Essential oil is a kind of volatile oil extracted from flowers, leaves, fruit skins and bark, which is called essential oil. It has the unique fragrance of plants and pharmacological effects. There are about 200 kinds of essential oils. There are single varieties without spices, and some are made by mixing different spices. It includes room diffuser, essential oil reed diffuser, scented diffuser, etc.
Aromatherapy oil has appeared for more than 2000 years. Because of its high price, mysterious and wonderful functions, it has always been a luxury exclusive article to the royal nobles, so it is called‘soft gold’. The main markets of essential oil are North America, Western Europe and Japan, which account for about 80% of the global market. The sales volume is as high as 13.6 billion US dollars. The main raw materials of essential oil are flowers, leaves, fruit skins, bark, etc. It includes best room fraction diffusers, room scene diffusers, luxury diffusers, etc. The sales channels of essential oil cover a wide range, including supermarkets and hypermarkets, department stores, personal care stores, franchised stores and e-commerce channels.
The use rate of essential oil is relatively high in European and American countries. The main market of essential oil is also in western developed countries. The markets in North America, Western Europe and Japan account for about 80% of the global essential oil market, while the consumption in other countries and regions is very small. In the mature cosmetics market in Europe and the United States, aromatherapy oil products generally account for more than 30% of the whole cosmetics market.
According to the latest research, China's current cosmetics market capacity is as high as 80 billion, among which aromatherapy essential oil has less than 1% share. China has always been an important supplier of aromatics in the world, but the production and consumption of essential oils have always been in a state of deficiency. The market of Chinese essential oil is chaotic, the market concentration is low, and there is no obvious brand effect. In mainland China, the market share of essential oil skincare products is less than 2%. The production of essential oil in China is mainly concentrated in Yunnan, Xinjiang, Guangdong and other raw materials and cosmetics production areas. There the production technology level is relatively low, and most of the products are for export.
Essential oil is extracted from plants and has natural properties, which is more in line with the characteristics of future consumer care products. With the development of economy, essential oil consumption has begun to go out of the traditional professional places and appear in shopping malls, specialty stores and even boutiques. From the experience of European and American markets, essential oil products generally account for about 30% of the cosmetics market. It can be inferred that the market potential of essential oil is huge, and the market will continue to develop at an annual growth rate of 5% in China. It is estimated that by 2021, the retail sales of essential oils in China will exceed 16 billion yuan.
From ignorance to being gradually recognized and understood by the public, and then to recognition, acceptance, and even fanatical pursuit to “fragrance” products, all show the demand of the times for fashion and nature. This shows that there is still a huge aromatherapy market to be explored in China. The following is an analysis of some e-commerce sales data of essential oil extraction in the Taobao index for reference.
(1) The daily search traffic of aromatherapy in Taobao is between 3K and 5K, an increase of 131.1% over the same period of last year, which means that the market demand for aromatherapy is also growing. In the next few years, the category of essential oils should be in a stable growth stage. In contrast, aromatherapy search traffic is relatively stable, with small fluctuations, only fluctuated in two days of‘double 11’and‘double 12’, and hovered around 4000 at other times. Special room perfusion diffuser, fox and ivy reed diffuser, etc. can be applied. However, the essential oil is in a hot selling period from August to October, about 12000, and after November, it has declined to about 5000.
Therefore, aromatherapy is not affected by time and season, and the market demand for essential oil will fluctuate significantly according to the seasonal changes.
(2) The Essential oil industry is one of the most potential and profitable industries in the daily chemical industry in China. But this industry has not yet formed the situation of brand concentration. The total market share of the top 10 brands is only 17%, and the total sales revenue only accounts for 1% of the industry's sales revenue. At present, there is no big brand with annual sales exceeding 100 million RMB in China, and the sales channels of aromatherapy essential oil are also different according to various subdivision products. 55% of the sales are from professional SAP shops and beauty clubs, and the sales shares of shopping malls and small agents account for 27% and 12% respectively.
It can be predicted that in the future, the market competition of aromatherapy essential oil will be more intense, and it mainly focuses on consumer segmentation, product function demands and channel construction. In addition, the specific essential oils also include bath and body works reed diffuser, essential oil room diffuser oil, etc.