The Market for Essential Oils in China to be the Fastest Growing, WeChat store helps to seize the chance


The development of China essential oil market

Problems existing in essential oil market in China

Essential Elements, a successful march to China mainland market

Essential oils are practically everywhere nowadays and are well-known because of aromatherapy, a form of alternative medicine in which healing effects are ascribed to aromatic compounds. These concentrated liquids generally extracted by distillation from plants such as lavender, lemongrass, mint, orange, rose, and many more.

Usually, essential oils are used in perfumes, cosmetics, soaps air fresheners and other products, for flavoring food and drink, and for adding scents to incense and household cleaning products.

The development of China essential oil market
Several years ago, essential oil is mainly used in beauty SPA clubs, the consumer group is relatively smaller and older. After that, the concept of essential oil began to be introduced into cosmetics and daily skin care products. With the rise of the Internet, and especially the improvement of life quality, so many young people began to use essential oil and gradually become the main consumption group of essential oil.

According to data from PWC Industry Research Institute, the market size of Chinese essential oil industry expanded year by year from 2014 to 2019. In 2017, the market size reached 4.33 billion RMB, with a year-on-year growth of 28.52%. In 2018, the market size reached 5.711 billion RMB, with a year-on-year growth of 31.94%; By 2019, the market size of China’s essential oil industry has reached 6.94 billion RMB, with a year-on-year growth of 22.47%. With the growing demand of downstream medical, feed, daily skincare products and other fields, the market size of Plant essential oils in China is gradually expanding. 

During Covid-19, due to the rapid increase of work pressure, the transformation of consumption consciousness and the demand for improving quality of life, essential oil consumption expanded a lot. Now essential oil products are also available in shopping malls counters, exclusive shops and boutique shops, which further promotes consumers’ understanding of essential oil products.

From the experience of the European and American markets, aromatherapy essential oil products generally account for about 30% of the cosmetics market. Therefore, it is speculated that China’s essential oil market has great potential, and with the continuous rapid growth of China’s economy, this market will continue to develop at a growth rate of 5%.

Problems existing in essential oil market in China
The global essential oils market is growing at a very fast pace due to increasing hectic and busy lifestyles of the people, resulting in significant demand for stress-relieving therapies, driving the demand for aromatherapy. However, the essential oil market in China is still existing many problems.

The first is the quality of essential oil is not guaranteed.

Some enterprises heard that essential oil is expensive in international market, so they blindly invested in the establishment of essential oil plants, without a detailed investigation of the market, without inviting authoritative experts to demonstrate the feasibility in advance, and ignoring the international market composition standards. In order to seize the market, chemical spices directly replace natural essential oils, leading to uneven quality of market products.

The second is the market itself is not standardized and often in chaotic.

Due to the lack of a unified standard of essential oil production, the quality and price on the market is varies. Non-standard planting, random picking and raw material processing, poor equipment and so on have led to the current situation.

Considering all these problems in Chinese market, overseas essential oil brands are welcomed by Chinese customers.

Essential Elements, a successful march to China mainland market
Essential Elements, a well-known Hong Kong essential oil brands, is created to provide a unique platform where customers can freely choose over our wide and growing range of high-quality raw material products. Essential Elements is launched and fully supported by Wing Hing Chemical Co., Ltd. which has been in business serving the local and international pharmaceutical and cosmetic clients for over 40 years in Hong Kong.

After seeing the potential of China mainland market, they decided to march to mainland market. In 2020, Essential Elements contact LinkieBuy, the biggest e-commerce service provider in China, to build a online SAAS stores for Chinese mainland consumers.

Through the online SAAS store based on WeChat mini program, consumers can choose to buy a variety of DIY ingredients especially essential oil in the mini program store according to the recipe and make their own products at home.

LinkieBuy can not only help overseas essential brands to carry out digital transformation, provide multi-platform online store construction, but also provide global warehousing logistics solutions, mini program store operation, multi-scene product distribution and other full-link trade services to China.

For overseas brands, the cost of online entry into China through LinkieBuy is very low, and the services provided by LinkieBuy can continuously accumulate the brand of enterprises in The Chinese market, which is conducive to improving consumers’ trust in products and laying a foundation for brand empowerment.

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