Northbrook, IL 60062 -- (SBWIRE) -- 05/22/2023 -- The global essential oils market is experiencing significant growth, driven by its wide application and increased awareness among consumers worldwide. Valued at USD 8.8 billion in 2022, this market is projected to reach USD 15.3 billion by 2027, recording a compound annual growth rate (CAGR) of 11.8% in terms of value. Essential oils have gained popularity due to their various health benefits and minimal side effects. In this article, we will explore the factors contributing to the market's growth, the dominance of the North American region, key players, and the future outlook.

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Market Overview

The essential oils market is witnessing rapid growth due to its extensive use across various industries and the increasing awareness of its benefits among consumers. Essential oils are derived from plants and are known for their aromatic properties. They find applications in the food and beverage, pharmaceutical, cosmetics, and aromatherapy industries, among others. The global market's growth can be attributed to the rising demand for natural and organic products, as well as the continuous research and development efforts leading to product innovations.

North American Essential Oils Market

The North American region holds a significant share in the global essential oils market. The demand for essential oils in this region is driven by the growing trend of adopting a healthy lifestyle and increased consumer awareness regarding the ingredients used in their products. The United States, in particular, dominates the North American market and plays a crucial role in the import and export of essential oils worldwide.

Factors Driving Growth in the US and Canadian Markets

1. Increasing Awareness of Health and Wellness

Consumers in the US and Canada are becoming increasingly conscious of their health and wellness. They are actively seeking natural and organic products that contribute to their overall well-being. Essential oils, with their natural origins and perceived health benefits, align perfectly with this growing trend. Manufacturers in the food and beverage and cosmetics industries are incorporating essential oils into their formulations to cater to consumer demand for natural and chemical-free products.

2. Rise in Demand for Global and Innovative Flavors

In Canada, there is a rising demand for essential oils derived from herbs and spices. This demand can be attributed to globalization, as consumers are exploring new, innovative, and international flavors. Essential oils such as peppermint, spearmint, and orange are particularly popular. As consumers become more adventurous with their taste preferences, the demand for these essential oils continues to grow.

3. Convenience and Busy Lifestyles

The busy lifestyles prevalent in both the US and Canada have led to an increased demand for processed foods that offer convenience. Essential oils provide an opportunity for manufacturers to enhance the flavor and quality of these processed foods, making them more appealing to consumers. Additionally, the growing awareness of health and hygiene further drives the demand for convenience foods and consumer products manufactured using natural ingredients.

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4. Premium Consumer Products

The high-income population in the US and Canada has a strong demand for premium consumer products. Essential oils are perceived as high-quality and premium ingredients, making them an attractive choice for manufacturers looking to cater to this market segment. The inclusion of essential oils in premium products adds value and aligns with the preferences of affluent consumers.

Key Players in the Essential Oils Market:

The essential oils market is highly competitive, with several key players leading the industry. Some of the prominent companies in this market include:

Key players in this market include Cargill, Incorporated (US), DSM (Netherlands), Givaudan (Switzerland), International Flavors & Fragrances Inc. (US), Sensient Technologies Corporation (US), Symrise (Germany), Robertet SA (France), MANE (France), doTERRA (US), NOW Foods (US), Lebermuth, Inc. (US), BIOLANDES (France), Norex Flavours Private Limited (India) and India Essential Oils (India).

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