$1.3bn
$XX.Xm
2,293
63
$XXX.Xm
Volatile shifts in consumer demand and market conditions have hurt the Essential Oil Manufacturing industry's expansion through the end of 2023. Essential oils have seen a revival in their popularity amid a growing consumer shift to natural, eco-friendly alternatives of everyday products, aiding industry revenue. However, falling disposable income in the year marked by rising inflationary pressures, along with decreasing demand from cosmetic and beauty products manufacturers, have dampened industry demand. Similarly, the rising costs that come with manufacturers, which include having a consistent line of workers and many machineries to process these plant extracts, have continually pressured profit. Revenue is set to decrease at a CAGR of 2.1% through the end of 2023 to $1.3 billion, including a projected 2.6% increase in 2023 alone.To preserve growth and market share, manufacturers have made significant investments in developing and researching essential oils and derivative products claimed to act as remedies or provide relief for mild ailments. By diversifying and entering the medical and homeopathic markets, essential oil manufacturers have expanded the range of products provided. Exports have remained the largest driver of revenue, as international buying industries, namely manufacturers, have significantly increased purchases of domestically produced essential oils. In 2023, exports are set to comprise more than half of revenue. However, imports are set to account for nearly three-quarters of domestic demand, which is set to keep manufacturers pressured in the period to grow their revenue with increased competitive pressures in the market.Moving forward, the Essential Oil Manufacturing industry is expected to sustain revenue growth through both greater homeopathic oil use and increasing environmental awareness. Key fragrance and consumer product manufacturers are expected to steadily purchase essential oils, while manufacturers will seek to establish an even stronger presence in the medical and homeopathic markets. Still, tariffs and potential regulation over manufacturers' health claims will remain a looming threat, as will imports of essential oils. Still, industry revenue is projected to grow at a CAGR of 1.5% to reach $1.4 billion through the end of 2028.
Industry revenue has declined at a CAGR of 2.1 % over the past five years, to reach an estimated $1.3bn in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
---|---|---|---|---|
Delta Scientific | 17.8 | 1.1 | 5.9 | |
Paragon Lock & Safe Co. | 5.2 | 0.3 | 5.9 |
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Industry revenue is measured across several distinct product and services lines, including Synthetic oils, Natural oils and Other. Synthetic oils is the largest segment of the Essential Oil Manufacturing in the US.
Natural oils
The Essential Oil Manufacturing industry develops and produces concentrated hydrophobic liquids that contain aroma compounds from plants. An oil is essential in the sense that it carries a distinctive scent or essence of a particular plant. This industry does not include products manufactured for medical, pharmacological or culinary purposes.
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NAICS 32599 - Essential Oil Manufacturing in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
COVID-19 heavily disrupted the industry. Considered a luxury good, essential oil manufacturers found it difficult to continue to operate and move existing products.
Learn about an industry's products and services, markets and trends in international trade.
Natural oils are the most popular product offered by the industry. These manufacturers can capitalize on the use of buzzwords like organic, all-natural and plant-based to dri...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Proximity to upstream and downstream markets heavily influences business locations. The closer a manufacturer is to these markets, the more visibility they have and the less ...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Manufacturers compete with each other for local business. Since the industry is highly fragmented, downstream markets have their pick of the litter in choosing a manufacturer...
Learn about the performance of the top companies in the industry.
No single company holds a market share greater than 5.0%. Even the industry’s largest manufacturers, Young Living Essential Oils and DoTerra have a negligible market share be...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
The industry is moderately regulated. The industry is beholden to various federal, state and local regulations and environmental laws that govern the discharge of materials i...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Purchases are the industry’s largest expense. Manufacturers must source fruits, plants and chemicals in bulk to create essential oils.
Including values and annual change:
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Key data sources in the US include:
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The market size of the Essential Oil Manufacturing in the US industry in United States is $1.3bn in 2024.
There are 63 businesses in the Essential Oil Manufacturing in the US industry in United States, which has grown at a CAGR of 2.0 % between 2019 and 2024.
The market size of the Essential Oil Manufacturing in the US industry in United States has been declining at a CAGR of 2.1 % between 2019 and 2024.
Over the next five years, the Essential Oil Manufacturing in the US industry in United States is expected to grow.
The biggest companies operating in the Essential Oil Manufacturing market in United States are Delta Scientific and Paragon Lock & Safe Co.
Manufacturing grapefruit oil and Manufacturing lemon oil are part of the Essential Oil Manufacturing in the US industry.
The company holding the most market share in United States is Delta Scientific.
The level of competition is high and steady in the Essential Oil Manufacturing in the US industry in United States.