Essential Oil Manufacturing in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: January 2024
NAICS OD5061Revenue
$1.3bn
Past 5-Year Growth
Profit
$XX.Xm
Employees
2,293
Businesses
63
Wages
$XXX.Xm
Essential Oil Manufacturing in the US industry analysis
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.
Trends and Insights
- COVID-19 heavily disrupted the industry. Considered a luxury good, essential oil manufacturers found it difficult to continue to operate and move existing products.
- 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 drive sales.
- 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 expensive it is to transport goods.
- 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 to supply them.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 2.1 % over the past five years, to reach an estimated $1.3bn in 2024.
Trends and Insights
Shifting consumer trends
- The appeal of essential oils comes in the form of the scents they evoke from certain flowers and fruits, which helps serve as an aromatic backdrop for households or businesses.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Growing markets
- Manufacturers are expected to continue growing in traditional markets for essential oils while expanding further into new markets amid changing consumer demands.
Biggest companies in the Essential Oil Manufacturing in the US
| Company | Market Share (%)
2023 | Revenue ($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 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
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.
Trends and Insights
Natural oils
- Natural essential oils are chemical compounds derived directly from plants.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Soap & Cleaning Compound Manufacturing in the US
- Cosmetic & Beauty Products Manufacturing in the US
- Beauty, Cosmetics & Fragrance Stores in the US
- Alternative Healthcare Providers in the US
International industries
- Chemical Product Manufacturing in Canada
- Cosmetics, Perfume and Toiletries Manufacturing in Australia
- Essential Oil Manufacturing in the UK
- Fragrance and Essence Manufacturing in China
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Manufacturing grapefruit oilManufacturing lemon oilManufacturing orange oilManufacturing citronella oilManufacturing peppermint oilManufacturing eucalyptus oilManufacturing spearmint oilManufacturing other essential oilsCompanies
Delta ScientificParagon Lock & Safe Co.Purchase this report to view all 2 major companies in this industry.
Related Terms
DISTILLTHERAPEUTIC GRADE ESSENTIAL OILBOTANYCAMPHORACEOUSIndustry Code
NAICS 32599 - Essential Oil Manufacturing in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
COVID-19 heavily disrupted the industry. Considered a luxury good, essential oil manufacturers found it difficult to continue to operate and move existing products.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
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...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
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 ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
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.
Analyst insights
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...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
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...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Delta Scientific's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Paragon Lock & Safe Co.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Delta Scientific, and factors influencing its performance in the industry
- Description and key data for Paragon Lock & Safe Co., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
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...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Purchases are the industry’s largest expense. Manufacturers must source fruits, plants and chemicals in bulk to create essential oils.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Essential Oil Manufacturing in the US industry in United States in 2024?
The market size of the Essential Oil Manufacturing in the US industry in United States is $1.3bn in 2024.
How many businesses are there in the Essential Oil Manufacturing in the US industry 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.
Has the Essential Oil Manufacturing in the US industry in United States grown or declined over the past 5 years?
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.
What is the forecast growth of the Essential Oil Manufacturing in the US industry in United States over the next 5 years?
Over the next five years, the Essential Oil Manufacturing in the US industry in United States is expected to grow.
What are the biggest companies in the Essential Oil Manufacturing in the US market in United States?
The biggest companies operating in the Essential Oil Manufacturing market in United States are Delta Scientific and Paragon Lock & Safe Co.
What does the Essential Oil Manufacturing in the US in United States include?
Manufacturing grapefruit oil and Manufacturing lemon oil are part of the Essential Oil Manufacturing in the US industry.
Which companies have the highest market share in the Essential Oil Manufacturing in the US in United States?
The company holding the most market share in United States is Delta Scientific.
How competitive is the Essential Oil Manufacturing in the US industry in United States?
The level of competition is high and steady in the Essential Oil Manufacturing in the US industry in United States.
