Aromatherapy involves the use of aromatic essential oils extracted from flowers, leaves, fruits, barks, roots or woods for therapeutic purposes. Essential oils are known to have anxiety-reducing, pain-relieving and immunity-boosting properties. Major essential oils used in aromatherapy include lavender, peppermint, eucalyptus, bergamot, lemon and Roman chamomile. Aromatherapy products such as aroma candles, aroma diffusers, essential oil blends and massage oils are used for relaxation, sedation or stimulation depending on the essential oil. Growing inclination towards natural therapies and rising health & wellness concerns is fueling the demand for aromatherapy worldwide.

The global Aromatherapy Market is estimated to be valued at US$ 6.39 Bn in 2023 and is expected to exhibit a CAGR of 8.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
Therapeutic applications of aromatherapy present a major market opportunity. Aromatherapy is being widely used for treating conditions such as anxiety, depression, insomnia, migraines, respiratory infections and skin disorders. Research findings suggesting effectiveness of aromatherapy in reducing symptoms of various ailments without any side effects is propelling its adoption in therapeutic applications. Hospitals, healthcare clinics and holistic centers are increasingly utilizing aromatherapy along with conventional treatments. Growing demand for integrated medicine is creating huge opportunities for aromatherapy products manufacturers to collaborate with healthcare providers to facilitate therapeutic-grade aromatherapy. Future innovations expanding therapeutic applications of essential oils will further augment aromatherapy market growth over the forecast period.

Porter's Analysis
Threat of new entrants: Medium as it requires considerable investment to build aromatherapy products and brands. However, threat can increase with online distribution.

Bargaining power of buyers: High as buyers have many aromatherapy product brands and forms to choose from. Buyers can negotiate on price and quality.

Bargaining power of suppliers: Medium to high as key raw materials like essential oils are produced by few specialized players globally. Suppliers can influence prices.

Threat of new substitutes: Low as aromatherapy products have developed specialized category with few alternatives. Demand is for natural therapeutic solutions.

Competitive rivalry: High due to many international and local players competing aggressively on branding, innovation, and pricing.

SWOT Analysis

Strength: High popularity of aromatherapy for health and wellness. Wide range of product forms attract more users.

Weakness: Extensive research required to prove health claims. Quality certifications and standardization challenges.

Opportunity: Growing health-conscious population drives demand. Expanding online and retail distribution increases access.

Threats: Stringent regulations can impact product launches and claims. Economic slowdowns can reduce discretionary spend.

Key Takeaways
The global aromatherapy market is expected to witness high growth over the forecast period of 2023 to 2030 supported by increasing health awareness. The market size for 2023 is estimated at US$ 6.39 Billion.

Regional analysis indicates North America dominating currently due to high health spending and aromatherapy adoption. Asia Pacific is poised to grow the fastest on rising incomes, awareness, and shifts towards natural wellness solutions in major country markets like China and India.

Key players operating in the aromatherapy market are doTERRA International, Koninklijke DSM N.V., International Flavors & Fragrances Inc., Symrise, Eden Garden, Young Living Essential Oils, Frontier Natural Products Corporation, Rocky Mountain Oil, Mountain Rose Herbs, Plant Therapy Inc., Thann-Oryza Co. Ltd, G Baldwin & Co., Ouwave Aroma Tech Co. Ltd, RyohinKeikaku Co. Ltd, and Isagenix International LLC. These established brand leaders are introducing innovative products and expanding footprint worldwide.