Aromatherapy Market Size, Share, Growth & Industry Analysis, By Product Type (Consumables, Equipment), By Mode of Delivery (Topical Application, Aerial Diffusion, Direct Inhalation), By End Use, By Application, and Regional Analysis, 2024-2031

Aromatherapy Market Size

The global aromatherapy market size was valued at USD 2,106.9 million in 2023 and is projected to grow from USD 2,357.5 million in 2024 to USD 5,782.7 million by 2031, exhibiting a CAGR of 13.68% during the forecast period.

The market is registering steady growth, due to the increasing disposable income of consumers and rising focus on mental health. In the scope of work, the report includes service offered by companies such Air Aroma, dōTERRA, Edens Garden, FLORIHANA, Frontier Co-op, Rocky Mountain Oils, LLC., Isagenix Worldwide, Inc., Mountain Rose Herbs, Proton NuSkin, PLANT THERAPY, and others.

Rising use of essential oils is fostering the growth of the market. Increasing consumer awareness about the therapeutic benefits of essential oils, such as stress relief, improved sleep quality, and enhanced mental well-being, has significantly boosted demand among various demographics.

This trend is further supported by a growing preference for natural and holistic wellness solutions over synthetic alternatives. Additionally, the integration of aromatherapy into spa services, home care products, and healthcare applications is expanding its reach, while advancements in essential oil extraction technologies are enhancing product quality and availability.

• According to the National Institute of Mental Health, one-third of the adults in the U.S. suffered from anxiety disorders in May 2023. Essential oils are effective in helping individuals manage anxiety and stress.

Aromatherapy is a wellness approach that utilizes natural plant-based extracts, known as essential oils, to enhance physical and mental health. Extracted from various plant components, including flowers, leaves, bark, and roots, these oils are valued for their distinct aromatic properties.

Key applications of aromatherapy include inhalation and topical use, with additional methods such as vaporization and aromatherapy-infused bathing being widely employed. Inhalation activates the olfactory system, which influences the limbic system—responsible for regulating emotions, memory, and stress responses.

The unique chemical composition of essential oils is believed to provide therapeutic benefits, such as promoting relaxation, reducing stress, improving sleep, enhancing mood, and supporting the management of certain physical conditions.

Analyst’s Review

Key market players are making substantial investments in research and development (R&D) to broaden their product portfolios, driven by the increasing consumer focus on health and well-being. Companies are launching innovative products and forming strategic collaborations to strengthen their market presence.

Amid the rising awareness of mental health and conditions like depression, industry leaders are introducing products designed to alleviate stress, reduce anxiety and depression, and improve sleep quality. Additionally, the growing preference for sustainable and organic products is fueling the adoption of this therapy within the health & wellness sector.

• In March 2023, BASF revealed its plan to enhance its aroma ingredients production capabilities in Germany and China. The new facility in Ludwigshafen will emphasize on the downstream production of menthol and linalool, while the Zhanjiang plant will focus on citral extraction.

Aromatherapy Market Growth Factors

The growing popularity for self-care and stress-relief is bolstering the growth of the aromatherapy market. Aromatherapy is increasingly recognized as an effective tool for relaxation and stress management, particularly as mental health becomes a key priority for many individuals.

The demand for aromatherapy products surged as consumers actively seek ways to unwind after hectic days, manage stress, and improve sleep quality. The pressures of a fast-paced, high-stress lifestyle have increased the demand for stress-relief solutions.

Popular essential oils, such as lavender, chamomile, and eucalyptus, are used to create tranquil environments and effectively alleviate stress, making aromatherapy an increasingly sought-after option in personal wellness. Key companies in the market are launching essential oils for relaxation and stress management.

• For instance, in September 2023, dōTERRA launched new essential oils and blends at their global conventions along with additions to their sleep and gut health systems.

The market faces challenges related to high quality control issues. as the industry relies heavily on the purity, consistency, and efficacy of essential oils and related products. Variability in raw materials, adulteration, and lack of standardized testing protocols can undermine consumer trust and compromise product safety.

To mitigate these challenges, businesses should implement stringent quality assurance processes, including sourcing raw materials from certified suppliers, utilizing advanced testing methods such as gas chromatography-mass spectrometry (GC-MS) for quality validation, and adhering to globally recognized standards like ISO 9235.

Additionally, transparent labeling and third-party certifications can enhance brand credibility, ensuring customer confidence and long-term market sustainability.

Aromatherapy Market Trends

Several individuals who suffer from arthritis prefer aromatherapy treatment. Aromatherapy involves the use of essential oils derived from plants, which are believed to have therapeutic properties. Many arthritis patients are turning to this treatment to alleviate symptoms such as joint pain, inflammation, and stiffness.

Essential oils like lavender, eucalyptus, ginger, and peppermint are commonly used for their anti-inflammatory and analgesic effects. These oils can be applied through massage, added to baths, or diffused into the air to provide relaxation and reduce discomfort.

• According to a World Health Organization (WHO) report released on July 14, 2023, approximately 528 million individuals globally were affected by osteoarthritis, marking a 113% increase since 1990. The report further indicates that 73% of those affected are aged 55 and above, with females comprising 60% of the affected population.

Aromatherapy is appealing to arthritis sufferers, as it is non-invasive and can complement traditional medical treatments, offering a holistic approach to managing the condition. Aromatherapy is becoming a popular choice for improving the quality of life for those living with arthritis as awareness of its potential benefits grows.

Essential oil manufacturers emphasizing the expansion of their aromatherapy product lines are driving the aromatherapy market. These manufacturers are expanding their product offerings in the aromatherapy sector by incorporating innovative blends, advanced diffuser technology, and complementary accessories.

They are focusing on distinctive fragrances and therapeutic benefits tailored to address specific wellness needs. This expansion is aimed to align with the increasing consumer demand for holistic well-being and personalized aromatherapy solutions.

Segmentation Analysis

The global market has been segmented based on product type, mode of delivery, end use, application, and geography.

By Product Type

Based on product type, the market has been bifurcated into consumables and equipment. The consumables segment led the aromatherapy market in 2023, reaching a valuation of USD 1,735.0 million. Consumables like essential oils are fundamental to aromatherapy and play a key role in its various applications.

Essential oils are concentrated plant extracts known for their healing properties, serving as the primary medium through which aromatherapy achieves its effects. These oils are used in various products, including diffusers, massage oils, bath products, inhalers, and more. The broad range of uses and versatility of essential oils drives the consumables segment.

• For instance, in November 2023, Dabur India Ltd. announced the expansion of its Odonil product portfolio with the launch of Odonil Exotic Room Spray. This innovative, water-based aerosol spray delivers a premium, long-lasting fragrance, setting a new standard in the room freshener category.

By Mode of Delivery

Based on mode of delivery, the market has been categorized into topical application, aerial diffusion, and direct inhalation. The topical application segment captured the largest market share of 55.34% in 2023.

Topical application facilitates the direct and localized delivery of essential oils to targeted areas of the body, enabling focused treatment for conditions such as skin disorders, muscle discomfort, and joint pain. This approach enhances the versatility of essential oils in addressing a variety of health concerns, driving their widespread adoption and popularity among consumers.

Furthermore, the convenience and ease of use associated with topical application make it an appealing option. Aromatherapy products, including creams, lotions, massage oils, and balms, can be effortlessly applied to the skin, allowing consumers to seamlessly integrate aromatherapy into their daily routines.

By End Use

Based on end use industry, the market has been segmented into home, healthcare facilities, spas and wellness centers, and others. The home segment is expected to garner the highest revenue of USD 2,581.2 million by 2031. The convenience and accessibility of aromatherapy products make them suitable for home use.

Essential oils, diffusers, candles, and other related products can be seamlessly integrated into daily routines and enjoyed within the comfort of one's home. This ease of incorporation into home environments has significantly contributed to the growth of the home use segment.

Moreover, the increasing focus on self-care and wellness practices has driven a surge in demand for aromatherapy products designed for personal use at home. Consumers are increasingly looking for ways to cultivate a soothing and therapeutic atmosphere in their living spaces, enabling them to relax, alleviate stress, and enhance overall well-being.

Aromatherapy provides a practical and cost-efficient solution to achieve these objectives, further bolstering its popularity in residential settings.

By Application

Based on application, the aromatherapy market has been categorized into relaxation, skin & hair care, pain management, cold & cough, insomnia, scar management, and others. The relaxation segment is expected to garner the highest revenue of USD 1,844.4 million by 2031.

The modern lifestyle, characterized by demanding schedules, work pressures, and technological saturation, increased the need for effective relaxation methods. Furthermore, the growing focus on self-care and wellness routines has contributed to the expansion of the relaxation segment.

People are placing greater emphasis on their mental and emotional health. Thus, they are turning more to aromatherapy to alleviate stress and create calming environments in their personal spaces. Additionally, the versatility of aromatherapy in diverse settings such as homes, spas, wellness centers, and hotels has led to the widespread adoption of related products and services for relaxation.

Aromatherapy Market Regional Analysis

Based on region, the global market is classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

North America accounted for the largest aromatherapy market share of 38.23% in 2023, with a valuation of USD 805.4 million. The rising prevalence of mental health disorders is driving the market in the region. Aromatherapy, which utilizes essential oils derived from plants to promote physical and emotional well-being, has gained traction as a complementary approach to mental health management in the region.

Growing awareness of holistic and natural approaches to mental healthcare has led to an increased adoption of aromatherapy practices among individuals and wellness centers. Essential oils such as lavender, chamomile, and eucalyptus are widely recognized for their calming and stress-relieving properties, making them popular choices among consumers.

•  According to the American Psychiatric Association in May 2024, 43% of adults are expected to suffer from anxiety and depression in 2024. This rising mental health crisis increase the demand for aromatherapy, as natural solutions like essential oils gain popularity for stress relief.

The aromatherapy market in Asia Pacific is anticipated to register significant growth at a CAGR of 15.48% over the forecast period. The growing demand for natural products, coupled with rising disposable income and an expanding health and wellness industry, is fostering market growth.

Countries such as Singapore and India, known for their medical tourism and affordable healthcare solutions, are utilizing this therapy for various health conditions. Numerous governments in the region are launching initiative programs to enhance public health, as the region has an increasing number of mental health issues, such as insomnia, trauma, and depression.

• According to the World Health Organization's report in June 2023, approximately 260 million individuals in Southeast Asia are affected by mental health conditions. This highlights a significant opportunity for the market, as natural remedies like essential oils gain popularity for stress and mental health management.

Competitive Landscape

The global aromatherapy market report will provide valuable insights with an emphasis on the fragmented nature of the market. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions.

Companies are implementing impactful strategic initiatives, such as expanding services, investing in research and development (R&D), establishing new service delivery centers, and optimizing their service delivery processes, which are likely to create opportunities for market growth.

List of Key Companies in Aromatherapy Market

• Air Aroma
• dōTERRA
• Edens Garden
• FLORIHANA
• Frontier Co-op
• Rocky Mountain Oils, LLC.
• Isagenix Worldwide, Inc.
• Mountain Rose Herbs
• Proton NuSkin
• PLANT THERAPY

Key Industry Developments

• September 2023 (Launch): dōTERRA expanded its product portfolio with the launch of new essential oils, blends, and enhancements to its sleep and gut health systems. Demonstrating a steadfast commitment to delivering premium-quality, sustainably sourced products, the company successfully broadened its offerings and increased its market reach through these strategic innovations.
• September 2023 (Launch): Kama Ayurveda launched the Kumkumadi Youth & Radiance Revitalising Facial Oil, which is suitable for all skin types and made with a completely authentic Ayurvedic formula.

The global aromatherapy market is segmented as:

By Product Type

• Consumables
  • Essential Oils
    • Single Essential Oils
    • Blended Essential Oils
  • Carrier Oils
  • Others
• Equipment
  • Diffusers
    • Ultrasonic Diffusers
    • Nebulizing Diffusers
    • Heat Diffusers
    • Evaporative Diffusers
  • Aromatherapy Kits
  • Steam Inhalers
  • Others

By Mode of Delivery

• Topical Application
• Aerial Diffusion
• Direct Inhalation

By End Use

• Home
• Healthcare Facilities
• Spas and Wellness Centers
• Others

By Application

• Relaxation
• Skin & Hair Care
• Pain Management
• Cold & Cough
• Insomnia
• Scar Management
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America