The market for essential oils - Italy (2024)

1.2 The global market

The global essential oils market size was estimated at US$**.** billion in **** and is expected to reach US$**.** billion by ****, with a compound annual growth rate(***) of *.* percent over the forecast period ****-****. This growth is fueled by growing consumer preference for natural and organic products, increased interest in health and wellness trends, and the wide application of essential oils in various sectors, including cosmetics, food, pharmaceuticals, and aromatherapy.

Global essential oils market trends World, ****-****, billion USD (***) Straits Research

Regional Analysis

The essential oils market in North America is one of the most dynamic and fast-growing markets globally. The region's market is expected to grow at a compound annual growth rate(***) of*.** percent during ****-****, supported by a number of economic factors and changing consumer preferences. One of the main factors fueling this growth is the rise in popularity of"green solutions" and natural products over synthetic ones. Essential oils, such as peppermint, orange, and clove, are particularly sought after due to their therapeutic properties and widespread use in aromatherapy, cosmetics, and personal care products. Government initiatives promoting investment in natural solutions have further encouraged this trend.Increasing disposable income and changes in lifestyle have led to a growing demand ...

1.3 The Italian market

In the essential oil manufacturing sector, the value of turnover showed significant growth. In ****, turnover was ***.** million euros, while in **** it increased to ***.** million euros. This represents an increase of **.* percent, highlighting robust market expansion and growing demand for essential oils.

Value of sales - Manufacture of essential oils Italy, ****-****, in millions of euros (***) Istat, Companies Register

In the essential oils sector, there is significant growth in the value of production from **** to ****, from €***.** million to €***.** million, an increase of **.* percent. However, after ****, there was a significant decline, attributable to the effects of the COVID-** pandemic and related restrictions, with the value dropping to EGP **.** million. From **** to ****, the sector showed a strong recovery, with an extraordinary increase in production value from **.** million euros to *,***.** million euros, representing an increase of **.* percent.

Value of production [***]

Italy, ****-****, in millions of euros (***)

Istat

1.4 Foreign trade

To carry out the analysis of trade flows in and out of Italy, the HS (***) Code is considered :

****: Essential oils (***), derived terpenic essences, extracts of essences, and resinoids; oleoresins; concentrates of essential oils in fats, fixed oils, wax or the like, obtained by extraction, as well as separated terpenes, etc. From **** to ****, Italy's exports of essential oils have shown remarkable growth. In ****, the value of exports stood at $***.* million, while in **** it rose to $***.* million. This represents a percentage increase of about **.* percent. This growth reflects increased international demand for Italian natural products, known for their quality and purity, and underscores the growing importance of the essential oils sector in the Italian economy. Analyzing, on the other hand, the trend in imports shows a significant increase over the period under analysis, going from a value of $**.** million in **** to a value of $***.* million in **** . Thus, there is an increase of **.** percent.

Imports, Exports and Hedging Rate (***) Italy, ****-****, millions of USD (***) UNComtrade

Trade flows out of Italy are extremely diverse. In ****, France and the United States are Italy's main trading partners, collecting **.** percent and **.** percent of total exports, respectively. They are followed by the Netherlands, Germany and Ireland, which contribute ...

1.5 The impact of Covid-19

The impact of the COVID-** pandemic on the global essential oils market has been surprisingly positive. During this period, demand for essential oils such as those of tea tree, peppermint, and eucalyptus increased significantly. These oils are known for their antibacterial and antiviral properties and benefits in aromatherapy, elements that made them particularly sought after for improving health and supporting the immune system during the pandemic. [***]

One particularly interesting study, published in March **** in the journal Preprints by Sharma A.D. and Kaur I., explored the efficacy of eucalyptol, the main component of eucalyptus essential oil, as a potential inhibitor of SARS-CoV-* infection. This in vitro study has attracted considerable interest, suggesting that essential oils may have a role in combating the virus. [***]

In addition, the increasing use of essential oils in various industries, such as pharmaceuticals, cosmetics, and personal care, has further fueled the growth of the market. One example is INEOS Hygienics' introduction of a line of high-performance hand soaps formulated with essential oils. At the same time, the increased focus on aromatherapy has stimulated further research and the development of increasingly effective products, solidifying the position of essential oils as essential products in the wellness market. [***]

2.1 Demand in Italy

Below considers monthly household spending on personal care treatments, using COICOP code ***** as a reference. This indicator is key to understanding demand trends for products such as essential oils, as it reflects consumer spending habits in the area of wellness and personal care.

Between **** and ****, there was a decline of **.* percent. However, starting in ****, a significant rebound was observed, with an increase of **.* percent . This rebound reflects a renewed consumer focus on personal care and wellness, as well as increased interest in natural products such as essential oils, used for both home and professional treatments.

Item of Expenditure - personal care treatments Italy, ****-****, in current euros (***) Istat

2.2 Demand drivers

The benefits of essential oils

Essential oils, properly applied, can support the body in multiple ways. For example, they promote relaxation and good immune function, reduce mental and physical tension, and develop a healthy metabolism.

They promote healthy emotional expression, proper function of muscles and joints, and help reduce stress. The constituents of essential oils, in fact have the ability to affect every cell in the body within twenty minutes, and then be metabolized like other nutrients.

Essences and the brain

Essential oils can also affect the brain. The blood-brain barrier is the pre-purposed mechanism that acts as a filter between circulating blood and the brain; its function is to prevent some harmful substances from reaching brain tissue and cerebrospinal fluid.

Crossing this barrier turns out to be essential for the treatment of diseases and disorders affecting the brain.

In light of this premise, it is relevant to know that chemical constituents, known as sesquiterpenes, commonly found in some essential oils (***) have the ability to cross that barrier. The sesquiterpenes, therefore, are able to interact directly with brain cells, thus generating therapeutic effects on the brain. They have been observed to act with neurotransmitter receptors, specifically those of glycine, dopamine and ...

2.3 The geographical distribution of demand

COICOP code [***] for "personal care treatments" includes a variety of goods and services dedicated to individual wellness, including essential oils and aromatherapy. Analyzing the average monthly household expenditure item in the ISTAT database for the year ****, one can see the growing importance of these categories in the management of personal health and well-being. This figure, expressed in current euros, indicates how much Italian households devote monthly to personal care treatments and products, reflecting consumption trends and the growing focus on natural and holistic wellness practices. Greater spending in these areas may suggest an increased interest in prevention, health care and improved quality of life.

The geographic distribution of household spending on personal care goods and services is shown below. The North turns out to be the geographic area where spending is highest overall with a current expenditure of *.**€, in general the entire northern area shows higher spending than the rest of Italy.

2.4 New trends in demand

Natural and synthetic fragrances

In Europe, consumers are increasingly turning to natural ingredients, which they consider better and safer than synthetic alternatives. This trend has led to a growing market for natural products. The perfumer distinguishes between natural and synthetic or semisynthetic fragrances and perfumes.

Natural fragrances are made from plant raw materials such as flowers, leaves, bark, wood, and roots. Semi-synthetic fragrances are products isolated from natural substances and eventually processed. Synthetic perfumes are made from complex organic chemical compounds. Natural and synthetic substances can be used in a composition together and together. There are extremely cheap essential oils, but also very expensive synthetic fragrance components and vice versa.

Food preservation using essential oils

Nowadays, the majority of additives used for food preservation are of synthetic origin. In recent years, however, consumer interest has turned increasingly toward the use of natural substances, as there is growing awareness of the negative repercussions that an exaggerated intake of chemicals can have on human health and the environment. The current trend, therefore, is to demand products with a "clean" label, and which therefore have a low environmental impact. There are numerous natural substances that could be applied in food, those with the greatest ...

3.1 Application Sectors of Essential Oils: Wellness, Cosmetics, and Beyond

Essential oils find applications in a variety of areas due to their aromatic, therapeutic and preservative properties. Here are the main areas in which they are used:

Aromatherapy

The main reasons consumers use aromatherapy include stress relief (***) and improving sleep and mood. Oils such as lavender, orange, and geranium are often used to promote relaxation and reduce anxiety. In North America, where aromatherapy is particularly popular, home use is growing, accounting for **.* percent of the market by ****, driven by the spread of diffusers and essential oils for personal and home use.[***]

Cosmetics and skin care

Cosmetic oils are used in skin and hair care products. These oils help moisturize the skin, protect against harmful UV rays, and prevent irritation and inflammation. Initially, cosmetic oils were aimed at women. However, the growing influence of social media and increased beauty awareness among men are creating market opportunities. The diversification of cosmetic oils among demographics is expected to further boost the cosmetic oil industry. The hair care segment dominated the market in ****, with high demand for natural oils such as jojoba and almond, which are used to moisturize and strengthen hair, reduce hair loss, and promote growth.

The global market for cosmetic oils has ...

3.1 The structure of the Italian market

The analysis of the structure of the essential oils market is conducted using data on ATECO code **.**.**, which corresponds to "Manufacture of essential oils." The analysis focuses on three main variables: the number of active enterprises, the number of employees and the legal form of enterprises. Regarding the number of enterprises, there is some stability over time, with little significant change. In general, the number of firms in Italy operating in this sector is limited, reflecting a highly specialized market.

Number of Active Firms [***] Italy, ****-****, number of enterprises Istat In terms of legal form, there is a clear predominance of limited liability companies (***), which account for nearly ** percent of enterprises in the sector. This figure suggests a certain degree of structuring and formalization within these business entities, indicative of more complex management and greater operational capabilities. The second most common legal form is that of thesole proprietor, freelancer and self-employed, which highlights the presence of numerous small businesses and artisans in the essential oils market. These types of businesses, although less structured, play an important role in the industry landscape, contributing to market diversification and flexibility.

Legal Form Active Firms Italy, ****, % Istat Regarding the number of employees in the sector, ...

3.2 Value Chain

The value chain in the essential oils industry includes several stages, from the cultivation of plants to the distribution of the final product. Here is an overview of the main stages of the value chain:

Cultivation of Raw Materials: Agricultural Production: The value chain starts with the cultivation of aromatic plants, such as lavender, mint, eucalyptus, citrus, etc. These plants are mainly grown in specific regions that offer the right climate and soil to maximize the yield and quality of essential oils. Harvesting and Storage: Once mature, the plants are harvested and stored properly to preserve their aromatic and therapeutic properties. Timing of harvesting is crucial to ensure maximum concentration of essential oils in the plants. Essential Oil Extraction: Steam Distillation: This is the most common method of extracting essential oils, where steam is used to release the volatile oils from the plants. Cold Pressing: Used mainly for citrus essential oils, where the oils are mechanically extracted from the skin of the fruit. Solvent Extraction: Used for some more delicate plants or when very high concentrations of essence are needed, although this method is less common due to the use of chemicals. Refining and Packaging: Refining: Some essential oils may undergo ...

3.3 The production processes

The extraction process is subject to plant-specific extraction methods depending on the source of the natural essential oil: the flowers of the plants (***), or even the whole plant.

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Therefore, essential oils are commonly extracted and produced using one of the appropriate techniques-although the most common methods are hydrodistillation and pressing:

Hydrodistillation or steam distillation: the plant material is carefully rolled in the still, passed through hot steam to extract and preserve the fine droplets of essential oil, cooled first in the condensation tube and then in a vessel to separate the oil from the water - time, steam pressure and temperature have a significant impact on the quality of the oils. Cold pressing: this technique is mainly used for essential oils from citrus peels (***). The peels are separated from the fruit, crushed, ground, mixed with water and eventually cold pressed, resulting in an oil/water mixture separated over time by decantation or centrifugation. Maceration: this technique is used to extract essential oils from the petals and very soft parts of the plants, which are unsuitable for thermal extraction methods. The flowers are placed on plates covered with purified fat-taking advantage of the fat's ability to absorb odor-then the fat is ...

3.4 The main manufacturers

The following are the main companies engaged in the Manufacture of Essential Oils (***):

Capua ****: a family-run company founded in ****, in the early ****s it became a more industrial-type organization and expanded its range of flavors to include all types of citrus fruits. Despite the family-run business, the company possesses a strong international vocation and to this day stands as a benchmark for the production of citrus essential oils in the field of fragrances and food flavorings around the world. Enrico Giotti: a leading company in the field of flavorings, extracts and juices. It was founded in **** as a family-owned business and with the third generation began the process of internationalization by acquiring a bottling factory and proposing itself on the canned drinks market, not only as a supplier of raw materials, but also as an industrial producer. Misitano & Stracuzzi: a leading manufacturer of essential oils and citrus juices formulated according to each customer's specifications and distributed worldwide. Production has been active since **** and targets the B*B market, with two plants located in the province of Messina. The essential oils produced find application in many sectors: from food and beverages to perfumes and fragrances, from cosmetics to aromatherapy. Aromatagroup: an Italian ...

4.1 Supply analysis

Essential oils can be defined as natural compounds derived from plants, consisting of complex mixtures of volatile substances at room temperature. These oils do not consist of a single molecule, but of a mixture of molecules, predominantly terpenic, that determine their specific characteristics and properties. The composition of each essential oil varies according to its mixture of molecules, giving each essential oil unique properties.

Chemically, essential oils share some common characteristics:

High volatility, due to the presence of compounds with low boiling points; Complex composition, based mainly on low molecular weight molecules.

Biologically, essential oils are distinguished by:

Production in specific cells, from which they are subsequently released externally or accumulated in specialized spaces within the plant; Distinctive organoleptic characteristics, such as distinctive aroma and flavor; Variable antimicrobial activity, giving them potential therapeutic properties.

These oils are produced by a wide range of plants and can be located in different parts of the plant itself. For example, in some plant species the essential oil is concentrated in the leaves, in others in the fruits or skins, while in some plants it is found in the flowers or, in some cases, the roots.[***]

All essential oils produced in the world are used ...

4.2 The prices

The prices charged on the market

Prices of essential oils can vary significantly depending on various factors related to both the producer and the end use of the product. Among the main elements that influence cost are the value of ingredients and raw materials, the amount of oil that can be extracted from a given plant, the conversion rate during the distillation process, and the seasonal and regional availability of the raw material. For example, some plants offer extremely low yields, requiring large amounts of plant material to produce small amounts of essential oil. This is the case with rose essential oil, for which about * tons of petals are required to obtain * kg of essential oil, thus justifying its high price, so much so that it is listed on the stock exchange. In addition, the purity and final chemical quality of the product play a crucial role in determining the price, which is also influenced by expenses related to the application of quality testing, demand both domestically and internationally, and logistical costs such as storage, transportation, and distribution. The most expensive essential oils include those of rose and jasmine, which due to their complexity of production and rarity are particularly valuable. ...

4.3 New supply trends

Polymeric nanoparticles for improved bioactivity of essential oils

Recent advances in nanotechnology have sparked growing interest among researchers in improving the release and bioactivity of essential oils through encapsulation in polymeric matrices. Nanotechnology presents itself as a promising strategy for the development of controlled, sustained, and extended release systems that can optimize the therapeutic efficacy of volatile compounds in essential oils. Specifically, essential oils derived from various medicinal plants have been successfully encapsulated within synthetic polymeric systems. These systems have been shown to significantly increase the therapeutic efficacy and extend the shelf-life of nanoparticles containing essential oils. This improvement is particularly relevant in applications where stability and shelf-life of the active ingredient are crucial to treatment efficacy. In addition, essential oils encapsulated in nanoparticles formulated with natural polymers have also shown an increase in efficacy. The use of natural polymers offers the advantage of being biocompatible and biodegradable, making these formulations particularly attractive for therapeutic and cosmetic applications. These innovations open new possibilities for the use of essential oils in areas requiring precise and sustained release, expanding the potential therapeutic applications of these natural compounds. [***]

Organic supply plays an important role in the essential oils market

Companies producing products derived from ...

5.1 Rules and regulations

Community Regulations

Italy is fully compliant with all European regulations related to essential oils. Among these, the European Federation of Essential Oils (***) cites the following regulations:

CosmeticsRegulation (***) No. ****/****: establishes restrictions on the use of essential oils in cosmetic products and prohibits the use of harmful ingredients, substances or plants. Regulation (***) No. ****/****: regulates the specific uses of flavorings and products for human consumption, ensuring that essential oils used in food and beverages are safe and meet quality standards. Regulation (***) No. ****/****: provides a framework for the use of additives in animal feed, including essential oils as flavorings or preservatives.

In addition, the REACH Regulation (***) have been implemented to control the use of chemicals, indirectly affecting the essential oils industry. The REACH Regulation requires the registration and authorization of chemicals, while the CLP Regulation provides guidelines for the evaluation, classification, packaging, and labeling of chemicals.

National Legislation

At the national level, it is important to mention the Law No. *** of April **, ****, which regulates food flavorings and establishes specific requirements for the safety and quality of ingredients used in food products.

In general, this set of regulations and standards ensures the quality of essential oils and the control of environmental and personal health through:

The ...

6.1 Segmentation

The following table provides a segmentation of industry players.

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• Capua 1880 srl
• Enrico Giotti Spa
• CFF Creative Flavours & Fragrances
• F.lli Branca s.p.a
• Aromata Group s.r.l
• Misitano & Stracuzzi
• Givaudan