Peppermint Oil Market Expected to Reach $658.2 Million by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Peppermint Oil Market," The peppermint oil market was valued at $331.70 million in 2021, and is estimated to reach $658.2 million by 2031, growing at a CAGR of 6.6% from 2022 to 2031.

According to UMMC (University of Maryland Medical Center), peppermint oil can be an effective treatment for flatulence, indigestion, and irritable bowel syndrome. The use of peppermint oil fragrance is suggested by the therapist to improve memory and enhance readiness and is also used as a natural insect repellent. It is mostly cultivated in India, Italy, the U.S., Japan, and UK. It is extracted from fresh plant leaves using a steam refining process. Peppermint essential oil is steam distilled from the fragrant herb, primarily composed of the chemical components of menthol and menthone. Peppermint oil is used in aromatherapy for acne, dermatitis, asthma, bronchitis, digestive problems, colds, headaches, and fatigue.

Over the last few years, consumer awareness regarding herbal products and food is on the rise. Most of the packaged food available in the market contains a variety of chemicals, some of which are very harmful to health, such as preservatives and flavor additives. Moreover, some preservatives are linked with unfavorable effects, which can cause unpleasant reactions in consumers who are sensitive to a particular preservative or possess a potential increased risk for cancer all such factors results in the peppermint oil market trends.

In such a situation, using herbal products having no pesticides, chemicals, or processed additives and selecting natural, herbal food to minimize risk of disease, illness, and disorders is the new trend. Many consumers are avoiding chemical ingredients in their food, health food, functional food, proteins, and nutraceutical products. Hence, demand for naturally sourced ingredients such as essential oils in nutraceuticals is increasing continuously. Demand for peppermint oil is mainly increasing in developed regions of North America and Europe as consumers in this region are spending more on natural products as compared to consumers in other regions. Hence, trend of using natural ingredients in the nutraceutical industry in proving one of the major factors to propel the growth of the market. According to the World Health Organization each year, roughly 25% of the European population suffers from depression and anxiety, which account for up to 50% of chronic sick leaves in Europe, imposing a strain on the European economy. Germany is expected to remain an important market for peppermint oils.

Natural peppermint oil is an emerging segment in the peppermint essential market as consumer are Increasing demand for natural flavor across the food and beverage sector significantly drives the demand for natural peppermint essentials. As people are getting aware of the harmful impacts of synthetic flavors and additives used in various food and beverage items, they are opting for products that have natural ingredients.

According to peppermint oil industry analysis, the peppermint oil market size is segmented on the basis of product type, application, distribution channel, and region. By product type, the market is classified into natural peppermint oil and conventional peppermint oil. Among these, natural peppermint oil segment occupied the major share of the market in 2021, and is projected to maintain its dominance during the forecast period.

As per application, the market is segmented into food & beverages, medical, cleaning & home, spa & relaxation, and others. The food and beverages segment is anticipated to grow at the highest rate during the forecast period, owing to various industries now transitioning toward adoption of peppermint oils to address the rise in concerns for health safety and increase in demand for natural ingredient in products.

By distribution channel, the peppermint oil market is further segmented into direct distribution, multi-level marketing, retail distribution, and others. The direct distribution segment held the major share of the market in 2021, and is projected to maintain its dominance during the forecast period and helps in the peppermint oil market growth.

In 2021, North America accounted for more than 37% of the global peppermint oil market, and is expected to maintain its dominance during the forecast period in the peppermint oil market demand. Moreover, LAMEA is expected to possess the highest CAGRs, owing to increase in adoption of natural and organic products and rise in expenditure on health-related products in the countries. Porter's five forces analysis for the peppermint oil market highlights market competition in terms of the power of buyers, suppliers, manufacturers, and new entrants.

Although the COVID-19 pandemic had a disturbing impact over several industries, the peppermint oil market share experienced a growth during this period. Peppermint oils have antimicrobial, antioxidant, and anti-infective, properties; thus, they are utilized in treating various health conditions, including stress conditions, immunity disorders, sleep disorder, and depression.

The prominent players analyzed in this report include Aksu Vital Natural Products and Cosmetics, Aromaaz International, DōTERRA, Greenleaf Extractions Pvt. Ltd., Lebermuth, Inc., Melaleuca Inc, Mountain Rose Herbs, NOW Foods, Plant Therapy Essential Oils, and Young Living Essential oils.By product type, natural peppermint oil had the largest market share in 2021 and is further expected to grow with the highest CAGR during the forecast period.

Key Findings : 

• By product type, natural peppermint oil had the largest market share in 2021 and is further expected to grow with the highest CAGR during the forecast period.

• By application, food & beverage is the most consumed form of peppermint oils; however, the usage of peppermint oils in cleaning & home products is expected to rise in the future.

• By distribution channel, the most common method of purchase of peppermint oils is via direct distribution channels while retail distribution channels are gaining more popularity for peppermint oil purchase.

• By region, North America is the largest consumer of peppermint oil products; however, Asia-Pacific is expected to grow at the highest CAGR during the forecast period.