Oregano Essential Oil Market to Witness Passive Growth at a CAGR of 6.3% By 2025

Researchers at the University of Massachusetts have recently discovered the use of oregano essential oil to combat the adverse effect of certain tough, drug-resistant bacterial strains. To infuse the essential oil into a water based bacterial ecosystem, the team of researchers designed nanocomposites filled with carvacrol extracted from oregano. Even as diverse uses of essential oils continue to be researched and incorporated in the healthcare and pharmaceuticals industry, the global consumption of oregano essential oil is expected to steadily peak in the coming years.

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This is just one of the various factors boosting global revenue of the oregano essential oil market, which is projected to reach a valuation of US$ 7,452.1 thousand by 2025, up from a market size of US$ 4,572.2 thousand in 2017. This is reflective of a robust growth rate of 6.3% during the period 2017 – 2025.

Global Consumption Trend Indicative of Multiple Regional Factors Driving Adoption

The utilization of oregano essential oil across the globe is predominantly based on a variety of factors ranging from purchasing power to innovation in use cases. For instance, consumers in the First World are more liberal in the use of natural ingredients such as essential oils in their food products and cosmetics, cost complexities notwithstanding. An established awareness of the health benefits of natural plant based ingredients is the primary driving force behind increased adoption across these regions.

Then again, consumers in Japan and China prefer the use of essential oils in aromatherapy and skin/hair care formulations. Utilization of essential oils in countries of the Asia Pacific like India is driven by the cultural factor, where such oils are increasingly used in traditional religious and medical practices. Having said this, Western influence has slowly seeped into the rest of the world, and essential oils such as oregano are finding application in the food and beverages industry as preservatives and in the cosmetics and pharmaceuticals industries as key components of various formulations.


Another trend driving adoption of oregano essential oil in the Eastern countries is the influx of European and Mediterranean cuisines that largely incorporate the use of oregano in various dishes. Moderate consumption of oregano essential oil has been observed across the Asia Pacific region in the last few years and this is likely to continue in the near future.

Food and Cosmetics to be Largest End Users of Oregano Essential Oil

Oregano oil is used as a natural preservative in the food and beverages industry, especially in the preservation of processed food. The natural antimicrobial and antioxidant properties of oregano make it an excellent natural agent for preserving processed food products particularly meat and meat based products. Essential oils are also largely used in pharmaceutical and cosmecutical formulations. Personal care products use bio-active oils in shampoos and body creams and lotions and this has led to an increase in demand for essential oils in this industry. Oregano is used as a prime ingredient in certain cosmecuticals, and this is driving global demand for oregano essential oil exponentially.


Multi-level Marketing to Remain Established Distribution Channel for Oregano Essential Oil

The global oregano essential oil market structure is governed by the multi-level marketing (MLM) channel and market consolidation can be witnessed at the global level, with limited regional players constituting a fraction of the market. MLM companies hold about 40%-45% of the global market share and target the lucrative regions of Europe and North America, owing to high consumption levels across countries in these geographies.

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It is but obvious that the utilization of essential oils like oregano will continue to expand, with companies exploring different application areas across various end-use industries. Does this indicate a significant revenue boom in the coming years? If the robust growth rate is any indication, will the market grow beyond US$ 10 Mn beyond 2025? Or will the high price points of essential oils pull the plug on market growth? Find out by speaking to the team of F&B analysts at Persistence Market Research.

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