinces, particularly in Ontario and Quebec, where lavender fields flourish. These festivals typically take place during the summer months when lavender is in full bloom. Another event of significance is the "Herb and Essential Oil Festival," which showcases a wide array of herbs and essential oils, including their culinary and wellness applications. These festivals often feature workshops, demonstrations, and vendor booths offering a diverse range of herbal and essential oil products. Canada engages in a dynamic import and export trade of essential oils, reflecting the country's participation in the global essential oil market. In terms of imports, Canada sources essential oils from various countries around the world, including both developed and emerging markets. These imports cater to the diverse needs of the Canadian market, supplying a wide range of essential oil varieties used in aromatherapy, personal care products, food and beverages, and other industries. On the export front, Canada is known for its high-quality essential oils, particularly those sourced from native plants such as cedar wood, fir, and pine. Canadian essential oil exports are sought after globally for their purity and therapeutic qualities. The United States, Europe, and Asia are significant destinations for Canadian essential oil exports.

According to the type of essential oils, the report is distinguish into 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, and 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). In the Canadian food and beverage industry, one of the most preferred and consumed types of oil are canola oil. While canola oil is mostly used in the Canadian food and beverage industry, other oils like olive oil, sunflower oil, and soybean oil also find their place in various culinary applications. Whereas, Citrus oil dominates the Canadian market, and among all one of the essential oil raw materials that is highly produced is the lavender plant. Lavender is cultivated in several provinces, particularly in Ontario and Quebec. These regions have favorable climates and soil conditions for lavender cultivation, making Canada known for its high-quality lavender essential oil. Rosemary oil has gained a notable presence in the Canadian market, offering a fragrant and versatile option in the realm of essential oils. Frankincens is a very reliable essential oil, with potent anti-inflammatory properties, Peppermint oil, and Sweet Orange oil are the top 3 essential oils used during winter in Canada.

Based on the application of essential oils, the report is divided into Food & beverages, Cosmetics, Aromatherapy, Healthcare, Home care, and other applications (feed, insecticides, and paints). In Canada, the food and beverages industry holds the largest market share whereas the industry with a significant market for essential oil usage is the personal care and cosmetics industry. Essential oils are widely incorporated into various personal care and cosmetic products due to their aromatic and potential therapeutic properties. These oils are used in skincare, hair care, bath and body products, perfumes, and more. In aromatherapy, rosemary oil is valued for its stimulating and mental clarity-enhancing properties. It is often used to improve focus, boost energy, and combat mental fatigue, making it a popular choice for those seeking increased productivity and mental alertness. In the healthcare industry of Canada, essential oils have emerged as valuable assets in promoting holistic well-being and complementing traditional medical practices. These aromatic extracts from nature are gaining recognition for their potential therapeutic benefits, making their usage increasingly prevalent in various healthcare settings. Essential oils such as lavender, chamomile, and frankincense are diffused in patient rooms or used in massage and inhalation therapies to enhance relaxation and emotional well-being. Naturopathic doctors, chiropractors, and holistic healthcare practitioners often incorporate essential oils into their treatment plans for conditions ranging from chronic pain to sleep disorders. Oils like peppermint, eucalyptus, and tea tree are utilized for their potential anti-inflammatory, analgesic, and antimicrobial properties. Furthermore, essential oils are becoming popular in home healthcare, with many Canadians using them for self-care and first-aid purposes. Tea tree oil, for example, is commonly used as a natural antiseptic, while eucalyptus oil is favored for respiratory support.

By the Nature of Essential Oil, the market is distinguished into Conventional type and organic type. In the Canadian essential oil market, conventional essential oils have historically held the highest market share, catering to a wide range of consumers. However, there is a noticeable shift in consumer preferences towards organic and natural products, reflecting a broader global trend towards healthier and environmentally conscious choices. As consumers in Canada become more aware of the potential benefits of organic essential oils, including their purity and sustainability, the demand for organic varieties is expected to rise significantly in the coming years. Furthermore, the certification of organic essential oils provides consumers with a level of trust and assurance in the product's authenticity and quality. As more consumers seek out organic options for their wellness and aromatherapy needs, it is likely that organic essential oils will gain dominance in the Canadian market, offering a pure and sustainable choice for those who value both their well-being and the planet's health. This transition towards organic essential oils not only signifies a shift in consumer preferences but also reflects a broader commitment to a more natural and eco-conscious way of living in Canada.

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 common method for extracting canola oil is solvent extraction. In Canada, the method of extraction for essential oils can vary depending on the specific plant material and the desired quality of the oil. However, the most commonly used extraction methods in the Canadian essential oil market are distillation and cold-press extraction. Carbon dioxide (CO2) extraction was gaining recognition and popularity in the Canadian essential oil market due to its efficiency and ability to produce high-quality oils. CO2 extraction is a solvent-free method that uses pressurized carbon dioxide to extract essential oils, preserving the purity and aroma of the oils without leaving behind any solvent residues.

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.). The distribution channels for essential oils in Canada were diverse, but the retail distribution channel, which includes health food stores, pharmacies, and specialty stores, often had a significant market share. Direct distribution, such as sales directly from manufacturers or distributors to consumers, and online sales were also prominent channels, with many consumers preferring the convenience of online shopping. The popularity of essential oils has led to their availability in a wide range of outlets, including brick-and-mortar retail stores, online marketplaces, and direct sales channels like Multi-Level Marketing (MLM) companies. Additionally, alternative medicine practitioners, beauty salons, and wellness centers often sell essential oils as part of their services.

The COVID-19 pandemic has had both positive and negative effects on the essential oil market in Canada. On the positive side, the pandemic heightened public awareness of health and wellness, leading to increased interest in natural and holistic remedies, including essential oils. Many Canadians turned to aromatherapy and essential oils as a means to reduce stress, anxiety, and promote relaxation during the challenging times of lockdowns and social distancing measures. Additionally, the pandemic accelerated the growth of e-commerce, making it easier for consumers to access essential oils online. This shift in consumer behavior boosted online sales for essential oil retailers and allowed consumers to explore a wider range of products and brands. However, the pandemic also posed challenges for the essential oil market in Canada. Supply chain disruptions and travel restrictions impacted the sourcing and distribution of essential oils, leading to potential delays and fluctuations in availability. Furthermore, the economic impact of the pandemic affected consumer spending, potentially influencing purchasing decisions in the essential oil market.

Considered in this report:
• Geography: Canada
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• Canada 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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