The essential oils market in Germany

The essential oil market refers to the business activities from the extraction and production of all types of essential oils from their natural resources and raw materials to the marketing and sale of the product through packaging and distribution processes.

essential oils are a natural product obtained by extraction (traditionally by hydrodistillation or cold pressing) from plant raw materials rich in "essences" belonging to herbs and medicinal plants, the so-called "aromatic plants". Therefore, essential oils are a mixture of various elements of an aromatic plant and, in some cases, fragrance chemicals. After extraction, they appear as oily, liquid and volatile substances (soluble in alcohol and oil, but not in water) and with have odor of the original plant from which they were extracted.

The amount of essences contained in a plant depends on the species, climate and soil type (usually from 0.01% for rose petals to 1% for cloves) and thus, essential oils are very valuable substances . For example, to obtain one kilogram of pure essential oil, 4 to 7 tons of rose petals (30 rose buds produce about one drop), 115 to 200 kg of lavender or 1 ton of orange blossoms must be distilled. This small proportion explains to a large extent the cost-price ratio of the final product, especially when the selected plants must come from organic and ecological cultivation to ensure a 100% natural composition.

Globally, essential oils can be used in many different ways: in personal care (including hygiene) and cosmetics, in food and beverages, in pharmaceuticals, in aromatherapy and in industry. An essential oil can be used both by inhalation and oral ingestion, but also by epidermal absorption.

The global market is growing rapidly due to both the increasing use of essential oils in aromatherapy and the increasing demand for flavored foods and beverages due to consumer preference for flavored products (including in Germany) - it should be noted that the demand for citrus oil has been relatively higher than that for other products.it is expected to grow at a compound annual growth rate (CAGR) of 7.9% through 2030.[Grand View Research]in the near future, the market growth is expected to be driven by the increase in the average disposable income worldwide as well as the development of the industry.