Strong ascent: The weak pound has boosted exports, causing revenue growth to pick up

Essential oils are derived from the leaves, flowers, roots or stems of plants using a cold press or by steam distillation. They are then used by a variety of different industries, ranging from pharmaceutical and industrial companies to manufacturers needing food and beverage flavourings. The performance of the industry depends on a range of cultural, economic and environmental factors including the value of the pound, the performance of key downstream markets, both in the United Kingdom and internationally, and environmental conditions in key growing areas for raw materials. Consumer preference for natural ingredients is also an ongoing trend that is having a positive influence on the industry...read more.

Industry Statistics & Market Size
Revenue
£857.5m
Annual Growth 13-18
0.7%
Forecast Growth 18-23
Profit
Employment
3,123
Businesses
57

Industry Threats & Opportunities

  • An ongoing trend towards the use of natural ingredients is positively affecting the industry
  • Stable demand from food and beverage producers has offset fluctuationsin other markets
  • Changes in food and beverage markets are expected to lead to an increasing reliance on essential oils
  • Industry Report - Industry Products Chapter

    Essential oils are natural aromatic compounds found in the seeds, roots, flowers, bark, stem and other areas of plants. Each oil possesses a distinctive essence or scent derived from its respective plant. In several instances, the oil is obtained via a steam-distillation process from the raw plant material. In other cases, it may be extracted. Only small quantities can be produced at once but in their pure form essential oils can command a relatively high price.Odoriferous substancesEssential oils are a source of some odoriferous substances. These can be defined as organic compounds with characteristic pleasant odours. These substances are widely used further along in the manufacturing chain and account for the overwhelming majority of industry revenue. In ...purchase to read more.

    Additional Insights for the Essential Oil Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Essential Oil Manufacturing Industry are

  • Ability to accommodate environmental requirements
  • Ability to alter goods and services produced in favour of market conditions
  • Access to high-quality inputs
  • IBISWorld analysts also discuss how external factors such as Industrial production index and Real household disposable income in the Essential Oil Manufacturing industry impact industry performance..

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    What's in this report

    What is the Essential Oil Manufacturing Industry?

    Companies in this industry manufacture essential oils, including natural aromatic products, resinoids and mixtures of odoriferous products for the manufacture of perfumes or foods. The industry does not include the manufacture of synthetic aromatic products or the manufacture of perfumes and similar toiletries.

    Industry Products
  • Essential oils
  • Mixtures of odoriferous substances for food and beverages
  • Mixtures of odoriferous substances for other purposes
  • Resinoids and other products
  • Industry Activities
  • Manufacturing extracts of natural aromatic products
  • Resinoid
  • Manufacturing mixtures of odoriferous products to make perfumes or food
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Industrial production index
  • Real household disposable income
  • Real effective exchange rate
  • Demand from soap and detergent manufacturing
  • Public concern over environmental issues

  • Current Performance
  • Coming up roses
  • Producer costs
  • Risky business
  • Demand conditions
  • Consumer preferences
  • Global trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Greasing the wheels
  • Costs of devaluation
  • Green credentials
  • Regulatory changes
  • Table: Essential Oil Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Essential Oil Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Soft Drink Production
  • Soap & Detergent Manufacturing
  • Perfume & Cosmetics Manufacturing
  • Pharmaceutical Preparations Manufacturing

  • Key Selling Industries
  • Industrial Gas Manufacturing
  • Spices, Aromatic, Drug & Pharmaceutical Crop Growing

  • Products & Services
  • Mixtures of odoriferous substances for other purposes
  • Mixtures of odoriferous substances for food and beverages
  • Essential oils
  • Resinoids and other products
  • Chart: Essential Oil Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Food and beverage producers
  • Other industries
  • Cosmetics, toiletries and personal care product manufacturers
  • Chart: Major Market Segmentation for the Essential Oil Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciation, rent and utilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Essential Oil Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Essential Oil Manufacturing Industry

  • Industry Globalization
    R C Treatt & Co Ltd, Givaudan UK Limited, Ungerer Limited,
  • Table: R C Treatt & Co Ltd - financial performance
  • Table: Givaudan UK Limited - financial performance
  • Table: Ungerer Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Essential Oil Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Essential Oil Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Absolutes
  • Prepared from concretes via alcohol extraction.
  • Concretes
  • Prepared from plant materials via the use of a hydrocarbon solvent. These are often a waxy, solid substance.
  • Essential Oils
  • Also known as volatile oils, essential oils are concentrated hydrophobic liquids containing volatile aroma compounds.
  • Odoriferous Substances
  • Organic compounds with characteristic pleasant odours.
  • Oleoresin
  • A semisolid mixture of a resin and essential oil, obtained from certain plants
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Essential Oil Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Essential Oil Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Essential Oil Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Essential Oil Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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