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Health and Wellness Trend Driving Growth in the U.S. Essential Oils and Oleoresins Markets - New analysis from Frost & Sullivan, U.S Essential Oils and Oleoresins Markets, reveals that revenues in this market totaled $588.4 million in 2006, and are likely to reach $859.6 million in 2013
Health and Wellness Trend Driving Growth in the U.S. Essential Oils and Oleoresins Markets

 

NewswireToday - /newswire/ - Palo Alto, CA, United States, 2007/07/24 - New analysis from Frost & Sullivan, U.S Essential Oils and Oleoresins Markets, reveals that revenues in this market totaled $588.4 million in 2006, and are likely to reach $859.6 million in 2013.

   
 
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The growing preference for natural ingredients in food as well as personal care and household products is emerging as a strong driver for the growth of the U.S. essential oils and oleoresins market. At the same time, essential oil and oleoresins are facing stiff competition from synthetic and nature identical flavors. Research focused on product innovation, as well as more efficient technology, is expected to be instrumental in justifying the high costs of these natural flavors and fragrances. Also, efforts to maintain the demand and supply balance can help to curtail unexpected fluctuations in raw material prices.

New analysis from Frost & Sullivan (foodandbeverageingredients.frost.com), U.S Essential Oils and Oleoresins Markets, reveals that revenues in this market totaled $588.4 million in 2006, and are likely to reach $859.6 million in 2013.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the U.S. Essential Oils and Oleoresins Markets, then send an email to Vanessa Quezada, Corporate Communications, at vanessa.quezada[.]frost.com with your full name, company name, title, telephone number, and email address. Upon receipt of the above information, an overview will be sent to you by email.

“The key factor driving growth in the U.S. essential oils and oleoresins markets is the changing consumer preference towards natural ingredients, especially in the wake of increasing incidences of neuro-degenerative diseases,” observes Frost & Sullivan Research Associate Sneha Pasricha. “Essential oils and oleoresins are exclusively of natural origin and the growing consumer perception that ‘natural products are safe and healthy’ is being further bolstered by well-known scientific institutions as well as the media.”

Furthermore, essential oils and oleoresins are being increasingly utilized in beverages, confectionery, savory, and niche markets like nutraceuticals. The fast growing beverage application segment is the major application area for essential oils and in a bid to capitalize on the trend toward flavored beverages, manufacturers in the beverage segment are quickly developing offerings such as flavored waters, soft drinks, health drinks, fruit-based drinks, and even flavored alcoholic and tea-based drinks. This apart, fragrance applications are also expected to spur demand for essential oils.

Notwithstanding these positives, essential oils and oleoresins are facing intense competition from the synthetic flavorings, which include not only synthetic chemicals, but also nature identical ones. The latter impart flavors similar to that of their natural counterparts, but are synthesized artificially using other chemicals or raw materials. Difficulty in procuring raw material is also fast becoming a challenge, narrowing profit margins.

“Synthetic and nature identical flavorings and fragrance chemicals are usually preferred over the natural essential oils and oleoresins due to their affordable prices, ready availability throughout the year, and more consistent flavor profile,” says Pasricha. “This is one of the most daunting challenges confronting natural essential oils and oleoresins producers.”

In order to compete directly with synthetic products, flavor and fragrance houses need to add value to their products so as to claim higher prices. Delivering innovative products and global sourcing of raw materials to ensure continuous supply will also help companies overcome competition from synthetic chemicals.

U.S Essential Oils and Oleoresins Markets is part of the Food and Beverage Ingredients Growth Partnership Service program, which also includes research in the following markets: European and United States Essential Oils and Oleoresins markets, U.S. Functional Beverages Market, Strategic Analysis of European Natural Food Colours Market, Strategic Analysis of the Global Flavors market and U.S. Nutraceuticals and Functional Foods Markets.

All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

About Frost & Sullivan
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective, and combines ongoing analysis of markets, technologies, econometrics, and demographics.

 
 
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Health and Wellness Trend Driving Growth in the U.S. Essential Oils and Oleoresins Markets

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Frost & Sullivan |
Publisher Contact: Vanessa Quezada 
210.477.8427 vanessa.quezada[.]frost.com
 
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