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Summary
The global market for essential oils has seen significant growth, with the market projected to rise from $13.64 billion in 2022 to $15.34 billion in 2023, an increase of around 13%. The market is also expected to expand at a compound annual growth rate (CAGR) of 11%, reaching $25.95 billion by 2027. North America dominated the market in 2022, while the Asia-Pacific region is expected to experience the fastest growth over the forecast period. The Italian market, in particular, has seen steady growth, with a particular focus on exports of citrus-based essential oils. The value of Italian exports in this sector was 7.1 billion USD in 2022, making it the world's eighth largest exporter. France, with an export value of 22.8 billion USD, and the USA, with 14.2 billion USD, preceded Italy. Demand for essential oils in Italy is mainly driven by personal care applications, which saw a drop in average household spending in 2020 due to the economic crisis, but have since been on the rise. Despite the drop in production value in 2021, probably due to the effects of the pandemic, a recovery was observed in 2022.
In terms of market structure, the number of Italian companies in this sector has remained relatively stable over time, with the s.r.l. (limited liability company) being the dominant legal form, suggesting a structured nature of these companies. Production processes mainly include hydrodistillation, cold pressing and solvent extraction, to name but a few, with each company often combining these techniques with its own blending formulas to create its finished products. Italian regulations are in line with European standards and guarantee the quality of essential oils through various frameworks, including restrictions for cosmetic products, controls for human consumption, additives for animal feed and global REACH and CLP regulations. The essential oils value chain involves producers, wholesalers, plant extract manufacturers, end-user industries and consumers, all of whom interweave to create a complex network within this industry.
Growing appeal of natural solutions fuels Italy's essential oils market
The Italian essential oils market is in a phase of sustained growth, driven by growing consumer demand for natural products free from artificial additives. In Italy, there has been a noticeable shift in consumer preferences towards natural products in various sectors, including food, cosmetics, pharmaceuticals and wellness sectors such as aromatherapy. This evolution is mainly fuelled by a deeper awareness and quest for well-being, encouraging consumers to choose products that align with a healthier, more sustainable lifestyle. Demand for essential oils in Italy reflects this broader trend, as these concentrated plant extracts find their place in an increasingly wide range of products. The Italian essential oil market is flourishing, with total sales rising significantly from around 205 million euros to around 338 million euros by the end of the decade - an impressive increase of around 65% in less than a decade. Personal care appears to be the main consumer use in Italy, with average household spending on the goods and services concerned remaining constant, with the exception of an expected decline during the 2020 economic crisis. The upturn in spending after 2020 indicates a recovery in consumer confidence and continued interest in essential oils for personal well-being.
Italy's position as a major player in the global essential oils market is reinforced by its specialization in citrus-based essential oils. The country is a dynamic exporter, with a trade balance that historically favors exports over imports. However, recent data suggest an evolution towards a more balanced trade scenario. Despite this, essential oils remain an active and dynamic sector of the Italian economy. The local market is experiencing a concentration of production, with the number of companies engaged in essential oil manufacturing stable over time. Furthermore, the Italian legal framework for this industry underlines its structuring, with types such as s.r.l. (limited liability companies) accounting for almost 60% of market players, indicating a mature and well-established sector. In terms of figures, the value of essential oils produced in the country follows an upward trend until 2020, before the effects of the pandemic manifest themselves in a slight slowdown. The recovery is perceptible and the figures rise again in 2022, testifying to the resilience and adaptability of the Italian essential oils market. Overall, the essential oils market in Italy is an integral part of a global industry, promising steady growth. It is guided not only by tradition and expertise in the cultivation and extraction of aromatic plants, particularly citrus fruits, but also by contemporary consumer attitudes that place greater emphasis on naturalness.
Key players in the Italian essential oils market
The Italian essential oils market is characterized by a mix of international and local companies, each contributing significantly to the richness and diversity of the industry. Looking at some of the key players in the market, it's clear that these companies are at the forefront of innovation, quality and market penetration.
- Capua 1880 S.R.L. is a distinguished player in the global market, known for its rich heritage and commitment to the highest quality citrus essential oils. Renowned for their exquisite fragrances and flavors, Capua's products are a testament to Italy's reputation for first-rate essential oils.
- Enrico Giotti S.P.A. is another global heavyweight, with a remarkable portfolio that includes a wide range of natural aromatic substances. Giotti's expertise ranges from food-grade essential oils to those for the cosmetics and pharmaceutical industries, testifying to its versatility and willingness to respond to diverse market needs.
- In the field of essential oil production, Misitano & Stracuzzi S.P.A. has left an important mark. Its commitment to producing pure, high-quality essential oils has earned it a place among the world leaders in the sector.
- F.lli Branca S.P.A. stands out for its unique position in the market, incorporating essential oils into its vast range of products, including the famous Fernet-Branca liqueur. This integration shows how essential oils can cross market boundaries in the food and beverage sectors.
- Creative Flavours & Fragrances S.P.A. is renowned for its innovations and customized solutions in the field of flavours and fragrances. Its commitment to satisfying changing consumer needs through creative applications makes it a key player in the industry.
- Aromatagroup S.R.L. is also a major player in the essential oils market, offering a varied selection of products for a variety of applications. Their ability to harmonize tradition and modern technology places them among the most respected Italian companies.
- Locally, T-Star S.R.L. demonstrates excellence in regional production, focusing on high-quality, customized essential oils that meet specific market niches.
- Aromatica Siciliana S.R.L. highlights Sicily's rich botanical heritage, distilling the very essence of the island's flora into its oils, which are appreciated by connoisseurs and users alike.
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- Number of pages : 30 pages
- Format : Digital and PDF versions
- Last update : 10/11/2023
Summary and extracts
1 Market Summary
1.1 Definition and presentation
Essential oils are mixtures extracted from so-called aromatic plants in the form of oily, liquid substances whose molecular composition is different from that of plant oils. Essential oils are generally extracted by hydrodistillation or cold pressing. These two processes are both time-consuming and require special know-how. Essential oils are therefore highly concentrated flavored compounds, which can therefore be found in many products: pharmaceuticals, cosmetics, household products, food products, etc.
The Italian market for essential oils is growing steadily and forecasts are promising. This dynamic can be explained by consumer preferences for food products without artificial supplements, natural cosmetics but also pharmaceutical products with natural ingredients.
In Italy, the market is concentrated: there are few producers and most specialize in the production of essential oils from lemon, orange or other citrus fruits. They offer products for different uses, the prices of which vary greatly: the raw material and the method of extraction have a very significant impact on the price of the finished product.
1.2 The world and European market
The global essential oils market grew from $**.** billion in **** to $**.** billion in ****, an increase of about **%. The market is projected to grow with CAGR of **% reaching $**.** billion in ****. North America emerges as the largest market in ****, while theAsia-Pacific region is estimated to have the fastest growth over the forecast period. Possible ...
1.3 The Italian market
The data analyzed in this section refer to the sector registered under ATECO **.**.** Manufacture of essential oils, which includes:
manufacture of essences of natural aromatic products manufacture of resinoids manufacture of mixtures of odoriferous products for perfumery and foodstuffs manufacture of aromatic distilled waters
The Italian market has been experiencing steady ...
1.4 Foreign trade is dominated by citrus export
The graphs below show data covering products registered under HS Code ****,"Essential oils (***) including those called "concrete" or "absolute"; resinoids; extracted oleoresins; concentrated solutions of essential oils in fats, fixed oils, waxes or similar products, obtained by enfleurage or maceration; terpenic by-products residual from the deterpenation of essential oils; aromatic distilled ...
1.5 The impact of Covid-19
The impact of the COVID-** pandemic on the global essential oils market has been significantly positive. During the pandemic period, there was an increase in demand for essential oilssuch as tea tree oil , peppermint, and eucalyptus, which are renowned for their antibacterial, antiviral, and aromatherapy qualities, supporting their ability to improve ...
2 Demand analysis
2.1 Demand in Italy
regarding the demand for essential oils in Italy, the main use by end consumers is associated with personal care. Therefore, the average household spending on goods and services related to this sphere from **** to **** is reported. The value of spending undergoes a visible decrease in ****. It is reasonable to infer that ...
2.2 Demand drivers
The benefits of essential oils
Essential oils, properly applied, can support the body in multiple ways. For example, they promote relaxation and good immune function, reduce mental and physical tension, and develop a healthy metabolism.
They promote healthy emotional expression, proper function of muscles and joints, and help reduce stress. The ...
2.3 The geographical distribution of demand
The geographical distribution of household spending on personal care goods and services is shown below. The Northeast turns out to be the geographic area where spending is highest overall(***), in general the entire northern area shows higher spending than the rest of Italy. This is followed by the Center with **.** euros ...
2.4 New trends in demand
Growing demand for natural products in all sectors
Natural and synthetic fragrances
In Europe, consumers are increasingly turning to natural ingredients, which they consider better and safer than synthetic alternatives. This trend has led to a growing market for natural products. The perfumer distinguishes between natural and synthetic or semisynthetic fragrances ...
3 Market structure
3.1 The structure of the Italian market
The analysis of the market structure related to essential oils is carried out on the basis of the data belonging to the category related to ATECO code **.**.** "Manufacture of essential oils." Specifically, three different quantities are considered: the number of active enterprises, number of employees and legal form of enterprises.
Regarding ...
3.2 The value chain: many different actors
Follows the value chain of the essential oils industry.
Source: ****
Manufacturers of essential oils may produce their own raw material or may use farmers, to later sell their products to wholesalers. However, they can also interact directly with plant extract producers, user industries, or even the end consumer (***) on the domestic ...
3.3 The production processes
The extraction process is subject to plant-specific extraction methods depending on the source of the natural essential oil: the flowers of the plants (***), or even the whole plant.
Source: ****
Therefore, essential oils are commonly extracted and produced using one of the appropriate techniques-although the most common methods are hydrodistillation and ...
3.4 The main manufacturers
The following are the main companies engaged in the manufacture of essential oils (***) in descending order of turnover.
Capua **** s.r.l: a family-run company founded in ****, in the early ****s it became a more industrial-type organization and expanded its range of flavorings to include all types of citrus fruits. Despite ...
4 Supply analysis
4.1 Supply analysis
Essential oils could be defined as natural compounds of plant origin consisting of mixtures of volatile substances at room temperature. In other words, an essential oil does not consist of a single molecule, but rather of a mixture of several molecules, generally having a terpenic nature. Characteristics and properties of each ...
4.2 The prices
The prices charged on the market
Prices of essential oils can vary widely depending on the producer and application. They may depend on other factors, including: the value of ingredients and raw materials, the proportion and conversion rate of each plant's share of the oil, the season of harvest, the region ...
4.3 New supply trends
Polymeric nanoparticles for improved bioactivity of essential oils
Recent advances in nanotechnology have stimulated researchers' interest in improving the release and bioactivity of essential oils through encapsulation in polymeric matrices. In fact, nanotechnology represents a promising strategy for the development of controlled, sustained and extended release systems for these compounds.
Essential ...
5 Rules and regulations
5.1 Regulations
Italy applies all European regulations. Among them, the European Federation of Essential Oils (***), cites the following regulations:
Cosmetics Regulation (***) Regulation (***) No. ****/**** controls specific uses of products for human consumption. Regulation (***) No. ****/**** provides a framework for feed additives
In addition, the REACH Regulation (***) were implemented to control the use of chemicals and ...
6 Positioning of actors
6.1 Segmentation
The following table provides a segmentation of industry players.
- Simone Gatto
- Capua 1880 srl
- Enrico Giotti Spa
- CFF Creative Flavours & Fragrances
- F.lli Branca s.p.a
- Aromata Group s.r.l
- Misitano & Stracuzzi
- Givaudan
List of charts
- Global essential oils market
- Value of exports of essential oils and resinoids
- Market share of essential oils by type
- Distribution of European production of essential oils
- Turnover of the essential oil production industry
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