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 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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.