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The global Aromatherapy Market is estimated to be valued at US$ 6.39 billion in 2024 and is expected to exhibit a CAGR of 8.2% over the forecast period 2023 to 2030.
Aromatherapy involves the use of essential oils extracted from plants to improve psychological and physical well-being. Essential oils contribute properties like calming, energizing, soothing, stimulating, etc. Oils including lavender, bergamot, frankincense, eucalyptus are commonly used in aromatherapy. It is gaining popularity as an alternative therapy for conditions ranging from anxiety, depression, insomnia to pain management.
The Global Aromatherapy Market enjoys rising demand owing to growing awareness of wellness trends and preference for natural remedies over medicines and drugs. It provides relief from stress and promotes relaxation which is a major contributor to its increasing adoption. The market is estimated around US$ 5 billion in 2020 and is projected to surpass US$ 13 billion by 2027. Many wellness brands are launching aromatherapy products like essential oil diffusers, candles, massage oils to tap into this opportunity.
Key Takeaways
Key players operating in the Aromatherapy Market are doTERRA International, Koninklijke DSM N.V., International Flavors & Fragrances Inc., Symrise, Eden Garden, Young Living Essential Oils, Frontier Natural Products Corporation, Rocky Mountain Oil, Mountain Rose Herbs, Plant Therapy Inc., Thann-Oryza Co. Ltd, G Baldwin & Co., Ouwave Aroma Tech Co. Ltd, RyohinKeikaku Co. Ltd, and Isagenix International LLC.
The growing demand for natural remedies is propelling the aromatherapy market growth. Customers are inclined towards plant-based therapies due to lesser side effects. The market sees increased adoption driven by perceived health benefits of essential oils.
The global aromatherapy market experiences remarkable expansion aided by aggressive marketing strategies of players. Moreover, rising per capita income in emerging nations expands the customer base. Furthermore, increased online availability amid pandemic boosted e-commerce sales in this industry.
Market Key Trends
One key trend gaining traction in aromatherapy market is therapeutic-grade essential oils curated for specific needs like sleep, focus, immunity, etc. Companies launch premium blends backed by scientific research catering customized wellness routines. Nanotechnology application in aromatherapy has also emerged to enhance oil absorption for improved effects. Players are investing in R&D to identify new extraction methods and identify therapeutic properties of additional plants. Sustainable harvesting and fair trade certifications are growing importance for brands amid rising environment awareness.
Here are the responses without mentioning any market specifics like CAGR, size, key players etc.
Porter’s Analysis
Threat of new entrants: New companies find it difficult to enter the market due to high initial capital requirements and established customer base of existing players.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and differentiated products offered by various players.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power as raw materials including essential oils are available from numerous small and regional suppliers globally.
Threat of new substitutes: Threat from new substitutes is moderate as aromatherapy products have well established applications and consumer preference.
Competitive rivalry: Intense competition between existing large players.
Geographical Regions
North America region accounts for the largest share of the market currently due to high awareness levels and expanding application scope in personal care and therapeutic industries.
Asia Pacific region is expected to witness fastest growth during the forecast period driven by increasing disposable income, growing millennial population and their rising inclination towards natural and organic products.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
