How To Profit from Making Essential Oils
Rasa Bihari Mishra
Business Consultant : Helping Chemical, Pharmaceutical, Biotechnology, Food & Agro Processing, and Formulations Industries become Profitable & Sustainable - Concept to Commissioning Support and Technical Training
By Making Essential Oils you can not only develop a profitable business but supply Natural Perfumery Substances at Affordable Prices for Formulation.
Have you ever been to a rose garden?
Do you get mesmerized with the fragrance of freshly blooming roses?
Of course, in a rose garden you’re sure of the exotic rose fragrance. Isn't it?
But what if you want to have that fragrance outside the rose garden?
In order to think of the possibilities, you need to know why we experience the fragrance of roses in the rose garden.
When you get into the details, you’ll find that hundreds of volatile fragrance molecules enrich the air in a rose garden. In fact, freshly bloomed roses emit hundreds of fragrance compounds into the air and when we inhale the fragrance rich air we experience the pleasant scent of roses.
But how to extract these exotic fragrance compounds in a concentrated form so that you can use it as per your requirements?
That’s where the essential oil comes into the picture.
Because the essential oils are concentrated form of the fragrance compounds. In fact, they’re mixtures of aroma compounds in an optimum proportion to provide the exotic fragrance. Of course, different essential oils are extracted from different sources and provide different fragrances.
But what are the essential oils?
What are the Essential Oils?
As we’ve discussed earlier, essential oils are concentrated form of volatile aroma compounds extracted from plant materials like flowers, leaves, barks and other parts. In fact, these products capture the plant's fragrances and flavors. ?As the essential oils are mixtures of various perfumery compounds, you get distinct aroma and fragrance.
Most of the essential oils are used in manufacturing a wide range of products. But they can’t be used directly by the consumers. Of course, where the essential oils are used directly it’s a different story. We shall get into their application details later.
The customers ask for many features especially in high end products. No doubt, the essential oil takes care of the fragrance part. But you need many other substances to meet all the requirements of the final product.
Have you ever thought how to make high-end products?
You can mix different ingredients so that they can carry out different functions. Of course, some ingredients do the major job while others help in meeting minor requirements.
These are called Formulations Products.
However, if you want to know more about the Formulations Products, perhaps you can refer to my articles:
"How To Make Profitable Formulation Products"
"101 Types of Profitable Formulations for Your Small Industry"
Let's come back to the essential oils.
At this stage you'd like to know why essential oils are important. Isn't it?
Importance of Essential Oils
They’re commercially very important. In fact, they’ve applications in various sectors.
When you get into the details of formulation products of cosmetics, personal care products, food and flavor and many other value-added segments, you’ll find one thing common. It’s the fragrance.
All of these products have their signature fragrances. In fact, most of the consumers choose the products based on how they smell.
Have you ever thought of the source of these exotic fragrances?
The source of the fragrances is perfumery substances. When you talk about the perfumery substances, the essential oils play a very important part.
Let’s talk about some of their applications:
?Usage in Aromatherapy
Different essential oils are widely used in aromatherapy. It involves inhaling the aroma of these oils for physical and emotional well-being. They are believed to have various therapeutic properties, such as stress relief, enhanced focus, and relaxation. This is one of the direct usages of essential oils.
Usage in Cosmetic and Personal Care Product Formulation
Essential oils are commonly used in cosmetic and personal Care product formulations due to their natural fragrance and beneficial properties. In fact, they can help with conditions like acne, inflammation, and dry skin issues. Nowadays consumer prefer natural products. Essential oils are the best source of natural perfumery substances.
Usage in Food and Beverage Industry
Essential oils are used as natural flavorings in food processing in making value added food products and beverages. They add natural flavor and taste without using synthetic food additives. Especially in food products, there’s a trend towards using completely natural additives. Essential oils serve that purpose very well.
But you'd like to know about the benefits of starting the business of making essential oils. Isn't it?
Business Advantages
As an entrepreneur and industry professional, making essential oils must make business sense to you. Isn’t it?
Let’s talk about the business advantages:
High Market Demand
The growing interest in natural and organic products has increased the demand for essential oils across various industries especially cosmetics, food, and wellness products industry. More and more consumers are opting for natural products.
Essential Oils are used in High-End Formulations
Because of the fragrance profiles and natural origin, essential oils are used in making high-end formulation products.
High value cosmetics and wellness products can’t be made without essential oils. Because of the presence of hundreds of fragrances compounds the essential oils offer exotic fragrance experience.
Sustainable Business Option
Making essential oils is a sustainable business. Since essential oils are extracted from renewable natural sources, they appeal to environmentally conscious consumers.
Most of the synthetic perfumery compounds are made from non-renewable petroleum feedstock. That’s essential oils offer natural perfumery substances at affordable prices for formulation.
That’s why making essential oils is an excellent business idea. Of course, there’re different essential oils based on their sources. So, the manufacturing processes are important.
That’s why before getting into the product details, let’s discuss how they’re manufactured.
Manufacturing Processes
Different types of manufacturing processes are used to extract essential oils based on their physico-chemical properties and source materials.
Let’s talk about the major ones:
Steam Distillation
Steam distillation is extensively used to extract essential oils from plant sources. It’s a physical separation process based on vapor pressure.
The volatile compounds distil out along with water. And when the volatile compounds are immiscible with water, they can be separated by layer separation. Since most of the components of essential oil are water immiscible, steam distillation becomes effective.
The process involves putting the plant material is placed in a distillation system and steam is introduced. In many systems the plant material is boiled along with sufficient water.
The essential oil gets vaporized along with steam which are then condensed and collected as essential oil layer. The top layer is essential oil whereas the bottom water layer contains a small amount of water miscible volatile compounds. That’s why the water layer also find s some usage.
Solvent Extraction
In solvent extraction process, suitable solvent or solvent mixture is used to extract the fragrance compounds from the plant materials. In most of the extraction processes, hexane (water immiscible) or ethanol ((water miscible) are used for extraction.
And from the solvent extract, the solvent is distilled out. The solvent vapor is condensed and taken for use in the next batch. Once the distillation is over the essential oil is left behind. Sometimes it’s called the extract or concrete. Of course, subsequent solvent extraction gives you the purer product called absolute.
Cold Pressing
In the process of cold pressing, the essential oil is extracted from the plant materials by mechanical means. The plant material is pressed or squeezed to get the essential oil in cold condition.
Especially with heat sensitive essential oils or the source plant material, distillation-based processes are not preferred. ?Since no heat is used in cold mechanical pressing, it preserves the essential oil's natural properties.
?Supercritical Fluid extraction
In supercritical fluid extraction, supercritical fluid like carbon dioxide under high pressure is used as a solvent to extract the essential oil from the plant materials.
After the extraction is complete, supercritical fluid is removed by lowering down the pressure. Once the supercritical fluid is removed, the pure essential oil is left behind.
?Now it's time to know about the commercially important Essential Oils.
Commercially important Essential Oils
As we’ve discussed earlier, essential oils have significant commercial value due to their diverse applications in perfumery, personal care, aromatherapy, food and beverages industries.
In fact, the market demand for these products is growing because of increasing consumer preference for natural products. Of course, each essential oil offers unique advantages with respect to their role in luxury products. That’s what makes them valuable commodities in the global market.
Some of the major commercially important essential oils you can evaluate for manufacturing are mentioned below:
?Rose Essential Oil
Rose essential oil is highly valued in various industries for their special fragrance profile. It’s one of the most commercially important essential oils.
Extraction Process
Rose Essential Oil is extracted from rose plant material like rose petals by using different extraction technologies like steam distillation, solvent extraction and super critical fluid extraction. Of course, the products obtained using different technologies have different fragrance profiles.
With steam distillation it’s normally called rose essential oil. and the water layer you get is called rose water which have got some usage. And with solvent extraction you get rose concrete or rose absolute. With super critical fluid extraction, you get an innovative natural perfumery product.
Applications
As far as the application of rose essential oil is concerned, it’s a key ingredient in high-end perfumes and luxury cosmetics. In aromatherapy, it’s known for its calming and mood-enhancing effects.
In fact, rose essential oil is highly prized in the luxury market with respect to perfumery, cosmetics and wellness products. But it is one of the most expensive essential oils due to the large quantity of petals needed to produce a small amount of product.
Jasmine Essential Oil
Jasmine essential oil is highly valued in various industries for their special fragrance profile. It’s one of the most commercially important essential oils.?
Extraction Process
Jasmine Essential Oil is extracted from jasmine plant material like flower by using extraction technologies like solvent extraction as the delicate flowers are too sensitive for steam distillation.
The white jasmine flowers are subjected to solvent extraction to get jasmine concrete. In most of the extraction processes, hexane is used. When you distil out the hexane, you get jasmine concrete.
But the jasmine concrete so obtained have a significant amount of wax. To get a pure product, you must get rid of the wax materials.
That’s why solvent like ethanol is used to selectively extract jasmine essential oil from the jasmine concrete. So, the wax materials remain which are used in other applications. And when the ethanol is distilled out of the ethanol extract, you get a very pure product called jasmine absolute.
Applications
As far as the application of jasmine absolute is concerned, it’s a key ingredient in high-end perfumes and luxury cosmetics. In aromatherapy, it’s known because it relieves stress and promote relaxation.
In fact, jasmine absolute is highly prized in the luxury market with respect to perfumery, cosmetics and wellness products. But it is one of the most expensive essential oils due to the large quantity of flowers are needed to produce a small amount of product.
Eucalyptus Essential Oil
Eucalyptus essential oil is highly valued in various industries for their medicinal properties. It’s one of the most commercially important essential oils.?
Extraction Process
Eucalyptus Essential Oil is extracted from eucalyptus plant material like leaves by using extraction technologies like steam distillation.
With steam distillation, the upper water immiscible layer is of interest and is the final product - Eucalyptus Essential Oil. of course, the water layer containing water miscible aroma compounds, has some usage.
Applications
As far as the application of eucalyptus essential oil is concerned, it’s used in making inhalants and decongestants effective for respiratory issues. Because of its anti-inflammatory and pain-relieving properties, it is used in making balms and ointments.
Most of the household cleaning and disinfectant products contain eucalyptus essential oil because of its antimicrobial property.
Eucalyptus essential oil find applications in pharmaceutical, wellness and antiseptic cleaning products. Consumers prefer natural substances especially in pharmaceutical and wellness products.
Patchouli Essential Oil
Patchouli essential oil is highly valued in various industries for its fragrance profile. It’s one of the most commercially important essential oils.?
Extraction Process
Patchouli Essential Oil is extracted from patchouli plant material like leaves and stem by using extraction technologies like steam distillation.
With steam distillation, the upper water immiscible layer is of interest and is the final product - Patchouli Essential Oil. Of course, the water layer containing water miscible aroma compounds, has some usage.
Applications
As far as the application of patchouli essential oil is concerned, it’s a key ingredient in perfumes because of its deep, earthy and musky fragrance.
It’s used in cosmetics and personal care products because of its anti-aging and skin-regenerating properties. In aromatherapy, it’s known because it helps reduce anxiety and uplift the mood.
In fact, patchouli essential oil is highly prized in perfumery, cosmetics and wellness products industry.
Lemon grass Essential Oil
Lemon grass essential oil is highly valued in various industries for its fragrance profile. It’s one of the most commercially important essential oils.?
Extraction Process
Lemon grass Essential Oil is extracted from lemon grass plant material by using extraction technologies like steam distillation.
With steam distillation, the upper water immiscible layer is of interest and is the final product - Lemon grass Essential Oil. Of course, the water layer containing water miscible aroma compounds, has some usage.
Applications
As far as the application of lemon grass essential oil is concerned, it’s used in perfumes because of its fresh lemon like fragrance.
It’s used in cosmetics and personal care products because of its natural astringent and cosmeceutical properties. In aromatherapy, it’s known for its refreshing and invigorating scent. It is also used in the food and beverage industry as a flavoring agent.
In fact, lemon grass essential oil is highly prized in perfumery, cosmetics, wellness and food products industry.?
Palmarosa Essential Oil
Palmarosa essential oil is highly valued in various industries for its fragrance profile. It’s one of the most commercially important essential oils.?
Extraction Process
Palmarosa Essential Oil is extracted from palmarosa plant material by using extraction technologies like steam distillation.
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With steam distillation, the upper water immiscible layer is of interest and is the final product - Palmarosa Essential Oil. Of course, the water layer containing water miscible aroma compounds, has some usage.
Applications
As far as the application of palmarosa essential oil is concerned, it’s used in perfumes because of its sweet rose like fragrance. In fact, it can be an economical substitute of rose essential oil because of the cost difference. Industrially Geraniol – a perfumery chemical is made from palmarosa essential oil.
It’s used in cosmetics and personal care products because of its natural hydrating and cosmeceutical properties. In aromatherapy, it helps in relieving anxiety and stress. It is also used in the food and beverage industry as a flavoring agent.
In fact, palmarosa essential oil is highly prized in perfumery, cosmetics, personal care, wellness and food products industry.
Lavender Essential Oil
Lavender essential oil is highly valued in various industries for its fragrance profile. It’s one of the most commercially important essential oils.?
Extraction Process
Lavender Essential Oil is extracted from lavender plant material by using extraction technologies like steam distillation.
With steam distillation, the upper water immiscible layer is of interest and is the final product - Lavender Essential Oil. Of course, the water layer containing water miscible aroma compounds, has some usage.
Applications
As far as the application of lavender essential oil is concerned, it’s used in perfumes because of its floral, woody fragrance with herbal touch.
It’s used in cosmetics and personal care products because of its natural skincare and cosmeceutical properties. In aromatherapy, it helps in relaxing and relieving stress.
In fact, lavender essential oil is highly prized in perfumery, cosmetics, personal care, wellness products industry.
Lemon Essential Oil
Lemon essential oil is highly valued in various industries for its fragrance profile. It’s one of the most commercially important essential oils.
Extraction Process
Lemon Essential Oil is extracted from lemon peels by using extraction technologies like cold pressing.
The plant material is pressed or squeezed to get the essential oil in cold condition. As the lemon essential oil is heat sensitive, cold mechanical pressing preserves its natural properties.
Applications
As far as the application of lemon essential oil is concerned, it’s used in perfumes because of its powerful fresh lemon fragrance.
It’s used in cosmetics and personal care products because of its natural antioxidant and cosmeceutical properties. In aromatherapy, it’s known for its uplifting and energizing fragrance. It is also used in the food and beverage industry as a flavoring agent.
In fact, lemon essential oil is highly prized in perfumery, cosmetics, personal care, wellness and food products industry.
Orange Essential Oil
Orange essential oil is highly valued in various industries for its fragrance profile. It’s one of the most commercially important essential oils.?
Extraction Process
Orange Essential Oil is extracted from orange peels by using extraction technologies like cold pressing.
The plant material is pressed or squeezed to get the essential oil in cold condition. As the orange essential oil is heat sensitive, cold mechanical pressing preserves its natural properties.
Applications
As far as the application of orange essential oil is concerned, it’s used in perfumes because of its powerful fresh orange fragrance.
It’s used in cosmetics and personal care products because of its natural antioxidant and cosmeceutical properties. In aromatherapy, it’s known for its bright and cheerful fragrance. It is also used in the food and beverage industry as a flavoring agent.
In fact, orange essential oil is highly prized in perfumery, cosmetics, personal care, wellness and food products industry.
Vetiver Essential Oil
Vetiver essential oil is highly valued in various industries for its fragrance profile. It’s one of the most commercially important essential oils.?
Extraction Process
Vetiver Essential Oil is extracted from vetiver plant roots by using extraction technologies like steam distillation.
With steam distillation, the upper water immiscible layer is of interest and is the final product - Vetiver Essential Oil. Of course, the water layer containing water miscible aroma compounds, has some usage.
Applications
As far as the application of vetiver essential oil is concerned, it’s used in perfumes because of its fresh earthy and woody fragrance and fixative property.
It’s used in cosmetics and personal care products because of its natural antiseptic and cosmeceutical properties. In aromatherapy, it’s known for its calming and balancing fragrance. It is also used in the food and beverage industry as a flavoring agent.
In fact, vetiver essential oil is highly prized in perfumery, cosmetics, wellness and food products industry.
Ylang-ylang Essential Oil
Ylang-ylang essential oil is highly valued in various industries for its fragrance profile. It’s one of the most commercially important essential oils.?
Extraction Process
Ylang-ylang Essential Oil is extracted from ylang-ylang plant materials like flower by using extraction technologies like steam distillation.
With steam distillation, the upper water immiscible layer is of interest and is the final product - Ylang-ylang Essential Oil. Of course, the water layer containing water miscible aroma compounds, has some usage.
Applications
As far as the application of ylang-ylang essential oil is concerned, it’s used in perfumes because of its sweet, fruity floral fragrance.
It’s used in cosmetics and personal care products because of its natural and cosmeceutical properties. In aromatherapy, it’s known for its stress relieving fragrance. It is also used in the food and beverage industry as a flavoring agent.
In fact, ylang-ylang essential oil is highly prized in perfumery, cosmetics, wellness and food products industry.
Other Essential Oils
There are many other essential oils which can be profitably made. The market demand and techno-commercial feasibility will decide which essential oil to make.
Let’s talk about some of them.
Kewra Essential Oil
It is extracted from kewra flowers by steam distillation and find applications in perfume, cosmetics, personal care, wellness and food flavoring.
Tea Tree Essential Oil
It is extracted from the leaves of the Melaleuca tree by steam distillation and find applications in perfume, cosmetics and personal care products.
Peppermint Essential Oil
It is extracted from peppermint leaves by steam distillation and find applications in perfume, cosmetics, personal care, wellness and food flavoring.
Cinnamon Essential Oil
It is extracted from cinnamon tree bark by steam distillation and find applications in perfume, cosmetics, personal care, wellness and food flavoring.
Clove Essential Oil
It is extracted from clove tree flower, stem and leaves by steam distillation and find applications in perfume, cosmetics, personal care, wellness and food flavoring.
Curry Leaf Essential Oil
It is extracted from curry leaves by steam distillation and find applications in cosmetics, personal care and food flavoring.
There are many other essential oils which you can think of manufacturing. In fact, you must search of local raw material sources to develop profitable and sustainable business ideas to make essential oils.
You know every business has got challenges and opportunities. The business of making essential oils is no exception.
Challenges and Innovation Opportunities
However, the extraction of essential oil presents several challenges that can impact the manufacturing business. Of course, these challenges also open the door to numerous innovation opportunities which you can explore to add tremendous value to the business.
The Challenges
Let’s discuss about the major challenges faced by essential oil manufacturing businesses:
Low Yield of Essential Oils
Most of the plant materials contain very small quantities of essential oils. So, you need large amounts of raw materials to produce small amount of product. And this makes the process costly and resource-intensive resulting in high manufacturing costs.
Consistently achieving Product Quality
The quality of essential oil source can vary a lot because they’re agriculture based. So, it becomes very difficult to achieve product quality consistently. Of course, this affects the marketability of your products.
Extraction Process Efficiency
Today the extraction processes utilized by the industries are not very efficient with respect to manufacturing cost, time cycle, energy efficiency and resources usage. And the capital investment is very high which makes the fixed costs very high.
When you consider all the factors, you’ll find tremendous opportunities to make the manufacturing system efficient by adopting innovations.
Innovation Opportunities
When you make efforts to address the challenges, you’ll find many areas where you can innovate and add tremendous value.
Cost-Efficient Manufacturing
In order to succeed in essential oil manufacturing, you need to make the manufacturing system efficient with respect to manufacturing cost, product quality and production capacity.
When you optimize the unit operations with respect to process equipment design, utility generation, supply and distribution and plant operation. The idea is to match the engineering with the process demands.
Advanced Extraction Technologies
Advanced separation technologies are very important in making the product extraction efficient. You can explore the possibility of using advanced technologies like microwave-assisted extraction and ultrasound-assisted extraction. The idea is to improve essential oil extraction efficiency.
You can also improve the distillation and solvent extraction technologies to make them efficient and cost-effective.
In fact, advanced separation technologies can improve the manufacturing performance with respect to manufacturing cost, product quality and production capacity.
Minimizing the Capital Investment
In any manufacturing business, manufacturing costs play very important roles. When it comes the costs, fixed costs are very serious. Because you’ve to incur the fixed costs even if you don’t make any products.
So, you must minimize the capital investment.
But how to do that?
You can implement improvement initiatives:
Optimize the Raw Materials
Raw materials play a very important role in making the manufacturing business efficient. So, you must optimize all aspects of raw materials like the costs and availability.
You can explore the possibility of using local raw materials preferable waste materials. One innovative idea is to blend economical essential oils to achieve exotic fragrance profiles. That way you can make available innovative natural perfumery substances for formulation.
To take care of sustainability, you must make efforts to use renewable bio based raw materials with respect to the solvents and additives apart from the main raw materials – essential oil-bearing plant materials.
Let’s Conclude
Making Essential Oils is a Profitable and Sustainable Business. You can not only develop a profitable business but supply Natural Perfumery Substances at Affordable Prices for Formulation.
Application of Essential Oils
Let’s talk about some of their applications:
Business Advantage
As an entrepreneur and industry professional, making essential oils must make business sense to you. Isn’t it?
Let’s talk about the business advantages:
Manufacturing Processes
Different types of manufacturing processes are used to extract essential oils based on their physico-chemical properties and source materials.
Let’s talk about the major ones:
Important Essential Oils
Some of the major commercially important essential oils you can evaluate for manufacturing are mentioned below:
The Challenges
Let’s discuss about the major challenges faced by essential oil manufacturing businesses:
Innovation Opportunities
When you make efforts to address the challenges, you’ll find many areas where you can innovate and add tremendous value.
Let’s join hands in using innovations in manufacturing Essential oils and developing them further to make high-quality natural perfumery substances available at affordable prices.
I'm curious to hear your thoughts on this exciting topic. Share your insights in the comments below!
If you’re interested in more in-depth exploration, perhaps you can refer to my other articles on chemicals manufacturing. You can follow my LinkedIn page for regular updates and insights on process industry.
What's your experience of Making Essential Oils?
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