According to Future Market Insights’ latest research, the ASEAN aromatherapy industry value is forecast to double over the next ten years- from USD 575.1 million in 2024 to USD 1,127.5 million by 2034. Demand for aromatherapy products in ASEAN will probably increase at 7.2% CAGR throughout the assessment period.
Forecast for ASEAN Aromatherapy Industry
| Attributes | Key Insights |
|---|---|
| Base Value in 2023 | USD 530.8 million |
| ASEAN Aromatherapy Industry Size in 2024 | USD 575.1 million |
| Industry Value in 2034 | USD 1,127.5 million |
| Value CAGR (2024 to 2034) | 7.2% |
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Demand for aroma therapy products is surging across ASEAN because of the growing use of aromatherapy. This alternative medicine uses essential oils (concentrated plant extracts) to enhance health and well-being.
Several elements are improving the recognition and adoption of aroma therapy. Firstly, there is a growing recognition of the therapeutic blessings related to aromatherapy remedies.
As individuals seek herbal and holistic processes for fitness and wellness, they may be turning to aroma therapy for its capability to alleviate strain, improve mood, and promote rest. This heightened awareness of aromatherapy's healing houses is increasing its substantial recognition and integration into mainstream healthcare practices.
Another key component encouraging usage of aroma therapy remedies is the growing demand for stress relief and mental well-being solutions. In modern-day, fast-paced, demanding surroundings, individuals are searching for effective techniques to manage stress. Aromatherapy offers a natural and non-invasive manner to cope with these concerns, making it an appealing alternative for the ones looking to enhance their normal pleasantness.
The ASEAN industry recorded a CAGR of 6.8% during the historical period, with total valuation of USD 530.8 million by the end of 2023. In the assessment period, demand for aromatherapy in ASEAN is forecast to rise at 7.2% CAGR, depicting a spike of 0.4% from the historical growth rate.
The aroma therapy industry in ASEAN is experiencing a notable upswing, largely propelled by the burgeoning consumer preference for natural and organic cosmetics. This shifting consumer mindset towards cleaner, more sustainable beauty solutions has significantly influenced the growth trajectory of the aroma therapy sector.
Aromatherapy offers a compelling alternative, harnessing the power of plant-derived essential oils and botanical extracts known for their natural healing and rejuvenating properties. The industry is capitalizing on the growing consumer preference for natural and organic products in cosmetics.
Consumer demand for plant-based and organic products is rising. This shift in consumer preferences reflects a growing awareness of the benefits associated with natural ingredients and a desire for cleaner, more sustainable alternatives across various industries, including personal care and wellness.
The escalating demand for plant-based and organic products is fueling innovation and industry growth. Companies are investing in research and development to strengthen their product offerings, incorporating a wider range of botanical ingredients and seeking sustainable sourcing practices.
From essential oils and diffusers to skincare formulations and massage oils, the industry is witnessing a proliferation of plant-based options tailored to meet diverse consumer needs and preferences. Hence, the future outlook for the ASEAN industry looks bright.
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By developing innovative products and services tailored to the unique needs of the target audience, companies in this sector can boost their sales. This will also help them become trusted partners in the sports and fitness industry.
The proliferation of e-commerce and DTC channels presents immense opportunities for aromatherapy brands to enhance their reach, boost sales, and cultivate loyal customer relationships. By embracing digital platforms, optimizing online experiences, and using data-driven insights, companies can thrive in the competitive landscape of the modern marketplace.
Risk factors associated with aroma therapy constraint industry growth, necessitating careful consideration and management by industry stakeholders. While aroma therapy offers numerous potential benefits, there are several inherent risks that can impact consumer safety and industry dynamics.
One significant risk factor is the potential for allergic reactions and skin sensitivities to essential oils. While essential oils are natural substances derived from plants, they contain complex chemical compounds that can trigger allergic reactions or irritate sensitive skin, especially when used undiluted or in high concentrations.
Consumers with pre-existing allergies or skin conditions need to exercise caution when using aroma therapy products. They may require guidance from healthcare professionals or trained aromatherapists.
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The table below shows the predicted CAGR of the leading nations. Malaysia and Thailand are set to witness high demand, recording CAGRs of 7.9% and 7.4%, respectively, through 2034.
Growth Outlook by Key Countries
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| Malaysia | 7.9% |
| Thailand | 7.4% |
| Indonesia | 6.4% |
| Vietnam | 7.1% |
| Philippines | 6.8% |
| Rest of ASEAN | 8.7% |
Indonesia dominates the ASEAN industry, with a share of around 25.5% in 2023. In the assessment period, Indonesia industry is poised to grow at a CAGR of 6.4%. This can be attributed to growing awareness and adoption of natural remedies.
Indonesia’s diverse flora provides an abundant source of essential oils. Native plants like ylang-ylang, patchouli, and lemongrass are widely cultivated for their aromatic properties. It continues to be a dominant and diverse supplier of natural ingredients to the world's F&F industry, exporting at least 40 essential oils.
People across Indonesia are increasingly seeking natural alternatives for health and wellness. This is anticipated to uplift essential oils demand used in aroma therapy due to their numerous therapeutic benefits.
Thailand occupied a 12.0% value share in ASEAN industry in 2023, owing to booming spa and wellness tourism. In the next ten years, demand for aroma therapy products in the country is forecast to surge at a CAGR of 7.4%.
Thailand is renowned for its vibrant tourism industry and is a popular destination for travelers seeking relaxation and rejuvenation. The country boasts numerous spa and wellness centers where aroma therapy treatments are widely offered.
Tourists often opt for traditional Thai massage, herbal remedies, and aroma therapy during their visits. This convergence of tourism and wellness fuels growth of the aromatherapy industry in Thailand.
The section below sheds some light on leading segments along with their projected growth rates. Companies can use this information to invest in popular products to solidify their positions in the industry.
By ingredient type, the aromas segment is poised to grow at a high CAGR of 7.3% through 2034. Based on mode of delivery, the topical segment accounted for 40.1% value share in 2023.
Based on application, the skin & hair care segment held 16.0% of the ASEAN industry in 2023. By sales channel, the direct sales category accounted for 35.0% of revenue share in 2023.
Growth Outlook by Product
| Product | Value CAGR (2024 to 2034) |
|---|---|
| Aromas | 7.3% |
| Equipment | 6.5% |
Aromas are anticipated to remain top-selling products across ASEAN, rising at 7.3% CAGR throughout the forecast period. The target segment totaled a valuation of USD 460.7 million in 2023, representing 86.8% share of the industry. This can be attributed to growing importance of essential oils in aroma therapy.
Aromatherapy is favored for its non-invasive nature and convenience. People often use aroma therapy products like essential oils close to their residences, making it a popular choice for home-based wellness.
Shifting trends toward natural and holistic therapies propel the adoption of aroma therapy products, particular essential oils. People are showing a keen inclination towards using alternative therapies that use essential and blended oils due to their natural healing benefits.
Growth Outlook by Mode of Delivery
| Mode of Delivery | Value CAGR (2024 to 2034) |
|---|---|
| Inhalation | 8.4% |
| Topical | 6.4% |
| Aerial | 7.5% |
| Environmental | 7.7% |
Topical mode accounted for around 40.1% of the ASEAN industry in 2023. For the next ten years, a CAGR of 6.4% has been predicted for the same segment, owing to growing popularity of topical aroma therapy due to its convenience and faster absorption.
Topical application involves directly applying essential oils or aroma therapy blends to the skin. The skin serves as an effective barrier, allowing gradual absorption of the aromatic compounds. This method ensures localized effects, making it ideal for addressing specific concerns such as skin conditions, muscle soreness, or joint discomfort.
When essential oils are applied topically, they interact with receptors, triggering various physiological responses. This direct interaction enhances the therapeutic benefits of aroma therapy.
Growth Outlook by Key Application
| Application | Value CAGR (2024 to 2034) |
|---|---|
| Relaxation/Stress Relieving | 6.0% |
| Insomnia | 7.4% |
| Nausea | 8.7% |
| Pain Management | 5.5% |
| Scar Management | 6.7% |
| Skin & Hair Care | 4.9% |
| Cold & Cough | 9.9% |
| Sleep Management | 8.2% |
| Psychological Disease | 11.0% |
| Others | 9.4% |
Adoption of aroma therapy remains especially high for skin & hair care, with target segment accounting for around 16.0% of the industry share in 2023. Over the projection period, the target segment is forecast to grow at a CAGR of 4.9%.
Across the Association of Southeast Asian Nations (ASEAN) region, there has been a surge in demand for aesthetic beauty. As economic parameters improve, disposable income levels rise, leading to increased demand for beauty and personal care products, including essential oils.
Natural skin and hair care products that enhance appearance are particularly sought after. People in the region are increasingly opting for aroma therapy that uses various essential oils to address skin issues like irritation, dryness, and inflammation.
Growth Outlook by Sales Channel
| Sales Channel | Value CAGR (2024 to 2034) |
|---|---|
| Retail Pharmacy Chains | 7.7% |
| Drug Stores | 7.0% |
| Online Sales/E-commerce | 7.6% |
| Hypermarket & Supermarket | 8.9% |
| Direct Sales | 6.5% |
Direct sales remain the most popular sales channel across ASEAN, accounting for about 35.0% of the sales in 2023. In the forecast period, the target segment will probably grow at 6.5% CAGR.
Aroma therapy products, especially essential oils, rely on sensory experiences. Consumers want to feel and smell the oils before making a purchase decision. Direct sales allow for personalized interactions, where customers can sample and experience the products firsthand. This tactile engagement significantly influences buying behavior.
The ASEAN industry is competitive, with a strong presence of regional players dominating specific regions. Leading players are focusing on offering a wide variety of essential oils and other products to stay relevant. They are also using social media and celebrity endorsements to market their products and increase their customer base.
Several companies are using tactics like partnerships, distribution agreements, acquisitions, mergers, and collaborations to stay ahead of the competition. They also incorporate essential oils into medicines for pain management.
Recent Developments:
| Attribute | Details |
|---|---|
| Industry Value in 2024 | USD 575.1 million |
| Industry Size in 2034 | USD 1,127.5 million |
| Growth Rate (2024 to 2034) | 7.2% CAGR |
| Forecast Period | 2024 to 2034 |
| Historical Data Available for | 2019 to 2023 |
| Industry Analysis | USD million for Value |
| Key Regions Covered | ASEAN |
| Key Countries Covered | Malaysia, Thailand, Indonesia, Vietnam, Philippines, Rest of ASEAN |
| Key Segments Covered | Product, Mode of Delivery, Application, Sales Channel, and Countries |
| Key Companies Profiled |
Novartis AG; Young Living Essential Oils, LC.; doTerra; MUJI; Tropical Bioessence Sdn Bhd; Oshadhi Malaysia; Thai - China Flavours and Fragrances Industry Co., Ltd.; Makescents Co., Ltd.; PT Aroma Atsiri Indonesia; VNI Scientific Sdn Bhd; Siam Kampan Co., Ltd.; Siam Botanicals; Vietnam Essential Oil; PEROMA Vietnam Co., Ltd.; Casa de Lorenzo Organic Products; VietEssence; Moonflower Oils and Spices Co. Ltd.; Claire Organics; Tanamera Topical Spa Sdn Bhd; THANN VietNam; Air Aroma; Plant Therapy; Eden Garden |
| Report Coverage | Industry Forecast, Competition Intelligence, DROT Analysis, Industry Dynamics and Challenges, Strategic Growth Initiatives |
The ASEAN industry is estimated to total USD 575.1 million in 2024.
The ASEAN industry value is set to reach USD 1,127.5 million by 2034.
Demand in ASEAN is predicted to grow at 7.2% CAGR through 2034.
With an 86.8% share, the aromas segment dominates the target industry.
The target industry registered a CAGR of 6.8% from 2019 to 2023.
Vietnam is poised to record a CAGR of 7.1% through 2034.
Yes, its demand is rising rapidly, especially across ASEAN nations.
The target audience is mostly women, but it is also gaining traction among men.
Young Living Essential Oils, LC, and doTerra are leading essential oil companies.
1. Executive Summary 2. Industry Overview 3. Key Industry Trends 4. Value-Added Insights 5. Industry Background 6. Industry Demand (in Value or Size in USD million) & Volume (Th Units) Analysis 2019 to 2023 and Forecast, 2024 to 2034 7. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Product 7.1. Aromas 7.1.1. Essential Oils 7.1.1.1. Citrus 7.1.1.1.1. Orange 7.1.1.1.2. Grapefruit 7.1.1.1.3. Lemongrass 7.1.1.1.4. Bergamot 7.1.1.1.5. Others 7.1.1.2. Herbaceous 7.1.1.2.1. Rosemary 7.1.1.2.2. Tea Tree 7.1.1.2.3. Yarrow 7.1.1.2.4. Others 7.1.1.3. Floral 7.1.1.3.1. Lavender 7.1.1.3.2. Ylang-Ylang 7.1.1.3.3. Geranium 7.1.1.3.4. Rosewood 7.1.1.3.5. Jasmine 7.1.1.3.6. Others 7.1.1.4. Minty 7.1.1.4.1. Spearmint 7.1.1.4.2. Wintergreen 7.1.1.4.3. Peppermint 7.1.1.5. Woody/ Earthy 7.1.1.5.1. Sandalwood 7.1.1.5.2. Pine 7.1.1.5.3. Patchouli 7.1.1.5.4. Vetiver 7.1.1.5.5. Cedarwood 7.1.1.5.6. Others 7.1.1.6. Spicy 7.1.1.6.1. Cardamom 7.1.1.6.2. Clove Bud 7.1.1.6.3. Cinnamon 7.1.1.6.4. Others 7.1.1.7. Camphorous 7.1.1.7.1. Eucalyptus 7.1.1.7.2. Lavandin 7.1.1.7.3. Cajeput 7.1.1.7.4. Laurel Leaf 7.1.1.7.5. Others 7.1.1.8. Resinous/Musky 7.1.1.8.1. Benzoin 7.1.1.8.2. Elemi 7.1.1.8.3. Frankincense 7.1.1.8.4. Myrrh 7.1.1.8.5. Peru Balsam 7.1.2. Carrier Oils 7.1.3. Blended Oils 7.2. Equipment 7.2.1. Nebulizing Diffuser 7.2.2. Ultrasonic Diffuser 7.2.3. Evaporative Diffuser 7.2.4. Heat Diffuser 8. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Mode of Delivery 8.1. Inhalation Aromatherapy 8.2. Topical Aromatherapy 8.3. Aerial Aromatherapy 8.4. Environmental Aromatherapy 9. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application 9.1. Relaxation/Stress Relieving 9.2. Insomnia 9.3. Nausea 9.4. Pain Management 9.5. Scar Management 9.6. Skin & Hair Care 9.7. Cold & Cough 9.8. Sleep Management 9.9. Psychological Disease 9.10. Others 10. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Sales Channel 10.1. Retail Pharmacy Chains 10.2. Drug Stores 10.3. Online Sales/E-commerce 10.3.1. Manufacturers Website 10.3.2. Aggregator Websites 10.4. Hypermarket & Supermarket 10.5. Direct Sales 11. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 11.1. Malaysia 11.2. Thailand 11.3. Indonesia 11.4. Vietnam 11.5. Philippines 11.6. Rest of ASEAN 12. Malaysia Industry Analysis 2019 to 2023 and Forecast 2024 to 2034 13. Thailand Industry Analysis 2019 to 2023 and Forecast 2024 to 2034 14. Indonesia Industry Analysis 2019 to 2023 and Forecast 2024 to 2034 15. Vietnam Industry Analysis 2019 to 2023 and Forecast 2024 to 2034 16. Philippines Industry Analysis 2019 to 2023 and Forecast 2024 to 2034 17. Rest of Industry Analysis 2019 to 2023 and Forecast 2024 to 2034 18. Industry Structure Analysis 19. Competition Analysis 19.1. Young Living Essential Oils, LC. 19.2. doTerra 19.3. MUJI 19.4. Tropical Bioessence Sdn Bhd 19.5. Oshadhi Malaysia 19.6. Thai - China Flavours and Fragrances Industry Co., Ltd. 19.7. Makescents Co., Ltd. 19.8. PT Aroma Atsiri Indonesia 19.9. VNI Scientific Sdn Bhd 19.10. Siam Kampan Co., Ltd. 19.11. Siam Botanicals 19.12. Vietnam Essential Oil 19.13. PEROMA Vietnam Co., Ltd. 19.14. Casa de Lorenzo Organic Products 19.15. VietEssence 19.16. Moonflower Oils and Spices Co. Ltd. 19.17. Claire Organics 19.18. Tanamera Topical Spa Sdn Bhd 19.19. THANN VietNam 19.20. Air Aroma 19.21. Plant Therapy 19.22. Eden Garden 20. Assumptions and Acronyms Used 21. Research Methodology
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Aromatherapy Industry Analysis in ASEAN
