Aromatherapy uses essential oils extracted from plants to enhance psychological and physical well-being. Using scented oils extracted from herbs, flowers, fruits, barks, and roots aromatherapy offers several advantages such as stress relief, improved sleep, reduced anxiety, and pain relief. It is widely used in homes globally as diffusers, candles, and room sprays. With changing lifestyles and busy schedules, aromatherapy has gained immense popularity for mood enhancement and relaxation.
The global aromatherapy market is estimated to be valued at US$ 6.39 Bn in 2023 and is expected to exhibit a CAGR of 8.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing adoption of aromatherapy for stress relief and management is a key driver aiding the global aromatherapy market growth over the forecast period. According to the American Psychological Association, over 80% of people feel stress regularly and aromatherapy is an effective remedy for reducing stress levels and promoting relaxation. The calming and soothing scents of essential oils such as lavender, chamomile, and frankincense reduce cortisol levels and induce feelings of calmness. Moreover, long working hours and hectic lifestyles have increased stress-related health issues such as anxiety and depression globally. This has boosted the adoption of aromatherapy essential oils for mood enhancement and relaxation without any side effects. Additionally, the increasing popularity of alternative therapies and global spread of aromatherapy practices is expected to contribute to the demand for essential oils in the coming years. Increasing consumer awareness about various health benefits through blogs, books, and digital forums is further strengthening the aromatherapy market growth.
SWOT Analysis
Strength: Aromatherapy uses essential oils which have therapeutic properties. Essential oils are known to have calming, energizing and relaxing properties which helps in reducing stress, anxiety and depression. Essential oils provide physical and psychological benefits. They are also considered as natural remedies and alternatives to pharmaceuticals which have side effects.
Weakness: Quality and purity of essential oils vary across suppliers. Adulteration and contamination of essential oils may reduce their therapeutic benefits. Lack of scientific evidence and clinical trials for some aromatherapy claims. Side effects may occur if used incorrectly or in high amounts without dilution.
Opportunity: Increasing consumer preference for natural and herbal products is driving the demand for aromatherapy. Growing popularity of wellness tourism is also boosting the aromatherapy market. Rapid development of new essential oil blends by market players presents an opportunity. The rise in usage of aromatherapy for treatments in hospitals, day spas and beauty salons also presents an opportunity.
Threats: Stringent regulations associated with the production, labeling and marketing of essential oils act as a restraint. High production costs of essential oils is another threat. Trade barriers and local unorganized players providing low quality alternatives at lower prices are challenges.
Key Takeaways
The global aromatherapy market is expected to witness high growth. The market size is projected to reach US$ 6.39 Billion in 2023 from US$ 5.15 Billion in 2020, growing at a CAGR of 8.2% during the forecast period. North America currently dominates the aromatherapy market owing to high awareness and adoption of aromatherapy products. However, Asia Pacific region is expected to be the fastest growing market in the coming years led by countries like China, India and Japan where aromatherapy is gaining popularity.
Key players operating in the aromatherapy market are 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. These players are focused on expanding their product portfolio through new product launches. Mergers & acquisitions are another growth strategy being adopted by key players to strengthen their market presence.
