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India essential oils market to reach valuation of us$ 1.5 bn by 2030
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5/19/2021
In terms of value, the India essential oils market is anticipated to expand at a CAGR of ~4% from 2020 to 2030.

India Essential Oils Market: Introduction

In terms of value, the India essential oils market is anticipated to expand at a CAGR of ~4% from 2020 to 2030. Growing trend of adoption of ayurvedic products and rising demand for natural personal care products in India are factors driving the essential oils market in the country. Growth of the organic cosmetics & homecare products industry in India would create lucrative opportunities for the essential oils market in the country in the near future. Rising awareness about benefits offered by natural ingredients boosts their adoption, which drives usage of essential oils in various applications. Therapeutic benefits offered by essential oils are anticipated to drive the demand for these oils in India during the forecast period.

Increase in the consumption of essential oil as natural preservatives is anticipated to boost the essential oils market in India during the forecast period. Moreover, increasing consumption of essential oils in various applications, including food & beverages, cosmetics, homecare products, and pharmaceuticals drives the market in the country. Rising regulations on the usage of chemical-based essential oils are estimated to drive the market for essential oils in India in the next few years.

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Volatile Prices of Raw Materials to Hamper Market in India

High prices of essential oils restrain the essential oils market in India. Insufficient production of raw materials and unavailability of these materials in enough quantity raise their prices. Volatile prices of raw material led by their irregular supply are projected to hamper the essential oils market in India during the forecast period. Low supply of raw materials puts burden on the essential oils market in India. Changing climatic conditions may result in poor harvesting. Additionally, availability of low-cost chemical-based substitutes also hampers the essential oils market in the country. Adulteration, residues of solvents and pesticides, and microbial contaminations are other factors hindering the essential oils market in India.

Lack of quality management and advanced procurement facilities is a key factor responsible for quality degradation. Deficiency in quality and purity management is another major restraint of the essential oils market in India.

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Cornmint Oil to Dominate India Essential Oils Market

In terms of product, the India essential oils market has been divided into citrus oil, eucalyptus oil, clove oil, peppermint oil, basil oil, cornmint oil, spearmint oil, sandal wood oil, and others. Among these, the cornmint oil segment dominated the India essential oils market, in terms of volume and revenue, in 2019. The citrus oil segment is expected to be highly lucrative from 2020 to 2030. Cornmint oil is widely used to manufacture various types of products including food, beverages, confectionery items, dental care products, homecare products, and cosmetics. Citrus oil is beneficial for digestion and to boost energy.

Food & Beverages to Be Key Application

Based on application, the India essential oils market has been segregated into food & beverages, pharmaceutical, cosmetics & toiletries, aromatherapy, homecare products, fragrances, and others. Among applications, the food & beverages segment held a major share of the India essential oils market in 2019. It is anticipated to continue to dominate the market in the country from 2020 to 2030.

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North to be a Lucrative Zone of India Essential Oils Market

Based on zone, the India essential oils market has been classified into east, west, north, and south. The essential oils market in India is projected to expand at a CAGR of more than 4%, in terms of value, during the forecast period. The market in the country is expected to offer significant opportunities to manufacturers of essential oils during the forecast period. India is a major manufacturer and consumer of essential oils. The west zone segment dominated the India essential oils market in 2019. The north zone segment is anticipated to expand at the maximum CAGR during the forecast period.

Competition Landscape

The India essential oils market was highly fragmented, with various small- and medium-scale manufacturers operating in the market in 2019. West zone has been a lucrative market for essential oils in India over the last few years. Leading market players have taken initiatives to expand their presence in the market in the country through new product launches and strategic partnerships with suppliers and distributors.

Key manufacturers operating in India essential oils market Bo International, Kanta Enterprises Private Limited, Falcon Essential Oils, Indian Aroma Exports, India Essential Oils, Shiv Sales Corporation, AG Industries, BMV Fragrances Pvt. Ltd., Moksha Lifestyle Products, Kush Aroma Exports, and Veda Oils.

India Essential Oils Market: Segmentation

India Essential Oils Market, by Product

·         Citrus Oil

·         Eucalyptus Oil

·         Clove Oil

·         Peppermint Oil

·         Basil Oil

·         Cornmint Oil

·         Spearmint Oil

·         Sandal Wood Oil

·         Others

India Essential Oils Market, by Application

·         Food & Beverages

·         Pharmaceuticals

·         Cosmetics & Toiletries

·         Aromatherapy

·         Homecare Products

·         Fragrances

·         Others

India Essential Oils Market, by Zone

·         East

·         West

·         North

·         South

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