The essential oil market is on a fast track to high-quality development

In 2025, the Chinese essential oil industry, empowered by both technological innovation and consumption upgrades, showed a trend of simultaneous expansion in scale and improvement in quality. Multiple sub-sectors, including personal care and medical, flourished, and the industry is accelerating its transformation from "concept consumption" to "value consumption." Data shows that the market size reached 12 billion yuan in 2025 and is projected to grow to 22 billion yuan by 2030, with an average annual compound growth rate of 12.8%.

Breakthroughs in scientific research and technology have solidified the foundation of the industry, becoming the core support for realizing the efficacy of essential oils. Upgrades in extraction technology have reshaped the value chain. The localization rate of supercritical CO₂ extraction equipment has increased to 68%, reducing the production cost of medical-grade essential oils by 42%. Breakthroughs in molecular distillation technology have increased the purity of specific components to 99.7%, meeting the international pharmacopoeia standard, directly driving a 19% increase in export unit prices. At the basic research level, several findings have clarified the mechanisms of action of essential oils. For example, the active ingredients in some compound essential oils can exert a repairing effect by promoting microcirculation and stabilizing the skin barrier. Combined with nanoemulsification technology, they can significantly improve absorption efficiency around the eyes. Related clinical data shows that after six weeks of use, compound formula products can reduce wrinkles around the eyes by an average of 13.6%. Furthermore, the application of synthetic biology and gene editing technologies is expected to reduce production costs by 30% and increase extraction purity by 20%, providing a new path for cost reduction and efficiency improvement in the industry.

The consumer market is showing characteristics of structural upgrading, with a prominent trend towards specialization in niche markets. Personal care is the core foundation, accounting for 45% of sales in 2025, with body care contributing 62% of sales, followed by facial and hair care. The market exhibits a clear polarization: high-end aromatherapy-grade products are priced over 15 yuan per milliliter, with a compound annual growth rate of 21%; the average price of 50ml bottles of compound essential oils in the mass market remains stable in the 35-60 yuan range, with annual shipments exceeding 120 million bottles. Generation Z consumers have become a significant driving force, with women aged 25-35 contributing 78% of purchases. Their repurchase rate for products with mood-soothing effects, such as lavender and sweet orange, is 37% higher than the industry average. Meanwhile, the healthcare sector has become a new engine with an average annual growth rate of 15%, reaching a market size of 6.7 billion yuan in 2025. Breakthroughs have been achieved in applications such as pain management, mental health, and post-operative rehabilitation. The number of medical device-grade essential oil product certifications has surged from 12 in 2020 to 89.

Changes in channels and policies have further accelerated the standardization of the industry. Online channels now account for over 58% of sales. Social e-commerce, through the "KOL + scenario-based content" model, has increased the conversion rate of trial packs to 19%, significantly higher than the 6.8% of traditional shelf e-commerce. On the policy front, the issuance of documents such as the "Work Plan for Stabilizing Growth in Light Industry" and the "Technical Guidelines for the Medical Application of Plant Extracts" has not only supported the development of natural products but also established clinical application standards for 43 kinds of essential oils. While the implementation of the "Evaluation Standards for Cosmetic Efficacy Claims" has extended the testing cycle for companies, it has resulted in a 63% year-on-year decrease in the complaint rate.

Industry insiders point out that with technological iteration and standard improvement, the essential oil market is moving towards a high-quality development stage, with premiumization, functionalization, and localization becoming the core directions. Companies with accumulated clinical data and scarce raw material resources are expected to seize the competitive advantage.