Herbs & Oils for Food & Beverage Market to Reach USD 12,796 Million by 2031 Top 10 Company Globally

Herbs and spice oils is a concentrated volatile extracts and oleoresins derived from culinary herbs and spices play a central role in food and beverage formulation by delivering aroma, flavor intensity, and functional properties in concentrated form. The industry spans smallholder and artisanal producers (steam distillation, hydro-distillation) up to large integrated extraction and oleoresin plants supplying global flavor houses, food manufacturers, and specialty ingredient traders. Demand is driven by clean-label trends, rising consumer preference for natural flavors, and increasing use of concentrated spice extracts in processed foods, beverages, snacks, sauces and seasonings.
The global market for herbs & spice oils in this report is taken as USD 8,635 million for 2024, with a growing CAGR of 5.9% to 2031 reaching market size USD 12,796 million by 2031. With an average price of USD 20,153 per ton, total industry volume in 2024 equates to approximately 428,472 tons of herbs & spice oils sold globally. At the given price point, a factory gross margin is modelled here at 25%, which corresponds to a factory gross profit of about USD 5,038 per ton and an implied cost of goods sold of USD 15,114.75 per ton. The COGS breakdown is: raw materials, energy/distillation, labor, packaging, logistics and waste/other. This modelling keeps factory gross margin under the 30% ceiling while providing a realistic split that reflects high raw-material intensity in herb & spice oil production. A single line full machine capacity production is around 500 tons per year per line. Downstream demand is concentrated in food & beverage applications but also includes flavors & fragrances, nutraceuticals and functional ingredients.
Latest Trends and Technological Developments
Industry trends center on clean-label naturalization, sustainability of botanical sourcing, and extraction technology upgrades to improve yield and traceability. Key developments include broader adoption of green extraction methods (supercritical CO2 and solvent-free hydro/steam distillation optimization), investments in supply-chain traceability and blockchain pilots for provenance, and scaling of aroma fractionation to tailor flavor profiles. Recent, relevant news items include reporting on environmental and socio-economic impacts from intensive production of high-value spice oils an AP News feature (March 2025) highlighted the rapid growth in patchouli oil production in Indonesia and drew attention to deforestation and sustainability concerns in some producing regions. Industry newsletters and trade publications in mid-2025 also emphasized exhibitions and new product launches focused on natural oleoresins and clean-label extracts (trade reports July 2025). These items underscore the twin industry forces of rising demand and heightened scrutiny of sustainable sourcing and processing practices.
McCormick & Company, a global leader in flavor, regularly purchases large volumes of Vietnamese Cassia Cinnamon Bark Oil from its long-term supplier, doTERRA International. In a recent quarterly contract to secure supply for its artisanal bakery division and seasonal product lines (like cinnamon-infused pancake mixes and hot cocoa), McCormick procured a shipment of 500 kg of the essential oil at a contract price of USD 245 per kilogram, valuing the total purchase at over USD 122,500. This high-potency oil is preferred for its consistent, warm, and sweet flavor profile, which provides a more uniform and intense taste compared to ground cinnamon in large-scale industrial mixing.
The product is applied in the production facility of PepsiCo, specifically for their STACY'S® Pita Chips line. Rosemary Extract, sourced from Kalsec Inc., is used as a natural antioxidant and flavoring agent in the "Simply Naked" variety. By incorporating the extract into the pita chip dough, PepsiCo leverages its ability to prevent rancidity in the oils used during baking, thereby extending shelf life without using artificial preservatives, while simultaneously imparting a subtle, herbaceous note. The manufacturing plant utilizes approximately 2 tons of this rosemary extract annually, with a procurement value of around USD 80,000 per ton, making it a critical functional ingredient for both quality and preservation.
Asia is both a major production base and a rapidly expanding consumption market for herbs & spice oils. India, China, Indonesia, and parts of Southeast Asia are global leaders in cultivation and primary extraction of many spice oils (e.g., cardamom, turmeric oleoresin, patchouli, cinnamon, clove, black pepper). Asias sourcing advantage comes from botanical diversity and low-cost agricultural supply; however, quality and traceability pressures are rising and exporters are investing in better drying, cold-chain, and distillation modernization to meet international buyer specifications. Regional data and industry reports indicate significant Asia-Pacific growth in essential oils and specialty spice concentrates, supported by rising regional processing capacity and expanding local food & beverage manufacturing.
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Herbs & Oils for Food & Beverage by Type:
Natural

Synthetic

Herbs & Oils for Food & Beverage by Product Category:
Citrus Essential Oil

Mint

Vanillin

Spicy Flavors

Others

Herbs & Oils for Food & Beverage by Features:
Organic and Non GMO Certified Oils

Fair Trade and Traceable Sourcing

Food Grade Stability

Concentrated / Fractionated Oils

Others

Herbs & Oils for Food & Beverage by Shape:
Liquid Oil form

Encapsulated / Spray Dried Powders

Solid Crystalline Aromatics

Aqueous Emulsion Oils

Others

Herbs & Oils for Food & Beverage by Source Origin:
Plant Leaves and Herbs

Seeds and Spices

Fruits and Citrus Peels

Flowers and Aromatic Blossoms

Others

Herbs & Oils for Food & Beverage by Application:
Beverages

Bakery / Confectionery

Dairy Products

Snacks

Other

Global Top 10 Key Companies in the Herbs & Oils for Food & Beverage Market
Givaudan

DSM-Firmenich

IFF

Symrise

Mane

Sensient

Takasago

Robertet

Kerry (Taste & Nutrition)

ADM

Regional Insights
Within ASEAN, Indonesia is notable both for volume and for high-value aromatic oils such as patchouli and certain spice extracts. Indonesia ranked among the top global exporters of essential oils in recent trade data, and local value chains remain critical to global supply of spice oils used in flavors and perfumery. Indonesias patchouli example shows strong farmer uptake due to favorable returns, but also raises sustainability and processing-capacity issues in local distillation infrastructure. Across ASEAN, Vietnam, Thailand, and Malaysia supply various spice oils and oleoresins; the region benefits from proximity to growing F&B markets and increasing local flavor house investment, but faces common challenges of standardization, seasonality, and logistics.
The sector faces several persistent challenges: volatility and seasonality of botanical feedstocks (yield and quality fluctuate by season and weather); sustainability and land-use concerns in high-demand crops (documented for some Indonesian patchouli production); rising energy costs for distillation; regulatory and food-safety compliance costs in major export markets; and price competition from synthetic or blended alternatives. Traceability, certification (organic, sustainable sourcing credentials), and investment in modern extraction methods are necessary to mitigate risk but require capital and skilled labor, creating a barrier for smallholders and many medium-size operators.
Producers and investors should prioritize supply-chain vertically integrated models that secure raw material contracts, invest in yield-enhancing agronomy and modern distillation to improve margins, and pursue certification and traceability that add commercial value in international F&B supply chains. On the technology front, pilot projects in green extraction and better steam-economy distillation systems reduce per-kg energy costs and can raise consistent quality making products more attractive to high-margin flavor houses. Diversifying botanical sources and offering tailored aroma fractions or standardized oleoresins also helps capture larger value-share downstream. Market entry strategies for ASEAN producers should combine local agricultural partnerships with value-added extraction and marketing to regional F&B formulators.
Product Models
Herbs & Spice Oils for Food and Beverage industry encompasses a wide range of concentrated aromatic extracts derived from herbs, spices, and other botanicals used to enhance flavor, aroma, and color in culinary and beverage formulations.
Natural Herbs & Spice Oils are aromatic extracts obtained directly from plants such as leaves, seeds, bark, or roots through physical methods like steam distillation, cold pressing, or solvent extraction. Notable products include:
Olibanum Oil Firmenich SA: Extracted from frankincense resin, used for adding warm, spicy depth to premium beverages and savory sauces.
Basil Essential Oil Givaudan: Provides a fresh, herbaceous aroma ideal for pesto sauces and Mediterranean-inspired dishes.
Black Pepper Oil doTERRA: Known for its pungent and spicy flavor, often used in savory snack coatings and meat marinades.
Cinnamon Leaf Oil Symrise AG: Adds sweet and woody notes in bakery and confectionery products.
Cardamom Oil Mane SA: Enhances warm and citrusy tones in dairy-based drinks and sweet pastries.
Synthetic Herbs & Spice Oils are laboratory-created compounds designed to replicate the aroma and flavor of natural oils. Examples include:
Cinnamaldehyde (Synthetic Cinnamon) Takasago International Corp.: Adds a sharp, spicy character to candies and baked goods.
Allyl Hexanoate Sensient Technologies: Imparts pineapple-like fruity notes in flavored beverages.
Eugenol (Synthetic Clove Oil) TCI Chemicals: Offers spicy and warm characteristics in savory sauces and snacks.
Menthol (Synthetic Peppermint) Symrise AG: Adds cooling sensation for mint candies and refreshing drinks.
Thymol (Synthetic Thyme Compound) Sigma-Aldrich: Provides herbal sharpness used in seasonings and savory sauces.
The herbs & spice oils sector for food and beverage is a sizable, materially important ingredient market that balances traditional agricultural supply chains with modern extraction engineering and sophisticated downstream flavor uses. The provided 2024 market value (USD 8,635 million) and the modeled price point (USD 20,153/ton) imply a substantial annual volume and an industrial structure where raw materials dominate cost. Growth is supported by clean-label demand and rising food & beverage manufacturing in Asia, while sustainability, traceability, and processing modernization are the primary operational priorities. For stakeholders, aligning supply-chain investments with sustainable sourcing and targeted extraction technology yields the clearest path to improved margins and market access.
This report synthesizes market size, unit economics, production capacity ranges, downstream demand composition, regional supply-strengths (Asia & ASEAN/Indonesia) and the competitive landscape giving investors a combined view of market scale, volume, and cost structure. How: Investors can use the unit and margin modelling (price per ton, COGS, gross profit per ton, and per-line capacity ranges) to size potential factory investments, estimate payback windows under different utilization scenarios, and assess where technology upgrades will most improve return-on-capital. Why: The combination of rising F&B demand for natural spices, concentrated supply bases in Asia/ASEAN, and higher buyer willingness to pay for traceable, standardized extracts means that well-executed upstream investments (sustainable farming contracts + modern extraction) can create defensible margins and exit opportunities (sale to a large flavor house or aggregator). Additionally, social and environmental risks (e.g., deforestation signals in high-value crops) make ESG-compliant strategies not only ethically preferable but commercially required to access premium customers.
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5 Reasons to Buy This Report
It welds value data to physical volume so buyers can model plant throughput and capital requirements.
It provides region-specific insight on Asia and ASEAN, highlighting sourcing and sustainability risks.
It benchmarks factory economics (price/ton, modeled COGS breakdown, and gross margin) useful for capex and margin planning.
It identifies current technology and sustainability trends that impact supply reliability and buyer premiums.
It lists leading global players and strategic levers for market entry or exit, aiding M&A and partnership decisions.
5 Key Questions Answered
What is the implied global volume for the herbs & spice oils market given a 2024 value?
What is a realistic factory economics model (COGS breakdown, gross profit per ton, and a factory gross margin)?
How much capacity does a single commercial distillation/extraction line typically handle per year (order-of-magnitude range for planning)?
What are the main regional supply dynamics and sustainability risks in Asia and ASEAN, and how do they affect sourcing decisions?
Who are the major global players and what strategic moves (technology, certification, vertical integration) are likely to deliver the next wave of margin improvement?
Chapter Outline
Chapter 1: Introduces the report scope of the report, executive summary of different market segments (by region, product type, application, etc), including the market size of each market segment, future development potential, and so on. It offers a high-level view of the current state of the market and its likely evolution in the short to mid-term, and long term.
Chapter 2: key insights, key emerging trends, etc.
Chapter 3: Manufacturers competitive analysis, detailed analysis of the product manufacturers competitive landscape, price, sales and revenue market share, latest development plan, merger, and acquisition information, etc.
Chapter 4: Provides profiles of key players, introducing the basic situation of the main companies in the market in detail, including product sales, revenue, price, gross margin, product introduction, recent development, etc.
Chapter 5 & 6: Sales, revenue of the product in regional level and country level. It provides a quantitative analysis of the market size and development potential of each region and its main countries and introduces the market development, future development prospects, market space, and market size of each country in the world.
Chapter 7: Provides the analysis of various market segments by Type, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different market segments.
Chapter 8: Provides the analysis of various market segments by Application, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different downstream markets.
Chapter 9: Analysis of industrial chain, including the upstream and downstream of the industry.
Chapter 10: The main points and conclusions of the report.

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