The aromatherapy market - Italy

1.2 The world market

According to a new report byGrand View Research, the global aromatherapy market was worth *.* billion in **** and is expected to expand at a compound annual growth rate (***) of **.*% from **** to ****. This growth can be attributed to increased awareness of the therapeutic benefits of essential oils and the growing preference towards natural products.

Global Aromatherapy Market Growth World, **** - ****, billion USD Grand View research, BusinessCoot processing

Aromatherapy is then expected to play an important role in the field of alternative medicines. indeed, aromatherapy is a branch of phytotherapy that uses essential oils for therapeutic purposes.

In fact, it can be used as a treatment to help heal various ailments, including pain, cardiovascular ailments, respiratory ailments, skin-related problems, colds and coughs, digestive problems, immune system dysfunction, insomnia, anxiety, wounds and acne.

1.3 The Italian market

In order to establish the value of the aromatherapy market in Italy, it may be useful to analyze the turnover of ateco code **.** "production of essential oils".

Given the difficulty of estimating the value of the aromatherapy market, it is interesting to note the trend of the production of essential oils given the great link between the two markets and the great use of essential oils in aromatherapy processes.

Manufacture of essential oils - Turnover Italy, ****-****, millions of euros Source: ****

Second then an ISMEA report, the pharmaceutical sector accounts for half of the sales of products used in aromatherapy, other distribution channels are herbalists, grocery stores, large-scale retail trade, itinerant markets and corporate outlets.

2.1 Natural Medicine and Phytotherapy

Phytotherapeutic products are experiencing an increasing demand. According to the analysis of Iqvia, in the last two years the sector has grown by *.*% and is now worth *.* billion euros, representing **% of the total turnover of the pharmaceutical market in Italy and **% of Otc drugs.[***].

More than one Italian in * (***) uses unconventional medicines. In total about ** million citizens resort to this technique[***]

Homeopathy turns out to be the most widespread alternative treatment (***)[***]

Preferred forms of alternative medicine Italy, ****, percentage Health Newspaper

The use of unconventional forms of therapies has grown over the years. Already according to a survey conducted by ISTAT in ****, the most influential drivers in the choice to rely on unconventional therapies, including aromatherapy, are three:(***)

High level of education High social status Good economic resources

In fact, it has been noted that unconventional remedies are chosen mainly by those who belong to the middle class (***). In detail:

Executives-entrepreneurs-freelance professionals (***) People with excellent or adequate economic resources (***) Workers (***) Retired from work (***) People with insufficient economic resources (***)

The same ISTAT survey has estimated that **.*% of people with a degree or diploma have said they have used alternative remedies and therapies, compared to **.*% of those who have a middle school or elementary ...

2.2 An increasingly common trend: Aromatherapy in the home

More and more Italians have decided to try the benefits of aromatherapy in their homes through the use of essential oils to create an intimate and relaxing atmosphere or liven up an evening with friends, stimulate sleep, or recover energy.

In the use in the home is preferred the use of diffusers, scented incense, or, again, homemade potpourri scented with a few drops of essential oil. Moreover, if there are children in the house, more and more attention is given to the type of fragrances used (***).

Often then, to diffuse the aromas, vaporizers are used (***).

The most widely used essential oils in home use are:(***)

Lavender: stimulates concentration, regenerates the nervous system and helps relax the mind. It gives the environments a light and revitalizing atmosphere and is used for the scenting of the study or the living area.

Frankincense: purifying and used when entering a home for the first time. According to the principles of aromatherapy, frankincense opens to newness, calms and helps to go deep within oneself, helping to overcome daily worries.

Lemon: makes the air light and stimulating, used to eliminate odors in the kitchen, bathroom and hallways.

Ylang ylang: used in aromatherapy because it calms and alleviates ...

2.3 Geographical Distribution of Demand

In order to have an idea of the distribution of the demand for aromatherapy in the Italian peninsula, in the absence of exhaustive data about it, it is useful to look at the spreading in the various regions of non conventional therapies among which, as already mentioned, there is also aromatherapy.

The geographical distribution of the use of non-conventional forms of medicine is strongly asymmetrical between the regions of the North and the South. Among the regions that have used this type of treatment the most are Trentino Alto Adige (***). Here, too, the total population using TNCs does not, however, reach **% of the total, testifying to the fact that these are not processes adopted in Italy and that there is still ample opportunity for growth in these markets.

the regions in which these forms are less appreciated are those of Southern Italy, with a use of less than *%.

Source: ****

3.1 Supply Chain Organization

The aromatherapy industry is part of the essential oils industry and more specifically the healthcare use of these products

Most aromatherapy products are sold wholesale todealers who then forward them to distributorsbefore reaching the hands of end customers

The essential oil production sector is highly concentrated, ** companies as of ****(***)

Regarding the distribution process, as mentioned, the main channels appear to be pharmaceuticals and sales in herbalist shops and large-scale retail trade.

3.2 Focus on the essential oil production sector

In Italy,based on ATECO code **.**, which refers to the production of essential oils, the total number of companies operating amounts to ** (***). In the graph below, it is possible to deduce that the total number of companies in the sector compared to the Italian production system is small and, over the years, the variation in the number of companies is not much and that after a decrease of about **% between **** and ****, in **** the number of companies has started to grow again.

Evaluation of Active Companies in the Sector Italy, ****-****, in Units. Source: ****

To assess the level of Italian production of essential oils, let's now look at a cross-section of producing companies in Europe in ****. Market leader remains France and, second in Europe, Italy.

Comparison of companies producing essential oils Europe, ****, number of companies Source: ****

Considering the **** data, it is also worth making a distinction between the different types of entities that make up the production of essential oils. In the graph below, we can see that the vast majority of operators in the sector under analysis are Limited Liability Companies, which represent the typical form of small-medium enterprise that characterizes the Italian business landscape. Following this category, it is possible ...

3.3 Production and distribution channels

Manufacturers of essential oils can produce their own raw material or can use farmers, to subsequently sell their products to wholesalers. At the same time, they can also interact directly with producers of plant extracts, with user industries or even with the final consumer (***).

While some companies in the market specialize in only one stage of the value chain, others may be present in the different stages and thus benefit from the know-how of the different stages of the process.

Essential oil as a finished product (***). Essential Oils are historically sold in pharmacies, parapharmacies and herbalist shops under the label of "***% pure natural essential oil" [***].

Source: ****

Main actors

The National Association of Fine Chemical Companies and Specialty Sectors (***) lists the main players in the flavors and fragrances sector. Some examples are Agieffe International SAS, Aromatagroup SRL, Aromificio Salamina SRL... The complete list is available on theAISPEC website.

The European Federation of Essential Oils presents its Italian members, which can be considered as major players in Italy. Among them, there are Agrumaria Corleone, Capua ****.. The complete list is available on theEFEO website.

3.3 Aromatherapy fruition in Italy

As aromatherapy is a holistic therapy, it can be used in different contexts and accompany the daily life of consumers. The use of it depends on the type of administration of the therapy: the benefits of aromatherapy can in fact be obtained both by air, then through the scenting of rooms, fabrics and objects, and locally through messages or, in some cases, even orally through mouthwashes based on essential oils[***].

In particular, local fruition such as massages and specific therapies are typical of wellness centers and spas[***].

In Italy, according to ATECO code **.**.**"services of physical wellness centers (***) and they are structured as follows:

Proportion of Different Legal Entities Italy, ****, in units Source: ****

As can be seen from the graph, individual entrepreneurs, or better defined "freelancers" are more than **% of the corporate forms present on the Italian market, formulas that do not employ a large use of capital. The market provides employment to an annual average (***) of almost **** people[***].

As for spas, another important center of fruition of aromatherapy, according to ATECO code **.**.**"spa establishments" the companies operating in the sector are *** (***) and have a structure as follows:

Proportion of Different Legal Entities Italy, ****, in % Source: ****

As in the case of ...

4.1 Average prices per aromatepia

It is difficult to estimate the costs of aromatherapy because there are different types and the use is possible in very different contexts. To best estimate this data, we can distinguish two market segments that best represent the price of the private use of this service: estimate price of a holistic massage and estimate price of essential oils.

Holistic massage prices

The holistic massage has the objective of benefiting the body and the mind, removing muscular tension and inducing a decrease in stress through tactile stimulation of the interested areas using essential oils. The massage approach is all-encompassing and often offers the patient the opportunity to learn how to manage and maintain the state of their health. Holistic massage and a healthy lifestyle, especially in nutrition are able to extend the benefits of aromatherapy and indeed prevent future ills[***].

The average prices recorded in Italy are:

Source: ****

Prices essential oils

The price range of essential oils is very variable. Helichrysum is by far the most expensive sold in the form of aromatherapy product at a cost of about **.** € per ** ml vial. Fine lavender, on the other hand, for example, is sold for about €*.** per ** ml. eucalyptus has an even lower value, ...

4.2 The main essential oils used in aromatherapy

The clinical use of essential oils (***) is defined as aromatherapy. Essential oils are obtained from flowers, leaves and fruits with very different methods. The substances that are obtained by natural methods, such as extraction with water vapor or extraction by cold pressure, are preferred because they do not alter the basic principles. The origin of the elements is also an aspect not to be underestimated. Here are the main characteristics of some commonly used aromas.

The essential oils used in aromatic therapies or aromatherapies are obtained, through different methodologies, mainly from flowers, leaves (***) and fruits. The main essential oils purchased in pharmacies are tea tree, fine lavender and peppermint. It can be seen that tea tree ravintsara and eucalyptus radiate and globular are mainly beneficial essential oils for ear, nose and throat disorders. Peppermint, on the other hand, is mainly intended for solving digestive problems and treating migraines, lemongrass then for mosquito bites. As for fine lavender, it is an important aromatherapy plant with many uses. Cloves finally are antiseptic and used to alleviate dental pain[***].

Among the methods of production of essential oils, those qualitatively more valid are the natural extractions through the use of water vapor and cold extraction, ...

4.3 New trends in the offer: aromatherapy and sensory marketing

An important and quite effective method of using essential oils are aroma diffusers; they are characterized by being efficient and having a great coverage in terms of space. The operation of diffusers is not complicated and neither is their technical structure. Normally, diffusers are provided with a tank which is to be filled with decalcarized water according to the specific capacity and add some drops of the essential oil according to the intensity of the scent to be obtained and, thanks to the vaporization mechanisms, the essential oil will be spread in the environment as water vapor[***].

Perfuming environments is nowadays an effective strategy not only to make the atmosphere of closed environments pleasant and create benefits through aromatherapy techniques, but also to make the environment come into contact and in tune with the emotional states of the people in contact with it. And this is how olfactory marketing was developed, that is a branch of sensory marketing that studies the connection between the scenting of products and commercial environments through diffusers and essential oils and customer loyalty.

it has been demonstrated that the sense of smell is the most evocative of the five senses, since it most quickly refers to ...

5.1 Regulatory framework

Essential oils in their "raw material" state are subject to the CLP* and REACH* Regulations, i.e. the rules governing the production and marketing of substances and preparations.

EC Regulation n.****/**** of December **, ****, called CLP Regulation (***)[***].

Regulation (***) No.****/****, known as REACH, is an integrated regulation for the registration, evaluation and authorization of chemicals, which aims to ensure a higher level of protection of human health and the environment, while aspiring to maintain and strengthen the competitiveness and innovative capabilities of the European chemical industry.

Through REACH it will be possible to obtain more and more complete information on:

hazardous properties of the products handled risks associated with exposure safety measures to be applied.

According to Article *, the Regulation covers the manufacture, import, placing on the market and use of all chemical substances on their own, in mixtures and in articles. This includes not only those used in industrial processes, but also those that are used on a daily basis, for example in detergents or paints, and those present in articles such as clothing or furniture. The majority of companies across Europe are therefore involved. There are certain exemptions from the implementation of REACH for categories of substances governed by sector regulations ...

6.1 Segmentation

• Capua 1880 srl
• Simone Gatto
• Esperis S.p.a
• L'Armoaria S.r.l.s
• La Fontana S.r.l.
• Pranarôm (Inula Groupe)
• QC Terme S.r.l.