MARKET REPORT JUNE 2019

The following report contains updates on the current trends in production and availability of the most in-demand Essential Oils, Carrier Oils, and Raw Materials sourced from around the globe.

Chamomile German Oil

In Nepal, Chamomile is harvested from February to March. The current growing conditions are favorable. This year’s production was optimum due to improved weather conditions. The demand for Chamomile is strong and, at present, the price is both stable and lower than last year’s prices.

Chamomile Roman Oil

In the UK, Roman Chamomile is harvested in July. The current growing conditions are favorable; however, the final crop quality depends on the weather in June and at the time of harvest. Compared to last year’s harvest yield of 6000 kg, this year’s yield is projected to be much lower at an estimated 3000 kg. The total yearly demand is approximately 4000 kg. It is too early to know the market conditions, but they depend on the final quantity of the new crop.

Castor USP & Castor Organic Oils

In India, Castor is harvested from December to April. The lack of rainfall in the Castor growing region has led to low crop yield, of which there are approximately 900 000 tons. There are 400 000 tons of carryover crop from last year. Last year, the crop yield was 1400 000 tons, and the carryover crop was 600 000 tons. The annual demand is around 1700 000 tons. Compared to the demand, the quantity of available crop is low, hence prices have begun to increase and are expected to remain high.

Organic Castor Oil is harvested between February and May. This year’s harvest yield is almost 10% lower at 1800 kg/hectare, compared to 2000 kg last year. Sowing is also lower than 30% compared to last year and is approximately 35% lower than the 5-year average. Due to low acreage and production this year, Castor Oil has a 25% higher rate than last year. The annual demand for Castor is increasing, due to its beneficial properties and the consequential high usage of Organic Castor Oil in the cosmetics industry. Due to increased demand for the product and this year’s decrease in production, the market conditions still seem favorable. There is even greater demand expected from the world market, due to the acceptability of Organic Castor Oil.

Cajeput Oil

In Indonesia, Cajeput is harvested and the oil is produced year-round. At present, there are no issues with the growing conditions. This year’s harvest yield is projected to be normal, neither higher nor lower than previous years. The crop is stable and the demand has greatly increased throughout 2018 and the first quarter of 2019, due to earlier restrictions on other sources of Cineol/Eucalyptol. Now that the other sources have recovered, the prices for Cajeput have stabilized. At present, market conditions are unclear.

Eucalyptus Oil (Blue Mallee)

In Australia, Blue Mallee Eucalyptus is generally harvested from September to June. The current growing conditions are unfavorable due to a prolonged drought and resultant dryness. This has caused a decline in the crop yield, as two years of below-average rainfall have led to poor growth. The demand for Blue Mallee remains strong and in excess of supply. The market also remains strong, strengthened further by the limited availability of supplies.

Bergamot Calabrian & Bergamot Organic Oil

In Italy, Bergamot is harvested from November to February. As observed in the last harvest and as forecasted for the new crop, it appears that Bergamot trees are recovering from difficulties in the previous three years, caused by climatic changes that affected the blossoming. This year’s harvest yield is projected to be higher than the previous one; however, a more accurate prediction can be made in late August/early September. The demand for Bergamot has been increasing due to its popularity in Aromatherapy and due to growing Asian markets. The market is good for sellers, due to the high prices, which are also influenced by significant demand from fresh fruit markets.

In Italy, Organic Bergamot is harvested from mid-November to the beginning of March. The winter and spring weather conditions have resulted in favorable conditions for a regular Bergamot blossoming; however, the summer weather conditions will determine the next crop trend. The 2018/2019 Bergamot harvest yield was regular in terms of fruits harvested and was in line with the previous one. There is a high demand for Bergamot, but there is poor availability at this point in the year.

Safflower Oil

In Mexico, Safflower is harvested in April and May. This year’s weather was favorable and, though some areas experienced losses due to the low amount of rain, this issue affected less than 10% of the Safflower production. This year’s harvest yield was better than that of the previous year. The demand is stable, though it is necessary to constantly review the climatic conditions that may affect the crop’s performance. Given that the amount of Safflower harvested in Mexico is higher this year compared to last year, the prices are expected to be stable.

MARKET REPORT MAY 2019

The following report contains updates on the current trends in production and availability of the most in-demand Essential Oils, Carrier Oils, and Raw Materials sourced from around the globe.

Peppermint and Spearmint Oil

In India, Peppermint and Spearmint are harvested between May and July. The Mentha piperita crop yield is projected to be lower than that of the previous year while the yields for Mentha arvensis and Mentha spicata are higher. The demand for these crops is constantly increasing and, since last year, the demand has increased by approximately 10-25%. The current market conditions are good. The Mentha piperita prices are expected to increase, whereas the Mentha arvensis and Mentha spicata prices can potentially decrease.

Clary Sage Oil

In France, Clary Sage is harvested from the end of June to the beginning of July. Thus far, the weather conditions have been favorable; hence, the next harvest is expected to have a promising yield. This expectation is further augmented by the significant development that has taken place on plantations, which may also help to encourage a larger harvest than the previous one. The current demand for Clary Sage has weakened, and this year, stock will be carried over. Prices are expected to decline.

Coffee Oil

In Brazil, Coffee beans are harvested between June and August. The coffee crop grows every two years; one year might produce a higher volume than the other, and 2018 was the full crop year. Coffee is a highly demanding and expensive crop with prices that vary according to commodity exchange. Due to the drought in 2018, the 2019 harvest is expected by some to be low; however, some farmers expect a good crop. For the purposes of oil extraction, it is not recommended to use Coffee from old harvests; rather it is suggested that Coco Coffee – that is coffee stored in its shell – be used, as it retains moisture as well as properties that are comparable to that of the fresh seed.

Brazil still carries 2018 stock. The sales increased by approximately 12% from the previous year. As a result, Coffee prices are lower this year, reaching 15% for grains of lower quality. Although 2019 is not a full crop year, the harvest is projected to be favorable. The latest estimate of the increase in demand is that Coffee consumption will grow by 2.8% in 2019. The Brazilian market has remained problematic, as offers are much less than those anticipated by the producers. There is good demand for much of the current crop, particularly for good quality Arabica – the prices of which are close to those offered for the Coffees meant for export.

MARKET REPORT APRIL 2019

The following report contains updates on the current trends in production and availability of the most in-demand Essential Oils, Carrier Oils, and Raw Materials sourced from around the globe.

Cardamom Oil

In India, Cardamom is harvested from October to February. The flooding in south India last year led to unfavorable growing conditions as well as damage to huge crops of Cardamom, resulting in a lower harvest yield. The decline in Cardamom Oil production throughout India has led to a steep demand for the oil. Market conditions are favorable for this product, and this year’s continuous increase in the prices of Cardamom fruits has placed pressure on the Indian market for the supply of the same. This year, prices are expected to further increase.

In Sri Lanka, Organic Cardamom is harvested from July to October. A drought has negatively affected this year’s crop, resulting in a low harvest yield, which is only ¼ from last year. Furthermore, prices are extremely high and are expected to remain the same for a few years. The current, significantly high demand cannot be met, due to the severe shortage of raw materials. Given this extremely limited supply, buyers are advised to cover their requirements for the next 6-8 months as early as possible.

Coriander Oil

In India, Coriander is harvested from February to March. While regular production was an estimated 4-500,000 MT, this year it is expected to decline. In India, most Coriander seeds are converted into powder with a lesser quantity being used for oil extraction. The major buyers of Coriander seeds are spice powder-making industries. The demand from spice-processing industries was expected to increase beginning in April, and it is expected to continue until June. Coriander prices rose previously, and there has been an upward trend in the prices due to a decline in production in 2018-19 (Oct-Sep) in key growing areas. From 2018-19, Coriander acreage across the country declined by 27%.

Camphor Oil

In China, the wood of the Camphor tree is harvested throughout the year in all four seasons. The current growing conditions are favorable; however, it is too soon to predict the harvest yield. There is a strong demand for this oil.

Sage Dalmatian Oil

In Albania, Sage is harvested between June and December. It is typically cultivated near mountains, where the soil and the climate are similar to wild grown Sage, and there are no current issues with cultivation. The harvest yield is projected to be the same as that of last year. The demand and market conditions depend on customer requests.

Pine Scotch Oil

In Hungary, Scotch Pine can be harvested throughout the year, thus there is no dedicated harvest month or period. This year’s harvest yield is projected to be lower than that of the previous year; however, demands are still high for this oil.

Raspberry Seed Oil

In Chile, Raspberries are harvested from December to February or March. The current growing conditions are favorable and the harvest yield is projected to be similar to or higher than that of the previous year. There is good demand for the product, and the market conditions are good with high-quality supply and competitive prices.

Sea Buckthorn Oil

In China, Sea Buckthorn berries are harvested from October to January. The current growing conditions are the same as before, and the harvest yield is projected to be slightly higher than that of last year. The demand is increasing in China and Southeast Asia.

D-Limonene

In Brazil, Citrus fruits are harvested from June to February. The current growing conditions are favorable; however, this year’s harvest yield is projected to be slightly lower than that of last year. The demand and market conditions are weak. Buyers are advised to cover only what is required at the moment.

MARKET REPORT MARCH 2019

The following report contains updates on the current trends in production and availability of the most in-demand Essential Oils, Carrier Oils, and Raw Materials sourced from around the globe.

Rose Geranium Organic Oil

In South Africa, Rose Geranium is generally available throughout the year. Although the current growing conditions are favorable, this year’s harvest yield is projected to be lower and limited. Given the high demand for Rose Geranium and the very limited amount of oil available, the pricing has doubled this year…

Geranium Oil

In China, Geranium is harvested between July and September every year. This year’s estimated output is approximately 40 tons. Warm and humid, the current growing conditions are unfavorable for the development of this botanical. The international market demand for Geranium is increasing every year.

In Egypt, Organic Geranium is harvested in the months of June and July. The current crop is normal and the growing conditions are favorable. Last year’s production yielded 180-200 tons of oil with a carryover of 30-40 tons of oil. This year, the plantations are slightly less; however, if the weather conditions are favorable and the cultivation is not affected by diseases, the season could produce a harvest with an estimated yield of 220 tons of oil. There is high demand and an active market for Organic Geranium.

Basil Oil

In India, Basil is harvested from August to September. At present, Basil is not being cultivated; however, last year’s climate was favorable and the crop was decent with a yield similar to that of 2017. The demand is as usual, without highs or lows, and the market is stable.

Organic Basil is sown in July and harvested from October to November. This year’s growing conditions are favorable. It is too soon to predict the harvest yield; however, the production is generally expected to be the same as last year, as the prices for this crop seemed to be stable all year long. The demand for Organic Basil is neutral. The market conditions for this crop seem to be favorable because of good demand for Natural Linalool, an isolate that is extracted from Basil.

Tamanu Oil – Virgin

In Madagascar, Tamanu is harvested from September to November; however, this may vary due to climate change. The current growing Conditions have been favorable until recently, except for the challenging cyclonic period. Compared to last year, when there was a lack of raw materials, this year’s harvest yield is better, making it possible to double the production. The demand is stable. Although the production of this oil is prevalent, the competition is not hard.

In Vietnam, Tamanu is harvested from February to May. The current growing conditions are favorable. Due to the stable weather, this year’s harvest yield is projected to be the same as that of last year. Compared to last year, there has not been much change in demand. This year’s lower supply capacity means that this year’s prices will be higher.

Orange Oil – Bitter

In Sicily, bitter oranges are harvested from December to April. This hardy tree is the most resistant, thus growing conditions are virtually always favorable for it. The harvest yield and the demand for this crop have been quite steady for many years now. The Essential oil is a minute factor in market demands, as the main market is for purees for marmalade as well as for the peel, which is used in candied fruit.

Litsea Cubeba & Litsea Cubeba Organic Oils

In China, Litsea Cubeba is harvested from the end of July to September. At present, it is too early to predict this year’s harvest yield. The demand is stable but the market conditions are unclear.

Eucalyptus Globulus 80/85% & Eucalyptus Globulus Organic Oils

In China, Eucalyptus is harvested from December to February of the following year. This year’s harvest yield is estimated to produce approximately 15,000 tons. The international market demand for this crop is increasing every year.

Coconut Virgin Organic & Coconut Refined Organic Oils

In the Philippines, coconuts are available all year and are harvested in 45-60-day intervals. Since September of 2018, several provinces in the Philippines have been experiencing the El Nino weather pattern, which is characterized by a decrease in the amount of rainfall, resulting in drought conditions. There is a possibility of the harvest yield being in short supply during the second half of 2019, and this is expected to cause an increase in prices.

Coconut RBD Oil

In Malaysia, Coconuts are grown in tropical areas and bear fruits throughout the year. While the production has been rather stable in the last few years, pest infestation as well as natural disasters, such as typhoons and tsunamis, could potentially destroy the crop. As there have not been any major disasters in the last two years or so far this year, the 2019 yield is expected to be similar to or slightly higher than the yield of 2018. The lack of a perfect substitute for Coconut Oil means that there is always a demand for Coconut Oil, from oleochemical, food, and non-food industries. The current prices are more attractive compared to previous years’ prices.

Vitamin C

In the northern hemisphere, Soy is harvested from September to October. In the southern hemisphere, Soy is harvested from March April. Since the previous year, there have not been any major differences in the growing conditions or the harvest yield. The demand has increased and the prices are rising.

Citronella Java Oil

In Indonesia, the initial harvest of Citronella typically occurs 6 months after it is planted. Once it matures, this continuously-planted grass can be harvested every 3 months. Most of Indonesia is suitable for cultivating Citronella, given the existing weather patterns of rain and semi-wetness, which is required for optimal growing conditions. Compared to previous years, the number of Citronella plantations has increased in Indonesia, and this is largely due to the increasing prices, which have encouraged more farmers to gravitate toward cultivating this crop and planting in scale. The yield per acreage is stable at 0.5-0.75% of dry herbage that results in Essential Oil. Indonesia has a large and constant local demand for Citronella Oil, plus it is a net exporter. Global demand for Citronella is also growing. At present, market prices are rising steadily; however, Indonesia is currently less expensive than China, and it is predicted to remain as such for the foreseeable future, due to the declining crop in China.

Sesame Organic RBDW & Sesame Extra Virgin Organic Oils

In Mexico, Sesame is generally harvested between November and December, although occasionally it is harvested in January; the harvest period depends on the timing of the rainy season, which impacts the planting time. The growing conditions in 2018 were better than the conditions of the previous two years. 2018 also saw a better harvest yield than the previous year.

In India, the sesame seed and Sesame Oil market conditions are expected to be relatively complicated during the first half of the year. The prices have remained the same since October and the harvest during June and July are expected to be better.

Market Report, September 2018

The following report contains updates on the current trends in the production and availability of the most in-demand Essential Oils, Carrier Oils, and Raw Materials sourced from around the globe.

almond tree

Almond Sweet Organic Oil

In Morocco, sweet almonds are harvested in September. The growing conditions have been normal and the harvest yield has been the same as in the previous year. The demand for the organic product is firm and prices remain stable; however, prices may increase due to an increase in conventional almonds from California.

anise-star

Anise Star Oil

In China, Anise Star is harvested between March and May and again between November and December. At present, the raw material stock is meager and oil is limited; new Anise Star Oil is not expected to be available until November. The market price for Anise Star Essential Oil has been rising since late June; however, there is still a chance for prices to stabilize. Now is the ideal time to place orders.

Balsam Fir (Abies balsamea)

Fir Balsam Oil

In Canada, Fir Balsam raw material is distilled between the months of May and October. The insufficient sunlight as well as this year’s summer drought has caused a reduction in the yield and ultimately the amount of raw material. This year’s harvest yield was 0.078% compared to the 2017 yield of 0.087%; there is less oil from the yield depending on batches, and the drop ranges from 8-12%. Christmas tree growers represent 25-35% of sourced Fir Needle raw material with the forest industry representing the rest. There is a high likelihood that less raw material will be obtainable as a result of the USA dropping out of the NAFTA trade.

The production has been able to keep up with this year’s higher demand; however, once the production culminates, there will not be any carryover. Compared to last year, there is a 30% difference in pricing at this moment. The main and perhaps only influences preventing the price of Canadian Fir Need Oil from rising are the prices for European and Chinese Fir oils; despite the differences in species, the Siberian Fir and Chinese Fir price points are holding the Canadian Fir back from burgeoning; hence, now is the ideal time to buy, as the pricing is expected to rise later.

lemongrass2

Lemongrass Oil

In India, Lemongrass is harvested between July and November. The market for Lemongrass Oil has not been reassuring, and currently, the only material available is that of inferior quality with low Citral content.

Market Report August 2018 {Essential Oils, Carrier Oils, Raw Materials}

The following report contains updates on the current trends in production and availability of the most in-demand Essential Oils, Carrier Oils, and Raw Materials sourced from around the globe.

patchouli (1)

Patchouli Oil

In Indonesia, the Patchouli supply has decreased, and the next yield is expected to be lower. It is currently an ideal time to make an investment in Patchouli stocks. Big buyers have recently entered the market and a large number of processors are purchasing new plant material at the newer price points. Given the current prices in the Indonesian market, the production of Patchouli in India is not likely to be reestablished; despite some cultivation in limited areas, most Patchouli is being used for the propagation of plants rather than for the production of oil. Despite the availability of organic production, albeit a limited one, Indian Patchouli Oil differs from the Indonesian oil; hence, natural product formulators looking to replace the Indonesian oil with the Indian oil may find that the latter does not match their preference.

frankincense-oil-relieves-congestion-hs-fb

Frankincense Oil

In India, the Frankincense gum harvest season came to a close as the Monsoon season began at the end of June. Because gum collection takes place in several regions, the crop yield varies and is dependent on numerous growth conditions; however, the average yield for Frankincense Essential Oil ranges between 4 and 9%. The anti-inflammatory properties of Frankincense derivatives have increased the value and popularity of their use in medicinal applications in the pharmaceutical industry. Frankincense prices remain high with a nominal competition. With increasing demand for this oil, the prices are also expected to keep gradually increasing. Frankincense supply remains stable and some large quantities may still be obtainable.

lavandula-angustifolia-mill

Lavender Oil (Bulgaria)

In Bulgaria, Lavender is harvested in the month of July. This year’s exceptionally low yield caused by excessive rains has resulted in an acute shortage of material available for distillation. Given this shortage, it is predicted that the demand will not be met. Current market prices in Bulgaria are 50% higher than last year.

tea-tree-oil-1

Tea Tree Oil

In Australia, Tea Tree leaves are harvested between May and November. This year’s steady rainfall has placed constraints on and has affected production to the point where there is no carryover stock. This current state of affairs is not expected to improve any time soon, thus oil prices are predicted to increase. The production season recommenced in June and has been expected to continue to August 2018.

In China, Tea Tree leaves are harvested between May and August. In August, the crop season also commences and carries on until October. Last year’s production was negatively impacted by continuous rains in the main areas of production, namely the regions of Guangdong, Guangxi, and Fujian. There is a tight market and, in the near future, the prices are estimated to continue increasing.

basil plant3

Basil Oil (India)

In India, Basil is harvested between the months of November and February. At present, it is challenging to obtain the Basil plant material.

market-report-aug-2018

Rosemary Oil (Spain)

In Spain, Rosemary is harvested between February and June. Oil samples that are currently available in the market are derived from wild harvesting, and the distillation of the first batches of oil is set to proceed. Despite the low availability of Rosemary, the market is calm at present, but the updates from local farmers are optimistic.

cinnamon-tree-23

Cinnamon Leaf Oil

In Sri Lanka, Cinnamon is harvested between the months of May and November. Due to a major drought in the growing region, the collection has decreased and the oil supply is low. A new crop was expected to have become available in larger quantities between July and August, an ideal time to meet the year’s requirements. The prices for Cinnamon Leaf Essential Oil are unstable; however, this is partly because of the depreciation of the Sri Lankan rupee.

Market Report July 2018 {Essential Oils, Carrier Oils, Raw Materials}

The following report contains updates on the current trends in production and availability of the most in-demand Essential Oils, Carrier Oils, and Raw Materials sourced from around the globe.

Mint-leaves-2007

 

Mint (Mentha Arvensis & Menthol Oils)

In India, the main growing region for Mint is expected to experience a normal Monsoon season; however, there has been a delay in the onset of this beneficial rainy weather, which usually makes its appearance in mid-June. This postponement, likely to July, is not expected to have a significant negative impact on the production of Mint.

Between 2017-18, the production of Mint was approximately 30,000MT with a carryover stock of 6,000MT, making the total availability of 36,000MT. A decline in the carryover stocks and a strong export demand in the Indian market has led to an increase in Mint prices. India is expected to yield 35,000MT to 38,000MT of Mint Oil in 2018-19 if everything goes normal. Due to a major, worldwide shortage of Mint, there has been growing demand. Hence, throughout the year, there has been an upward trend in Mint prices.

lavandin-sumian

Lavandin Oil

In France, the Lavandin harvest occurs between mid-July and mid-August, with harvest and distillation taking place at the same time. Compared to the weather of 2017, which was characterized by a drought and freezing temperatures that destroyed 10-15% of the plantation and resulted in the crop having to be uprooted and replaced, the weather this year has been favorable for Lavandin cultivation. The months of April and May experienced plenty of rainfall, promoting the growth of lush fields. Due to the introduction of new plants in the production phase, there may still be a lack of material in 2018-2019 despite the possibility of having a favorable yield. In the South of France and in Spain, the temperatures are currently on the cooler end of the range, which will delay the harvest by a few weeks.

Last year, the harvest yield for Lavandin Grosso was around 1300 tons, which was unfortunately not enough. At this time, it is too soon to project this year’s harvest yield in France, but it is likely to be the same as last year, considering the drought in the growing regions. It is still not known how this will affect the yield, production, or prices in Spain. In France, the market demand for Lavandin is still very high, and with all the crops having been sold during the year, there is no leftover. In France, there has been a slight increase in price, as there is more demand than there is production. Due to the lack of stock, the market is tense.

lavandula-angustifolia-mill

Lavender Oil

In Bulgaria, the current unfavorable weather, which is characterized by rainstorms and icy rain, is leading to the destruction of many crops, including Lavender. The distillation yield is also very low, which indicates that there will be a shortage of oil volumes from Bulgaria. Subsequently, this will cause an increase in prices for both organic and conventional Lavender. Normal weather patterns were expected along with a large crop, which may have yielded over 400 tons of oil, but the rain that began at the end of June and that has continued until now, has caused most planting areas to be inundated; thus, the main issue continues to be the availability of the crop, which is down a minimum of 50%. As expected, the current demand for Lavender is remarkably high. Ukrainian and Russian producers are facing the same situation, having had to stop their production due to heavy rainfall.

neroli flowers

 

Neroli Oil

In Tunisia, favorable weather conditions have benefited the Neroli harvest, leading to a consistent and abundant yield. There has been a high market demand for Neroli, and the distillers’ eagerness to buy led to an increase in Neroli prices throughout the harvest, causing the prices to reach a historic high. The distillation yields have remained at average levels. Compared to previous years, the concrete production of Neroli has been stable; however, the steady demand has led to a 20% increase in prices. Tunisian production volumes are stable and could potentially increase in the coming years, due to new planting projects that are currently in progress.

In Morocco, the Neroli harvest took place under unfavorable weather conditions characterized by low temperatures, frequent rain, and little sunlight. Although the harvest season usually ends in early May, the latest harvest season was exceptionally long, lasting from the end of April to mid-May. Although the rainfall and cold temperatures negatively impacted the distillation yields, which saw a decline of nearly 40% below normal levels, there was a decent volume of harvested blossoms. This year’s Moroccan production volumes are below market expectations, due to the weather conditions; however, there has been an upward trend in production.

Litsea Cubeba oil

Litsea Cubeba Oil

In China, crop seeding for Litsea Cubeba will begin at the end of July, and new oil will become available between the end of August and early September. The crop sizes are expected to be the same as last year’s, that is, not large. Due to high labor and production costs, the pricing is expected to stay firm for new crops, and according to some reports, there is little urgency for farmers to collect.

Pelargonium_graveolens_5

Geranium Oil

In China, the rainy weather has prevented further production of new Geranium Essential Oil. The oil from the early season was low in Geraniol content, not having more than 4%, thus the carryover – with 6% Geraniol – was priced much higher. According to reports, the current demand is low, suggesting that buyers are waiting for better quality. With its eye on Chinese prices, Egypt has also started to raise its prices, asserting that this year’s crop is not as large as last year’s and that there is no more carryover.