|
Forecast Period
|
2026-2030
|
|
Market Size (2024)
|
USD 115.67
Million
|
|
CAGR (2025-2030)
|
9.39%
|
|
Fastest Growing Segment
|
Lemon
|
|
Largest Market
|
Western
|
|
Market Size (2030)
|
USD 198.24 Million
|
Market Overview
Saudi
Arabia Essential Oils market was valued at USD 115.67 Million in 2024 and is expected to grow to USD 198.24 Million by 2030 with
a CAGR of 9.39%. The Saudi Arabia Essential Oils market is
experiencing robust growth, driven by several key factors. Consumers are
increasingly seeking natural and organic products, leading to a surge in demand
for essential oils in personal care, cosmetics, and wellness applications. The
expansion of the wellness and spa industry has further amplified the use of
essential oils in aromatherapy and massage treatments. Also, the rising
prevalence of health issues such as stress, anxiety, and respiratory problems
has prompted pharmaceutical and healthcare sectors to incorporate essential
oils into their products. The food and beverage industry is also embracing
essential oils as natural flavoring agents, aligning with the global trend
towards clean-label ingredients. Also, the growth of e-commerce platforms has
enhanced product accessibility, allowing consumers across the Kingdom to
explore a diverse range of essential oil offerings. These combined factors are
propelling the Saudi Arabia essential oils market towards sustained expansion.
Key Market Drivers
Growth
of the Spa and Wellness Industry
The growth of the spa and wellness
industry in Saudi Arabia is significantly propelling the demand for essential
oils. As a part of this, according to the Global Wellness Institute (GWI),
Saudi Arabia has the second-largest wellness industry in the Middle East and
North Africa (MENA) region, with a wellness economy estimated at US$19.8
billion. As the Kingdom embraces a wellness-focused lifestyle, there is a
notable increase in the establishment of spas and wellness centers offering
services like aromatherapy and massage treatments, which extensively utilize
essential oils. This expansion is fueled by rising disposable incomes and a
heightened awareness of holistic health practices among the population. Also,
the integration of essential oils into spa services aligns with the global
trend towards natural and organic products, enhancing the appeal of these
establishments. The government's initiatives under Vision 2030, aiming to
diversify the economy and promote tourism, also contribute to the burgeoning
spa sector. Consequently, the intertwining of the spa and wellness industry's
growth with the essential oils market underscores a synergistic relationship,
fostering economic diversification and catering to the evolving preferences of
health-conscious consumers.
Expansion
of the Beauty & Skincare Sector
The expansion of Saudi Arabia's beauty and skincare
sector is a significant driver of the essential oils market. With the beauty
and personal care market growing, there's a growing consumer preference for
natural and organic products, leading to increased demand for essential oils in
skincare formulations. Essential oils are valued for their therapeutic
properties, making them popular ingredients in moisturizers, serums, and
cleansers. The rise of e-commerce platforms has further facilitated access to a
diverse range of essential oil-infused products, catering to the tech-savvy and
health-conscious population. Also, the influence of social media and beauty
influencers has heightened awareness and interest in natural skincare
solutions. As consumers continue to seek holistic and sustainable beauty
products, the integration of essential oils into the beauty and skincare
industry is expected to drive substantial growth in the Saudi Arabian market.
Government
Support for Natural Product Development
Government support for natural product development is
a significant driver of Saudi Arabia's essential oils market. Aligned with
Vision 2030's objectives to diversify the economy and promote sustainable
industries, the Kingdom has initiated programs to bolster the production and
utilization of natural products, including essential oils. Regions such as
Jazan, Taif, and Al-Bahah have become focal points for cultivating aromatic
plants like jasmine and roses, which are integral to essential oil production.
These initiatives not only aim to preserve cultural heritage but also to
stimulate local economies through agriculture-based industries. Also,
government-backed incentives and support for research and development have
encouraged both domestic and international investments in the sector. This
strategic emphasis on natural product development is fostering innovation,
enhancing product quality, and expanding the market reach of Saudi-produced
essential oils, thereby contributing to the overall growth and sustainability
of the industry.
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Key Market Challenges
High
Price Sensitivity
High price sensitivity poses a significant challenge
to the growth of the essential oils market in Saudi Arabia. While demand for
natural and wellness products is rising, the relatively high cost of essential
oils—due to factors like complex extraction processes, limited local
production, and reliance on imports—makes them less accessible to a broader
consumer base. Many essential oils, particularly those considered premium or
rare, remain out of reach for middle- and lower-income consumers. This creates
a gap between interest and actual purchase behaviour. Also, with the growing
availability of cheaper synthetic alternatives, consumers may opt for more
affordable but less effective or non-natural options, further impacting demand
for authentic essential oils. Retailers and brands often struggle to balance
quality with affordability, especially when competing in a price-sensitive
market. Unless efforts are made to reduce production costs or offer smaller,
budget-friendly packaging, this pricing challenge may limit market expansion
across different consumer segments in Saudi Arabia.
Low
Consumer Awareness
Low consumer awareness is a notable challenge facing
the essential oils market in Saudi Arabia. While global interest in natural
wellness solutions continues to grow, many Saudi consumers remain unfamiliar
with the benefits, applications, and proper usage of essential oils. This
knowledge gap leads to limited adoption, as potential buyers may be uncertain
about product efficacy, safety, or how to integrate essential oils into their
daily routines. Misconceptions and lack of reliable information further discourage
first-time users. Also, the market suffers from a shortage of widespread
educational campaigns and in-store guidance that could help bridge this
awareness gap. Without strong consumer education, demand remains concentrated
among niche wellness and beauty segments. To overcome this barrier, brands and
retailers need to invest in awareness initiatives through digital content,
influencer partnerships, and product demonstrations. Expanding consumer
understanding is crucial to unlocking the full potential of the essential oils
market across diverse age groups and lifestyles in Saudi Arabia.
Key Market Trends
Rising
Demand for Natural & Organic Ingredients
The rising demand for natural and organic ingredients
is a significant trend in Saudi Arabia's essential oils market. As a part of
this, according to a recent study, as of 2021, the market value
of organic products in Saudi Arabia was US$54.2 million, or roughly 0.1% of
world demand, with a per capita expenditure of US$1.64. Approximately
68% of consumers globally actively seek skincare products formulated with
clean, natural ingredients, a preference that is also evident in Saudi Arabia.
This shift is driven by increased health consciousness and awareness of the
potential harmful effects of synthetic additives. Consequently, consumers are gravitating
toward plant-based alternatives, leading to a surge in demand for essential
oils derived from plants like tea tree, lavender, chamomile, and rosehip. These
oils are increasingly incorporated into skincare, haircare, and cosmetic
formulations due to their therapeutic, antimicrobial, and aromatic properties.
The appeal of these oils lies in their ability to offer functional benefits
while aligning with consumer expectations for cleaner and safer products. This
trend is expected to continue driving the growth of the essential oils market
in Saudi Arabia.
Expansion
of Aromatherapy Practices
The expansion of aromatherapy practices is a
significant trend driving the growth of Saudi Arabia's essential oils market.
As consumers increasingly seek natural and holistic wellness solutions,
aromatherapy has gained popularity for its therapeutic benefits, including
stress relief, improved sleep, and enhanced mood. This shift towards wellness
is reflected in the rising demand for essential oils, which are integral to
aromatherapy practices. This growth is further supported by the increasing
awareness of the health benefits associated with essential oils and their
incorporation into daily wellness routines. The expansion of aromatherapy
practices is not only enhancing the demand for essential oils but also
fostering a broader acceptance of natural wellness therapies in Saudi Arabia.
E-Commerce
Growth
The expansion of e-commerce is a pivotal trend driving
the growth of Saudi Arabia's essential oils market. As a part of this,
according to a recent study, as of 2025, the eCommerce market is expected to
generate US$16.53 billion in revenue, essential oils are increasingly
accessible to consumers through online platforms. This digital shift is
particularly evident in the beauty and personal care segment, which is emerging
as the fastest-growing category in Saudi Arabia's e-commerce market, with a
projected growth rate of approximately 18% during 2024-2029. The convenience of
online shopping, coupled with the ability to compare products and read reviews,
has enhanced consumer confidence in purchasing essential oils. This trend is
further supported by the rise of social media influencers and wellness
advocates promoting the benefits of essential oils, thereby expanding their
reach and adoption among a broader audience. As e-commerce continues to
flourish, it plays a crucial role in making essential oils more accessible and
popular among Saudi consumers.
Segmental Insights
Product
Type Insights
Orange dominated the Saudi Arabia Essential Oils
market, due to its widespread use in aromatherapy, skincare, and wellness
products. The increasing consumer preference for natural and organic products
has contributed to the growth of this segment. Orange oil is known for its
refreshing fragrance, anti-inflammatory properties, and ability to uplift mood,
which makes it highly popular in both the beauty and healthcare sectors. Also,
its versatility in use for favoring and as a natural cleanser has further
enhanced its demand. The rising awareness about mental health and stress
management, along with the growing trend of self-care, has also driven the
adoption of orange essential oil in various therapeutic applications.
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Regional Insights
Western region dominated the Saudi Arabia Essential
Oils market, due to its proximity to major commercial hubs like Jeddah and
Mecca, which fosters a higher demand for wellness and cosmetic products. The
region also benefits from a growing tourism sector, especially religious
tourism, increasing the demand for aromatherapy and natural remedies. Also,
Jeddah’s status as a trade and logistics center has facilitated the import and
distribution of essential oils, making them widely accessible. Also, the Northern
& Central region's is driven by its expanding urbanization and rising
health-consciousness among consumers. These regions are witnessing a shift
toward organic and natural products in the beauty and wellness sectors, with a
growing interest in holistic and therapeutic solutions.
Key Market Players
- Kelvin
Natural Mint Pvt Ltd
- Cargill,
Incorporated
- H.
Reynaud & Fils
- Young
Living Essential Oils, LC
- Essential
Oils New Zealand Ltd
- FAROTTI
SRL
- Falcon
- Aethon
International LLP
- A.G.
Organica
- Sydney
Essential Oil Company
|
By Product Type
|
By Application
|
By Region
|
- Orange
- Eucalyptus
- Peppermint
- Lemon
- Citronella
- Others
|
- Medical
- Food & Beverages
- Spa & Relaxation
- Cleaning & Home
|
- Eastern
- Western
- Northern & Central
- Southern
|
Report Scope:
In this report, the Saudi Arabia Essential Oils
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- Saudi Arabia Essential Oils Market, By Product Type:
o Orange
o Eucalyptus
o Peppermint
o Lemon
o Citronella
o Others
- Saudi Arabia Essential Oils
Market, By
Application:
o Medical
o Food & Beverages
o Spa & Relaxation
o Cleaning & Home
- Saudi Arabia Essential Oils
Market, By Region:
o Eastern
o Western
o Northern & Central
o Southern
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the Saudi Arabia Essential Oils Market.
Available Customizations:
Saudi Arabia Essential Oils Market report
with the given market data, TechSci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Saudi Arabia Essential Oils Market is an upcoming
report to be released soon. If you wish an early delivery of this report or
want to confirm the date of release, please contact us at [email protected]