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Essential Oils: A Global Perspective

Updated: Apr 21, 2021

"Essential oils are the fragrant principle of the plant. They are the chemical components that give a plant its characteristic fragrance. In the spiritualistic approach to aromatherapy, essential oils are considered the life force, the energy of the plant. Alchemists regard them as the quintessence, the soul, the spirit of the plant. Anthropologists see them as produced through the action of astral forces in the plant."


Fragrant or aromatic compounds can be found in many plants and plant parts – the seeds, grasses, roots, barks, stems, leaves, fruits, flowers, resins, zest and wood of plants. Aromatic plants have been used for thousands of years in a variety of physical, emotional, and spiritual applications. The first records of essential oils come from ancient India, Persia, and Egypt; and were were extensively traded with both Greece and Rome.

Today, there are about 375-400 essential oils with about 150 essential oils considered to be commercially important based on their price and/or quantity traded.


Essential oils are resource-intensive products. Hundreds, and sometimes thousands, of pounds of plant material to produce a bottle of essential oil. For example, in a 15-ml bottle, there is approximately

  • 4-5 lbs. of peppermint leaves

  • 4-5 lbs. of lavender flowers

  • 75 lemons

  • 14 oranges

  • 10,000 roses

(It is important to note that essential oils are different from fragrance oils or perfume oil, which contain synthetic oil, and food grade and do not provide a therapeutic benefit.)


"Today the palette of the essential oils available to practitioners has never been greater, thanks to global trade networks."

Peter Holmes


According to grandviewresearch.com, the global essential oils market size was estimated at USD 17.2 billion in 2019 and is expected to reach USD 18.6 billion in 2020. It is expected to grow at a compound annual growth rate of 7.5% from 2020 to 2027 to reach USD 33.3 billion by 2027.

Key factors that are driving the market growth include rising awareness regarding health benefits of naturally sourced oils along with an increasing number of people showing inclination towards aromatherapy. Europe dominates the essential oils market with a share of 43.65% in 2019 and this is attributable to easy feedstock availability and the presence of major industry players in the region. Due to the outbreak of coronavirus, production as well as import-export has been impacted and is expected to hamper the market growth in the short term.


Essential oils have a very complex chemical composition which can vary from batch to batch, depending on a number of factors affecting essential oil purity and quality, including the:

  • geographic location, including altitude and climate

  • soil conditions and rainfall

  • use of pesticides and other chemicals

  • harvest time and conditions

  • distillation and processing, including contaminants

  • storage conditions

When sourcing essential oils, some of the things to consider include:

  • Where and how the plant is grown, harvested, and distilled?

  • What part of the plant is used for the essential oil?

  • Is the plant endangered or threatened?

  • What is the political, cultural, and economical structure of the county?

  • What is the relationship with the farmers and local community?

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