Summary

In Europe, the Increasing occurrence of health issues such as cardiovascular diseases, bronchitis, and Alzheimer’s disease, which require aromatherapy for their cure, is expected to promote the growth of the market in the region. Besides, essential oils do not have any major side effects, which may raise the European essential oil market in the near future. In the next years, there will be tremendous development prospects as people become more aware of the advantages of using aromatherapy at home to improve mood, cognitive function, and pain management. The market is no longer able to meet the fast rising customer demand for orange, lemon, and eucalyptus oils since it is growing exponentially. As they struggle to compete with other commodities and feed crops, suppliers will likewise compel to raise the pricing of aromatic crops. These elements are probably going to impede the expansion of the market being further researched in the area. The industry is expanding, nevertheless, due to rising consumer spending on personal care items and increased knowledge of the therapeutic advantages of essential oils. Additionally, the worldwide fragrance industry is being impacted by the green movement. There is a noticeable trend in Europe towards eco-friendly, light, natural, and fresh scents. Customers' preferences for natural scents, particularly light floral essential oils, have been growing significantly. In the industry under study, plants and botanical extracts are anticipated to become more popular. The market is also influenced by the numerous uses of antibiotic and antiseptic characteristics in domestic cleaning products, soap, perfumes, and cosmetics, as well as by the adoption of laws that encourage the use of ecologically friendly substances in food and beverage and cosmetics. Additionally, the market for essential oils is positively impacted by the rise in disposable income, alteration in consumer lifestyle, rise in health consciousness, and rise in demand for essential oils for a variety of uses, including boosting indoor air quality. Moreover, in the projected period of 2022 to 2028, the market players would benefit from the increase in demand for natural components.

According to the research report, “Europe Essential Oil Market Outlook, 2028” published by Bonafide Research, the market is anticipated to add more than USD 3.90 Billion from 2023 to 2028. The Provence region in south eastern France is famous for its vast lavender fields. Lavender essential oil from this region is highly sought after for its quality and is used in various products, including perfumes and cosmetics. France is renowned for its perfume industry, which relies heavily on essential oils. Grasse, a town in the French Riviera, is often considered the perfume capital of the world, where many famous perfume houses are located. Essential oils have long been used in traditional herbal medicine throughout Europe. Different regions have their own unique herbal traditions, such as German herbal remedies and English herbalism. Europe has played a significant role in the development of modern aromatherapy. Aromatherapists in Europe have researched and advanced the understanding of how essential oils can be used for therapeutic purposes. The European Union (EU) has stringent regulations in place for the production and labelling of essential oils. These regulations ensure that essential oils meet specific quality and safety standards, which has helped maintain the integrity of the industry. In European cuisine, essential oils are occasionally used to flavour dishes and beverages. For example, orange blossom water and rose water, which are derived from essential oils, are used in Middle Eastern and Mediterranean cuisine. Europe is home to a wide variety of medicinal plants, and many of them are used to produce essential oils with therapeutic properties, such as tea tree oil in Australia and thyme oil in France. Many European countries feature botanical gardens and herbal gardens that showcase a diverse range of aromatic plants and herbs. These gardens serve as educational resources and often have sections dedicated to essential oil production. Europe is home to various schools and institutions that offer professional training in aromatherapy and essential oil usage. These programs provide in-depth knowledge about the therapeutic properties of essential oils and their safe application.

Based on countries, Germany, United Kingdom, France, Italy, Spain, and Russia, among them, France is dominating the European Essential Oil market.

France has a long history of essential oil production and usage. The country's tradition in perfumery and aromatherapy dates back centuries, with established practices and expertise in cultivating aromatic plants for their oils. France's diverse climate and geography make it suitable for growing a wide variety of aromatic plants and herbs. Regions like Provence, in particular, are famous for their lavender and lavandin fields, producing high-quality lavender essential oil. France has refined the art of essential oil distillation, using traditional methods such as steam distillation and cold pressing to extract oils from plant materials while preserving their integrity. France is home to numerous well-established essential oil producers, distilleries, and perfumeries. These companies have built strong reputations for producing top-tier essential oils. France's robust perfume and cosmetics industry relies heavily on essential oils as key ingredients in their products. This demand for natural fragrances and botanical extracts further drives the essential oil market. France serves as an export hub for essential oils, supplying high-quality oils to both domestic and international markets. Its strategic location in Europe makes it accessible to many countries. France's beautiful lavender fields and aromatic gardens attract tourists interested in aromatherapy and essential oils. These visitors often purchase essential oils as souvenirs, contributing to the local market. In addition, Italy is renowned for its production of citrus essential oils, particularly from fruits like oranges, lemons, and bergamots. The Amalfi Coast and Sicily are famous for their citrus orchards, and the oils extracted from these fruits are highly valued in perfumery and aromatherapy. While France is famous for its lavender fields, Tuscany in Italy also boasts lavender plantations, particularly in the Val d'Orcia region. Tuscan lavender essential oil is prized for its fragrance and therapeutic properties.

Based on type, the market is segmented 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.

The citrus segment, which includes essential oils derived from oranges, tangerines/mandarins, lemons, limes, and grapefruit, is expected to hold a significant market share in the European essential oil market. Citrus essential oils are known for their fresh, uplifting, and invigorating scents. These fragrances are highly sought after in various industries, including perfumery, cosmetics, and household products. The pleasing aroma of citrus oils makes them a popular choice among consumers. Citrus essential oils have versatile applications. They are used not only in personal care and cosmetics but also in cleaning products, air fresheners, and food flavorings. This versatility contributes to their strong market presence. As consumers in Europe increasingly seek natural and organic products, the demand for citrus essential oils has grown. These oils are often considered more natural alternatives to synthetic fragrances and flavors. Citrus essential oils are commonly used in air fresheners, diffusers, and scented candles. Their pleasant and refreshing aromas are favored for creating a welcoming and clean atmosphere in homes and commercial spaces. In addition, Europe has witnessed a significant trend toward natural and organic skincare and cosmetic products. Tea tree oil is renowned for its antimicrobial, anti-inflammatory, and acne-fighting properties, making it a valuable ingredient in these products. Consumers seek natural alternatives to synthetic and potentially harsh ingredients. Europe places a strong emphasis on skin health and dermatological care. Tea tree oil's effectiveness in treating various skin conditions, such as acne, eczema, and fungal infections, has led to its incorporation into skincare products, including serums, creams, and facial cleansers.

In terms of application, the market is divided into food and beverages and cosmetics. Aromatherapy, healthcare, home care, and other applications (feed, insecticides, and paints).

The cosmetics segment was expected to have the highest CAGR during the forecast period in the European essential oil market. European consumers have shown a growing preference for natural and organic cosmetic products. Essential oils are prized ingredients in the cosmetics industry due to their natural and botanical origins. They are used in a wide range of products, including skincare, hair care, perfumes, and makeup. The "clean beauty" movement, which emphasizes transparency in ingredients and avoidance of harmful chemicals, has gained traction in Europe. Essential oils are viewed as clean and safe ingredients, making them attractive to consumers seeking healthier alternatives in their beauty routines. Many essential oils offer therapeutic benefits for the skin, hair, and overall well-being. For example, lavender oil is known for its soothing properties, while tea tree oil has antibacterial and acne-fighting qualities. These therapeutic benefits contribute to the use of essential oils in cosmetics. Essential oils like rosehip, frankincense, and geranium are used in anti-aging and skincare formulations. They are believed to promote skin rejuvenation, reduce wrinkles, and improve skin texture, making them valuable additions to cosmetics designed for mature skin. The cosmetics industry in Europe is embracing green and sustainable practices. Essential oils, especially when sourced responsibly and produced using eco-friendly methods, align with these sustainability goals. Consumers are more likely to choose products that emphasize environmental responsibility.

The market is segmented into two categories: conventional and organic, based on nature.

The conventional (non-organic) segment in the European essential oil market was expected to hold the highest market share. Conventional essential oil production has a long history in Europe. Many established producers have been using conventional farming methods for generations. This history and experience have contributed to the dominance of conventional essential oils. Conventional farming often involves the use of synthetic pesticides and fertilizers, which can lead to higher yields and cost-effective production. This cost efficiency can make conventional essential oils more competitively priced. Conventional farming practices can provide more consistent yields and quality due to the use of pesticides and fertilizers, which help control pests and diseases. This consistency is particularly important for industries like perfumery and cosmetics, where specific scent profiles must be maintained. Some producers employ hybrid farming practices that incorporate conventional methods while minimizing the use of synthetic inputs. This allows for a balance between cost-effective production and reduced environmental impact. In a highly competitive market, cost considerations play a significant role. Conventional essential oils, produced using cost-effective methods, are preferred by manufacturers looking to maintain competitive pricing for their products.

Based on the method of extraction, the market is segmented into distillation, cold press extraction, carbon dioxide extraction, solvent extraction, and other extraction methods (resin tapping and maceration).

Carbon dioxide (CO2) extraction was gaining traction and expected to have a highest CAGR in the European essential oil market. CO2 extraction is a method known for producing high-quality and pure essential oils. CO2 extraction is a gentle and non-destructive method that can produce essential oils of exceptional purity and quality. It does not involve the use of heat, which can degrade the aromatic compounds in the oils. This high-quality output appeals to manufacturers and consumers looking for premium products. CO2 extraction uses carbon dioxide, a naturally occurring gas, as the solvent. Unlike some other extraction methods that may use harmful chemicals, CO2 extraction is non-toxic and environmentally friendly. This aligns with the growing demand for sustainable and eco-friendly products in Europe. CO2 extraction leaves behind minimal to no solvent residue in the final product, ensuring the purity and safety of the essential oil. This is crucial for products used in cosmetics, skincare, and aromatherapy, where safety is a top priority.

In terms of distribution channels, the market is divided into direct distribution, retail distribution, MLM distribution, online distribution, and others.

The direct distribution segment in the European essential oil market was expected to hold a significant market share and was likely to continue growing. Direct distribution allows consumers to establish a direct connection with essential oil producers or manufacturers. This transparency builds trust, as consumers can inquire about the sourcing, quality, and production methods of the oils. When consumers purchase essential oils directly from producers, they often receive assurances of product quality and authenticity. They can trust that the oils have been handled and packaged with care, reducing concerns about adulteration or contamination. Many direct distribution models offer customization options, allowing consumers to request specific blends or formulations tailored to their needs. This level of personalization is attractive to those seeking unique and targeted essential oil products. Direct distribution channels cater to both individual consumers and businesses. Many producers offer bulk and wholesale options, making it convenient for retailers, spas, and wellness centers to source essential oils directly. Some producers offer subscription-based models, where consumers receive regular deliveries of their favorite essential oils. These subscription services provide convenience and consistency for consumers. For instance, some popular direct distributors of essential oils in Europe include Edens Garden, Mountain Rose Herbs, GuruNanda, Neal’s Yard Remedies, AromaEasy, DoTerra, Young Living. These distributors sell essential oils directly to consumers through their websites, online shops, or retail stores. They offer a wide variety of essential oils, including single oils, blends, and carrier oils. They also offer a variety of other products, such as diffusers, essential oil rollers, and aromatherapy candles.

Recent Developments:

• May 2022: KMI Brands' entrance into the wellness industry in the United Kingdom was signalled by the introduction of Plantopia, a wellness brand that also sells essential oils. Noughty Hair & Body Care is
produced by KMI Brands, which is also authorised to distribute Ted Baker Toiletries and Fragrances.

• Myrissi was purchased by Givaudan in France in February 2022. Myrissi's expertise in AI would help Givaudan offer cutting-edge organoleptic techniques to customers, enabling Givaudan's long-term fragrance (including essential oils) & beauty strategy.

• December 2021 marks the announcement of First Natural Brands' plans to grow worldwide with the aid of a EUR 6.25 million finance package from Santander UK, a West Sussex-based manufacturer of wellness products and essential oils.

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, doTerra, Biolandes SAS, KAO Corporation and Ultra International B.V.

Considered in this report

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

Aspects covered in this report

• Europe Essential Oil market Outlook with its value and forecast along with its segments
• Country-wise Essential Oil market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Country covered in the report:

• Germany
• United Kingdom
• France
• Italy
• Spain
• Russia

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 and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone 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 making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the Essential Oil industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.






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