South America Essential Oil Market Outlook, 2028

In the lush heartland of South America, where the vibrant rhythms of the Amazon rainforest intertwine with centuries-old traditions, nature's bounty unfolds in the form of essential oils. These fragrant elixirs, distilled from the region's rich botanical tapestry, are a testament to the profound connection between the land and its people. With each drop of South American essential oil, you embark on a sensory journey through dense jungles, rolling hills, and tropical coasts. From the mystical allure of Peruvian Palo Santo to the soothing embrace of Argentinian Lavender, South America's essential oils capture the essence of a continent teeming with life and vitality. With each essence, a story unfolds a testament to the wisdom of indigenous cultures who have harnessed the power of these oils for generations.

According to the research report South America Essential Oil Market Overview, 2028, the South America Essential Oil market expected to add more than USD 1.70 Billion in 2028. The South America essential oil market is experiencing a remarkable expansion, akin to the vibrant and diverse ecosystems found within the continent itself. This growth is not merely a reflection of economic trends, but a testament to the region's rich botanical heritage and the profound connection between nature and culture. As consumers increasingly seek holistic wellness solutions, South American essential oils have emerged as a treasure trove of aromatic wonders. From the lush Amazon rainforest to the high-altitude Andean peaks, this continent's landscapes offer a kaleidoscope of aromatic plants, each with unique therapeutic properties. The market's expansion is not just a business venture; it's a harmonious journey of sustainability, where local communities collaborate to preserve their traditional knowledge and biodiversity. In every drop of South American essential oil, there's a fragrant story of nature's abundance, cultural heritage, and a growing commitment to nurturing both the land and the soul. The South America essential oil market, with its blend of tradition, innovation, and sustainability, is a fragrant symphony poised to captivate the world's senses.

The market is segmented into three countries; Brazil, Argentina, and Columbia. In South America, Brazil stands out as the dominant player in the essential oil market. The country's vast and diverse landscape, encompassing lush rainforests like the Amazon, has made it a treasure trove of botanical resources. Brazilian essential oils are highly sought after worldwide for their quality and unique aromatic profiles. From the exotic scents of Amazonian plants to the soothing properties of Brazilian lavender, the country's essential oil industry continues to flourish. Following closely behind Brazil in the South American essential oil market are Argentina and Colombia. Argentina boasts a rich agricultural tradition, with fields of aromatic plants like lavender and peppermint contributing to the production of high-quality essential oils. Colombia, with its diverse climate zones and fertile soil, offers a variety of essential oils derived from plants such as eucalyptus and citronella.

The report is segmented on the basis of different types of essential oils which includes Citrus (Oranges, Tangerines/ Mandarins, Lemons and Limes, Grapefruit), Rosemary Oil, Geranium Oil, Lavender Oil, Rose Oil, Peppermint Oil, Clove leaf Oil , Eucalyptus Oil, Citronella Oil, Clove Bud Oil, Jasmine Oil, Tea Tree Oil, and Others (Dill Seed, Saffron, Grapeseed Oil, Cumin Seed, Nutmeg, Cedarwood, Frankincense, Sandalwood, Sage, Clove bud, Myrrh Oil, Juniper Berry, Cardamom, Black pepper, Ginger, Cinnamon, Basil, Spearmint oil, Jasmine oil, Turmeric, Vetiver, Acorus Calamus, Ajowan, Carrot Seed, Cassia, Celery, Curry Leaf, Cypriol, Davana, Fennel, Garlic, Ylang ylang). In Brazil, one of the most highly produced and renowned essential oil is orange essential oil. Brazil is one of the world's largest producers of oranges, particularly sweet oranges. In Argentina, one type of essential oil that stands out as highly produced and renowned is citrus essential oils, particularly those derived from lemons and oranges. The sunny and subtropical regions of the country, such as Tucumán and the northwestern provinces, provide an ideal environment for the cultivation of citrus fruits. Argentina is celebrated globally for its high-quality citrus essential oils, known for their vibrant and zesty aromas. ). In Colombia, one of the essential oils that is highly used and cultivated is eucalyptus oil. Eucalyptus trees, particularly Eucalyptus globulus and Eucalyptus citriodora varieties, are prevalent in the country's diverse landscapes. Eucalyptus essential oil is known for its distinct, refreshing aroma and numerous therapeutic properties.

According to the nature of essential oils, the report is further segmented in Conventional type and Organic type of essential oils. In South America, the production of organic essential oils is indeed on the rise and witnessed to dominate the market in 2028, while conventional essential oils continue to maintain a significant market share. As global awareness of sustainability and eco-conscious choices grows, so does the demand for organic products, including essential oils. South America, with its commitment to responsible farming practices and preservation of its rich biodiversity has emerged as a key player in the organic essential oil sector. Organic essential oils are extracted from plants cultivated without synthetic pesticides, herbicides, or genetically modified organisms, making them a preferred choice for consumers seeking purity and environmental responsibility. The lush landscapes and fertile soils of South America provide an ideal setting for the cultivation of organic aromatic plants, further fueling the growth of this sector.

Based on the Application, the report is classified into food & beverages industry, Cosmetics, Aromatherapy, Healthcare, Home care, other applications (feed, insecticides, and paints). In South America, the cosmetics and personal care industry holds the significant share of essential oils usage whereas, the food and beverages industry holds the largest market share. The aromatic properties and various therapeutic benefits of essential oils make them highly desirable ingredients in cosmetics, perfumes, skincare products, and toiletries. These oils are incorporated into a wide range of beauty and personal care items, from fragrant perfumes and colognes to soothing lotions and natural cleansers. South America is well-known for its rich biodiversity, and many native plant species are used to produce essential oils that find their way into these cosmetic and personal care products. Oils like Copaiba, rosewood, and citronella, among others, are valued for their aromatic profiles and potential skin-enhancing properties.

By the method of extraction of essential oils, the market is classified into different processes which are Distillation, Cold press extraction, Carbon dioxide extraction, Solvent extraction, and other extraction methods (resin tapping and maceration). In South America, the most commonly used method for the extraction of essential oils is distillation (steam). This traditional technique has been widely employed for years and is particularly well-suited for extracting essential oils from a variety of aromatic plant materials. As for the future, there is a growing interest in more sustainable and environmentally friendly extraction methods, like cold-press extraction. Cold-press extraction, on the other hand, is favored for citrus oils, where the oil is mechanically pressed from the fruit peel without the application of heat. In South America, the distributional channel that dominates the essential oil market is a combination of direct sales which holds the largest market share in 2022; and through various retail outlets and e-commerce. South America’s essential oil market is highly diverse and caters to a wide range of consumers, from individual enthusiasts to large-scale industries. As a result, essential oils are made available through multiple channels to reach this varied customer base. With the rapid growth of online shopping, e-commerce has become a dominant distributional channel in recent years. South America consumers conveniently purchase essential oils from e-commerce platforms, where they have access to a wide variety of products and read reviews and compare prices. This channel offers both convenience and a broad product selection. Essential oils are frequently used in the spa and wellness industry. Many spas and wellness centers source their essential oils directly from suppliers or distributors to use in massages, aromatherapy sessions, and other treatments.

The COVID-19 pandemic brought about several positive impacts on the essential oils market in South America. As the world grappled with the health crisis, people sought holistic and natural remedies to enhance their well-being and boost their immune systems, resulting in increased demand for essential oils. One of the notable positive effects was the surge in consumer interest in health and wellness. Essential oils gained prominence as a means to alleviate stress, anxiety, and sleep disturbances, which became prevalent issues during the pandemic. Aromatherapy, using essential oils to promote relaxation and emotional balance, saw resurgence in popularity. Consumers turned to oils like lavender and chamomile for their calming properties, while eucalyptus and tea tree oils gained attention for their potential respiratory benefits. Some of the negative effects include supply chain disruptions, decreased consumer spending, and Impact on Exports.

Start-ups

• BioEssência is a Colombian startup that produces and sells essential oils. It was founded in 2010 and has since become one of the leading essential oil producers in Colombia.
• Essencial Peru is a Peruvian startup that sells essential oils and other aromatherapy products. In recent years, Peru has gained recognition for its production of Palo Santo essential oil. The government and local producers have promoted sustainable harvesting practices to protect the endangered Palo Santo tree while capitalizing on the growing global demand for its essential oil.
• Aromafest is an annual event that celebrates the art and science of aromatherapy. It is held in São Paulo, Brazil.
• Bioessência is a Colombian company that was founded in 2004. The company sells essential oils, carrier oils, and other natural products. Bioessência is committed to sustainable practices and sources its ingredients from ethical suppliers.

Companies Covered in this report:

Symrise AG, International Flavors & Fragrances, Royal DSM N.V., Givaudan SA, Cargill, Incorporated, Sensient Technologies Corporation, Robertet Group, Mane SA, Young Living, Phoenix Aromas & Essential Oils, LLC, BASF SE, Takasago International Corporation, doTerra and KAO Corporation.

Considered in this report:

• Geography: South America
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:

• South America Essential Oil market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type:

• Citrus (Oranges, Tangerines/ Mandarins, Lemons and Limes, Grapefruit)
• Rosemary Oil
• Geranium Oil
• Lavender Oil
• Rose Oil
• Peppermint Oil
• Clove leaf Oil
• Eucalyptus Oil
• Citronella Oil
• Clove Bud Oil
• Jasmine Oil
• Tea Tree Oil
• Others (Dill Seed, Saffron, Grapeseed Oil, Cumin Seed, Nutmeg, Cedarwood, Frankincense, Sandalwood, Sage, Clove bud, Myrrh Oil, Juniper Berry, Cardamom, Black pepper, Ginger, Cinnamon, Basil, Spearmint oil, Jasmine oil, Turmeric, Vetiver, Acorus Calamus, Ajowan, Carrot Seed, Cassia, Celery, Curry Leaf, Cypriol, Davana, Fennel, Garlic, Ylang ylang)

By Application:

• Food & beverages
• Cosmetics
• Aromatherapy
• Healthcare
• Home care
• Other applications (feed, insecticides, and paints)

By Nature:

• Conventional
• Organic

By Method of Extraction:

• Distillation
• Cold press extraction
• Carbon dioxide extraction
• Solvent extraction
• Other extraction methods (resin tapping and maceration)

By Distribution Channel:

• Direct Distribution
• Retail Distribution
• Mlm Distribution
• Online
• Others (Craft Fairs and Trade Shows, Home Parties and Workshops, Beauty Salons, Alternative Medicine Practitioners, etc.)

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Essential Oil industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.