Summary

In the ever-evolving world of wellness, the essential oil market stands as a fragrant testament to nature's potent treasures. Like mystical elixirs distilled from the heart of the earth, these aromatic extracts have woven themselves into our daily lives, offering a sensory journey that transcends the ordinary. With a tapestry of scents ranging from the soothing embrace of lavender to the invigorating zest of citrus, the essential oil market has become a playground for olfactory exploration. In the United States, the usage of essential oils has seen a remarkable surge in recent years, transcending their way into countless homes, creating a fragrant tapestry of well-being. These aromatic extracts, often derived from plants and herbs, are employed for a myriad of purposes, ranging from relaxation and stress relief to natural remedies for common ailments. Whether diffused in elegant ultrasonic diffusers, mixed into homemade skincare concoctions, or incorporated into yoga and meditation routines, essential oils have become an essential part of daily self-care rituals. As Americans increasingly prioritize holistic health and wellness, the art of essential oil usage continues to evolve, fostering a sense of balance and serenity in the fast-paced modern lifestyle. The Unites States Department of Agriculture has sets Food Standards and Labeling Policy for essential oils. In the United States, the import and export of essential oils are integral components of the global aromatic and wellness industries. The country's demand for essential oils is met through imports from diverse sources around the world. Notably, essential oils are imported from various countries renowned for their botanical resources and expertise in extraction techniques. Key importing countries include France, India, China, Canada, and Australia, among others. American essential oil producers export their products to countries across the globe, with the United Kingdom, Germany, Japan, and Canada being some of the prominent destinations.

According to the research report "United States Essential Oil Market Overview, 2028," published by Bonafide Research, the United States Essential Oil market is expected to grow at more than 6.48% CAGR from 2023 to 2028. The growing preference for essential oils in the United States is akin to a fragrant revolution, a movement toward holistic well-being and natural remedies deeply rooted in tradition yet flourishing in the modern age. This preference is driven by a yearning for authenticity, a desire to reconnect with nature's gifts, and recognition of the body's innate capacity to heal itself. In United States, Indiana, and Pacific Northwest (Oregon and Washington) is major producer of peppermint and spearmint, contributing to the production of mint essential oils. The state's climate and soil conditions are conducive to mint cultivation. California is a significant producer of citrus fruits, including oranges, lemons, and grapefruits. Additionally, California is known for the cultivation of herbs like rosemary and sage, used in essential oil production. States in the southern part of the country, such as Texas and Louisiana, are known for growing various herbs, including thyme, oregano, and basil, which are used in essential oil production. Hawaii's unique climate and terrain support the cultivation of tropical plants, such as lemongrass and ginger, used to produce essential oils. There are several festivals and events that celebrate the world of essential oils, providing a vibrant platform for enthusiasts, producers, and consumers to come together and explore the diverse aspects of this aromatic industry. One such event is the "Aromatherapy Awareness Week," which typically takes place in late June. It serves as an educational opportunity to promote awareness and understanding of aromatherapy and essential oils, featuring workshops, seminars, and product showcases. Another notable gathering is the "Young Living International Grand Convention," organized by one of the largest essential oil companies globally, Young Living. This convention attracts thousands of attendees from around the world and offers a dynamic blend of workshops, product launches, and inspirational speakers. It's a hub of knowledge exchange and networking within the essential oil community. The export price per kilogram of Essential Oils from the US over the last few years has seen a steady increase. In 2017, the price was 22.68 USD per kg, and by 2021, it had risen to 34.04 USD per kg. The volume of essential oils exported by US in 2020 was 13,687 metric tons. In 2019 US sold 12,475 tons of essential oils.
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The report has been segmented on the basis of Type of essential oils. These types includes 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). According to this, the Citrus Oil dominates the market. In the United States, one of the most preferred and commonly consumed types of essential oil in the food and beverage industry is citrus essential oils, particularly orange and lemon oils. These oils are prized for their vibrant and natural citrus flavors, which add a burst of freshness to a wide range of food and beverage products. Peppermint oil is one of the most commonly produced essential oils in the United States. Peppermint oil is used for aromatherapy, in personal care products, as a flavoring agent in food and beverages, and in various medicinal and therapeutic applications. As this aromatic trend continues to flourish, lavender oil production will dominant the United States essential oil market, and serving as a fragrant reminder of the enduring connection between nature, well-being, and the pursuit of balance in daily lives. The widespread use of lavender oil can be attributed to its well-documented calming and stress-relieving properties.

On the basis of Application of essential oils, in United States food and beverage industry dominate the essential oils market, particularly citrus oils for flavoring. Following this the Aromatherapy, in particular, has gained widespread popularity within the wellness and personal care sector. Essential oils are used in aromatherapy practices to promote relaxation, stress relief, improved sleep, and overall mental and emotional well-being. In the United States, the cosmetics industry has the highest CAGR driving the usage of essential oils. The beauty and skincare sector has experienced a significant transformation in recent years, marked by a growing consumer preference for natural and plant-based ingredients. This shift has propelled essential oils into the spotlight as key components of a wide range of cosmetic and personal care products. Consumers are increasingly drawn to cosmetics that not only enhance their appearance but also provide holistic benefits for the skin and well-being. Essential oils, with their natural origins and potential therapeutic qualities, cater to this demand perfectly. Furthermore, the trend towards clean and green beauty products has propelled essential oils to the forefront, as they align with the desire for safe and eco-conscious alternatives to synthetic ingredients.

By the Nature of Essential Oil, the market is distinguished into Conventional type and organic type. The essential oil market in the United States has traditionally been dominated by conventional oils, largely driven by their availability, cost-effectiveness, and widespread use across various industries. However, there is a noticeable shift in consumer preferences that suggests organic essential oils are poised to take center stage in the near future. Consumers today are increasingly mindful of their health and environmental impact, seeking products that align with their values of sustainability and purity. This trend has spurred a growing interest in organic and natural alternatives, extending to essential oils. Organic essential oils, sourced from plants grown without synthetic pesticides or chemicals, are seen as a purer and more environmentally friendly option. This shift towards organic essential oils is not only seen in the consumer market but also among manufacturers and suppliers who are responding to the demand for cleaner and greener products.

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 widely used method for extracting essential oils in the United States is distillation, particularly steam distillation. This method is preferred for its efficiency and ability to extract essential oils from various plant materials, including flowers, leaves, stems, and roots. Steam distillation involves passing steam through plant material, causing the essential oils to evaporate and then condense into a separate container. It is a gentle method that typically preserves the aromatic and therapeutic qualities of the oils. Many essential oils commonly found in the U.S. market, such as lavender, eucalyptus, and peppermint oils, are often produced through steam distillation. Cold press extraction, also known as cold-pressing or expression, is another method used for citrus oils like orange and lemon oils. It involves mechanically pressing the oils from the peels of citrus fruits, and it is known for producing high-quality oils that retain their natural fragrance. While carbon dioxide extraction, solvent extraction, and other methods like resin tapping and maceration are used for specific essential oils and in certain applications, they are not as commonly utilized in the United States compared to distillation and cold press extraction.

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 of essential oils in the United States typically involves a mix of various channels, but direct distribution, particularly through multi-level marketing (MLM) companies, had a significant market share. MLM companies often use a direct sales model, where independent distributors sell products directly to consumers, including essential oils. These MLM companies have extensive networks of representatives who promote and sell essential oils and related products. Additionally, the retail distribution channel, including health food stores, natural product stores, and even larger retail chains, also held a substantial market share. Online shopping has become increasingly popular, offering consumers a convenient way to explore and purchase essential oils from a wide range of brands and product options. Consumers easily compare prices, read reviews, and access a broad selection of essential oils, making online retail platforms a preferred choice for many. While other distribution channels like craft fairs, trade shows, home parties, and workshops, as well as beauty salons and alternative medicine practitioners, contribute to the market, they have a smaller market share compared to the aforementioned channels.

The COVID-19 pandemic, while predominantly associated with hardship and challenges had an unexpected silver lining in the United States' essential oil market. As the world grappled with uncertainty and anxiety, there was a surge in interest in holistic wellness and natural remedies, which breathed new life into the essential oil industry. Americans, seeking solace and comfort, turned to the therapeutic power of essential oils to alleviate stress, boost immunity, and create a sense of calm in their homes. The pandemic-induced emphasis on self-care and well-being saw essential oils becoming a cornerstone of daily routines. Diffusers filled with soothing lavender oil became fixtures in households, offering a fragrant refuge from the chaos outside. Eucalyptus oil gained popularity for its respiratory benefits, while citrus oils like lemon and orange found their way into homemade cleaning products, emphasizing the desire for safe and natural alternatives. Additionally, the direct sales model used by many essential oil companies, where independent distributors operate from home, thrived during lockdowns, providing economic opportunities for individuals facing job uncertainty. The increased online presence of essential oil companies made it convenient for consumers to explore and purchase products from the safety of their homes.

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

Aspects covered in this report:
• United States 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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