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HealthZeet > Health Insights > Essential Oils > What Are Essential Oils and How Are They Made?
Essential Oils

What Are Essential Oils and How Are They Made?

Learn what essential oils actually are, how steam distillation and cold pressing extract them, and what research says about their uses and safety.

Kavya Nair
Last updated: September 28, 2026 8:27 am
By Kavya Nair
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What Are Essential Oils and How Are They Made
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Aromatherapy | Extraction, Uses & Research

What Are Essential Oils and How Are They Made?

Essential oils show up in diffusers, skincare, and candles everywhere, but the term itself has a precise meaning that most bottles on store shelves do not actually meet. This guide explains what essential oils really are, the extraction methods that produce genuine ones, and what research actually supports about their use.

12 min read Aromatherapy & Plant Extracts Extraction Methods & Safety

Essential oils are concentrated liquids extracted from plants, capturing the compounds responsible for a plant's characteristic scent, and often, its flavor and some of its biological activity. The word "essential" here does not mean necessary, it refers to the plant's essence, the concentrated aromatic compounds drawn out through extraction, a usage that traces back to older alchemical language rather than modern chemistry terminology.

Not every fragrant plant liquid sold as an "essential oil" is actually one in the technical sense, and understanding the difference between genuine extraction methods and shortcuts involving synthetic fragrance or chemical solvents is genuinely useful before buying or using them. This distinction affects not just cost, but also what you can reasonably expect the product to do.

Quick Overview: What Actually Makes an Oil "Essential"

According to the National Cancer Institute, essential oils are volatile liquid substances extracted from aromatic plant material specifically through steam distillation or mechanical expression, and oils produced with the help of chemical solvents are not considered true essential oils. This distinction matters, since it separates genuine essential oils from many "fragrance oils" or diluted products that use the term loosely without meeting this technical definition.

Table of Contents
  1. What Essential Oils Actually Are
  2. How Essential Oils Are Made
  3. What Determines Quality and Purity
  4. How Essential Oils Are Believed to Work
  5. Common Essential Oils and Their Traditional Uses
  6. What Research Actually Shows
  7. Safety Considerations
  8. Quick Reference: Extraction Methods Compared
  9. Frequently Asked Questions
2 Methods
Steam distillation and mechanical expression define true essential oils
GRAS
Most essential oils are classified Generally Recognized As Safe by the FDA for food use
Thousands
Of pounds of plant material can be needed to produce just one pound of some oils
No FDA
Pre-market approval is required for aromatherapy products in the US

What Essential Oils Actually Are

Essential oils are made up of dozens, sometimes hundreds, of naturally occurring aromatic compounds found in specific plant parts, flowers, leaves, bark, peel, or roots, depending on the species. These compounds evolved in plants for reasons like attracting pollinators, deterring pests, or protecting against microbial threats, functions that partly explain why certain essential oils show measurable antimicrobial or insect-repelling properties in laboratory studies.

Despite the name, essential oils are not oily or greasy the way a cooking oil is. They are volatile, meaning they evaporate readily at room temperature, which is exactly what allows their scent to be perceived through the air, whether from a diffuser, a perfume, or simply a crushed leaf.

How Essential Oils Are Made

The method used to extract an essential oil affects its purity, cost, and in some cases, its chemical composition, which is part of why extraction method is worth understanding rather than assuming all "essential oils" are produced the same way.

Research Note: The Official Definition of a True Essential Oil

The National Cancer Institute's PDQ summary on aromatherapy explains that essential oils are volatile liquid substances extracted from aromatic plant material by steam distillation or mechanical expression, and that oils produced with the aid of chemical solvents are not considered true essential oils. The summary also notes that as essential oils age, their chemical composition changes, and many do not carry a formal expiration date the way packaged food products do.

Source: Aromatherapy With Essential Oils (PDQ), Health Professional Version, National Cancer Institute (NCI)

1Steam Distillation

Steam distillation is the most common method used for genuine essential oil production. Steam passes through plant material, causing aromatic compounds to release and travel with the steam, which is then cooled and condensed, separating the essential oil from the resulting water, known as hydrosol or floral water.

2Cold Pressing or Mechanical Expression

Cold pressing, technically called mechanical expression, is used primarily for citrus oils like lemon, orange, and bergamot, where the oil is physically pressed out of the fruit's peel without applying heat. This method preserves compounds that might be altered by the heat used in steam distillation.

3CO2 Extraction

Carbon dioxide extraction uses pressurized carbon dioxide as a solvent to pull aromatic compounds from plant material, then releases the pressure so the CO2 returns to a gas state, leaving behind the extracted oil without residual solvent. This method is prized for capturing a fuller range of a plant's compounds compared with steam distillation, though it requires more specialized equipment.

4Solvent Extraction and Why It Is Different

Some fragrant plant materials, particularly delicate flowers like jasmine, do not hold up well to steam distillation. These are sometimes processed using chemical solvents to produce what is technically called an absolute, not a true essential oil, since trace solvent residue can remain. This distinction is exactly why the official definition of essential oils specifically excludes chemically solvent-extracted products.

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What Determines Quality and Purity

Essential oil quality varies considerably between brands and products, and price differences often reflect genuine differences in sourcing, yield, and processing rather than marketing alone.

5Yield and Plant Material Required

Some plants yield essential oil generously, while others require enormous quantities of raw material for a small amount of finished oil, which directly affects price. Rose and sandalwood oils, for example, require substantially more plant material per bottle than something like lavender or tea tree oil, explaining their higher cost.

6Adulteration and Dilution

Because pure essential oils can be expensive to produce, some commercial products are diluted with cheaper carrier oils or synthetic fragrance compounds without always being clearly labeled as such. Reputable brands generally provide batch testing information, botanical names, and country of origin, details worth checking if purity matters for your intended use.

7Storage and Shelf Life

Essential oils oxidize over time, particularly citrus oils, and this chemical change can affect both scent and, in some cases, skin sensitivity potential. Storing oils in dark glass bottles away from heat and light helps preserve their original composition for longer.

How Essential Oils Are Believed to Work

The proposed mechanisms behind aromatherapy's effects depend on how the oil is used, inhaled versus applied to the skin, and remain an active area of ongoing research.

When inhaled, aromatic compounds are thought to bind to receptors in the olfactory system, sending signals to the limbic system, the brain region involved in emotion and memory, which may explain reported effects on mood and stress. When applied topically in diluted form, certain compounds may exert localized antibacterial, anti-inflammatory, or mild analgesic effects, mechanisms supported by some laboratory research, though human clinical evidence varies significantly by oil and condition studied.

Common Essential Oils and Their Traditional Uses

A handful of essential oils appear repeatedly across both traditional aromatherapy practice and modern research interest.

  • Lavender: Widely used for relaxation and sleep support, among the most researched essential oils for these specific uses.
  • Peppermint: Traditionally used for headache relief and to ease nausea, often applied diluted to the temples or inhaled.
  • Tea tree: Valued for its antimicrobial properties, commonly used in diluted topical skincare formulations.
  • Eucalyptus: Traditionally used to ease congestion, typically through inhalation or steam.
  • Citrus oils (lemon, orange, bergamot): Commonly used for mood support and general uplift, produced through cold pressing.
  • Frankincense: Used traditionally in meditation and skincare practices, extracted from resin through steam distillation.

What Research Actually Shows

Research Note: A Broader Look at the Evidence

A review published through the National Library of Medicine notes that aromatherapy has been shown to help alleviate symptoms including anxiety, depression, fatigue, sleep disorders, neuropathic pain, nausea, and menopausal symptoms in various studies, with lavender emerging as particularly notable given its broad research base and its designation by the U.S. Food and Drug Administration as Generally Recognized as Safe. The review's authors also emphasize that further high-quality research is still needed to more firmly establish safety and effectiveness across the wider range of essential oils in use.

Source: Aromatherapy and Essential Oils: Holistic Strategies in Complementary and Alternative Medicine, PMC, National Library of Medicine

This mixed but genuinely promising picture is fairly typical across the essential oil research landscape. Some specific applications, particularly inhaled lavender for relaxation and sleep, have a reasonable body of supportive research, while many other claimed benefits rest on smaller studies or laboratory findings that have not yet been confirmed in larger human trials.

Safety Considerations

Essential oils are natural, but concentrated plant extracts still carry real safety considerations that are easy to overlook given how commonly they are used.

Research Note: Regulation and Known Risks

The NIH's National Center for Complementary and Integrative Health notes that oral lavender products might be safe short-term at studied amounts, but some people experience side effects like diarrhea, headache, nausea, or burping, and aromatherapy with lavender oil specifically may cause headache or coughing in some people. Topical lavender products may also cause allergic skin reactions, underscoring that even well-studied, generally favorable essential oils are not entirely without risk.

Source: Lavender: Usefulness and Safety, National Center for Complementary and Integrative Health (NCCIH), NIH
  • Never apply undiluted essential oil directly to skin, since this can cause irritation or burns for many oils.
  • Citrus oils can cause phototoxic reactions, increasing sun sensitivity if applied to skin before sun exposure.
  • Essential oils should not be ingested unless specifically directed by a qualified practitioner, given the concentrated nature of the extract.
  • Some essential oils, including lavender and tea tree, have shown hormone-like effects in some studies, worth discussing with a doctor for anyone with hormone-sensitive conditions.
  • Many essential oils are toxic to cats and some other pets, even through diffusers, so pet safety is worth researching before diffusing regularly.
  • Essential oil use around infants and young children requires particular caution, since their skin and respiratory systems are more sensitive.

Quick Reference: Extraction Methods Compared

MethodCommon Use CaseConsidered a True Essential Oil
Steam distillationLavender, eucalyptus, tea tree, frankincenseYes
Cold pressing (expression)Lemon, orange, bergamot, other citrusYes
CO2 extractionRosemary, ginger, some resinsYes, by most definitions
Solvent extractionJasmine, delicate absolutesNo, technically an "absolute"

Frequently Asked Questions

Are essential oils regulated by the FDA?
Aromatherapy products, including essential oils, do not require FDA approval before they reach the market, similar to how other dietary and cosmetic supplements are regulated. Many individual essential oils are classified as Generally Recognized as Safe for use as food flavoring in small amounts, but this classification is different from formal approval for therapeutic health claims.
What is the difference between an essential oil and a fragrance oil?
A true essential oil is extracted directly from plant material through steam distillation or mechanical expression, while a fragrance oil is typically synthetic or a blend containing synthetic aromatic compounds designed to mimic a scent. Fragrance oils are generally not used for aromatherapy's proposed therapeutic effects, since they lack the natural, complex compound profile of genuine plant extracts.
Can essential oils be taken internally?
Most essential oils are not recommended for internal use without specific guidance from a qualified practitioner, given how concentrated they are compared with the amount of plant material typically consumed in food. Ingesting undiluted essential oil can cause significant irritation to the mouth, throat, and digestive tract, and is generally considered a higher-risk use than inhalation or properly diluted topical application.
Is lavender essential oil actually backed by research?
Lavender is among the more researched essential oils, with a reasonable body of evidence supporting its use for relaxation and sleep support specifically, and it holds a Generally Recognized as Safe designation from the FDA. That said, researchers note that more high-quality studies are still needed to reach firmer conclusions about its effectiveness across other proposed uses beyond relaxation and sleep.
Why do some essential oils cost so much more than others?
Price largely reflects how much raw plant material is required to produce a given amount of oil, along with the complexity of the extraction method used. Oils like rose and sandalwood require substantially more plant material per bottle than oils like lavender or tea tree, which is the primary reason for their significantly higher price point.

Understanding the Extraction Process Makes You a Smarter Buyer

Essential oils are genuinely fascinating concentrated plant extracts, produced through specific methods like steam distillation and cold pressing that preserve a plant's natural aromatic compounds without chemical solvents. Knowing this definition helps separate true essential oils from diluted or synthetic products marketed under the same name, and understanding the research landscape helps set realistic expectations for what different oils can and cannot reliably do.

Used thoughtfully, properly diluted for topical use, inhaled rather than ingested without guidance, and sourced from reputable, transparent brands, essential oils can be a reasonable part of a broader wellness routine. As with any concentrated plant compound, a bit of informed caution goes a long way.

Medical Disclaimer: This article is for informational and educational purposes only and is not a substitute for professional medical advice, diagnosis, or treatment. Always consult a qualified healthcare provider before using essential oils therapeutically, particularly if you are pregnant, breastfeeding, have a hormone-sensitive condition, have young children or pets in your home, or take medications that may interact with aromatic compounds.
What Are Essential Oils and How Are They Made
Essential Oils

What Are Essential Oils and How Are They Made?

Learn what essential oils actually are, how steam distillation and cold pressing…

By Kavya Nair
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Kavya Nair is a health and wellness writer at HealthZeet with an academic background in Journalism and Mass Communication. Born on January 14, 1989, she studied M.A. in Journalism and Mass Communication at Amrita Vishwa Vidyapeetham, Kochi. Her writing focuses on health, wellness, healthy living, lifestyle, and natural wellness, with an emphasis on researching complex topics and presenting reliable, easy-to-understand information for everyday readers.
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