Citronella oil is extracted from a grass (Cymbopogon winteranus) native to Sri Lanka and Java (Indonesia). The species Cymbopogon winteranus is used for the production of citronella oil by steam distillation.
Citronella is commonly used in soaps, candles, perfumes and other products in the cosmetic industry. It is also a plant based, non toxic insect repellant, registered for this use in the United States since 1948. You will find it listed in many topical products.
As a perfumery ingredient it has been historically well represented due to its citronellal, citronellol and geraniol content.
Often referred to as 'Citronella Oil Java Type' due to its origins. Indonesia is the second largest producer behind that of China. It is estimated that the total world production of citronella is around 4,000 tons with China and Indonesia representing a 40% share of this volume.
Historically China has had a lower cost basis for this product and as a result is the dominant producer, however that is changing, so keep an eye on our market updates to find your most competitive source.
The use of citronella oil in personal care, hand sanitiser and hygiene products has led to a surge in demand in the past six months. For the next 3-5 months the supply and price of the oil is expected to be stable. The scale of production in Indonesia makes it a stable crop. In the last 18 months there has been a significant increase in production and the exports in the first half of 2020 exceeded 700 MT. With the current oil price just above the production cost, there is hardly any room for the price to go down. Plantations remain largely unaffected.
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