MARKET REPORT MAY 2023
The May 2023 market report features insights on this month's most in-demand essential oils. Ho Wood Essential Oil is expected to increase in supply while maintaining a steady market, along with Spearmint Organic Essential Oil. The demand and conditions for Sandalwood (East Indian) Essential Oil has leveled out and is stabilized due to a slowdown in the market. Meanwhile, Juniper Berry Essential Oil is experiencing an increase in demand with steady market conditions. As the demand for Rosemary Essential Oil – ct. Cineole (Hungary) continues to rise, the market conditions remain uncertain due to escalating prices and production costs.
Continue reading to stay up to date on the latest industry trends from the experts at New Directions Aromatics.
Ho Wood Essential Oil is steam distilled from the branches and leaves of the Cinnamomum camphora tree grown in China. Ho Wood can be harvested year-round and thrives in moderate climate conditions. The best soil types for the Cinnamomum camphora tree include light (sandy), medium (loamy) and heavy (clay) soils that are well-drained. While Ho Wood can grow in very acidic and very alkaline soils, it grows best in soils with a neutral and slightly basic pH level. Currently, the growing conditions are favorable.
In terms of market dynamics, there has been a slight decrease in demand for Ho Wood Essential Oil. However, this year's projected harvest yield is expected to be 1.2%-2% higher than the previous year.
Known for its rich and balsamic scent that is reminiscent of pine needles, Juniper Berry Essential Oil is steam distilled from the Juniperus communis berries cultivated in India. Harvest takes place in July, and the crop thrives in brown and moist soil with cooler temperatures. Although the current growing conditions are favorable for the Juniper Berry, the projected harvest yield is expected to be lower due to snowfall.
In terms of market trends, there is an upward trajectory in the demand for Juniper Berry Essential Oil, while the market conditions remain stable.
Sandalwood Essential Oil is highly valued in aromatherapy for its balsamic, rich, and woody aroma. It is steam distilled from the wood of the Santalum album tree, predominantly grown in India. Sandalwood is available year-round and is only used for extracting oil since the wood has been subject to overharvesting. Santalum album grows best in ample sunlight, moderate rainfall, and in a dry climate throughout most of the year. While the Sandalwood tree prefers red ferruginous loam soil, it can also be planted in sandy soils, red clay soils, and vertisols, which is a type of clay-rich soil known for forming deep mud cracks in dry spells. The ideal weather conditions include temperatures that range from 12 to 30 degrees Celsius (53 to 86 degrees Fahrenheit), with an average rainfall of 850-1200 millimeters (33-47 inches).
The projected harvest yield is anticipated to be similar to that of last year, with a slight increase of 3-5%. Due to slower market conditions, the demand for Sandalwood Essential Oil remains stable.
Spearmint Organic Essential Oil steam distilled form organically grown Mentha spicata herb grown in India. Spearmint possesses a similar invigorating aroma as Peppermint, although it is sweeter and less sharp. Harvesting for Mentha spicata occurs between May and June, and the current growing conditions are favorable. Spearmint thrives in warm and hot climates, preferably in brown soil.
The projected harvest yield for this year is approximately 0.8 to 1.2% higher compared to the previous year. The market demand for Spearmint Organic Essential Oil remains stable, and the overall market conditions are steady.
Rosemary Essential Oil – ct Cineole is steam distilled from the Rosmarinus officinalis leaves cultivated in Hungary. The harvest season typically spans from mid-June to September, and the current growing conditions are favorable. Rosmarinus officinalis thrives in southern calcareous soil and in sunny locations with relatively low rainfall.
The market demand for Rosemary Essential Oil – ci Cineole from Hungary is on the rise, primarily because a significant portion of the annual needs have already been contracted. However, the market conditions are currently uncertain due to the escalating prices of raw materials and increased production costs. The projected harvest yield for Rosemary is slightly higher than that of the previous year.