The global essential oil soap market was valued at $247.7 million in 2018 and is anticipated to reach $458.4 million by 2026, with a CAGR of 8.3% during the forecast period. The essential oil soap market exhibits an incremental revenue opportunity of $197.2 million from 2019 to 2026. Essential oil based products such as soap, cream, and other personal care products are widely used among millennials due to its natural content and health beneficiary attributes. Essential oils are extracted from herbs, flowers, and plants, with the help of steam distillation process. Essential oil soaps are mainly produced in batch format through cold or semi hot soap manufacturing process. The key reason behind the adoption of aforementioned process is the evaporative feature of natural essential oil. The essential oil soap products are mainly sold in the global market and majority of the revenue share has been held by private label brands. The compounding essential oil soap manufacturing offers lucrative growth prospect to small scale manufacturer. However, lower profit margin and an increase in prices of essential oil hamper the revenue growth of regional manufacturers. The lack of effective supply chain management and substandard quality of raw materials used during soap manufacturing hamper the revenue growth of essential oil soap market.
Rapid growth in e-commerce distribution is the prime factor responsible for counterfeiting cosmetic products. The cosmetic and personal care industry has been strongly hit by counterfeit activities due to large number of consumers purchasing products through online sales channels. Moreover, the essential oil soap market is dominated by local players offering their products through traditional retail packaging. The use of traditional retail packaging materials increases the probability of counterfeiting during transit, as there packaging materials are easy to mimic. To overcome this hurdle, the companies are investing into anti-counterfeit product packaging such as barcode, RDIF, and others. In addition, the companies are offering their products through authentic online platforms or through renowned suppliers to avoid cross boundary counterfeiting of essential oil soap products.
The essential oil soap market is segmented on the basis of product type, distribution channel, and region. By product type, it is categorized into lavender essential oil, rose essential oil, tea tree essential oil, rosemary essential oil, peppermint essential oil, and others. By distribution channel, it is categorized into supermarket/hypermarket, e-commerce, retail stores and pharmaceutical stores. Region-wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, Spain, Italy, and Rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, and Rest of Asia-Pacific), and LAMEA (the Middle East, Latin America, and Africa).
The key players operating in the global essential oil soap market include kama Ayurveda, forest essentials, Edens Garden, Lush, Sunleaf Naturals, LLC, Virginia Aromatics, Wipro Unza Holdings Ltd., Olay, Dove, and Enchanteur.
Key benefits for stakeholders
Key Market Segments
By Product Type
By Distribution Channel
By Region
Rapid growth in e-commerce distribution is the prime factor responsible for counterfeiting cosmetic products. The cosmetic and personal care industry has been strongly hit by counterfeit activities due to large number of consumers purchasing products through online sales channels. Moreover, the essential oil soap market is dominated by local players offering their products through traditional retail packaging. The use of traditional retail packaging materials increases the probability of counterfeiting during transit, as there packaging materials are easy to mimic. To overcome this hurdle, the companies are investing into anti-counterfeit product packaging such as barcode, RDIF, and others. In addition, the companies are offering their products through authentic online platforms or through renowned suppliers to avoid cross boundary counterfeiting of essential oil soap products.
The essential oil soap market is segmented on the basis of product type, distribution channel, and region. By product type, it is categorized into lavender essential oil, rose essential oil, tea tree essential oil, rosemary essential oil, peppermint essential oil, and others. By distribution channel, it is categorized into supermarket/hypermarket, e-commerce, retail stores and pharmaceutical stores. Region-wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, Spain, Italy, and Rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, and Rest of Asia-Pacific), and LAMEA (the Middle East, Latin America, and Africa).
The key players operating in the global essential oil soap market include kama Ayurveda, forest essentials, Edens Garden, Lush, Sunleaf Naturals, LLC, Virginia Aromatics, Wipro Unza Holdings Ltd., Olay, Dove, and Enchanteur.
Key benefits for stakeholders
- The report provides an extensive analysis of the current and emerging market trends and opportunities in the global market.
- The report provides detailed qualitative and quantitative analysis of the current trends and future estimations that help evaluate the prevailing market opportunities.
- A comprehensive analysis of the factors that drive and restrict the growth of the market is provided.
- An extensive analysis of the market is conducted by following key product positioning and monitoring the top competitors within the market framework.
- The report provides extensive qualitative insights on the potential and niche segments or regions exhibiting favorable growth.
Key Market Segments
By Product Type
- Lavender Essential Oil
- Rose Essential Oil
- Tea Tree Essential Oil
- Rosemary Essential Oil
- Peppermint Essential Oil
- Others
By Distribution Channel
- Supermarket/Hypermarket
- E-commerce
- Retail Stores
- Pharmaceutical Stores
By Region
- North America
- U.S.
- Canada
- Mexico
- Asia-Pacific
- China
- India
- Japan
- Australia
- South Korea
- Rest of Asia-Pacific
- Europe
- Germany
- France
- UK
- Spain
- Italy
- Rest of Europe
- LAMEA
- Middle East
- Latin America
- Africa
Table of Contents
Chapter 1: Introduction
Chapter 2: Executive Summary
Chapter 3: Market Overview
Chapter 4: Essential Oil Soap Market, By Product Type
Chapter 5: Essential Oil Soap Market, By Distribution Channel
Chapter 6: Essential Oil Soap Market By Region
Chapter 7: Competition Landscape
Chapter 8: Company Profiles
Executive Summary
According to the report titled, 'Essential Oil Soap Market by Product Type, and Distribution Channel: Global Opportunity Analysis and Industry Forecast, 2019-2026,' the global essential oil soap market size was valued at $261.2 million in 2018 and is anticipated to reach $458.6 million by 2026, with a CAGR of 8.3% North America dominated the market in 2018, accounting for 37.4% of the total essential oil soap market share. The global market exhibits an incremental revenue opportunity of $ 210.9 million from 2018 to 2026.Essential oils are complex mixtures of organic chemicals, which are extracted from plants using the distillation process. Apart from distillation, other processes, such as expression, solvent extraction, absolute oil extraction, cold pressing, and resin tapping, are used for the production of essential oils. Natural essential oil based soaps are popular in the personal care industry due to their distinct benefits over synthetic products. The artisanal nature of the products and higher cost of ingredients have positioned essential oil soap in premium persona care product categories. The products manufactured by private label brands have premium pricing owing to higher cost associated with soap preparation and lack of economies of scale for manufacturers. The rise in cost of raw materials such as oil/fats, essential oils, and other ingredients along with rise in overhead expenses and distribution margins are anticipated to further increase the overall cost of product during the essential oil soap market forecast period.
Sedentary lifestyle and work stress have increased the need for relaxation and stress buster therapies among individuals. Massages have been an integral part of the Chinese, Egyptian, Greek, Roman, Japanese, and Indian traditions. Spas and rejuvenating centers use essential oils to enhance the experience of massage therapies. These relaxation therapies include holistic treatment methods that use plants essential oils to balance mind, body, and soul. The the increase in the adoption of essential oil based products such as body wash, soap, powder, and other personal care products is expected to propel the market growth in near future.
The demand for natural ingredients has increased for manufacturing cosmetics, and personal care industries. Synthetic ingredients used in personal care product often lead to lung diseases, skin allergy, respiratory problems, and brain disorders. To overcome such hurdles, the manufacturers are now opting for more natural and user friendly ingredients such as essential oils. Essential oils are widely used in the production of daily use cosmetics and personal care products and are expected to gain momentum due to increased spending on cosmetics and toiletries. The increased spending on user friendly cosmetic ingredients such as essential oil is expected to drive the overall essential oil soap market growth.
The essential oil soap market is segmented on the basis of product type, distribution channel, and region. By product type, it is categorized into lavender essential oil, rose essential oil, tea tree essential oil, rosemary essential oil, peppermint essential oil, and others. The lavender essential oil segment is expected to remain dominant with a revenue share of 20.0-21.0% due to multiple benefits such as improving hair health, skin health, and digestion. By distribution channel, it is categorized into supermarket/hypermarket, e-commerce, retail stores, and pharmaceutical stores. E-commerce segment would be the fastest growing segment due to increased penetration of private label brands in online sales channels. The rise in spending on branded personal care products through online sales platforms and lucrative price discount offered by vendors are anticipated to be the prime factors responsible for the growth of the essential oil soap market.
Region-wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, Spain, Italy, and Rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, and Rest of Asia-Pacific), and LAMEA (the Middle East, Latin America, and Africa).
Key Findings of the Study
The lavender essential oil soap segment is expected to grow at a CAGR of 8.0% during the forecast period.
North America is anticipated to dominate the market growth, registering a CAGR of 6.9%.
Asia-Pacific is projected to exhibit exponential growth throughout 2026, registering the highest of CAGR 11.8%.
The supermarket/hypermarket distribution segment is anticipated to dominate the global essential oil soap market analysis, with a CAGR of 6.7% during the forecast period.
The E-commerce segment is estimated to grow at a CAGR of 10.2% during the forecast period.
The key players operating in the global essential oil soap industry include kama Ayurveda, forest essentials, Edens Garden, Lush, Sunleaf Naturals, LLC, Virginia Aromatics, Wipro Unza Holdings Ltd., Olay, Dove, and Enchanteur.
Companies Mentioned
- kama Ayurveda
- forest essentials
- Edens Garden
- Lush
- Sunleaf Naturals LLC
- Virginia Aromatics
- Wipro Unza Holdings Ltd.
- Olay
- Dove
- Enchanteur
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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