Growing Popularity of Natural Healthcare Products Driving Aromatherapy Demand in North America

With the surging disposable income of people, the demand for aromatherapy is rising sharply in North America. As per the U.S. Bureau of Labor Statistics (BLS), the personal disposable income of people residing in the U.S. rose from $11,394 billion in 2006 to $15,928.7 billion in 2016, and it is predicted to surge to $24,174.5 billion by 2026. Furthermore, as per the Organization for Economic Co-operation and Development (OECD), in Canada, the annual growth rate in the household disposable income soared from 2.05% in 2009 to 3.47% in 2017.

Besides the aforementioned factor, the increasing consumer preference for natural products is also driving the expansion of the North American aromatherapy market. This is ascribed to the inefficiency of conventionally used pharmaceutical drugs in cross the blood-brain barrier for relieving pain in patients. For example, rosemary oil can easily cure cough, headache, and cold, if inhaled and can also be applied for hair and skin care. Owing to the various benefits of natural products and their ability to treat health conditions without causing side-effects, the popularity of aromatherapy is booming in North America.

According to the estimates of the market research company, P&S Intelligence, the value of the North American aromatherapy market will grow from $763.7 million in 2019 to $1,639.9 million by 2030. Furthermore, the market will demonstrate a CAGR of 7.6% from 2020 to 2030 (forecast period). Depending on product, the market is divided into equipment and consumables categories. Between these, the consumables category is predicted to demonstrate faster growth in the coming years. This is credited to the fact that many players are focusing on rapid product launches. 

For example, Young Living Essential Oils unveiled a series of new products, including a beautiful diffuser, innovative essential oil-infused wearable ring, new essential oil blends, skincare line, and Savvy Minerals makeup line for improving home, family, and self-care. The U.S. was the larger North American aromatherapy market in the past. This was because of the existence of several well-established and strong industry players, growing number of hospitals and beauty spas providing aromatic therapy, and surging disposable income of people in the region.