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 depends on a range of cultural, economic and environmental factors including the value of the pound, the performance of key downstream markets in the United Kingdom and internationally and environmental conditions in key growing areas for raw materials. Consumer preference for natural ingredients is also an ongoing trend that is having a positive influence on the industry... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entering the industry are moderate. One barrier to entry is the capital commitment required. In contrast to the heavily labour-intensive nature of essential oil production in developing nations, UK production of essential oils is 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 higher degree of capital input.
Regulatory requirements can also act as barriers to entry, including regulations associated with REACH legislation. The.. purchase to read more