Essential Oil Market Size in India, Industry Share & Value 2025

Q: What is the expected growth rate of essential oil market in India?

The India essential oil market is anticipated to register a CAGR of 7.3% during the forecast period.

Q: What factors are fueling the India essential oil market?

Ayurveda resurgence, increasing personal care product integration, and awareness of natural remedies are propelling market growth.

Q: How does technology influence the essential oil production?

Innovations in distillation techniques and organic farming practices are helping manufacturers maintain purity and scalability.

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Essential oil market size in India | Demand Drivers, Landscape & Forecast 2025

Code: MTA4285

Publication Date: Jun 2025

What is the India Essential Oil Market Size?

According to 绿帽社 internal data and industry insights, the India essential oil market is projected to expand at a robust compound annual growth rate (CAGR) of 7.3% during the forecast period.

The growth of this industry can be attributed to surging preference for natural wellness alternatives, increasing penetration of aromatherapy, and rising applications in cosmetics, personal care, and pharmaceuticals. Additionally, consumer inclination toward organic lifestyle choices and plant-derived ingredients is amplifying market demand.

Major Growth Drivers of the India Essential Oil Industry

Increasing usage of essential oils in Ayurveda, spa therapies, and home-based aromatherapy.
Growing exports of essential oils such as lemongrass and eucalyptus to Europe and the U.S.
E-commerce platforms enabling easy accessibility and brand proliferation across emerging urban centres.
There has been rising consumer consciousness regarding the benefits of chemical-free and plant-based products.
Integration of essential oils into skincare, haircare, and fragrance product formulations is on the rise.
Favorable government support for organic farming is strengthening industry potential.

India Essential Oil Market Trends

India Essential Oil Market is implementing innovation and diversification in both product formulation and marketing channels. There is a sharp rise in custom blends tailored for specific concerns like stress relief, sleep enhancement, or skin brightening. In addition to this, DIY aromatherapy kits and eco-conscious packaging are shaping consumer behavior. Micro-distilleries and farm-to-bottle startups are also emerging, providing transparency and traceability in sourcing and production.

Emerging Developments in the India Essential Oil Market

India Essential Oil Market is witnessing major developments through agritech-led production, ensuring higher yield and quality. Cold-press abstraction and steam distillation innovations are allowing better preservation of bioactive compounds. Moreover, partnerships between skincare brands and essential oil formulators are becoming common. The rising demand for “certified organic” and “pure-grade” oils is nurturing visible and clean-label practices.