-2 Market Trends

The aromatherapy diffuser market is expected to observe an attainable high CAGR during the forecast period, i.e., 2020-2028. The market is segmented by product type, technology, application, distribution, and region. Among the technology, the ultrasonic diffuser segment is expected to dominate the overall aromatherapy diffuser market on account of its property to maintain the therapeutic properties of essential oils and creating a pleasing atmosphere. Ultrasonic diffusers use electronic frequencies to produce vibrations in the water, that break down the essential oil into tiny microparticles, thus, dispersing the oil in a fine mist. Based on the technology, the nebulizing diffusers segment is the fastest-growing segment as a result of its effectiveness in diffusing in large rooms, without dropping the therapeutic properties of the oils they contain. Evaporative diffusers are basic categories of diffusers that have a simple process compared to ultrasonic diffusers. Heat diffusers are one of the oldest systems of diffusers, where candles or electricity is used to produce heat and diffuse essential oils into the atmosphere. The segment accounts for a small market share owing to the convenience of efficient alternatives.

Growth Drivers

Numerous health benefits associated with aromatherapy diffusion

The climbing demand for aromatherapy diffusers for mental health such as problems of stress, depression, and anxiety relief, especially among millennials, is projected to drive the aromatherapy diffuser market globally. Unless consumed orally or applied directly on the skin, inhalation of essential oils through aroma diffusers has no direct side effects. Aromatherapy is evolving as an alternative medicine way out using essential oils to modify the mood, mind, and health of an individual. 

Growing inclination towards natural therapy is also acting as a key factor to boost the market demand for aromatherapy. Owing to a busy lifestyle together with increasing work pressure is giving rise to chronic ailments and insomnia among individuals. Aromatherapy offers a natural, easy, less expensive solution to this problem and drives the growth of the aromatherapy diffuser market.

Furthermore, it is also considered to deliver respiratory, disinfection, decongestant, and psychological benefits. These helpful effects of aromatherapy on both the immune system and the central nervous system of individuals are the driving factors for the growth of this market.

Growing awareness about aromatherapy and its paybacks

The aromatherapy diffuser sector and the essential oils sector is flourishing globally. Demand for aroma diffusers is likely to rise as a result of rising awareness about aromatherapy among consumers which has also led to the availability of the various type of essential oils or candles as per customer need leading to customization. These factors are attributed to the market growth of aromatherapy diffusers globally.

Restraints

High cost

Capital cost for aromatherapy diffuser manufacturing is in elevation henceforth, the companies have been outsourcing their manufacturing to countries, such as China and India with economical labor and raw materials availability, and that might put a hindrance on the global aromatherapy diffusers' market growth.

Environmental threat

Ecosystem reduction as a result of extensive extraction of essential oils in addition to rising environmental distress regarding the disposal of plastic and glass used for manufacturing the diffusers is projected to impede the market growth over the forecast period. In order to overcome such challenges, the market is trying to shift its focus toward developing environment-friendly products using bio-based BPA-free plastics.

Unregulated market presence

The incidence of a big, unregulated domestic market in the Asia Pacific and the Middle East regions, has been surfacing as a threat to major multinational corporations, in terms of the accessibility of low-cost technology which creates a price gap in the global market.

Furthermore, the restricted availability of raw materials such as essential oils and strict laws concerning harvesting and cultivation are also reflected as restraining factors for the aromatherapy diffuser market.