Essential oils have a huge global market. They also have a growing demand. These two factors make them a profitable investment opportunity for entrepreneurs. In this article, I’ve listed ten essential oil extraction business ideas that can give you a head start.
According to market experts’ predictions, the global essential oil market is estimated to grow at an average CAGR of 6% during 2017-2024. Growing consumer demand for a healthy lifestyle, increasing health consciousness among people, and rising preference for natural remedies are factors driving the essential oil market. However, the high cost of production may restrain the market growth.
Apart from the domestic housekeeping needs, the products get a good industrial demand too. The cosmetic, pharmaceutical, food, and beverage industry are big buyers of various essential oils. Many other beneficial properties like antiseptic, aphrodisiac, anti-inflammatory, antidepressant, antispasmodic, diuretic, and tonic are anticipated to raise essential oil demand in industrial, medicinal, and domestic uses.
List of 10 Essential Oil Extraction Business Ideas
1. Basil (Ocimum basilicum)
Basil is an aromatic plant native to Europe and Asia. Its leaves can be used fresh or dried. They are commonly added to food dishes such as salads, soups, stews, pasta, rice, eggs, bread, cakes, and pastries. Basil also comes in various forms including oils, vinegar, teas, and extracts.
It’s not just for relaxation; basil oil has some health benefits too. For example, it contains substances called terpenes, which help promote mental alertness and lessen anxiety.
2. Chamomile (Matricaria Chamomilla)
Chamomile is one of the best herbs for treating various ailments. It helps people who suffer from insomnia, anxiety, depression, stress, and fatigue. It also helps those who have problems with digestion, heartburn, indigestion, and gas.
Furthermore, oil is good for health too. Therefore, it has an increasing demand in both the healthcare and cosmetics industries.
3. Clove (Eugenia Caryophyllata)
Cloves contain essential oils which include terpenoids and their derivatives. The most important components are eugenol and methyl chavicol.
Cloves contain eugenol which has antibacterial properties. You can use them for making essential oils.
4. Eucalyptus (Eucalyptus Globulus)
Eucalyptol oil is a clear liquid with an aroma characteristic of eucalyptus. It is a mixture of organic compounds, mainly terpenes.
It doesn’t depend on genetics; it depends on environmental factors. You can get started with a modest capital investment.
5. Lavender (Lavandula Angustifolia)
Distilling is the best process to make lavender essential oil. In order to create lavender essential oil, you must boil water until it boils out of the pot. Then, add lavender flowers and let them steep for about an hour. After that, strain the mixture into another pot and add alcohol (like vodka) to the mix. Let the mixture sit overnight before straining again. You can also do this without alcohol if you want.
Citrus oils contain citral!
Lemongrass Oil is one of the most important essential oils. Its aroma is very similar to lemons; hence, it is used in various types of perfumes. Aromatherapy is used to treat depression, anxiety, stress, insomnia, and menstrual cramps. It can also be used to relieve pain and muscle spasms.
Citral is one of the main ingredients used in perfumes and colognes. It has a citrusy smell and is used for its ability to attract insects.
7. Orange Oil
Orange oil emerged as one of the leading products and accounted for 29.3 percent of total market volume in 2016. It is also expected grow at a higher CAGR during the forecast period (2017–2023). Growing demand for orange oil in food & beverage, personal care, and household cleaners is projected to drive the global market growth.
8. Peppermint (Mentha Piperita)
You can usually produce mint oil by chilling the extracted mint oil and then separating out the menthol crystals using a centrifuge. The process may be broken down into two steps.
Menthol is produced by mixing mint oil with menthol flakes. It is used for flavoring ice cream, chewing gum, toothpaste, mouthwash, cosmetics, medicines, etc.
9. Rosemary (Rosmarinus officinalis)
Rosemary has a sweet, spicy aroma and is used extensively in cooking. Its leaves can be dried and ground into powder, then mixed with olive oil and vinegar to make salad dressing. In addition to being delicious, rosemary also helps reduce cholesterol and blood pressure. The world’s production and consumption of rosemary essential oils are growing rapidly. But the production technology is one of the key elements to increasing the overall yield and quality.
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10. Sandalwood (Santalum album)
Traditional methods for extracting sandalwood essential oils include hydrodistillation, which involves immersing the powdered wood in hot water to extract its essential oils.
Sandalwood has been used for centuries by people who believe its scent helps them relax and sleep better. It’s often added to soaps, lotions, shampoos, and even candles to help with relaxation. However, some studies suggest that sandalwood may be harmful if taken internally.
Conclusion
To be successful at commercial essential oil extraction, you must first consider your business strategy. You’ll need to focus on production, distribution, marketing, and sales promotion.
Second, do some market research before. Find out where people buy essential oils locally and where they get their raw materials from. You should get a bank loan for starting up an essential oil business. Also, you may want to take help from other financial institutions to fund your startup.
Make sure you check your state laws carefully before starting any business. Get the necessary licenses and permissions from the relevant authorities. Also, consider the upcoming taxes.
Start up an essential oil manufacturing plant carefully. If there is extra room, then you can start the business at home. Choose carefully which equipment to buy. Get the best equipment for the job at hand. Production costs, transportation, and labor issues determine the essential oils industry. Therefore, carefully consider the break-even point and expected return on investment.
If you want to use government-funded manufacturing technology, be sure to get it from a reliable source. Asia Pacific essential oil market has been predicted to grow at an estimated rate of 9.0% between 2016 and 2024.
