Supporting small business can support you and your community. Supporting small businesses that focus on essential oils can be more complicated.
Internet isn’t much assistance
Trying to find small businesses that are essential oil focused isn’t easy. I tried doing an internet search. I found one interesting article on Wiki-how about the steps to starting a small business that focuses on essential oils. Also, many bloggers that sell essential oils but are linked to a direct sales company. Unless I had a specific name, my searches didn’t pull up many of the great small businesses I know.
Understanding the Financial Side
I reached out to my friend and colleague Raghda Abdel Maksoud (you will learn more about her below) for some assistance. I wanted to know how much the essential oil industry generates in annual revenue. These are some of the numbers she provided me:
In 2015
- US generated $4.36 billion
- Europe generate $1.1 billion
- And globally over $7 trillion
The average growth rate is around 14% per year. The estimated revenue by 2022 is $10.1 billion in the US. The one number that surprised me, but then didn’t was that 64% of sales are direct.
This 64% probably includes a variety of companies. I know that the two large multi-level marketing (MLM) companies claim to average $3 billion in annual sales. The interesting thing is that these companies also then make up a large portion of the small business market. Multi-level marketing or direct sales allows people to represent a product, (i.e. essential oils) but act as a small business.
Unfortunately, MLM’s are still a big business. The sales of the product need to support both the main brand and all the consultants that represent it.
Industry Challenges
The growth of the industry is creating a few issues. One is quality, and the other is safety. As I explored in my article What is an Essential Oil, adulteration is becoming more common. Large companies are sacrificing quality products to meet the quantity demands. Proper use of essential oils requires an unadulterated product. Safety is a huge concern. The industry is not regulated, there have been a lot of standards put in place to ensure safe use. Unfortunately, the MLM/small business model is lacking safety training. If a consultant wants proper training, they need to seek it outside of the company.
An article on Entreprenur.com does point out that supporting small business you know the people behind the product. You also likely will receive better customer service. With essential oils the owners of true small businesses are passionate about quality and safety. They will share that information on their website, on social media, and in person. They have taken the time to get specialized training.
Small Businesses to Support
Throughout my years as an aromatherapist I have been introduced to some amazing people. Below I highlight a few companies they run.
Be Kind Botanicals is owned and operated by Lola King. Lola is passionate about distillation and safety. Unfortunately, Lola and I haven’t met in person, thank you internet for helping us know each other. She is passionate about ensuring every product she offers has met strict standards. She has taken the time to learn the intricacies of the distillation process. Lola is passionate about safety and quality. This shows in the slow deliberate way she works with each product she introduces in her business.
DeRu Extracts is the combined efforts of Dedi Thorne and Ruth Nelson. They have combined their knowledge and products to provide customers with high quality. I have been working as a co-administrator with Ruth for the Unspoken Truth of Essential Oils Facebook group. I know that safety is a top priority for Ruth. Being part of the admin team we have seen too many injuries from simple lack of knowledge. Ruth would rather blend a product that is safe then carelessly send something that may harm.
Positively Aromatics is owned by Sandra Shuff. As an aromatherapist Sandra is focused on high quality products. So much so that she also has an organic lavender farm in Washington state. I had the honor of meeting Sandra at the NAHA conference in 2018 where we worked as volunteers together. I was honored to talk with Sandra about her attention to detail. She ensures that her distillation room is clean and tidy. Visit her Facebook page for some interviews and other wonderful information.
House of Aromatics is a small artisan distillery in Utah. I met Scott and Amber when I attended the NAHA conference in 2016. We also reconnected in 2018. These two have a true connection and respect for the earth. They focus on steam distilling plant material found in their local area. They want their customers to understand sustainability while also having access to high quality products.
Ebers Consulting as mentioned above Raghda is a colleague and friend. We met during the 2018 NAHA conference while we were volunteering. Raghda has seen many sides of the fragrance industry. As an aromatherapist she understands the importance of quality. In early 2019 she coordinated a study tour to Egypt. The tour allowed 20 participants a deep dive into all the steps of producing essential oils. You can hear more about the tour in this YouTube video.
These are just a few of the great small businesses that specialize in essential oils. To help you locate a business that might be in your backyard visit the National Association of Holistic Aromatherapy, or The Aromatherapy Registration Council. You could also visit some of the specific schools like Aromahead to find graduates or visit local markets. I would love to hear about your favorite small business.
