CHICAGO, Dec. 8, 2020 /PRNewswire/ — In-depth analysis and data-driven insights on the impact of COVID-19 included in this U.S. essential oils market report.
The U.S. essential oils market is expected to grow at a CAGR of approximately 7% during the period 2020−2026.
Key Highlights Offered in the Report:
- Decreasing margins in competitive markets, coupled with the rising need for safety, traceability, on-time delivery, and quality of essential oils have encouraged vendors in the essential oils market to rethink and integrate their supply chain management.
- Around 35% to 40% of the market for essential oils is controlled by the top six to eight companies, while the remaining 60% is distributed among small to mid-sized firms.
- Since the raw materials required are highly dependent on procurement, the prices of the same fluctuate. Although raw materials are readily available in the open market, the cost and accessibility are dependent on the demand and supply.
- The spa & relaxation industry is expected to grow at the highest CAGR, owing to increasing demand for aromatherapy in the US during the forecast period.
- Frankincense essential oil generated the highest revenue in the US; with respect to volume, orange essential oil dominated the market in 2020.
- The F&B industry made the highest contribution to the essential oils market in terms of both revenue and demand. For instance, revenues generated by essential oils in the US in the F&B industry was estimated at over USD 1 billion in 2020; by volume, the figure stood at over 30 kilotons.
- Market Size & Forecast by Revenue | 2020−2026
- Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
- Market Segmentation – A detailed analysis by products, end-users, and geography
- Competitive Landscape – 12 vendors are profiled
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U.S. Essential Oils Market – Segmentation
- The orange essential oils experienced the highest demand by volume, followed by peppermint, eucalyptus, lemon, clove, and frankincense essential oil. The demand for orange essential oil is expected to reach 61-kilo tons by 2026, growing at an impressive CAGR of over 9%.
- Due to the increasing use of flavors and fragrances, peppermint, tea tree, eucalyptus, rosemary, and sandalwood oils are considered the leading revenue generators in the U.S. essential oils market and are expected to further grow at a significant rate during the forecast period.
- Several end-user industries drive the demand for essential oils due to several flavors and fragrances. In terms of revenue and volume, the F&B industry held the largest market share in the US essential oils market. However, the demand for essential oils in the cosmetics & personal care industry and spa & relaxation industries are expected to witness the highest growth during the forecast period.
U.S. Essential Oils Market by Product
- Lavender oil
- Peppermint oil
- Tea Tree oil
- Eucalyptus oil
- Lemon oil
U.S. Essential Oils Market by End-user
- F&B Industry
- Healthcare Industry
- Spa & Relaxation Industry
- Cosmetics & Personal Care Industry
- Cleaning & Household Industry
U.S. Essential Oils Market – Dynamics
Aromatherapy is one of the most significant markets driving the demand for essential oils in the US. Traditionally, essential oils were used in bulk to cater to the F&B & perfume industries for adding flavors and fragrances. Recently, due to increasing concerns for health, wellness, and self-care, the demand for essential oils from the aromatherapy segment is growing in the US. Owing to the promotion of hair growth, reduced fatigue and stress, relaxation, and sleep, essential oils are expected to witness high demand from the aromatherapy sector. The growing popularity of aromatherapy in recent years has resulted in a wider scope for essential oils in the US. In the US, aromatherapy covers both the use of essential oils by professional aromatherapists and personal use by consumers based on retail purchases. Moreover, the US is among the top three major producers and consumers of essential oils in aromatherapy.
Key Drivers and Trends fueling Market Growth:
- Increasing Consumption of Essential Oils by Cosmetics & Personal Care Segment
- Rising Demand for Men’s Grooming Products
- Rising Popularity of Natural & Organic Products
- High Demand from Pharmaceuticals Segment
U.S. Essential Oils Market – Geography
The south region accounted for a significant share in the US essential oils market, owing to the huge presence of F&B industries as well as spas & resorts and increasing disposable incomes. The southern region consists of developed and fast-growing states including Florida, Virginia, Texas, Carolina, and others, which are the primary hubs for several end-user industries. Texas, Florida, and North Carolina made the highest contributions to the essential oils market in the Southern United States.