October 2024
The October 2024 Market Report provides a comprehensive overview of the latest market conditions for several prominent essential oils. As we enter the final quarter of 2024, this month’s outlook underscores the ongoing variability in crop yields due to climate conditions. While some oils, such as Ravintsara and Basil (India) Essential Oils, are experiencing favorable growing seasons, others, like Sage Organic and Frankincense – Boswellia carterii, face production challenges that may impact supply and pricing. A common alternative to Lavender, Lavandin Grosso Essential Oil, also experienced numerous setbacks, including frost in the spring and irregular rainfall. However, the supply and demand for this variety of Lavandin Oil are stabilized by a surplus of stock from previous years. Buyers should remain vigilant and plan their bulk orders accordingly, as market dynamics may shift as we approach the end of the year.
Continue reading to stay informed on the latest industry trends from the experts at New Directions Aromatics.
Sage Organic Essential Oil
The organic variety of Sage Organic Essential Oil is steam distilled from the leaves of Salvia officinalis, an evergreen perennial herb grown in Spain. The harvest season begins in March and lasts until May annually. This variety of Sage thrives in a warm, sunny climate with at least 6–8 hours of direct sunlight each day. The ideal soil type is well-draining sandy loam with a pH between 6.0 and 7.0. Since the region experienced higher-than-usual temperatures during this growing season, the crop’s productivity was affected, leading to a 25% reduction in raw material availability compared to last year.
While Sage Organic Essential Oil is somewhat available, the shortage is exacerbated by rising demand for dried herbs, likely keeping market prices elevated. Crop yields are down from the previous year, and with ongoing high temperatures, production remains strained. Buyers should expect reduced availability, especially for organic supplies, with the next bulk order pricing opportunities arriving in early 2025.
Ravintsara Essential Oil (Madagascar)
Ravintsara Essential Oil is steam distilled from the leaves of the Cinnamomum camphora grown in Madagascar. The harvest season for this oil takes place between September and December annually. The Cinnamomum camphora tree thrives in the humid, tropical climate of Madagascar, requiring temperatures between 20°C and 30°C and humidity levels of 60%–90%. Grown in fertile, slightly acidic to neutral soils, the harvest is primarily conducted in Fianarantsoa and Antsirabe.
The crop outlook for this year is positive, with favorable weather conditions contributing to a projected 10% increase in yield compared to last year. Although tropical cyclones present occasional challenges, no major issues have been reported so far. The market demand for Ravintsara Essential Oil remains steady, and no significant shortages are expected. This stable production cycle suggests that prices will remain consistent, with bulk orders best placed ahead of the peak harvest period in late 2024.
Lavandin Grosso Essential Oil
Steam distilled from the flowers of the Lavandula hybrida plant, grown in Provence's Plateau de Valensole, Lavandin Grosso Oil is known for its clean, strong, and natural aroma, making it an effective alternative to Lavender. This variety of Lavandin is harvested in July, requiring hot summers, moderate rainfall, and porous, calcareous soils to thrive.
The 2024 harvest faced challenges from irregular rainfall patterns, pest infestations, and frost in the spring, resulting in mixed crop yields across the region. While some areas produced satisfactory results, others reported early dieback of the plants, with some crops being uprooted earlier than expected. Despite these setbacks, market availability for Lavandin Grosso Essential Oil remains stable, thanks to rolling stock from previous harvests, preventing any immediate shortages. Bulk pricing is expected to stabilize through the fall, and yields are forecasted to match last year’s output overall.
Frankincense Essential Oil – Boswellia carterii
Frankincense Essential Oil – Boswellia carterii is steam distilled from the resin of the Boswellia carterii tree, which is harvested from April to September annually. Sourced from the Bari region in Puntland, Somalia, Boswellia carterii thrives in hot, dry climates and grows well in rocky soil. Overharvesting had previously reduced productivity, but this year saw a 40% reduction in harvesting to allow the trees to rest, addressing past sustainability issues. This will result in a notable decrease in supply. Fortunately, a recent shipment of 80 tons of resin has reached the UK distillery, ensuring no immediate shortages.
Market demand for this variety of Frankincense Essential Oil is steady, and while yields are down compared to last year, prices should remain relatively stable due to the available stock.
Basil Essential Oil (India)
Basil Essential Oil from India is steam distilled from the leaves of the Ocimum basilicum herb, which is harvested between March and May annually. The Ocimum basilicum crop thrives in loamy sand soil and grows best in temperatures ranging from 80°F to 90°F. The 2024 harvest in India was stable, benefiting from favorable weather conditions throughout the growing season. As a result, market availability for Basil Essential Oil remains consistent, with no significant fluctuations in supply or pricing expected in the coming months. Compared to last year, there has been a slight increase in yield, ranging from 0.3% to 0.7%, which should keep the market well-supplied. Buyers can expect steady pricing for bulk orders, especially during the June-July pricing window.