US Aromatherapy Market Outlook to 2030

US Aromatherapy Market Overview

• The US Aromatherapy market was valued at USD 627 million in 2023, driven by a growing consumer preference for natural and holistic health products. This market expansion is fueled by increasing awareness of aromatherapy's benefits for mental and physical well-being, particularly among millennials and health-conscious consumers.
• Prominent companies in the US aromatherapy market include Young Living, doTERRA, Plant Therapy, Edens Garden, and Rocky Mountain Oils. These companies have established themselves as key players through strong branding, extensive product lines, and customer loyalty. They lead the market with their diverse range of essential oils and aromatherapy products.
• In 2023, Plant Therapy introduced several new essential oil blends to cater to the growing demand for aromatherapy products. These include "Stress Relief" and "Sleep Tight" blends, which have been well-received by customers looking for natural solutions to manage stress and improve sleep quality, while also expanding their range to meet diverse wellness needs.
• Cities like New York, Los Angeles, and Miami dominate the US aromatherapy market due to their large, diverse, and health-conscious populations. These metropolitan areas have a high concentration of wellness centers, spas, and specialty stores that offer aromatherapy products. Additionally, the higher disposable incomes and lifestyle trends in these cities, which emphasize holistic and preventive health practices, contribute to the strong demand for aromatherapy products.

US Aromatherapy Market Segmentation

By Product Type: US Aromatherapy Market is segmented by product into consumables and equipment. In 2023, consumables, which include essential oils, carrier oils, and blends, dominated the market share. This segment's prominence is due to the high demand for essential oils for personal use, therapeutic applications, and household cleaning products. Consumers prefer these products for their versatility and easy incorporation into daily routines.

By Mode of Delivery: The market is also segmented by mode of delivery into topical application and aerial diffusion. In 2023, aerial diffusion, which includes products like diffusers, air fresheners, and humidifiers, held a dominant market share. This is largely due to the increasing popularity of essential oil diffusers, which offer an easy and effective way to enjoy the benefits of aromatherapy in homes and offices.

By Region: The market is segmented into North East, West, Midwest, and South. In 2023, the West region, particularly California, led the market with the highest share. This dominance is attributed to the strong wellness culture prevalent in the region, characterized by a high concentration of health-conscious consumers and a robust network of wellness centers and spas.

US Aromatherapy Market Competitive Landscape

• doTERRA: In 2023, doTERRA introduced Birch oil as a new addition to its product lineup. This oil is notable for being sourced from the company's newly established commercial-scale birch distillery, ensuring it is 100% pure and sustainably produced. The launch of Birch oil emphasizes doTERRA's commitment to quality and environmental responsibility.
• Young Living: In 2022, Young Living launched two new essential oil diffusers designed for the holiday season. These diffusers incorporate advanced features such as Bluetooth capabilities, allowing users to play soothing music and control the device via a mobile app. This innovation aligns with the growing trend of integrating technology into wellness products, making aromatherapy more accessible and enjoyable for consumers.

US Aromatherapy Industry Analysis

Growth Drivers:

• Increasing Adoption of Aromatherapy in Healthcare Settings: In recent years, the adoption of aromatherapy in healthcare settings such as hospitals, clinics, and nursing homes has significantly increased. hospitals in the United States, including leading institutions like the Cleveland Clinic and Mayo Clinic, have integrated aromatherapy into patient care programs to manage symptoms like anxiety, stress, and pain. There are currently 1,401 studies listed in PubMed that include the term "aromatherapy," reflecting a significant increase in research and interest in clinical applications.
• Rising Popularity of Natural and Organic Products: A significant portion of consumers is willing to pay a premium for organic products, with health consciousness being a primary motivator. This trend is particularly strong among younger consumers, who often prioritize organic options for their perceived health benefits. Additionally, online platforms have seen a surge in searches for organic essential oils, further reflecting consumer trends towards natural health solutions.
• Expansion of E-commerce and Online Retailing: The expansion of e-commerce and online retailing has significantly contributed to the growth of the aromatherapy market. In 2022, the e-commerce segment accounted for over 30% of the total U.S. aromatherapy market revenue. This growth is attributed to the convenience of online shopping, detailed product descriptions, customer reviews, and the availability of a wider range of products.

Challenges:

• Regulatory Hurdles and Quality Control Issues: The aromatherapy market faces significant challenges related to regulatory standards and quality control. There were cases of adverse reactions related to essential oils. These incidents have raised concerns about product safety and the authenticity of claims made by some manufacturers. Regulatory uncertainty also poses a challenge for manufacturers seeking to navigate compliance while ensuring product integrity and consumer safety.
• Supply Chain Disruptions and Resource Scarcity: Supply chain disruptions have emerged as a significant challenge for the aromatherapy market, particularly due to the reliance on imported raw materials. Additionally, climate change has affected the availability and quality of aromatic plants, with regions experiencing unpredictable weather patterns and reduced crop yields. These supply chain issues have resulted in price fluctuations and scarcity of certain essential oils, impacting manufacturers and consumers alike.

Government Initiatives:

• FDA Guidelines on Aromatherapy Products: Aromatherapy products are regulated by the U.S. Food and Drug Administration (FDA) based on their intended use, which can classify them as either cosmetics, drugs, or sometimes both. Subsequent updates and clarifications, such as the Modernization of Cosmetics Regulation Act (MoCRA), which was signed into law in December 2022, have further refined the regulatory landscape for cosmetics, including aromatherapy products. These regulations ensure that aromatherapy products meet safety standards, labeling requirements, and proper marketing practices, reflecting their intended therapeutic or cosmetic purposes.
• Clean Air Act: The Clean Air Act has been amended several times. The 2022 amendments to the Clean Air Act made through the Inflation Reduction Act (IRA) amends the Clean Air Act to provide $27 billion in grants through the new Greenhouse Gas Reduction Fund. This funding will be competitively awarded to green banks and other entities to provide financing for projects that reduce greenhouse gas emissions, with a focus on low-income and disadvantaged communities. Thus, encouraging the development of low-emission, environmentally friendly aromatherapy products.

US Aromatherapy Future Market Outlook

US Aromatherapy Market is poised for continued growth over the next five years, driven by several key factors. By 2028, the market is expected to benefit from increasing consumer awareness about the therapeutic benefits of essential oils, particularly for stress relief, sleep enhancement, and mood improvement.

Future Trends

• Increased Use of Aromatherapy in Mental Health Treatment: In the coming years, there will be a growing trend towards the use of aromatherapy as a complementary approach in mental health treatments. This trend will likely lead to the development of specialized blends targeting mental wellness, catering to a growing demand for natural alternatives in mental health care.
• Rise of Personalized Aromatherapy Products: The future of the US aromatherapy market will see a rise in personalized aromatherapy products, driven by advancements in AI and data analytics. Companies will increasingly offer customization options, allowing consumers to create their own essential oil blends based on their unique needs and preferences. This personalization will not only enhance the consumer experience but also foster greater brand loyalty as customers seek tailored solutions for their wellness goals.