1.1 Presentation and definition of the essential oils market

Essential Oils (EO) are defined as complex mixtures of natural, volatile and odorous chemical substances contained in all or part of an aromatic plant. Traditionally, these essential oils are extracted by hydro-distillation or cold press. Both processes are time consuming and require a certain amount of expertise.

The plants and flowers used for the production of essential oils are numerous but we can note as an example the lavender, rosewood, eucalyptus, ylang-ylang, chamomile, tea tree, geranium, citrus, mint and patchouli, and many more. It should be noted that the essential oil content of plants is generally very low, ranging from 0.01% (e.g. rose petals) to 1% (e.g. cloves). Thus to obtain one liter of pure essential oil, it is necessary to distil between 4 and 7 tons of rose petals, 115 to 200 kg of lavender, or 1 ton of orange blossoms.

There are several players in the market, often with very different positions:

The producers of vegetable raw materials (flowers and plants for the production of essential oils).
The producers of essential oils who distill or cold press flowers and plants. They vary in size, from the artisan to the large industrial group.
The consumer businesses of essential oils from various industries (cosmetics, pharmaceuticals, food processing).
The regulatory bodies and control authorities that check the quality and harmfulness of the oils and certify them.

The main opportunities in the manufacture of essential oils are the agri-food products, the fragrances, the cosmetics, the aromatherapy, the cleaning and the pharmaceutical products. ( Quimdis )

The the world market for essential oils is booming mainly thanks to the dynamism of Western markets, the increase in popularity of aromatherapy and the always active manufacture of cosmetic products.

France is a major player in the world market, with a very dynamic foreign trade. The French market, which specialises in particular in the production of essential lavender oil, has rising production levels and strong demand.

1.2 The growing global market

Robust global growth

According to Transparency Market Research , between **** and ****, the global essential oils market is expected to witness a growth rate of around *.**% per year. It was valued in **** at **.** billion and is expected to reach $**.** billion by the end of **** [***].

According to Grand View Research , the world production of ...

1.3 France, a major player in the world

The French market is highly dependent on partner countries for both the import and export of essential oils. In ****, france imported *,*** tons (***). On the other hand, the production of essential oils in France in **** is estimated at *,*** tons. [***]

Although France is a small producer of essential oils on a global scale, ...

1.4 Impact covid : les huiles essentielles, le nouveau remède ? Non, mais...

Considérées comme un remède contre la COVID-**, les huiles essentielles ont fait parler d'elles durant la crise sanitaire, avec de nombreux Français qui ont voulu s'en servir, a tort, dans le but notamment d'assainir l'air intérieur dans la maison ou dans les voitures par exemple. Cette ...

2.1 Promising opportunities for the essential oils market

The main outlets for essential oils in the world are the food industry, perfumes, cosmetics and aromatherapy, cleaning products and pharmaceutical products. Note the significante of relative importance of the foo, fragrance, cosmetics and aromatherapy sectors, which accounted for nearly **% of sales in **** [***].

Sales of Essential Oils, by type France, ...

2.2 Essential oils and the popularity of organic

The trend towards the increased consumption of healthier, natural and organic products represents a great opportunity for the essential oils market as bio cosmetic products of this type often contain these oils. The following graph shows the reasons stated by the french for the consumption choice of a type such cosmetic ...

2.3 La tendance du bio et du DIY

Le DIY, Do It Yourself, le faire soi-même, est une tendance qui s'implante depuis un moment et qui a pu prendre ses marques avec le confinement puisqu'il a donné du temps aux Français pour découvrir cette activité, à tel point qu'en ****, **% des Français aurait au moins eu recours ...

3.1 Production and processing of essential oils

Value Chain of Essential Oils

Source: ****

France had more than *** manufacturing companies of flavours and essential oils in ****, employing less than ** people on average and achieving a average turnover of * million euros.

The essential oil manufacturing market in France is very fragmented and artisanal. This market fragmentation can be explained by ...

3.2 French production on the rise

Growth forecasts

In general, the French production of essential oils is doing well. In fact, the turnover of the manufacturers of flavours and essential oils has increased *% in ****. This growth is expected to continue in the coming years, as shown in the graph below [***]

Production of Essential Oils France, ****-****, ...

3.3 Distribution dominated by specialized channels

The sale of essential oils to the final consumer is done through different distribution channels including organic stores, pharmacies and parapharmacies and the e-selling.

A pharmacy monopoly for specific oils

In France, ** essential oils are subject to a pharmacy monopoly. This is because of the high risks associated with their use. ...

3.4 Un marché marqué par une pluralité d'acteurs

Les acteurs de pharmacies et parapharmacies :

Parts du marché d'huiles essentielles unitaires en pharmacies et parapharmacie France, ****, en pourcentage Source: ****

Il y a une grande variété d'entreprises sur le secteur des huiles essentielles, et le canal de distribution des pharmacies et parapharmacies n'y échappe pas, on y retrouve des acteurs ...

4.1 Highly variable prices and production costs

Being the price dimension very variable in this market, we are interested in the average prices of essential oils in their trade in order to highlight the strong disparities that exist in this context. The production costs of essential oils are extremely variable which is due to various factors, including: the ...

4.2 Price stability challenged by changing consumer demand

If we look at the average prices of essential oils sold in pharmacies, we see that they were relatively stable over the ****-**** period [***]. However, price trends differ greatly from one essence to another. The variations between **** and **** range from -**% to **%. Of the ** best-selling essential oils in ****, we can see ...

4.3 A demand for imported and organic products

A demand for imported products

The essential oils most purchased by the French in pharmacies are tea tree, fine lavender, peppermint, ravintsara, wintergreen, eucalyptus, citronella and clove. With the exception of fine lavender, these essential oils are imported products and do not come from French production.

There is an upward trend ...

4.4 Les formations en aromathérapie

Une demande de formation a l'aromathérapie est de plus en plus forte, que ce soit pour l'utilisation personnelle ou pour une reconversion professionnelle, comme dans la réflexologie, la kinésiologie, le conseil en aromathérapie... il existe de nombreux métiers en lien avec l'aromathérapie et les huiles ...

5.1 Marketing and Labelling Regulations

Numerous regulations govern the manufacture, import and distribution of essential oils. In addition to the limitation of the sale of certain essential oils to pharmacies mentioned above, several regulations control the marketing and labelling of these products.

REACH Registration, Evaluation, Authorisation and Restriction of Chemicals.

This European regulation governs the manufacture ...