Industry Analysis & Industry Trends
Essential oils are derived from the leaves, flowers, roots or stems of plants using a cold press or by steam distillation. They are then used by a variety of different industries, ranging from pharmaceutical and industrial companies to manufacturers needing food and beverage flavourings. The performance of the industry is dependent on developments in key user industries.
As it stands today, the Essential Oil Manufacturing industry is an extremely small component of the UK chemicals sector. With just 48 enterprises and under 2,500 employees, the industry is a small-scale, niche segment in the speciality chemicals sub-sector... purchase to read more
Industry Report - Starting a New Business Chapter
In overall terms entry barriers to the industry are moderate. One such barrier revolves around capital commitments. In contrast to the heavily labour-intensive nature of essential oil production in various rival developing nations like India, UK production of essential oils tends to be more mechanised, which requires greater capital investment. Moreover, the production of higher-value differentiated or speciality products (as opposed to commodity or homogenous essential oils) as well as the increasingly innovative products demanded by key users in the flavours and fragrance sector also requires a relatively higher degree of capital inputs.
Regulatory requirements can also act as an entry barrier, including those associated with the recently enacted REACH legislation... purchase to read more