July 6, 2016 - 4:00 PM EDT
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Increased Preference for Natural Products Predicted to Become a Key Trend for the Global Essential Oil Market Until 2020, Says Technavio

According to the latest research study released by Technavio, the global essential oil market is expected to record a CAGR of more than 8% until 2020.

This research report titled ‘Global Essential Oil Market 2016-2020,’ provides an in-depth analysis of market growth in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various distribution channels, including retail, online, and others.

Request sample report: http://bit.ly/29eYQyI

“Major retailers such as Costco, Walmart, and Whole Foods are making it mandatory for food and cosmetics producers to bring about sweeping changes in the products they supply. Food manufacturers have started replacing artificial colors and flavors with natural ingredients. This has increased the demand for essential oils, among other natural ingredients,” said Amber Chourasia, one of Technavio’s lead analysts for health and wellness research.

“Essential oils have antimicrobial, antioxidant, and anti-inflammatory properties. The demand for these oils has rapidly grown in the medicinal segment because they are said to act as natural cures without any serious side effects. For instance, tea tree oil is antiseptic and antifungal in nature. It can prevent or cure acne, cold sores, warts, and burns,” added Amber.

Global essential oil market by distribution channel 2015 (USD billions)

  • Retail store
                    48.15%
  • Online channel
0.85%
  • Other
2.18%

Source: Technavio research

Global essential oil market by retail store

The global essential oil market by retail store was valued at USD 3.17 billion in 2015. Retail stores include grocery stores, hypermarkets, supermarkets, drugstores, stores that specialize in organic and herbal products, and health food stores. The demand for essential oils from grocery stores is the highest.

Essential oils available through channels and health food stores that sell natural or organic products grow the fastest. Early adopters are the prime consumers. Strategies like continual innovations in these channels, experiential customer service provided on information-based models, and the provision of a variety of products are gaining traction in the market. Barlean’s is noted as one of the favorite brands for natural channel shoppers.

Global essential oil market by online channel

The global essential oil market by online channel was valued at USD 850 million in 2015. The global essential oil market by online channel is the fastest-growing distribution channel. Europe and the US were the leading markets in 2015, accounting for more than 55% of global online sales. This channel is rapidly gaining market share because of increasing competition by way of reducing delivery time. Consumer preference is increasingly shifting toward the online channel owing to factors like convenience of purchase and round-the-clock availability. The growing number of websites offering a wide range of essential oils has increased awareness of and demand for these products, especially among working individuals who seek easy accessibility and convenience of purchase.

Global essential oil market by other

The global essential oil market by other was valued at USD 2.18 billion in 2015. This market includes direct channels, mail order catalogs, health professionals who sell from their clinics, discount stores, expos and conferences, and warehouse chains. They offer a considerable collection of products and brands. The global essential oil market by other is likely to grow moderately during the forecast period, and that growth is largely attributed to ease of availability and attractive offers for e-customers. However, the limited range of brands available through this distribution channel limits growth.

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com
[email protected]


Source: Business Wire (July 6, 2016 - 4:00 PM EDT)

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