Australia Essential Oils Market Size, Share Analysis and Forecast Report (2024-2032)

Australia Essential Oil Market Trends

The Australia essential oil market is growing due to the increasing recognition of their therapeutic benefits, such as stress relief, enhanced sleep, and mood improvement. These natural alternatives to traditional medicine appeal to health-conscious consumers and are sustainably sourced. Used extensively in aromatherapy, skincare, and cleaning, essential oils are becoming more popular as tools for relaxation and stress management. In September 2024, Perfect Potion Australia launched the Wellness Ritual Essential Oil Kit, designed to promote mental clarity and relaxation. The oils, made from organic and wild-harvested ingredients, support Australian farmers and sustainable practices.

The demand of Australia essential oil market is further driven by the rising preference for natural and organic products. Native plants like tea trees and eucalyptus are highly prized for their distinctive properties. Essential oils meet a variety of consumer needs, providing antibacterial, anti-inflammatory, and moisturising benefits. The growing wellness trend continues to promote essential oils in self-care routines and relaxation. In July 2023, Tisserand Aromatherapy introduced its Sleep Support range, featuring calming oils such as lavender and chamomile, designed to improve sleep quality, aligning with the expanding wellness and self-care movement in Australia.

Australia Essential Oil Market Growth

Essential oils play a significant role in aromatherapy, there supporting the Australia essential oil market. Their versatility allows for use in diffusers, bath products, and massage oils. Locally produced oils contribute to the Australian economy and sustainability, with native plant oils harvested in an environmentally mindful way. Australia's reputation for high-quality essential oils is driving growing export opportunities. In August 2023, Eden’s Garden Australia launched its *Aussie Botanicals* collection, featuring oils from native plants such as eucalyptus and tea tree. The launch emphasises the therapeutic benefits of native oils and supports sustainable farming practices in the Australian industry.

The growth of the Australia essential oil market is also fuelled by the rising demand for premium essential oils in the luxury wellness sector, appealing to affluent consumers. Eco-friendly packaging is increasingly becoming standard to meet the demand for sustainability. Oils like eucalyptus and tea tree, known for their immune-boosting and antibacterial properties, are experiencing increased popularity. Heightened consumer awareness of their health benefits is further driving the market, particularly as essential oils become a go-to natural health solution in alternative medicine. In October 2023, The Goodnight Co. introduced its *Sleep Essentials* collection, combining calming oils like lavender and chamomile to offer a natural way to enhance sleep quality through aromatherapy.

Australia Essential Oil Market Insights

• According to USDA data, Australia’s orange production hit 505,000 metric tons in the 2022/23 marketing year, leading to an increase in demand for orange oil.  
• The Australian cosmetics industry is valued at approximately USD 3.5 billion, based on figures from the International Trade Administration.  
• USDA reports show that Australia’s food, beverage, and grocery industries account for roughly one-third of the country’s total manufacturing sector.  
• Aromatherapy are projected to grow at a CAGR of 8.6% between 2024 and 2032.  
• Orange oil and spearmint oil are anticipated to expand at CAGRs of 8.7% and 8.1%, respectively, during the 2024-2032 forecast period.  
• The Queensland market share is expected to see a significant growth rate of 20.1% CAGR between 2024 and 2032.  

Industry News

March 2024

doTERRA Australia introduced a new range of Citrus Bliss essential oil blends. This invigorating blend is crafted to uplift moods and boost productivity, with an emphasis on natural, organic ingredients. doTERRA continues to expand its wellness-oriented essential oil offerings.

April 2023

Aveda unveiled its Botanical Repair essential oil collection in Australia. The range is designed to rejuvenate and nourish hair, leveraging the therapeutic qualities of plant-based essential oils. This launch aligns with Aveda’s dedication to sustainable sourcing and environmentally friendly packaging.

Australia Essential Oil Market Drivers

Growing Consumer Demand for Natural and Organic Products:

The Australia essential oil market revenue is being impacted due to the shift towards natural and organic alternatives, driving a substantial increase in demand for essential oils. People are seeking plant-based, eco-friendly products for their wellness and daily needs. Essential oils, valued for their therapeutic benefits, align with this trend, offering purity and authenticity. As concerns about synthetic chemicals rise, Australian consumers, particularly those focused on health, are turning to essential oils for use in aromatherapy, skincare, and personal care. In May 2023, Jurlique launched its Purely Botanical Essential Oil Collection in Australia, focusing on 100% natural, organic ingredients sourced from its biodynamic farm in South Australia. This highlights the brand’s sustainability commitment and meets the growing demand for pure, natural wellness products.

Rise in Wellness and Self-Care Trends:

The global wellness movement is significantly shaping the Australia essential oil market, with consumers seeking natural products to support stress relief, relaxation, and mental health. Essential oils are widely used in aromatherapy, enhancing mental well-being, improving sleep, and boosting mood. Self-care practices, especially among millennials and Gen Z, are driving this demand, with oils becoming integral to daily routines via diffusers, bath products, and massage oils. Essential oils support the broader trend towards holistic health and self-care.  In September 2023, The Body Shop introduced a new Aromatherapy Essential Oils range designed to promote mental well-being. Featuring calming blends like Balance (sandalwood and patchouli) and Awaken (bergamot and citrus), the collection aligns with the increasing focus on stress-relieving self-care routines.

Opportunities in the Australia Essential Oil Market

Focus on Premium and Luxury Products:

Premium and luxury essential oils are shaping the Australia essential oil market dynamics and trends. Affluent consumers are increasingly drawn to high-quality oils derived from rare or native Australian plants, such as sandalwood and finger lime, which provide unique fragrances and therapeutic benefits. These premium offerings often feature ethically sourced ingredients and luxurious packaging, appealing to discerning buyers. The growing interest in wellness and self-care has spurred the expansion of luxury essential oils, catering to a niche market seeking exclusive, high-end, and sustainable wellness experiences.  In February 2023, RITUALS introduced its Luxury Essential Oils Diffuser Set in Australia, featuring a premium selection of oils, including jasmine and sandalwood. This exclusive collection aims to offer a spa-like experience at home, targeting affluent consumers seeking indulgent wellness products for personal care and their living spaces.

Market Restraints

The Australia essential oil market faces several key challenges. Regulatory compliance is complex, with strict safety standards and labelling requirements that may increase costs and slow product development. The market is also highly competitive, with numerous local and international brands, leading to market saturation and potential price wars.

Environmental factors such as droughts and bushfires, as well as global demand, cause disruptions in the supply chain and raw material shortages. Price sensitivity is another issue, particularly for premium products, alongside consumer concerns about authenticity. Furthermore, there is limited consumer awareness regarding proper use and benefits, making education crucial. Environmental sustainability is also a concern, with overharvesting and deforestation threatening native plant species.

Australia Essential Oil Industry Segmentation

“Australia Essential Oil Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments: 

Market Breakup by Type

• Orange Oil
• Spearmint Oil
• Cornmint Oil
• Clove Oil
• Cedarwood Oil
• Others

Market Breakup by Source

• Flowers
• Fruits and Vegetables
• Herb and Species

Market Breakup by Extraction

• Cold Press Extraction
• Distillation
• Carbon Dioxide Extraction
• Others

Market Breakup by Application

• Personal Care and Cosmetics
• Food and Beverages
• Perfumery
• Pharmaceuticals
• Aromatherapy
• Home Care Products
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Essential Oil Market Share

By Types Insights

According to the Australia essential oil market analysis, clove oil dominates the market due to its potent antioxidant, anti-inflammatory, and antimicrobial properties. In Australia, it is widely used in aromatherapy for stress relief, mental clarity, and mood enhancement. Clove oil is also commonly found in oral care products, where it helps alleviate toothaches, and gum infections, and supports dental hygiene.  In April 2024, The Australian Clove Oil Producers Association announced a new initiative in Northern Queensland to increase local clove oil production. This project aims to meet the rising demand for clove oil both domestically and internationally.

The growth of the Australia essential oil market is further driven by cedarwood oil, which is valued for its grounding and calming effects. Popular in wellness routines, it is used for stress relief, relaxation, and promoting focus. Cedarwood oil is also recognised for supporting respiratory health and improving skin health. In May 2023, Forest Oils Australia began harvesting and distilling cedarwood oil in Western Australia. Their new production facility focuses on sustainable, ethical forestry practices, aiming to produce high-quality cedarwood oil while ensuring environmental sustainability.

By Source Analysis

The demand of Australia essential oil market is increasing, driven by the popularity of floral oils such as lavender and rose, known for their calming and therapeutic effects that aid relaxation, better sleep, and skincare. Oils like chamomile and jasmine are commonly used in aromatherapy to relieve stress and promote emotional well-being. Native Australian floral oils, including wattleseed and frangipani, are gaining attention for their unique properties. In June 2023, Wildflower Essential Oils began producing oils from rare Australian wildflowers in Western Australia. Their new distillation facility focuses on sustainable farming practices and eco-friendly methods to minimise environmental impact.

The Australia essential oil market is further boosted by citrus oils like lemon and orange, valued for their antioxidant-rich, uplifting properties that benefit skin health and act as natural disinfectants. Fruit-based oils, such as grapefruit and bergamot, are known for enhancing mood and mental clarity. Vegetable oils like carrot seed and cucumber are praised for promoting skin hydration and rejuvenation, aligning with Australia's wellness and skincare trends. In December 2023, Bush Botanicals Australia commenced extracting fruit-based essential oils from native fruits like Kakadu plum and bush tomato. Their new facility in the Northern Territory will serve both local and international markets.

By Application Insights

According to the Australia essential oil market report, personal care products containing essential oils are highly valued for their anti-inflammatory, soothing, and antimicrobial properties. The personal care and cosmetics sector is expected to grow at a CAGR of 8.1% from 2024 to 2032. Essential oils are widely used in skincare for acne treatment and hydration, in haircare to promote growth and improve scalp health, and in wellness products to aid relaxation. They cater to Australia’s increasing demand for natural, chemical-free beauty and self-care solutions. In August 2023, Essence launched a new range of essential oil-based skincare products in Australia, featuring oils such as lavender and chamomile. The collection focuses on providing natural skincare solutions for sensitive skin while promoting relaxation and skin health.

The Australia essential oil market growth is further boosted by essential oils like peppermint, lemon, and ginger, which enhance the flavours and aromas of food and beverages. Known for their health benefits and natural preservative properties, these oils meet Australia’s growing demand for holistic, natural ingredients in wellness drinks, functional foods, and clean-label products. In March 2023, Essential Living Foods introduced a new line of health-focused, essential oil-infused functional drinks in Australia. Featuring oils like turmeric and ginger, these beverages offer natural anti-inflammatory benefits, aligning with the increasing consumer preference for wellness and natural ingredients in food and drinks.

Australia Essential Oil Market Regional Insights

New South Wales Essential Oil Market Regional Insights

New South Wales (NSW) experiences robust demand for essential oils, particularly in wellness, skincare, and aromatherapy. New South Wales is projected to grow at a CAGR of 8.1% from 2024 to 2032.  The region benefits from a growing consumer base that prioritises natural, sustainable, and locally sourced products. NSW is a key contributor to Australia's citrus industry, with the state's orange harvest valued at over AUD 70 million in 2022, as reported by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).  

Queensland Essential Oil Market Trends

Queensland is projected to grow at a CAGR of 8.8% from 2024 to 2032. Queensland's essential oil market is thriving, driven by rising consumer interest in native oils like eucalyptus and tea trees. These oils are sought after for their therapeutic properties, particularly in personal care, wellness, and aromatherapy.  Queensland is a major producer of both native and exotic flowers, with its flower production valued at over AUD 150 million in 2023. The state's flower industry contributes significantly to the domestic market, according to the Queensland Government - Department of Agriculture and Fisheries.  

Western Australia Essential Oil Market Dynamics

As per the Australia essential oil industry analysis, Western Australia's essential oil market is fuelled by growing demand for native plant oils like sandalwood and frangipani. The region emphasises sustainability, eco-friendly sourcing, and the support of local agriculture in its production processes.  Western Australia is a significant producer of vegetables, with key crops such as carrots, potatoes, and broccoli. In 2022, the state's vegetable production was valued at around AUD 900 million, according to the Department of Primary Industries and Regional Development (WA).  

Competitive Landscape

The Australia essential oil market key players have established a strong presence in the health and wellness sector by offering pure, plant-based solutions derived from sustainably cultivated plants. Parodi Nutra provides a diverse range of products, including essential oils, carrier oils, and aromatherapy blends, all aimed at promoting well-being, mental clarity, and relaxation. The company is committed to eco-friendly practices, emphasising ethical sourcing and sustainable production methods. As demand for natural and organic health products continues to rise, Parodi Nutra has earned a reputation as a trusted brand among consumers seeking high-quality, therapeutic-grade essential oils.

Key Industry Players

Parodi Nutra: Established in 2010, Parodi Nutra is an Australian company headquartered in Melbourne. It specialises in the production of high-quality essential oils, focusing on natural and organic products. The company offers a wide range of oils for use in wellness, skincare, and aromatherapy, catering to both local and international markets.

Hahndorf Lavender Estate: Founded in 1998, Hahndorf Lavender Estate is based in South Australia. The estate grows, harvests, and distils premium lavender essential oils. It is renowned for producing natural, locally sourced lavender products used in wellness, aromatherapy, and skin care, promoting sustainable farming practices and eco-friendly production methods.

Down Under Enterprises: Established in 1993 and headquartered in Queensland, is a key supplier of Australian native essential oils. The company focuses on sustainably sourced oils like tea tree and eucalyptus. It serves both the domestic and global markets, providing high-quality oils for skincare, wellness, and aromatherapy.

Heritage Brands (Australia) Pty Ltd: Founded in 1996 and based in Melbourne, is a leading manufacturer of essential oils and personal care products. The company focuses on developing and distributing natural, effective products for skincare and wellness. Its essential oils are sourced from both Australian-grown plants and international suppliers.

Another key player in the Australia essential oil market report is Essentially Co Pty Ltd, among others. 

Recent Developments

August 2024

Aura Cacia launched its new Australian Essentials range, featuring oils such as Australian Sandalwood and Eucalyptus Radiata. Sourced from native Australian plants, these oils offer consumers a deeper connection to the country’s botanical heritage, while delivering high-quality therapeutic benefits.

December 2023

Biolove expanded its product line with the introduction of a new Organic Essential Oils collection in Australia. The range includes pure oils like Peppermint, Lavender, and Tea Tree, aimed at enhancing wellness routines, with a focus on sustainable sourcing and eco-friendly production practices.