Basil Essential Oil Market Report Scope And Overview:

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The Basil Essential Oil Market size was valued at USD 223.12 million in 2023 and is expected to grow to USD 330.18 million by 2032, with a growing CAGR of 6.1% over the forecast period of 2024-2032.

Basil essential oil is a volatile oil extracted from the leaves of the basil plant, Ocimum basilicum. Basil essential oil is used in aromatherapy, cosmetics, and food and beverage products. The Pharmaceuticals segment is anticipated to have the largest revenue market share in 2029. Due to its therapeutic properties, basil oil is used in pharmaceuticals for a variety of conditions, including the treatment of rheumatoid arthritis, and mental problems, as an antidepressant, and the prevention of hypersensitivity, among others.

Based on nature, the conventional segment in the Basil essential oil market is expected to have a major share of 90% in 2022. The majority of basil essential oil is produced using a standardized extraction technique from conventional raw materials; only a small number of processors pursue organic raw materials and convert them into oil and other value-added products.

 Based on application, the aromatherapy sector is the emerging segment which is expected to grow at a rate of 5% over the course of the projection period, from its significant share of 33% in 2022.

MARKET DYNAMICS

KEY DRIVERS

• Raising awareness about basil essential oil's health benefits

Basil oil has antibacterial and antiviral properties it is frequently used in aromatherapy to support the immune system and eliminate the infection.  Basil essential oil reduces Inflammation, which is good for illnesses like eczema, asthma, and arthritis. Growing numbers of health and wellness bloggers and influencers endorse the use of basil essential oil due to its therapeutic properties increasing the awareness of basil oil.  Consumers are increasingly using basil essential oil for several applications as they become more aware of the potential health advantages of natural products.

RESTRAIN

• Competition from alternative essential oils

Some other essential oils are popular with consumers, such as lavender oil, peppermint oil, and tea tree oil. Customers can opt to purchase these essential oils instead of basil essential oil because they have similar advantages. All of these alternative essential oils are widely accessible and reasonably priced. Because of this, they appeal to customers looking for all-natural goods to enhance their health and well-being. The basil essential oil market faces competition from competing essential oils.

OPPORTUNITY

• Expanding the use of basil essential oil in various end-user sector

Basil essential oil is used in various cosmetics and personal care products, such as soaps, shampoos, conditioners, and perfumes. As the basil essential oil has a pleasant aroma and several beneficial properties for the skin. Also, basil essential oils are widely used in various food and beverage products, such as teas, snacks, and sauces as basil essential oil has a unique flavor and aroma that can enhance the taste of food. The rising application of basil essential oil in the pharmaceutical and cosmetic segment drives the expansion of the market.

• The expansion of basil essential oil markets

CHALLENGES

• The Disruption in the supply of basil essential oil

Extreme weather and political instability may negatively impact basil crops and hinder the supply of basil essential oil. Drought can diminish the amount of basil planted, and flooding can harm basil plantings and make harvesting difficult. The transportation of basil essential oil from such countries may be problematic due to war or civil instability. A pandemic can interrupt basil essential oil delivery, and a health crisis can diminish demand for basil essential oil. Supply chain interruptions could pose a significant risk to the basil essential oil companies.

IMPACT OF RUSSIA-UKRAINE WAR

Russia is a major supplier of basil essential oil, and the war has hampered its supply. As a result, basil essential oil prices have risen, and there are shortages in some marketplaces. There have been shortages of basil essential oil in some markets, such as Europe and North America. The price of basil essential oil has increased by approximately 15% since the start of the war. A major European supplier of basil essential oil has halted shipments from Russia. This has resulted in basil essential oil shortages in various European markets. Supply chain interruptions made obtaining basil essential oil more difficult and expensive.

IMPACT OF ONGOING RECESSION

A recession can be detrimental to the basil essential oil market. During the COVID-19 epidemic, sales of basil essential oil products fell by 5% in the United Kingdom. Followed by disruption in the supply of basil oils has led to an increase in prices indirectly leading to a decrease in demand for basil essential oil. Prices for basil essential oil have risen by 20% as a result of the war, according to a significant North American supplier. The basil essential oil is now more expensive for consumers globally. Hence, consumers may prefer other essential oils, such as lavender oil and peppermint oil, which were perceived to be more affordable.

MARKET SEGMENTATION

By Nature

• Organic

• Conventional

By Application

• Food & Beverages

• Cosmetics & Personal Care

• Home Care Products

• Aromatherapy

• Pharmaceuticals

• Others

REGIONAL ANALYSIS

North America is the major market for basil essential oil, accounting for more than 30% of the global market. The United States is North America's largest market, followed by Canada. The growing popularity of aromatherapy and the expanding use of basil essential oil in food and beverage items are driving demand for basil essential oil in North America.

Europe is estimated to be the second-largest market for basil essential oil, accounting for more than a quarter of the global market. Europe's main markets are France, Germany, and Italy. The growing popularity of natural and organic products, as well as the increasing use of basil essential oil in cosmetics and personal care products, are driving demand for basil essential oil in Europe.

Asia Pacific is the fastest-growing market for basil essential oil, accounting for more than 20% of the global market share. The biggest markets in the Asia Pacific region are China, India, and Japan. The expanding middle class and increased awareness of the health benefits of basil essential oil are driving the demand for basil essential oil in the Asia Pacific region.

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REGIONAL COVERAGE

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America

KEY PLAYERS

Some major key players in the Basil Essential Oil Market are doTERRA International LLC, Ozone Naturals Pvt. Ltd., Blue Ridge Botanicals Co. Ltd., Gangotri Essential Oil Pvt. Ltd., Young Living Essential Oil, Neals Yard Natural Remedies Ltd., Edens Garden Inc., GuruNanda LLC, New Directions Aromatics Inc., NOW Health Group Inc., Rocky Mountain Oils LLC, Balnea Spa, and other key players.

RECENT DEVELOPMENTS

In 2023, NOW Foods a leading manufacturer of natural supplements launched a new line of basil essential oil products, including a basil essential oil capsule and a basil essential oil liquid extract.