Summary

China's essential oil market is a fragrant tapestry of tradition and innovation, where ancient herbal wisdom meets modern extraction techniques. Nestled in the lush provinces of Yunnan and Guangxi, the heart of essential oil production in China, vast fields of aromatic herbs like lavender, eucalyptus, and jasmine thrive under the warm sun. These regions are known for their pristine landscapes, where the rich soil and favorable climate nurture the plants, yielding essential oils of unparalleled quality. Conversely, in the northern regions where a more temperate to subarctic climate prevails, the production of essential oils is influenced by cold-resistant plants like pine, fir, and juniper. These hardy species flourish in the colder temperatures and are used to create oils with invigorating and earthy aromas. In addition to these prominent regions, scattered pockets of essential oil production can be found throughout China, each offering a glimpse into the country's diverse botanical heritage. From the exotic frangipani of Hainan Island to the crisp mint fields of Hebei, China's essential oil production sites offer a sensory journey through a tapestry of scents and traditions that span millennia. These locations not only provide a source of high-quality oils but also a deeper connection to the rich cultural and natural tapestry of China.

According to the research report "China Essential Oil Market Overview, 2028," published by Bonafide Research, the China Essential Oil market was valued at near to USD 1.67 Billion in 2022. These years, many markets in China turn into a new stage of development. As Chinese people are seeking more and more for a better lifestyle, they are also looking for quality products. Chinese consumers like to purchase foreign brands because they are perceived as premium and reliable. There brands are with a good reputation in China including L’occitane, Innisfree, The body shop, and Miniso. China's import of essential oils primarily includes a wide range of botanical extracts sourced from countries around the world. These imported oils often cater to the diverse needs of the domestic market, which is experiencing a surge in demand for aromatherapy, traditional medicine, and cosmetics. Imports encompass essential oils from lavender fields in France, eucalyptus groves in Australia, or tea tree plantations in Australia. These foreign oils are subjected to rigorous quality control standards to ensure they meet the high expectations of Chinese consumers. On the flip side, China is also a prominent exporter of essential oils, showcasing its own diverse array of aromatic treasures. Chinese-produced oils, such as those derived from ylang-ylang, wintergreen, and ginger, find their way into international markets, contributing to the global supply chain. Chinese exporters leverage the country's advanced production techniques and competitive pricing to meet the increasing demand for essential oils in various industries worldwide.

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. The future growth of lavender oil and rosemary oil in China largely depends on several factors. As consumers in China become more health-conscious and interested in natural remedies, the demand for essential oils like lavender and rosemary continue to rise. Additionally, as the wellness and beauty sectors in China expand, these oils see increased usage in products such as skincare, shampoos, and massage oils. In China, one of the most commonly used essential oils in the food and beverages industry is Sesame Oil. Sesame oil has a rich, nutty flavor and is widely used in Chinese cuisine, especially for stir-frying and salad dressings. It adds a distinctive aroma and flavor to dishes and is highly valued for its versatility in both savory and sweet recipes. Tea tree oil Chinese is harvested and produced throughout southern China. This oil is produced on a much larger scale than its Australian counterpart, though the odor of Australian material is generally favored over Chinese. Despite this, Chinese tea tree oil's lower cost and high versatility has allowed it to remain a popular ingredient among mainstream consumers, especially those concerned with its health or skin care benefits. The Chinese variant of tea tree is also regularly used in the United States as a natural insect repellent.

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 China, 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 China 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 China was indeed experiencing a shift towards organic essential oils, reflecting a broader global trend towards natural and organic products. Consumers in China, 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 China, 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 Chinese medicine, aromatherapy, and cosmetics. Cold press extraction, which is often used for citrus fruits like oranges and lemons, is also employed in China, 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 China 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 China, 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 China, with the rise of e-commerce platforms. Many consumers in China 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.

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

Aspects covered in this report:
• China 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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