Essential Oils Soap Market Report Coverage: Future Growth Opportunities, Statistics, Restraints, Drivers, Limits, Share
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.
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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 increase in 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.
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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.
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