Herb Oil Market

In terms of revenue, the herb oil market is estimated to increase at a CAGR of 5.0% over the forecast period. This growth can be attributed to numerous factors, about which FMI offers thorough insights and forecasts in this report.

Herb oil is an essential oil mainly extracted from seeds, buds, barks, fruits, leaves, flowers, roots, styles, stigmas, and top of the plant. Herb oil is widely used in food & beverage, flavors & fragrance industry for color, aroma, flavour, aroma, and preservation. Herbs are subset of spice plants with aromatic leaves. Herb oil is made from distilling extracts of raw spices, or using solvents to extract and other processing other extracts for herb oil.

Alternate medicine and herbal products have become quite prevalent across the world as people are gradually seeking out ‘natural and organic solutions’ for everything. The millennial generation in particular is responsible for the push towards the herb oil market. The main reasons for this are a growing awareness and a greater importance on health and wellness. Herb oils can be either purchased at stores or made in the comfort of one’s homes and have several benefits and use-cases. Herb oils are useful in food preparation, skin therapy, in cooking or even for topical application and can either be infused or essential. The herb oil market is anticipated to have a value of more than US$ 3.7 billion by the end of 2022.

Growing customer predilection for processed food products in developing economies are contributing to increasing sales of herb oil. Growing consumer sentience about benefits of aromatherapy from application of herb oil is leading to market growth.

Herb Oil Market Outlook

On the basis of product type, the global herb oil market is segmented into five types: basil, mint, thyme, dill and other herbs. Among the global herb oil market’s product type, the largest is Basil, which represents US$ 1,043.5 Mn of the market, or 35.8% in 2017, and US$ 1,393.9 Mn in 2022, or 37.6%, and a CAGR of 6%. It is growing at US$ 70.1 Mn annually over the course of the forecast period, and this absolute growth is larger than the any other segment.

On the basis of extraction method, the global herb oil market is segmented into four types: distillation, solvent extraction, cold pressing, and other extraction method.

By end-use, the herb oil market is segmented into food & beverages industry, pharmaceutical industry, aromatherapy, industrial application, and other industry. Within these the food & beverage segment accounted for the major share in 2016 and is expected to account for the largest even during the forecast period. The factors such as increasing consumption of processed food, packaged food and ready to eat meal sales have enhanced which in turn has increased demand for herb oil.

On the basis of region, Herb oil market is segmented into North America, Western Europe, Eastern Europe, Asia-Pacific excluding Japan, Japan, and Middle East & Africa. FMI forecasts the North America herb oil market to grow from US$ 738.5 Mn in 2017 to US$ 939.2 Mn in 2022. This represents a compound annual growth rate (CAGR) of 4.9% from 2017 to 2022.

Rise in Demand for Natural Products Surging Growth of Herb Oil

Due to changing consumer lifestyle, change in multitude of factors, growing awareness about benefits of natural products, consumer focus on health and wellbeing, and millennial trends, today’s consumers are quite alert and doing detailed comparison with various product alternatives for making purchases purchase decision. Consumer buying is mainly focused on what are ingredients used in products, what is technology adopted, and how are they made.

With growing connect of digital media and continuous internet pop-up’s have changed consumer lifestyle with great influence on consumer mind set about consumption habits to be followed, the key market players focus on offering additive-free and GMO-free products. As a result, manufacturers are looking out for natural ingredients like herb oils in the manufacturing of their products. Customer preference for natural products can help drive the demand for herb oils, in the food industry.

Essential Oil Production Leading to Increasing Demand for Herb Oil

The Global essential oil is being anticipated to witness a steady growth in the coming future which is in turn promoting demand for herb oil. The shifting trend towards preventive healthcare, coupled with improved standard of living consumers are some of the critical factors driving the demand for herb oil market. European region is the major exporter for essential oil which especially France and Germany. Along with the EU countries, United States, India and Brazil are the other countries contributing to the overall growth of global herb oil market.

Increasing Application in Aromatherapy Driving Revenue Growth of Herb Oil

Globally, the herb oil and aromatherapy market is estimated to escalate at a higher growth rate due to the high awareness about the healing properties of herb oils and other essential oils used for aromatherapy, on a global level. The applications of herb oil and aromatherapy is increasing in the medical field, thereby increasing its demand all around the globe. Rising consumer experimentation for unconventional health problems aiding therapies is supporting the growth of the herb oil and aromatherapy market. Herb oil is the most important antiseptic oil in aromatherapy. Its proportion of phenol – the constituent responsible for the strongest antibacterial action – is the highest of all aromatic plants.

Rise in Demand for Natural Preservatives by the Food and Beverages Industry Promoting Demand for Herb Oil

The artificial preservatives such as sodium benzoate, sodium nitrate, and propionate are cheaper alternatives to natural preservatives, widely used in smaller amounts. However, in the recent past, manufacturers are looking out for natural preservatives, such as herb oils, for the preservation of processed food. This could be attributed to the rising demand for natural products by consumers. Herb oil is one such product that food manufacturers are looking out for. The components in Herb oil is mainly for characteristic odors, antimicrobial, and antioxidant activity. Herb oil being an antimicrobial agent, acts as a beneficial preservative agent in the food industry.

Increase in Demand for Herb Oil from the Pharmaceuticals Industry

The industry is dominated by huge multinational companies, and North America, EU, and Japan are the three biggest markets. The demand for herb oils in this industry has been on the rise. In response to a perceived consumer ‘green awareness’ movement in the 1990s, interest by mainstream ‘personal care’ product companies that use natural bio-active oils in shampoos and other related products spurred the demand for medicinal grade oils. Herb oil, being a natural anti-allergic, anti-inflammatory agent, has a wide range of applications in the treatment for respiratory conditions, prevention of infections, treatment for digestion issues, etc. As a result, these characteristics can help drive the demand for herb oil in the pharmaceuticals industry.

Herb Oil Market: Companies

The key players in the herb oil market are Symrise AG, Young Living Essential Oils LC, Givaudan SA, Biolandes SAS, International Flavors & Fragrances Inc., Enio Bonchev Production Ltd., DoTERRA International LLC, China Flavors and Fragrances Company Limited, The Lebermuth Company, and Citrus and Allied Essences Ltd. The key competitors are focusing on new product launches and expansions & investments for tapping the business opportunities in herb oil market.