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The aromatherapy market size is estimated to grow by USD 2.73 billion at a CAGR of 10.87% between 2023 and 2028. The rise in awareness about the health benefits of aromatherapy, driven by increasing interest in natural and holistic health solutions such as organic essential oils, is driving market growth by increasing the demand for aromatherapy products. The increasing use of aromatherapy at home, driven by factors such as stress relief, relaxation, and mood enhancement, is also boosting market expansion by increasing the adoption of aromatherapy products in household settings. Additionally, changing lifestyles, and growing focus on health and wellness, characterized by high levels of stress and anxiety, are driving market growth by increasing the demand for products that promote relaxation and well-being. It also includes an in-depth analysis of drivers, trends, and challenges.
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This market report extensively covers market segmentation by product (consumables and equipment), usage (topical application, aerial diffusion, and direct inhalation), and geography (North America, Europe, APAC, South America, and Middle East and Africa).
The market share growth by the consumables segment will be significant during the forecast period. The segment consists of blends, carrier oils, and essential oils. Even though essential oils still dominate this product category, manufacturers are expanding their line of blends of essential oils in response to the growing consumer demand for fresh scents. The strong preference for organic beauty and personal care products over chemical ones to enhance skin and hair care is expected to drive growth in the global market for consumables for home and spa use.
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The consumables segment was valued at USD 1.43 billion in 2018. Companies are looking to increase their product offerings involving blends of essential oils to enhance the product offerings in aromatherapy and in general organic health and wellness, including skin care. Pure organic essential oil production has improved as a result of consumers' strong preference for organic products over synthetic ones. Due to the country's growing use of aromatherapy techniques like massages to treat issues like anxiety, stress, and depression, the US is the world's largest market for essential oils and other consumables. Additionally, as more people are becoming aware of the therapeutic advantages of aromatherapy, there is an increasing demand for the products in regions like MEA, APAC, and South America. Since consumers must be made aware of the advantages before becoming accustomed to the idea and products, the supply in this market is met directly through offline channels like stores. However, as the use of the internet grows, consumers prefer to shop online because it offers options for easy purchases and product comparisons. These factors will drive the growth of the segment and, in turn, the market in focus during the forecast period.
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North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The US, Canada, and Mexico are the leading contributors to the market in North America. The US is the largest importer of essential oils, demonstrating the high demand for aromatherapy products for use in personal care, home applications, and relaxation therapies. In the US, there is also a rising need for aromatherapy products in the workplace. This is because workplace wellness is being emphasized more to boost employee motivation and satisfaction. Diffusers used in offices for enhancing mood, hygiene, and fresh aromas have increased as a result of this. The market in the region will, therefore, grow during the forecast period.
The market is witnessing a surge in demand for essential oils and natural products due to their therapeutic uses. Particularly popular among millennials and women, these products are known for their ability to provide stress relief, relaxation, and holistic wellness solutions. Companies are introducing initiatives to promote the benefits of aromatherapy for various disorders, including acne scars, scar management, burn scars, digestion, cardiovascular disorders, and respiratory problems. Aromatherapy products like carrier oils and blended essential oils are commonly used through nebulizing diffusers, topical application, direct inhalation, and aerial diffusion for their healing properties. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing use of aromatherapy at home is notably driving market growth. Aromatherapy is primarily used at home for relaxation, sleep, mood enhancement, cold and flu relief, and pain management. The high demand for at-home aromatherapy products is fueled by factors such as cost, convenience, and privacy. A visit to the spa is more expensive financially than buying the necessary essential oils and using them at home, where one can avoid paying fees for various spa services.
The demand is also rising as a result of the ease with which consumables and diffusers can be purchased offline or online, appealing to Millennials interested in healing therapies. Companies and initiatives focusing on holistic wellness solutions are increasingly offering a variety of products, such as carrier oils, blended essential oils, and nebulizing diffusers. Lavender, which helps people unwind and sleep better, soothes pain, and speeds up healing, eucalyptus, which purifies and freshens the air and disinfects surfaces, and lemon, which improves mood, are some of the essential oils that are frequently used for aromatherapy at home. Thus, as more people become aware of the benefits of using aromatherapy at home to address common issues or problems, demand for these products is growing, which is good for business. Hence, these factors will drive the market during the forecast period.
The increasing demand for aromatherapy products is an emerging trend in the market growth. The development of essential oils has been positively impacted by the growing acceptance of aromatherapy and other natural remedies, including massage, for pain relief. Essential oils are being used in a growing number of cosmetic brands' products. Consumers who are willing to pay more for cosmetics containing aromatherapy ingredients are the ones who drive such product innovations. The demand for aromatherapy products is also likely to be fueled by the increasing prevalence of skin conditions. Aromatherapy is frequently used by people who have skin rashes because it nourishes the skin and lowers inflammation.
Numerous aromatherapy products are popular, including massage oils, hand creams, and bath salts. End-users can easily purchase aromatherapy-based products like body creams, moisturizers, lotions, lipsticks, body sprays, mists, and perfumes. For instance, OM SHE Aromatherapy is the first business in Australia to manufacture lipstick made from a combination of cold-pressed, natural, aromatic oil, flower, and plant extracts. Thus, the presence of various products will drive the growth of the market focus during the forecast period.
The presence of counterfeit products is a major challenge impeding the market growth. To offer products at low prices, some manufacturers use inferior ingredients as part of their cost-cutting strategy. Sales of tainted goods are increasing, particularly when it comes to lavender oils. Lavender and Lavandin oil are two distinct chemicals. Lavandin, a hybrid variety, and synthetics are added to the lavender oil that is marketed as lavender oil. Lavandin is a less expensive alternative to lavender that is used in aromatherapy, crafts, and perfumes, but it can have serious side effects if consumed directly.
The majority of consumers are unable to distinguish between authentic and counterfeit goods, which may harm the original product's brand reputation. Customers have purchased essential oils from nearby companies in some instances to treat burns, but after applying the oils, their pain increased. Therefore, mislabeled essential oils may expose consumers to risks. Due to the ease with which counterfeiters can mimic popular product names or packaging designs, the sale of fake goods seriously damages the reputation of leading brands and their manufacturers. This, in turn, will negatively impact the market in focus during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Air Aroma International - The company focuses on designing custom fragrances for luxury brands around the world. The key offerings of the company include aromatherapy products, namely Imaya essential oil.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The aromatherapy market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The aromatherapy market encompasses a wide range of products and practices, including conventional medical treatments and holistic healthcare practices. With the rise of e-commerce and direct-to-consumer channels, consumers have easy access to a variety of aromatherapy products, such as candles and skincare items. The consumer base values product quality and products that are ethically sourced. Aromatherapy products are often consumable, with popular items including ultrasonic diffusers, evaporative oil diffusers, and nebulizer diffusers.
Furthermore, these products are used in the relaxation segment and are believed to aid in various health issues, including gastrointestinal infections, liver and gallbladder functions, motion sickness, weight management, and nervous disorders. The market is divided into the direct-to-consumer (DTC) segment, multilevel marketing, and the retail segment, with a growing presence in the e-commerce sector. Aromatherapy is believed to have various benefits, including the release of oxytocin and endorphins, which can aid in stress reduction, sleeplessness, and overall well-being. Additionally, aromatherapy products are used for air purification, disinfection, and creating a healing atmosphere.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.87% |
Market growth 2024-2028 |
USD 2.73 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.53 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 33% |
Key countries |
US, UK, China, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Air Aroma Internatinal, Biolandes SAS, doTERRA International LLC, Edens Garden, Falcon, Frontier Co op, G. Baldwin and Co., Hubmar International, Isagenix Worldwide Inc., JE INTERNATIONAL SARL, Mountain Rose Herbs, North American Herb and Spice, NOW Health Group Inc., Nu Skin Enterprises Inc., Plant Therapy, Rocky Mountain Oils LLC, SpaRoom, Stadler Form Aktiengesellschaft, Starwest Botanicals.com Inc., and Young Living Essential Oils LC |
Market dynamics |
Parent market analysis, Market forecasting, market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Usage
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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