Europe Essential Oils Market Size (2024 - 2029)

Europe Essential Oil Market Analysis

The Europe Essential Oils Market size is estimated at USD 1.89 billion in 2024, and is expected to reach USD 2.42 billion by 2029, growing at a CAGR of 5.03% during the forecast period (2024-2029).

Growing awareness about the benefits of aromatherapy at home, as it aids in pain relief, cognitive function, brain stimulation, and mood enhancement, is expected to create immense growth opportunities during the upcoming years. The demand for orange, lemon, and eucalyptus oils is increasing at an exponential rate, and the industry is no longer able to keep up with the rapidly increasing consumer demand. Suppliers are also forced to increase the prices of aromatic crops as they struggle to compete with other commodities and feed crops. These factors are likely to hinder the growth of the market studied further in the region.

However, increasing consumer expenditure on personal care products and rising awareness regarding the therapeutic benefits associated with essential oils are driving the market's growth. Also, the green movement is influencing the global fragrance industry. Across Europe, there is a significant shift toward eco-friendly, light, natural, and fresh fragrances. Natural scents, including light floral essential oils, have been witnessing a significant increase in demand among customers. Plants and botanical extracts are expected to gain prominence in the market studied.

Europe Essential Oil Industry Segmentation

A natural product's volatile component, known as an essential oil, can be extracted through distillation, steam distillation, or expression in the case of citrus fruits. It has volatile hydrocarbons. Different plant parts are used to make essential oils. In the sense that it contains the characteristic aroma or essence of the plant, the oil is "essential." 

The European essential oils market is segmented by product type, application, and geography. On the basis of product type, the market has been segmented into lavender oil, orange oil, eucalyptus oil, peppermint oil, spearmint oil, lemon oil, rosemary oil, geranium oil, tea tree oil, and other product types. Based on application, the market has been segmented into food and beverages, aromatherapy, pharmaceuticals, cosmetics and personal care, and other distribution channels. By geography, the market has been segmented into Spain, the United Kingdom, France, Germany, Russia, Italy, and the Rest of Europe. For each segment, the market sizing and forecasts have been done based on value (in USD million).