How is the Essential Oil Industry Changing the Global Economy?


The essential oil industry is booming right now. Selling essential oils is becoming more and more common in department stores and online. But why is this recent uptrend happening? What is an essential oil and why is it growing in popularity so much now?

essential oil industry

What is an Essential Oil?

An essential oil is a natural oil that carries the fragrance of an organic source such as a plant, from which it was extracted. They are used in aromatherapy and have numerous benefits. From an energy boost, to help inducing sleep, from soothing headaches and cramps, to deodorizing shoes; the possibilities are endless.

Some of the most common herbal essential oils that you may recognize are lavender, eucalyptus, lemon, peppermint, and rosemary oil. There is evidence of essential oils being used in wellness practices up to 5,000 years ago. The power of these scents has been known to mankind for a long time, so why is the resurgence in popularity only happening now?

herbal essential oils

It’s possible that with the rise of monotheism and the outlaw of anything remotely paganistic, selling essential oils and herbal medicines of any kind fell out of fashion. Now, the Western world is in the new-age of spirituality where ancient traditions and beliefs are re-entering the mainstream world. They aren’t returning blindly, however, because their effects are measurable and, depending on the oil, noticeable instantaneously by the user. 

How Are Essential Oils Created?

The usual way of essential oil manufacturing is distillation. Sometimes expression is used, which is a cold pressed method of extraction, mostly used for citrus essential oils. Solvent extraction can also be used to help coax out the oils from the botanical material in which they reside.

In all the various methods, the oil is extracted from the organic source so that it maintains the scent of that which it came from. The natural oil is powerful and can be used to treat many ailments.

The Importance of Essential Oils

Essential oils are amazing and instantly impactful, making them convenient for everyday use. Just a few drops of your favorite oil can have a dramatic effect on your mood. It can de-stress, relax, and soothe the body, or it can provide an instant energy boost, uplift, and refresh the mind, or it can decongest your sinuses, clear your airways, and ease the symptoms of headaches. The possibilities really are endless!

The fragrances are all unique. Even if you’re using them solely to make the home smell nice, they won’t disappoint. You can also use them as a substitute for perfume. They are the natural and healthy replacement for almost all of the toxic ingredients in the cosmetic and pharmaceutical industries today. This is the importance of essential oils: they are safe and natural alternatives to commonly used ingredients. It’s the reason why they will continue to soar in the future, taking a larger and larger chunk out of the global market as time passes by.

How Do I Choose and Use Essential Oils

The Future of the Essential Oil Economy

Many people still ask, “What is an essential oil?” if you talk about them, regardless of whether local shops have essential oils for sale or not. They are not quite as mainstream as people would like to think they are… yet.

Selling essential oils is becoming more popular and the essential oil industry is definitely on the rise. Mainstream awareness is picking up. Research suggests that by 2025, the demand for essential oils will have increased due to “rising awareness regarding health benefits of naturally sourced oils.” It suggests that the more people become aware of their beneficial properties, the more they will be used. Furthermore, the fact that they are naturally sourced is a huge selling point as the world is heading for a greener and more eco-friendly future. As this develops, we can only assume that the essential oil industry will continue to grow. (Source: https://www.grandviewresearch.com/industry-analysis/essential-oils-market

Essential Oil - Peace and Calming

Orange Oil is currently the fastest growing essential oil, largely due to the fact that it’s used in many cleaning products as a natural deodorizer. Large scale cosmetic industries are using this oil more and more frequently. It’s known to increase elasticity in the skin, toning it, and treating acne, dermatitis, and stretch marks. Orange oil is popular among women as it improves the quality of hair, nails, and skin. This increases appeal and is one of the reasons why essential oil industry statistics point to it being the fastest growing product.

Many of the essential oil business opportunities will be found online in the ever-growing e-commerce markets. Internet-based sales are set to grow over the coming years as global markets increasingly become digitized.

According to other essential oil studies, the essential oil market share from aromatherapy application alone may surpass $2 billion by 2024. Eucalyptus oil in particular is set to increase by 9.5%. It’s used in many pharmaceutical products such as throat lozenges, toothpaste, mouth wash, shampoo and much more. It will only grow in popularity as time goes by. Its ability to clear sinuses is effective and this is shown through its high regard and common usage. (Source: https://www.gminsights.com/industry-analysis/essential-oil-market?utm_source=globenewswire.com&utm_medium=referral&utm_campaign=Paid_globenewswire)

Orange Oil

Almost everywhere has essential oils for sale today, but the majority of plants that produce essential oils are completely untapped. They are situated in Africa where it’s more difficult to obtain them. Some time in the future, these valuable resources will be accessed. Africa could well emerge as the main producer and a key player in the global essential oils market. (Source: https://pubs.acs.org/doi/pdf/10.1021/bk-2013-1127.ch018)

Currently, the USA is the largest importer of essential oils and this amount is growing at a steady rate of 10% per year. It’s making a big impact in the global markets. Not just a fad, this bustling economy is thriving. It continues to expand annually and essential oils are swiftly becoming a hot commodity for both customers and investors. 

essential oils

 With the world heading towards a more environmentally friendly future, essential oil shares are set to surge. This is especially the case as the largest pool of resources remains mostly untapped. This is only the beginning. There will likely come a time where essential oils are the go-to ingredient for cosmetics and pharmaceuticals, rather than the harmful ingredients that are currently used. Until then, sit back, relax, and enjoy the ride.