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.
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.
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.
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
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 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.
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 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.