The essential oil market is booming -- and forecasted to grow to $27.49 billion by 2022. This marks a huge jump from 2017, when the market was valued at $17.36 billion.  

This growth is projected to occur at a strong CAGR of 9.60% during the forecast period ranging from 2017 to 2022, according to the new report by Transparency Market Research, the Global Essential Oil Market. 

What's driving sales? The "booming beauty and personal care industry," the report says. This growth is projected to occur at a strong CAGR of 9.60% during the forecast period ranging from 2017 to 2022.

The increasing use of essential oils in aromatherapy is primarily responsible for boosting growth. The report states, "With improving lifestyles and rising demand for personal care, a surge in wellness activities such as aromatherapies exists from a worldwide perspective. With rapid innovations taking place in healthcare and wellness domains, the demand of essential oils is prophesized to mushroom on an unprecedented level..."

Key Players & Fierce Competition

The key players are DoTERRA International LLC, The Lebermuth Co. Inc., Young Living Essential Oils, and Enio Bonchev Production Ltd.

The market consists of highly fragmented and competitive suppliers. The report states, "Such a fragmented presence is mainly due to the presence of innumerable players in the market. Many companies are focusing on improving their oil product manufacturing techniques, thereby enhancing customer retention by providing quality essential oils..."

The essential oil market has a low entry barrier coupled with relatively easy techniques of manufacturing -- and this "intensifies competition" the report explains. 

Key strategies for companies in this market include achieving product differentiation, improving geographical reach, and increasing manufacturing capacity.