Struggling to make sense of bulk essential oils trade jargon? You’re not alone—misunderstanding key terms can lead to costly mistakes or even compliance issues.
To buy or sell bulk essential oils confidently, every stakeholder must understand essential trade, quality, regulatory, and purchasing terms. This helps ensure quality, protect brands, and meet legal standards.
In this guide, I’ll break down the core terminology every bulk essential oil buyer should understand.
These words aren’t just industry lingo—they’re practical tools to help you pick the right supplier, avoid low-quality products, and move faster in this booming industry. Let’s break it all down together.
What are the basic terms in bulk essential oils trade?
It’s easy to get confused by terms like "absolute" or "botanical name" if you’re just starting. But without knowing them, you risk buying the wrong product or paying too much.
Key terms like essential oil, carrier oil, botanical name, and hydrosol help define what you’re buying and how it’s used in aromatherapy, cosmetics, or food.
The Language of the Trade: Key Definitions
Understanding the following core terms will help you communicate better with suppliers and avoid errors:
| Term | Definition |
|---|---|
| Essential Oil | A concentrated aromatic liquid extracted from plants. |
| Carrier Oil | A base oil (e.g., jojoba, coconut) used to dilute essential oils. |
| Absolute | A strong fragrance extract made using solvents. |
| Hydrosol | A water-based byproduct from essential oil distillation. |
| Botanical Name | Scientific name of the plant source (e.g., Lavandula angustifolia). |
Each of these terms helps you identify exactly what you’re working with. For instance, not all lavender oils are the same—understanding botanical names keeps your sourcing precise.
How do I know if an essential oil is pure?
You might assume purity just means “natural.” But not all natural oils are pure, and not all sellers are honest. Mislabeling or adulteration is common.
Use tools like GC/MS testing, organic certification, and Certificates of Analysis (CoA) to verify essential oil purity and safety.
Tools and Terms That Signal Purity
To protect your brand and end users, pay attention to these quality-focused terms:
- GC/MS Testing: Confirms the oil’s chemical profile.
- Adulteration: Mixing in cheaper oils or synthetics—this is bad news.
- Therapeutic Grade: A vague marketing term, not a standard.
- Organic Certification: Look for USDA or ECOCERT logos.
- Wildcrafted: Harvested in the wild, not farmed.
Here’s a quick reference:
| Quality Term | What It Tells You |
|---|---|
| GC/MS Report | Confirms if the oil is pure and unadulterated |
| CoA | Lists test results and verifies composition |
| Organic Certified | Ensures natural farming methods and chemical-free ingredients |
| Wildcrafted | May offer higher potency but varies in consistency |
Look beyond labels and always ask suppliers for third-party lab results1.
Why do extraction methods matter?
Not all essential oils are made the same way. Some are steam-distilled, others are cold-pressed or solvent-extracted. Each method changes the oil’s quality and best use.
Extraction methods determine an essential oil’s strength, aroma profile, and safety—so choose based on your product goals.
A Closer Look at Extraction Techniques
Here’s a breakdown of the main methods:
| Method | Description | Best For |
|---|---|---|
| Steam Distillation | Steam pulls out aromatic compounds | Most oils like lavender, peppermint |
| Cold Pressing | Mechanical process, no heat used | Citrus oils (orange, lemon) |
| Solvent Extraction | Uses chemicals like hexane | Absolutes and delicate flowers |
| CO₂ Extraction | Supercritical carbon dioxide pulls out full spectrum of compounds | Premium applications like perfumery |
Steam distillation is most common and safest. Cold pressing keeps citrus oils vibrant. CO₂ extraction captures subtle components but is costlier.
What trade terms do I need to know when ordering?
You might find a great oil at a great price—but if you don’t understand trade terms like MOQ or FOB, you could still lose money or face delays.
Terms like MOQ, lead time, CoA, and MSDS help manage supply chain expectations and ensure safety and reliability in bulk buying.
Know Before You Buy: Trade and Supply Chain Terms
These logistics terms are especially useful for new buyers:
- MOQ (Minimum Order Quantity): The smallest amount a supplier will sell.
- Lead Time: How long it takes to get your order.
- Payment Terms: e.g., Net 30 (pay 30 days after invoice).
- FOB/CIF: Who pays and is responsible for shipping and insurance.
- CoA: Verifies batch quality.
- MSDS: Contains safety and storage guidelines.
A good supplier gives you all of this upfront. If they don’t, that’s a red flag in essential oil sourcing2.
What regulations should I follow?
Marketing essential oils the wrong way can trigger legal trouble. Even calling a lavender oil “relaxing” might require drug labeling if not handled properly.
Essential oils can be classified as cosmetics or drugs depending on how they’re marketed—understanding the difference avoids legal and labeling risks.
What the Law Says
Here’s how essential oils are classified in the U.S.:
| Classification | Description | Regulatory Body |
|---|---|---|
| Cosmetic | Used to beautify or cleanse | FDA (labeling oversight only) |
| Drug | Claims to treat or prevent illness | FDA (approval required) |
| Food Flavoring | Used as additives in food | FDA & USDA |
Even saying “promotes sleep” can place your oil under FDA drug rules. Stick to safe essential oil marketing claims3 and avoid unverified health claims.
What is happening in the essential oils market right now?
The essential oils market is booming, but not all oils are in equal demand. Orange oil is the most traded. Europe leads in demand. The U.S. imports the most.
Global essential oils demand is growing fast, led by orange oil. Buyers should watch trends, pricing, and regional market growth.
Essential Oils Market Overview
| Metric | Data |
|---|---|
| 2023 Market Size | $11.41 billion |
| 2032 Forecast | $27.82 billion |
| CAGR | 10.55% |
| Top Oil | Orange oil |
| Leading Region | Europe |
| Key Companies | Givaudan, Symrise, doTERRA, NOW Foods |
This growth reflects global shifts toward natural wellness and clean label ingredients. It also increases the need for supply chain transparency in essential oils4.
Conclusion
Knowing these key terms can make or break your essential oil business. With the right knowledge, you can avoid low-quality suppliers, meet legal standards, and build trust with your customers.
Read our bulk essential oils wholesale guide to explore more.
FAQ
What’s the difference between essential oil and absolute?
An essential oil is steam-distilled or cold-pressed. An absolute is solvent-extracted, often used for delicate flowers and perfumery.
What is a hydrosol used for?
Hydrosols are gentle and used in skincare or facial mists, as they are less concentrated than essential oils.
How do I store bulk essential oils?
Store in dark glass bottles, in a cool, dry place. Always keep tightly sealed to prevent oxidation.
Is CO₂ extraction better than steam distillation?
CO₂ extraction offers a fuller aroma profile, but it’s more expensive and not necessary for all uses.
Can I mix essential oils with any carrier oil?
Most carrier oils are safe, but each has different shelf lives and properties. Jojoba and fractionated coconut oil are common choices.