Wholesale Essential Oils: Types, Uses, and Markets

In recent years, essential oils have become a popular product in many households. They are used mainly in aromatherapy and are often purchased by businesses in the wellness niche such as massage studios and spa centers. Other business owners have benefited from the trendiness and popularity of essential oils. For example, retailers might purchase wholesale essential oils and use them in their stores to create a pleasant atmosphere and a clearer state of mind for their customers. The increased usage of essential oils in cosmetic products has made them one of the high-demand products in the past decade. Some popular varieties like lavender essential oil are hard to produce and the demand is higher than the supply. This has led to increased retail and wholesale prices of some essential oil types.

Businesses That Purchase Wholesale Essential Oils

Essential oils have multiple applications. They are used as a natural pesticide and play a role in cooking. However, their most important role is in cosmetics and wellness. Let’s see what businesses purchase wholesale essential oils.

Spa and wellness centers. Aromatherapy services are common in these establishments. That’s why these companies partner with wholesale businesses that sell wellness-related products like cosmetic butter, body scrubs, and wholesale essential oils.
Candle and soap manufacturers. These companies use the power of essential oils to add natural scents to their products.
Cosmetic manufacturers. Essential oils are an important ingredient in many personal care and beauty products. That’s why producers purchase them in bulk and use them for products like lotions and creams. Essential oils improve the overall scent of cosmetics products but they also add therapeutic benefits.
Restaurants and other food service businesses. The usage of essential oils in cooking is fairly new. However, edible essential oils can be used to add strong flavoring to both food and beverages.
Producers of janitorial and cleaning products. The market for eco-friendly detergents and cleaning products has increased substantially. That’s why manufacturers of wholesale cleaning supplies are among the businesses that purchase large quantities of essential oils. They also have antimicrobial properties in addition to adding a pleasant scent to cleaning solutions.

Online VS Offline Sales of Retail and Wholesale Essential Oils

The aromatherapy industry has seen a large increase in demand in the past decades. That has led to increased sales of retail and wholesale essential oils. In the past, the market was driven mainly by pharmaceutical and cosmetics businesses that use essential oils as ingredients in their products. However, online sales of aromatherapy goods have increased a lot in recent years. That’s why it might be a profitable business idea to start an e-commerce store that trades with essential oils and other wellness products.

B2C offline sales of essential oils are usually done in retail chains or specialty stores that focus on natural and eco-friendly products. Nevertheless, as the global trend is for consumers to purchase goods online, these businesses actively invest in their online presence.

The Retail and Wholesale Essential Oils Market

The global essential oils market size is fairly small. In 2022 its size was approximately 8,8 billion dollars. However, the annual growth rate is more than 10 percent. The main drivers of the increased demand are the aromatherapy and cosmetics industries. Essential oils are subject to a lot of research and development by manufacturers of healthcare and wellness products. As more applications and positive effects are found every year, essential oils are expected to become even more popular.

The main concern related to essential oils is the fact that they should be used in the right dosage. Overuse of these products can lead to side effects. As they are highly concentrated, these oils can lead to skin problems if used inappropriately.

If you’re interested in ethereal oils, these facts might help you better understand the retail and wholesale essential oils market:

The demand for essential oils is higher than the supply. That’s especially true for the most purchased ones like lavender oil.
There’s a very wide range of products in the essential oils niche. They all have unique properties and different applications. Research and development departments of big businesses are constantly finding new plants that are suitable for essential oil distillation.
Essential oils are considered to be natural products. As the trend of purchasing natural and organic goods increases, there’s a big potential in the retail and wholesale essential oils market.
New markets are emerging. The Asia-Pacific region is showing a higher growth potential compared to Europe and North America.
Online sales are becoming increasingly important. In recent years, businesses have switched to buying wholesale products online. That’s done either via solutions like BlueCart or through the distributors’ websites. E-commerce is an important marketing channel for both B2B and B2C essential oils sales.

Other Product Categories Related to Wholesale Essential Oils

Whether it's the retail or wholesale ordering of products, consumers like to have the convenience of choosing among different options. That’s why businesses that trade essential oils and other aromatherapy products also offer additional goods related to that market. Here are some product categories that can be sold along with essential oils.

Other oils. Some applications of essential oils require them to be mixed with other oils like avocado or coconut oil. That’s why businesses that sell them are likely to also sell absolute or fragrance oils.
Candle products. Lighting scented candles has become a popular way to relax in your home. A lot of people also purchase materials and enjoy making their own candles.
Spa products. This wide category includes products like clays, salts, and scrubs.
Cosmetics. As essential oils are primarily used in cosmetics, customers who purchase them are likely also to buy skincare products or other types of cosmetics.

Frequently Asked Questions about Wholesale Essential Oils

Although essential oils are not among the most popular products in the US, their market size increases annually. Below we have answered some of the most popular questions related to these products.

What Are the Most Popular Essential Oils?

According to market research, lavender oil is the most popular type of essential oil. Bulgaria and France are the main producers of lavender oil in the world. Here are other popular essential oils.

Peppermint;
Lemon;
Frankincense;
Lemongrass;
Cedarwood;
Oregano;
Grapefruit;
Essential oil blends. A lot of essential oil enjoyers purchase blends that combine the power of various essential oils to achieve great relaxation and calmness.

Is Selling Essential Oils Profitable?

In the US, the average profit margin of essential oils businesses is between 30 and 50 percent. That makes selling essential oils a profitable endeavor. In order to maximize revenue, businesses must use modern eCommerce marketing techniques when selling D2C. As ladies are the most common purchasers of essential oils, it might be beneficial to advertise mainly on platforms like Pinterest and Instagram.

Selling essential oils can be a good dropshipping idea as well. You can build your eCommerce store via the dropshipping method and find suppliers that can handle the shipping and handling of goods or offer white-labeling services. If you’re interested in that, check out our comprehensive guide on how to start a dropshipping business.

Do You Need FDA Approval to Sell Essential Oils?

Essential oils are not regulated by the FDA. However, if a product claims it can relieve pain or treat anxiety, it might need to be FDA-approved. The FDA can also take action against cosmetic products if there’s enough evidence that such products are not safe for consumers. Thus, businesses in the field of essential oils need to consult with legal experts regarding their marketing materials and claims.