MARKET REPORT NOVEMBER 2024

Known for its warm, spicy, and balsamic woody aroma, this variety of Frankincense Essential Oil is steam distilled from the resin of the Boswellia serrata tree grown in India. Harvested in two main seasons from March to June and October to January, Boswellia serrata trees require well-drained, limestone-rich soils and temperatures between 24–32°C during the day and 10–15°C at night.

Currently, the yield for Boswellia serrata is down 8-12% compared to last year due to low-quality crop and reduced raw material availability. This reduction is partly due to recent years of low demand, which decreased investment in crop health. Market demand for Frankincense Essential Oil (Boswellia Serrata) remains steady, though lower-quality raw material could tighten availability in the coming quarter. Early bulk orders are recommended around May, as supply remains constrained.

The Ceylon variety of Cinnamon Bark Essential Oil is steam distilled from the bark of the Cinnamomum zeylanicum, a tropical evergreen tree native to Sri Lanka. The harvest period for Cinnamomum zeylanicum takes place from June to December, preferably grown in sandy soils at elevations up to 250m. Consistent rainfall between 1,750–3,500 mm annually and temperatures from 25–32°C are crucial for a healthy yield.

Currently, the crop is facing a 25% yield reduction due to a lack of fertilizer last year. Despite this, market demand for Cinnamon Bark Oil is strong, outpacing supply and leading to tight market conditions. Limited availability and increased interest could drive prices upward, with bulk order inquiries best placed from May through October to secure product at stable rates.

Lemongrass Essential Oil is steam distilled from the Cymbopogon flexuosus, a perennial crop grown in South India. Cymbopogon flexuosus is harvested every three months, except during heavy monsoon and peak winter, when yields typically drop. Lemongrass thrives in well-drained, sandy loam soil and requires a warm, humid climate with consistent sunshine.

This year, as winter approaches, the yield and quality are expected to decline, with oil quality dipping between November and February. While yields are steady at around 0.1–0.2%, the seasonally lower quality and potential disruptions during winter could affect supply. Demand for Lemongrass Oil remains consistent, but buyers should monitor for potential seasonal shortages.

Carrot Seed Essential Oil is steam distilled from the domesticated form of the Daucus carota, the wild carrot grown in India. Harvest takes place in August when the crops are grown at elevations above 1,000 meters or in the plains. Daucus carota thrives in a range of soils including those commonly shared with wheat and mustard crops, while warm summers and assured irrigation also support stable yields.

This year, yield levels are consistent with last season, though climate variations have slightly affected oil recovery rates. Demand for Carrot Seed Essential Oil remains steady, and no significant shortages are anticipated, making it a reliable option for formulators through the end of the year.

A hydrating carrier oil that is rich in Vitamins A, E, and linoleic acid, Cacay Nut Oil is cold pressed from the unrefined seeds of the Caryodendron orinocense tree grown in India. The main harvest period for the Caryodendron orinocense nuts spans September to December, with the trees flourishing in the warm, tropical climates of northeast India, as well as the Andaman and Nicobar Islands. These regions are characterized by loamy, organic-rich soil that are the ideal foundation for growth.

While yields remain stable this year, factors such as increasing global demand for natural oils and potential disruptions in weather could influence supply in the next quarter. Ongoing interest in Cacay Nut Carrier Oil may drive demand upward, with current availability expected to remain balanced but susceptible to fluctuations.