An Incisive, In-depth Analysis on the Herb Oil Market
This study offers a comprehensive, 360 degree analysis on the Herb Oil market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Herb Oil market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.
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.
Report Description for Herb Oil Market
This report provides the forecast and analysis of the global herb oil market. It provides the historical data of 2012 to 2016, the estimated data for 2017 and forecast data up to 2022 in terms of revenue (US$ Mn). The report also includes macro-economic indicators along with an outlook about herb oil for the global market. It includes the drivers and restraints of the global herb oil market, and their impact on each region during the forecast period. The report also comprises the study of ongoing industry trends and opportunities for the herb oil market. For providing users a dashboard view of the herb oil market, we have included a detailed competitive analysis, along with key players in the market and analysis on the strategies adopted by the key competition in the market. The competitive dashboard provides a detailed comparison of herb oil manufacturers on the basis of revenue, product offerings and key strategies. The study encompasses market attractiveness analysis by product type, end-use, extraction method, sales channel and region.
The herb oil market study provides an outlook through metrics such as Y-o-Y growth, CAGR and absolute dollar opportunity to provide readers all the quantitative data pertaining to the herb oil market that they require. The report has taken an in-depth look at the supply chain by evaluating the relationship that exists between various supply chain partners or stakeholders and highlighted the cost structure that exists in the herb oil market. The pricing analysis, raw material source analysis and a list of distributors has been included in this section of the herb oil market report. At the end of the report, a list of important participants is provided on a regional intensity map.
The report includes the company profiles of key manufacturers of herb oil in North America, Latin America, Western Europe, Eastern Europe, Asia-Pacific excluding Japan, Japan and the Middle East and Africa. All the key applications of herb oil have been considered based on secondary sources. Some of the key data points involved in the modelling approach include the food & beverages industry scenario, pharmaceutical industry scenario and personal care industry scenario. The market has been forecasted based on constant currency rates.
A detailed study of the herb oil market has provided our analysts observations pertaining to a shift towards the consumption of herb oil over the forecast period. Consumers are increasingly preferring naturally derived food products, especially herb oil, due to the benefits offered by them.
A number of primary and secondary sources were consulted during the course of the herb oil study. Secondary sources include Factiva, Hoovers, U.S. Food and Agriculture Organization databases, country associations and company annual reports & publications. This report covers market dynamics related to herb oil that include the drivers & trends of each segment and opportunities in the herb oil market. The report also includes an analysis and insights into the potential of the herb oil market in specific regions. Detailed profiles of providers are also included in the scope of the report to evaluate their long-term and short-term strategies, product portfolio of herb oil manufacturers and recent developments in the herb oil market space. Some of the key players in the herb oil market are Young Living Essential Oils LC, Symrise AG, Givaudan SA, International Flavors & Fragrances Inc., Biolandes SAS, DoTERRA International LLC, The Lebermuth Company, China Flavors and Fragrances Company Limited, Citrus and Allied Essences Ltd. and Enio Bonchev Production Ltd.
Global Herb Oil Market – By Product Type
Global Herb Oil Market – By Application
Personal Care and Cosmetic
Food & Beverage
Global Herb Oil Market – By Extraction
Other Extraction Method
Global Herb Oil Market – By Sales Channel
Other Sales Channel
Global Herb Oil Market – By Region
The data scrutiny of the global herb oil market is estimated in terms of value consumption. To arrive at the consumption of herb oil, the production data of countries producing different types of herbs across the globe has been taken into consideration. In addition, the production and application of herb oil in top producing countries is tracked for benchmarking. Furthermore, Future Market Insights has estimated volume data on the consumption of herb oil for several countries by understanding the demand and supply of herb oil. This includes a scrutiny of the production, growth, volume & value sales, transition, pricing, population and consumption of herb oil among end-user verticals.
FMI then determined the volume consumption of herb oil across various regions, including North America, Latin America, Europe, Japan, Asia-Pacific excluding Japan and Middle East and Africa. Forecasting is done based on an internal proprietary model using different macro-economic industry-based demand-driving factors that impact the market and its forecast trends by identifying and allocating a weighted score to forecast factors that influence the demand for herb oil.
Given the characteristics of the market, FMI triangulated the data based on supply side, demand side and dynamics of the global herb oil market. To develop the global herb oil market forecast, FMI analysed various factors to understand their respective impact on the target market. However, quantifying the market across the abovementioned segments is more a matter of quantifying expectations and identifying opportunities rather than rationalizing them after the forecast has been completed.
It is imperative to note that in an ever-fluctuating economy, we not only provide forecasts in terms of CAGR, but also analyse on the basis of key parameters, such as year-on-year (Y-o-Y) growth, to understand predictability of the herb oil market as well as identify the right opportunities.
Another key feature of this report is the analysis of the global herb oil market and the corresponding revenue forecast in terms of absolute dollar opportunity. This is usually overlooked while forecasting the herb oil market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales perspective in the global herb oil market.
To understand key segments in terms of their growth and performance in the global herb oil market, Future Market Insights has also presented a market attractiveness index, which is expected to help providers identify existing market opportunities in the global herb oil market.
The report covers an in-depth analysis of all value-chain components in the global herb oil market. In the final section of the report on the global herb oil market, a competitive landscape is included to provide a dashboard view of global herb oil manufacturers.