AROMATHERAPY MARKET ANALYSIS

The global aromatherapy market is estimated to be valued at US$  6.39 Billion in 2023 and is expected to exhibit a CAGR of 8.2% during the forecast period (2023-2030).

Analyst’s Views on the Global Aromatherapy Market:

The aromatherapy market is a thriving wellness industry that involves the use of essential oils and aromatic compounds to promote physical and mental well-being. With a focus on holistic health, it has witnessed steady growth driven by consumer interest in natural remedies and stress relief. Aromatherapy products, such as essential oils, diffusers, and scented candles, have gained popularity. Increasing awareness of the therapeutic benefits of aromatherapy, coupled with the growing demand for relaxation and self-care, has propelled market expansion. Additionally, the trend toward sustainable and organic products has further contributed to the industry's success, making it a lucrative sector in the wellness market.

Figure 1. Global Aromatherapy Market Share (%), By Product Type, 2023

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Global Aromatherapy Market - Drivers

• Essential oil manufacturers are focusing on expanding their aromatherapy product lines: Essential oil manufacturers are diversifying their product lines in aromatherapy by introducing innovative blends, diffuser technology, and complementary accessories. They are emphasizing unique scents and therapeutic properties, catering to specific wellness needs. This expansion aims to meet growing consumer demand for holistic well-being and personalized aromatherapy experiences. For instance, MONQ LLC, a manufacturer and retailer of portable essential oil diffusers for aromatherapy, launched a fresh line of personal aromatherapy blends modeled after Shinrin-yoku, the Japanese practice of forest therapy. Inspired by nature’s most calming and therapeutic regions. The Feel Nature series by MONQ includes three new terpene-rich aromatherapy blends in forest, ocean, and mountain, each formulated with organic plants from the respective geographic locations.
• Increasing number of people suffering from arthritis prefer aromatherapy treatments : According to the World Health Organization report released on July 14, 2023, in 2020, about 528 million people worldwide were living with osteoarthritis; an increase of 113% since 1990 in which about 73% of people living with osteoarthritis are older than 55 years, and 60% are female. Globally, it is anticipated that the prevalence of osteoarthritis would rise further due to the ageing population, rising obesity and injury rates, and other factors. Aromatherapy, which involves the use of essential oils, offers natural and non-invasive relief from arthritis symptoms such as pain and inflammation. Many essential oils, like lavender and eucalyptus, possess anti-inflammatory and analgesic properties, providing comfort without the side effects of pharmaceuticals. Additionally, aromatherapy promotes relaxation, reduces stress, and enhances overall well-being, which is particularly beneficial for arthritis patients as stress can exacerbate their condition. The holistic approach of aromatherapy aligns with the desire for alternative and complementary therapies, making it an attractive option for arthritis management. For instance, “Agarwood” is often investigated to be effective in arthritis.  Agarwood essential oils (EOs) and extracts contain a complex mixture of sesquiterpenes and chromones. According to the method of extraction, fatty acids and phenols have also been found. The biological characteristics of this species, including its antioxidant, antibacterial, antidiabetic, and antinociceptive capabilities, have been identified.

Global Aromatherapy Market - Opportunity

The rise of e-commerce platforms provides opportunities for the sale of aromatherapy products: Online retail and e-commerce provide businesses in the aromatherapy market with access to a global customer base. This is especially valuable for companies that might not have a physical presence in multiple locations. For instance, on September 15, 2023, Indesso, a renowned producer of essential oils and other natural ingredients for various sectors such as flavor and fragrance, pharmacy, and F&B, has proudly announced its latest initiative, the iSensoAroma E-Commerce Platform. The iSensoAroma E-Commerce Platform will enable smaller businesses to access the same quality of essential oils that have made Indesso a respected name in the industry. Clients can expect a user-friendly interface that facilitates browsing, selection, and purchasing processes.

Figure 2. Global Aromatherapy Market Share (%), By Region, 2023

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Global Aromatherapy Market - Regional Analysis

Among regions, North America is expected to hold a dominant position in the global aromatherapy market over the forecast period. The increasing number of product launches is expected to drive the North America aromatherapy market growth over the forecast period. For instance, in April 2022, Nowell Brands Inc., an American manufacturer, marketer and distributor of consumer and commercial products launched the WoodWick Radiance diffuser, which is a battery-operated diffuser that reflects the company's recognizable hourglass shape and offers customers a simple, no-water refill process.

Global Aromatherapy Market - Impact of Coronavirus (COVID-19) Pandemic

Since the COVID-19 virus outbreak in December 2019, the disease spread to over 100 countries across the globe, and the World Health Organization declared it a public health emergency on January 30, 2020. According to WHO, as of September 13, 2023, there have been 770,563,467 confirmed cases of COVID-19, including 6,957,216 deaths, reported to WHO.

COVID-19 affected the economy in three main ways: by directly affecting the production and demand of drugs, by creating disruptions in distribution channels, and through its financial impact on firms and financial markets. Due to nationwide lockdowns, several countries, such as China, India, Saudi Arabia, the U.A.E., Egypt, and others, were facing problems with the transportation of goods from one place to another.

Furthermore, players operating in the global aromatherapy market are facing major challenges on various fronts due to the COVID-19 pandemic. The major challenges include the supply of raw materials required for manufacturing aromatherapy products due to irregularities in transportation. Moreover, distributors are experiencing irregular demand for products from the retailers due to an increase in the number of patients suffering from COVID-19 and other life threatening disorders.

Global Aromatherapy Market Segmentation:

The global aromatherapy market report is segmented into product type, application, mode of delivery, and region.

• By product type, the market is segmented into consumables and equipment. Consumables is further bifurcated into essential oils and carrier oils. Essentials oils are of two types which are singles and blends. Singles can be further classified into herbaceous, woody, spicy, floral, citrus, earthy, camphoraceous, and others. The equipment segment is divided into ultrasonic, nebulizing, evaporative, and heat equipment. The consumables segment is poised for the largest market share in 2023 due to the increased availability of essential oils and aromatherapy products both in physical stores and online. The ease of purchasing and using these oils at home has contributed to their popularity which is driving the market growth.
• By application, the market is segmented into skin & hair care, pain management, insomnia, boosting immunity, scar management, and others. The skin & hair care is expected to dominate the market owing to the fact that in skincare, essential oils moisturize, combat acne, and reduce signs of aging. Aromatherapy promotes holistic well-being, offering both therapeutic and cosmetic advantages for skin and hair, fostering relaxation and rejuvenation.
• By mode of delivery, the market is segmented into topical application, aerial diffusion, and direct inhalation. The global market for aromatherapy was dominated by the topical application sector. By dilution in the carrier oil, essential oils are primarily delivered topically to the skin via a variety of procedures. Topical application is distinctive because it enables the user to direct the effects of aromatherapy towards particular parts of the body. Therefore, the segment expansion in the global aromatherapy market is anticipated to be driven by the benefits that topical application offer over other applications over the forecast period.

Global Aromatherapy Market - Cross Sectional Analysis:

The key players are making aromatherapy with advanced technologies in emerging economies, which is also expected to boost the demand for the aromatherapy market in the North America region. For instance, in May 2021, Zynex Inc., a company that manufactures and markets medical devices, launched NeuroMove which is U.S.  Food and Drug Administration (FDA) cleared for stroke rehabilitation, and its use has dramatically ameliorated functional impairments in stroke survivors in many clinical studies and in the clinical practices.

Global Aromatherapy Market: Key Developments

• On June 14, 2023, dōTERRA, a leading U.S.-based company in the essential oils industry, achieved remarkable growth in the China market through its active participation in the China International Import Expo (CIIE). The company has signed a number of agreements with Chinese distributors and retailers at each CIIE, increasing its market share and brand awareness in the country. The value of tentative deals signed between dōTERRA and Chinese buyers at each CIIE has also increased - from US$53.3 million (380 million yuan) in 2018 to US$153.2 million (1 million yuan ) in 2020.
• In March 2022, dōTERRA entered into a five-year research collaboration with the National Center for Natural Products Research (NCNPR) at the University of Mississippi School of Pharmacy. The aim of this partnership is to develop quality standards for the essential oil industry.

Global Aromatherapy Market: Key Trends

• Growing interest in wellness and holistic health: Aromatherapy has gained popularity as people seek natural and holistic approaches to health and wellness. Consumers are increasingly looking for alternative therapies and remedies, which has driven the demand for essential oils and aromatherapy products. For instance, on August 11, 2023, Escents Aromatherapy, a leading company in natural wellness, plant-based personal care products, and scent, introduced an exceptional product to its extensive line - Tea Tree essential oil. This product is ideal for individuals who want to improve their overall wellness.
• Increased focus on mental health: The COVID-19 pandemic highlighted the importance of mental health, leading to a surge in the demand for products that promote relaxation and stress relief. Aromatherapy has been positioned as a solution to help manage anxiety and improve mental well-being. For instance, a study by UCLA Health published in April 2021, found out that aromatherapy can boost mood and promote relaxation in and out of the hospital setting. The therapeutic efficacy of plant-derived elixirs, which can be used to unwind, energize, and calm body and mind, is supported by a growing body of research.

Global Aromatherapy Market: Restraint

• Risk factors associated with aromatherapy: When applied topically, essential oils can irritate the skin or trigger allergic reactions because of their high concentration and potency. Customers could be reluctant to utilize aromatherapy items as a result, particularly if they have sensitive skin. Infants, young children, and pregnant women are especially sensitive to the effects of essential oils. Pregnant women should completely avoid using aromatherapy items since some essential oils can be dangerous during pregnancy. Children's safety worries can also restrain the market expansion.

Global Aromatherapy Market - Key Players

The major players operating in the global aromatherapy market include 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.

Global Aromatherapy Market -Definition: Aromatherapy is an alternative medicine treatment that is effective for treating pain, nausea, overall wellbeing, anxiety, sadness, stress, and sleeplessness. It can be used in an inpatient or outpatient setting. Preoperative anxiety, oncology, palliative care, hospice, and end-of-life care are all helped by it. Essential oils are potentially harmful and hazardous. Some of them are combustible, cause skin dermatitis, are phototoxic and can result in chemical burns, are toxic to the mouth, or can even be fatal.