Market Report Winter 2021

JOY TO THE WORLD!

Welcome to the Winter edition of Ultra’s Market Report!

Browse and discover all the latest essential oils from growing regions around the world. In addition, our download version is packed full of additional articles including: The IFEAT Online Conference 9-10th November 2021; Naturals from Indonesia – An Update; Welcome to a Scent-tillating Christmas; Spanish Lemon: A Sustainable and Growing Industry and Powdering Wellness Essential Oils in Powder form open up new Product Opportunities.

Digital version available. Click to DOWNLOAD and save it to your favourite pdf so you have everything you need to know offline and on the go!! 

Want to print this report page by page? Then click the PRINT button in the top left corner!

Australia

Buddawood Oil

Buddawood Oil Eremophila mitchellii Harvest: March - October

There is consistent oil supply. Two MT of oil was produced in 2021.There is low demand for the oil. The shutting of duty-free has had a direct impact. The fragrance industry is a major consumer of buddawood oil. Luxury items are low priority at the moment.

Market price : USD 435.00 /kilo
Eucalyptus Radiata Oil

Eucalyptus Radiata Oil Eucalyptus radiata Harvest: April - November

This year the production of eucalyptus radiata oil in Australia was over 6 MT. The oil market has mostly been stable with no major fluctuations. Demand for the oil has been strong this year.

Market price: AUD 82 .00 /kilo
Lemon Myrtle Oil

Lemon Myrtle Oil Backhousia citriodora Harvest: June - August

Production in 2021 touched the 3 MT figure. A steady production and processing cycle is undertaken in Australia. Companies dealing with aromatherapy products have shown interest in the oil due to its appealing fragrance. Its usage has grown significantly.

Market price : USD 320 .00 /kilo
Sandalwood Oil

Sandalwood Oil Santalum austrocaledonicum Harvest: March - October

The market is stable, though closure of duty-free has impacted sandalwood demand. A large consumer of the oil is the fine fragrance industry.

Market price: USD 1350.00 /kilo
Tea Tree Oil

Tea Tree Oil Melaleuca alternifolia Harvest: May - November

Floods were responsible for reduced oil production in 2020. Last year production fell to 700 MT, though 2021 has seen production numbers reach 1,000 MT. There is a healthy demand for the oil in the market. The challenge for Australian farmers is varieties coming from other sources. This has increased competition. However, the oil price continues to be stable.

Market price: AUD 49.00 /kilo

India

Basil Oil

Basil Oil Ocimum basilicum Harvest: November - February

Estragole requirements can be covered presently. The new crop has arrived in the market. In terms of price, fluctuations are being witnessed at the moment.

Market price: USD 115.00 /kilo
Cornmint Oil

Cornmint Oil Mentha arvensis Harvest: May - July

Logistical issues continue to adversely affect production. High freight prices are responsible for expensive quotations. There is a healthy demand for DMO (dementholised oil), and fractions like cis-3-hexanol. This is keeping crude DMO prices high. In fact, DMO varieties with high menthol content are priced in the same bracket as menthol. On the other hand, the demand for menthol crystals is average. This has kept the price of finished menthol products at a low level. Mentha oil prices are firm in the market, primarily due to low supply of crude from farmers and stockholders.

 The current market price is not favourable for farmers. Around 1,500 MT of raw material is coming from Madhya Pradesh. This will help keep the market stable for the time being, but the upcoming crop in 2022 is expected to be lower than 2021. This will strain the supply of crude oil, and prices will rise in the coming quarter. Demand has been recovering post COVID, thus it is advisable to keep stocks.

Synthetic menthol is being imported into India in large quantities. Prices are under check due to the constant supply of synthetics. This despite menthol powder being exported to China on a regular basis.

Market price: Price on Request
Lemongrass Oil

Lemongrass Oil Cymbopogon citratus Harvest: July - November

It is advisable to keep required stock. There is healthy demand for the oil in the market. Fresh production should commence soon. But the oil price is high, and no reduction is expected in the near future.

Market price : USD 24.00 /kilo
Peppermint Oil

Peppermint Oil Mentha piperita Harvest: April - July

American peppermint is priced lower than the Indian variety. There are also numerous synthetics in the market. With so many alternatives, the price of Indian peppermint is not expected to rise exponentially, though it is still advisable to stock quantities. This is primarily because of farmers’ reluctance towards the crop. They are inclined towards maize, which will reduce the acreage of Mentha piperita in 2022. Currently, the market price is on the rise.

Market price: Price on Request
Spearmint Oil

Spearmint Oil Mentha spicata Harvest: July - August

All eyes are on the upcoming harvest in 2022. The current availability is at unhealthy levels. The product prevalent in the market is the adulterated version. At present, the oil price is at an all-time high.

Market price : Price on Request

Indonesia

Citronella Oil

Citronella Oil Cymbopogon winterianus Harvest: October - February

There is steady demand for the oil, though supply is limited, and logistic costs have escalated. Farmers lost interest in citronella due to diminishing returns. This led to reduced oil production. Currently the oil price is rising because of the demand-supply dynamics. This trend is expected to continue for the coming months.

Market price: USD 17.95.00 /kilo
Clove Oil

Clove Oil Eugenia caryophyllata Harvest: May - September

Weather has not been conducive for clove this year. Rains are still persistent. Lack of a dry spell is responsible for low raw material availability. This has led to a rise in the oil price.

Market price: USD 25.00 /kilo (EUGENOL USP 99.5% ), USD 24.00 /kilo (Clove Leaf 85%)
Nutmeg Oil

Nutmeg Oil Myristica fragrans Houtt. Harvest: All Year

The stock for minimum 10% myristcin material is extremely limited. The new normal is 8-9% myristicin. At present, the oil supply in the market is less than the demand.

Market price : USD 72 /kilo
Patchouli Oil

Patchouli Oil Pogostemon cablin Harvest: All Year

Currently, supply is exceeding demand. This is due to increased oil production. Prices have been stable.

Market prices : USD 56.00 /kilo (Patchoul IF) , USD 44.00 - 60.00 /kilo (Patchouli Dark )
Vetiver Oil

Vetiver Oil Vetiveria zizanioides Harvest: January - July

There is a steady demand for the oil, though the crop has become unsustainable for farmers due to the low market price. This almost halted production and price has doubled in the past three months. The Indonesian vetiver variety has a smoky note. Even though it is not preferable, it could potentially replace the Haiti variety in certain formulas. This is because of the geopolitical issues in Haiti, which have become a hindrance to vetiver production. Until the recent instability, Haiti was the leading global producer of vetiver.

Market price: USD 345.00 /kilo

Italy

Bergamot Oil

Bergamot Oil Citrus bergamia Harvest: November - March

Bergamot had a bumper crop in 2020/21 of 34,650 MT, though in the coming year it is expected to return to volumes produced in the previous two seasons produced from 1,650 ha. Local farmers continue to show interest in bergamot. It occupies just over 1% of cultivated citrus land. Almost all the bergamot crop is processed.

Market price: EURO 235.00 /kilo
Clementine Oil

Clementine Oil Citrus nobilis

Clementine is a natural hybrid of mandarin and sweet orange, and in terms of volume the second largest citrus fruit grown in Italy. Output in 2021/22 is forecast to grow by 3% to almost 700,000 MT produced from 26,000 ha. Approximately 20% of clementine are processed, a lower processed level than any other major Italian citrus fruit.

Market price: EURO 82.00 /kilo
Lemon Oil

Lemon Oil Citrus limon (L.) Burm. F. Harvest: November - January, April - July

Lemon production in 2020/21 was estimated at 475,000 MT from 25,000 ha. The harvest is expected to decline by 30% in 2021/22. This will directly impact the volumes available for processing, which could come down by a quarter. Approximately 35% of lemon output is processed.

Market price: EURO 24.00 /kilo
Mandarin Oil

Mandarin Oil Citrus reticulata Harvest: February - May

Mandarin is grown on 8,500 ha, approximately 6% of cultivable citrus land. Production in 2020/21 was 150,000 MT. In the 2021/22 season a 30% decline in the harvest is expected with output at 105,000 MT resulting in a similar decline in processing volumes. Approximately 25% of the mandarin crop is processed.

Market price: EURO 79.00 /kilo
Orange Oil CP

Orange Oil CP Citrus sinensis Harvest: March - May

Orange accounts for almost 60% of Italian citrus fruit production and is grown on 82,000 ha. of which 65% is dedicated to navel and other blond oranges and 34% to blood oranges. The harvest in the coming year is expected to decline by a potential 40%. This will impact the volume of oranges processed which has been estimated at 40% of output but can be even higher.

Market price: EURO 16.00 /kilo

New Zealand

Manuka Oil

Manuka Oil Leptospermum scoparium Harvest: April - October

The oil market is stable. The appeal of Manuka for the aromatherapy industry has kept demand at a healthy level. The oil price is steady and not expected to change much.

Market price: AUD 1000.00 /kilo

USA

Grapefruit Oil

Grapefruit Oil Citrus paradisi Harvest: December - April

The USDA upped its estimate on 2021/22 US grapefruit production to 11.1 million boxes compared with 10.4 million the previous year. It is now predicting Florida will produce 4.1 million boxes up from 3.3 million boxes in October and November. Red grapefruit will account for 3.3 million boxes and white grapefruit at 800,000 boxes. In both cases, fruit size is predicted as above average and droppage below average. The forecast for California grapefruit production, 3.9 million boxes, is unchanged from last season. Texas grapefruit production is expected to increase from 2.4 million boxes last season to 3.1 million boxes this season.

USA: ESTIMATED GRAPEFRUIT PRODUCTION 2018/19 TO 2021/22 (‘000 BOXES)

Market prices : USD 59.50 /kilo (White), USD 32 /kilo (Pink)
Lemon Oil California

Lemon Oil California Citrus limon (L.) Burm. F. Harvest: May - July

California dominates US lemon production, with the USDA forecasting Californian production in 2021/2022 of 21 million boxes out of US production of 22.3 million boxes, Arizona accounting for the remainder. Estimated total production is slightly up on 2020/21 levels but substantially below earlier years.

USA: ESTIMATED LEMON PRODUCTION 2018/19 TO 2021/22 (‘000 BOXES)

 

Market price: USD 35.00 /kilo
Orange Oil

Orange Oil Citrus sinensis Harvest: February - May

In mid-December the USDA presented its latest citrus crop forecast with total USA orange production in the 2021/22 season expected to reach 90.05 million boxes, split almost equally between Florida (46 million boxes) and California (43.5 million). The projection for Florida Valencia oranges at 28 million boxes has not changed, while forecasters now say Florida will produce 18 million boxes of non-Valencia oranges, down from a projection of 19 million boxes in October and November. Though the reduction is slight, it comes amid a years-long slide in those projections, with the forecast already the lowest in at least 25 years. However, this year is unlikely to be worst in terms of final production since during the 2017/18 season Florida produced fewer than 19 million boxes of oranges and 3.9 million boxes of grapefruit due to the impact of Hurricane Irma.

Fruit drop has severely impacted orange yield in Florida. According to the USDA citrus crop forecast, the estimate of fruit drop for early/mid-season and Valencia oranges was 43% and 34% respectively. There are four basic parameters that are assessed in compiling the forecasts: the number of bearing trees, number of fruits per tree, fruit size and fruit loss from droppage. The first two of these parameters have the greatest influence on the forecast.

USA: ESTIMATED ORANGE PRODUCTION 2018/19 TO 2020/21 (MILLION OF 40.8 KG BOXES)

Market price: USD 16.00 /kilo