Herb Oil Market Size - By Product Type (Basil, Mint, Oregano, Rosemary, Thyme, Lavender), Distribution channel (Supermarkets and Hypermarkets, Specialty Stores, Online Retail, Convenience Stores, Direct Sales), Application & Global Forecast, 2023 – 2032

Herb Oil Market Size

Herb Oil Market size was valued at USD 8.70 billion in 2022 and is estimated to observe over 6.4% CAGR from 2023 to 2032. As consumers seek healthier and more sustainable alternatives, herb oils, known for their aromatic and therapeutic qualities, are experiencing growing demand. They are perceived as clean and natural ingredients, promoting their use in food flavoring, personal care, and wellness products.
 

Additionally, the growing interest in herbal and alternative medicine further boosts the demand for herb oils in pharmaceutical and aromatherapy applications, contributing to the market's expansion.
 

Counterfeit and adulterated products pose a significant pitfall for the herb oil market as they can lead to consumer mistrust and potential health risks. The market's growth is often hindered by unscrupulous producers who dilute or falsely label their products to cut costs, resulting in lower quality and efficacy. Such deceptive practices can tarnish the reputation of legitimate herb oil suppliers and create safety concerns, potentially leading to legal issues. It is imperative for the industry to implement stringent quality control measures, certifications, and traceability standards to combat these challenges and ensure consumers receive genuine, safe, and high-quality herb oil products.
 

COVID-19 Impact

The COVID-19 pandemic had a mixed impact on the herb oil market. While the demand for certain herb oils used in pharmaceuticals and aromatherapy saw an increase due to their perceived health benefits, the market faced several challenges. Supply chain disruptions, lockdowns, and restrictions on physical retail spaces affected the distribution of herb oils, leading to temporary market instability.
 

Additionally, reduced consumer spending, especially in the food service industry, impacted the demand for herb oils used in culinary applications. Nevertheless, the growing interest in holistic health and wellness during the pandemic has supported the market, with consumers turning to natural remedies and aromatherapy, which is expected to contribute to the industry's recovery and future growth.
 

Herb Oil Market Trends

The rising demand for natural and organic products has driven the popularity of herb oils in food, cosmetics, and wellness sectors, with consumers seeking clean and sustainable alternatives. Second, there is an increasing emphasis on product traceability and quality assurance, with certifications such as organic and therapeutic grades gaining prominence. Third, the market is witnessing a surge in e-commerce and online retail channels, enabling wider product accessibility and consumer convenience. Finally, there's a growing interest in exploring the potential health benefits of herb oils, driving research and development in their applications in pharmaceuticals and holistic health, further expanding the market's horizons.
 

Herb Oil Market Analysis

Based on Product Type, the basil oil segment held over USD 2.06 billion revenue in 2022, attributed to its versatile and distinctive flavor profile, making it a key ingredient in a wide range of culinary applications, including Italian, Mediterranean, and Asian cuisines. Its fresh and aromatic notes, coupled with the association of basil with traditional recipes like pesto and caprese salad, have made it a sought-after ingredient in the food and beverage industry.
 

Additionally, basil oil is recognized for its potential health benefits and has gained prominence in the realm of natural remedies and aromatherapy, further bolstering its demand. Its widespread use, delightful taste, and therapeutic properties collectively make basil oil the most popular choice in the market.
 

Based on application, the personal care and cosmetics application segment accounted for 34.93% of the herb oil market share in 2022. There's a growing consumer preference for natural and organic ingredients in beauty and skincare products. Herb oils, such as lavender, rosemary, and tea tree oil, are rich in beneficial compounds and have skin-soothing, antioxidant, and anti-inflammatory properties. Consumers are increasingly drawn to these herb oils as they seek clean, chemical-free alternatives in their personal care routines.
 

Based on Distribution channel, the market is segmented as supermarkets and hypermarkets, specialty stores, online retail, convenience stores, direct sales, others. The supermarkets and hypermarkets segment will gain remarkable momentum during the forecast timeline. Supermarkets and hypermarkets have become a popular distribution channel in the herb oil market due to their extensive reach and consumer convenience. These retail giants offer a one-stop shopping experience, where consumers can find a wide range of products, including herb oils, under a single roof.
 

Shoppers often prefer the ease of access and the ability to physically inspect and purchase herb oils, especially when they are already grocery shopping. Moreover, supermarkets and hypermarkets frequently provide competitive pricing and promotions, making herb oils more affordable for consumers. This accessibility and affordability factor, combined with a broad customer base, make these retail channels a preferred choice for herb oil manufacturers and consumers alike.
 

Asia Pacific herb oil market size dominated around USD 4.42 billion in 2022. There is a burgeoning interest in natural and holistic health and wellness practices across countries in APAC. Consumers are increasingly turning to traditional remedies and herbal solutions, fueling the demand for herb oils in various applications, from culinary to aromatherapy and herbal medicine. Secondly, the rich biodiversity in the APAC region provides a diverse array of herbs, spices, and botanicals, making it an ideal source for herb oil production.
 

 Additionally, the increasing disposable income in many APAC countries has led to changing dietary preferences and a growing interest in premium, natural products, further driving the market's growth. The combination of tradition, biodiversity, and a rising middle class is propelling the rapid expansion of the market in the APAC region.
 

Herb Oil Market Share

Some of the major companies operating in the herb oil industry are:

• DoTERRA
• Young Living
• NOW Foods
• Nature's Way
• Gaia Herbs
• Herb Pharm
• Planetary Herbals
• Bluebonnet Nutrition
• Jarrow Formulas
• Pure Encapsulations
   

These companies focus on strategic partnerships, new product launch & commercialization for market expansion. Furthermore, these companies are heavily investing in research that allows them to introduce innovative products and garner maximum revenue in the market.
 

DoTERRA is provider of essential oils and other herbal products. The company was founded in 2008 by David Stirling and a group of natural health enthusiasts. The company's extensive product line includes single essential oils and proprietary blends that cater to a wide range of applications, from aromatherapy to personal care and natural remedies.
 

Herb Oil Industry News

• In May 2023, NOW Foods acquired Herb Pharm. The acquisition is expected to have a number of benefits for both companies and consumers. For NOW Foods, the acquisition will expand its product offering to include Herb Pharm's high-quality herbal extracts. This will allow NOW Foods to offer its customers a more comprehensive range of herb oil products. For Herb Pharm, the acquisition will provide the company with access to NOW Foods' resources and expertise. This will help Herb Pharm to grow its business and reach new customers.
   

The herb oil market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million & in Thousand Litres Units from 2018 to 2032, for the following segments:

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Market, By Product Type

• Basil Oil
• Mint Oil
• Oregano Oil
• Rosemary Oil
• Thyme Oil
• Lavender Oil
• Others

Market, By Application

• Personal care and cosmetics
• Food and beverage
• Pharmaceutical
• Aromatherapy
• Industrial
• Others 

Market, By Distribution Channel

• Supermarkets and Hypermarkets
• Specialty Stores
• Online Retail
• Convenience Stores
• Direct Sales
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Indonesia
  • Malaysia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Egypt