MARKET REPORT WINTER 2016
The following report contains updates on the current trends in production and availability of the most in-demand Essential Oils and Raw Materials sourced from around the globe.
Overharvesting of sandalwood has caused a shortage for both Santalum spicatum and Santalum album. To address the shortage, in the 1990s sandalwood had also become a plantation crop meant for future harvest. Today, some trees from plantations have reached maturity for harvest and plantation wood is slowly coming into the market which should ease the strain in the market in the years to come. The plantation sandalwood should reduce the high cost for Sandalwood Oil and aid with balancing supply and demand. Prices are still firm as of right now as this new oil is only starting to become available in the market and demand is still very high.
There are supply issues for Rosemary Essential Oil currently. The 2016 season came up short and when batches of Rosemary Oil become available again stock is quickly sold at asking price. Prices will remain firm in the meantime.
Prices are quite high for Vetiver Oil due to high demand and lagging supply. The hurricane that swept Haiti caused a massive impact on the supply of vetiver, thereby causing an imbalance in the Vetiver Oil market as Haiti is one of the leading producers of this oil. Prices can be expected to be held firm in the meantime.
Prices are reasonably steady for Jasmine Absolute despite a drastic decline this year in production from India due to monsoon failure. Overall production of jasmine in the market is expected to be slightly higher this year compared to last. Egypt is the largest producer of jasmine and production this year is good. Demand is always high for Jasmine Oil especially for use in perfumery. Supply and demand is balanced throughout the market keeping prices relatively stable.
Despite a slow start in the growing season, this year has seen regular production of Rose Absolute, slightly better than last year's crop. Some countries producing rose have seen some difficulties with weather conditions, while others had abundant harvest, and so supply hasn't changed much from 2015. However, the cost of rose blossoms is ever increasing, as the market for natural flavouring and natural perfuming ingredients are on the rise. It is a competitive market and prices will remain high because demand is increasing.
Although this year produced a fair amount of ylang ylang, it is a hot commodity and prices are very high. Supply of Ylang Ylang Oil is not abundant, and until it becomes widely available in order to satisfy the market, prices will likely remain firm and rising.