MARKET REPORT NOVEMBER 2023
The November 2023 Market Report provides comprehensive insights on the current trends of the most in-demand essential oils, carrier oils, and raw materials. This month's report reveals significant changes and opportunities within the market. Peppermint Japanese Essential Oil is encountering challenges as it is witnessing historically low prices while the cost associated with cultivating and extracting this oil have increased. In the case of Frankincense Essential, specifically the Boswellia serrata variety, there is a noticeable decline in the market demand, however, the projected harvest yield remains stable.
Regarding this month's in-demand carrier oils, the production of Chinese Borage seeds is facing weather-related setbacks this year, yet the market demand for Borage Carrier Oil is expected to rise. Meanwhile, there is a growing demand for Baobab Organic Carrier Oil, and it is projected that the price will stabilize once the newly planted seeds are harvested. Lastly, Carnauba Wax experienced a delayed harvest in Brazil, accompanied by a a 25% increase in price.
Continue reading to stay up to date on the latest industry trends from the experts at New Directions Aromatics.
Peppermint Japanese Essential Oil is steam distilled from the Mentha arvensis herb cultivated in India. The Indo-Gangetic plains of Uttar Pradesh contribute 80% of the total mint production, while the remaining 20% is distributed across Madhya Pradesh, Bihar, Punjab, and Haryana. Cultivated during the Zaid season between Rabi and Kharif, the mint crops thrive in the humid sub-tropical climate integral to the foothills of the Himalayas.
Despite improved crop growth this year, challenges persist in the form of historically low Mint Oil prices and increased cultivation costs. Many farmers have shifted to alternative crops like maize, reducing the overall production by 5-10% compared to the previous year. These trends in production and price are anticipated to remain until the end of the season. The market is facing further threat from the rise of synthetic menthol, as well as decreasing international demand because of inflation.
This variety of Frankincense Essential Oil is regarded as "true Frankincense" and is steam distilled from the Boswellia serrata resin grown in India. The gum residue of the Boswellia serrata tree is primarily collected between November and March. Since it is a wild species found in the forests of central and western India, it is a slow-growing tree that produces gum after 8 to 10 years. The Boswellia tree grows best in soils ranging from red lateritic to dry sandy stone ridges of forests. Regarding climate conditions, this ancient tree requires hot and dry climates with temperatures ranging from a minimum of 7 degrees and a high of 40 degrees Celsius. The ideal rainfall is approximately 125 cm.
There is no substantial change in projected harvest yield between last year and this year for the Boswellia tree resin. However, the market demand and conditions for Frankincense Essential Oil has decreased slightly compared to previous years.
Borage Carrier Oil is cold pressed from the Borago officinalis seeds grown in China, and is refined for ease of use in cosmetic formulations. New seeds are harvested in autumn, taking place between late September and early October. This year, Chinese Borage suffered from disastrous weather conditions, including typhoons and heavy rainfall, during its flowering and fruiting periods. This led to unfavorable growing conditions for the annual harvest of raw materials. The ideal weather conditions include cool and mild climates, with an average temperature ranging from 5 and 30 degrees Celsius. The plant can tolerate temperatures as low as -11 degrees Celsius while also being heat resistant. Soils with a pH ranging from 4.5 to 8.3 are suitable for growing Borage seeds, as well as sandy loams with deep and loose soil layers.
The market demand for Borage Carrier Oil is expected to rise steadily this year. Due to the alternating period of new and old raw materials, the price fluctuation is significant. However, once the newly planted seeds are harvested, the price of Borage Oil will remain stable at a slightly higher price point compared to that of last year.
Baobab Organic Carrier Oil is cold pressed from organically grown Adansonia digitala L seeds of Senegal. Harvest takes place between January and April annually. Since the Baobab tree is considered a wild crop, its growing conditions are favorable. The tree grows best in subtropical warm temperatures and semi arid areas with little moisture. Sandy to sandy loam soils are best for this crop because their roots do not tolerate sanding water for long periods of time.
TThe projected harvest yield for Baobab seeds is at the same level as last year. The market demand for Organic Baobab Carrier Oil depends on the pulp/fruit since the seeds are a by-product of pulp production.
Obtained from the leaves of the Copernica Cerifera tree Brazil, Carnauba Wax and other varieties of Carnauba palms are integral to Brazilian life. Harvest typically begins at the end of June and July, although carnauba straw cutting began later this year in August. Despite the delay, there has been minimal impact on stocks or prices, primarily attributed to the global demand for carnauba wax in 2023 being lower than usual. Industries are anticipating a potential increase in demand in the last quarter of the year; otherwise, 2023 may witness even lower Carnauba Wax exports than the previous year, which already experienced subdued demand.
The delay did not have negative repercussions on Carnauba Wax, instead, it reduced pressure on raw material prices in the short term. The peak of the harvest is projected for the end of November, making it uncertain whether the total volume of raw materials produced this year will align with normal levels. The price of carnauba wax has increased by 25% this year, with the pace of the surge showing signs of moderation. The stabilization is attributed to the devaluation of the Brazilian currency and the initiation of the harvest, marking key variables influencing price trends.