The Asia Pacific Essential Oils Market is expected to grow at a CAGR of 7.26% over the forecast period, 2020 to 2025.
Across the region, the demand is led by the rising standard of living and high per capita income followed by an increased spending, where the proliferation of the relaxation and wellness industries have heavily influenced the surge in demand for essential oils.
Furthermore, among some of the countries studied the report, the demand for citrus based essential oil such as that of Oranges and lemon have garnered a significant interest among consumers. The product has witnessed a growing penetration across both household and personal care industry, wherein, the uses of citrus essential oil has escalated in flavours, odourants, and pharmaceutical ingredients segment recently.
Key Market Trends
Strong reliance for essential oil in cosmetics & personal care
Essential oils have a wide set of incorporation in cosmetic products, perfumes and related household products in line with their variety of properties but most importantly due to their pleasant odour. Howevr, there is a variation in the composition of volatile natural complex mixtures and largely vary depending on the quality of plant material or the extraction process. These factors are highly important in ensuring that personal care products have a safe incorporation of essential oils as the base ingredient.
Furthermore, as essential oil pose both antimicrobial and antifungal properties, cosmetic preparations such as gels, creams and ointments doesn’t require and additional chemical preservative if they contain an essential oil or a single compound as an active agent, as that of rosemary oil. This has led manufacturers to incorporate essential oil, that elevates the existing properties of oinment, gels and creams altogether.
China is expected to witness high growth rate
In recent years, the Chinese essential oil industry has maintained rapid growth propelled by the rapid growth in domestic demand. However, with the onset of rapid development of the industry, the development of various regions is uneven. Furthermore, the online presence of most of the manufacturers have slowly proved to be beneficials as they are reaching out to a broader consumer base.
On the other hand, the consumption habits of the audience are mature, and the concentration of consumption is high, that being said, the overall consumption characteristics are similar to those of the internationally developed regions. International essential oil brands have a strong hold in first-tier cities, and occupy a significant competitive advantage by virtue of their strong brand status.
The Asia Pacfic Essential oil market is competitive with a strong presence of regional players holding a dominating position in specific region. Major players operating in the market are aroma treasures, Young living essential oils, Ultra Intrenational B.V., do Terra among others.
New product development and expansion are some of the key strategies adapted by players that allows them to have a strong hold in the market.
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