Patchouli oil is produced by steam distillation of the dried leaves of Pogostemon Cablin.
The plant is native to tropical regions of Asia, and is now extensively cultivated in China, Indonesia, India, Malaysia, Mauritius, Taiwan, the Philippines, Thailand, and Vietnam, as well as West Africa.
Indonesia is the world’s largest producer of patchouli, accounting for over 80% of the global market. Patchouli is a perennial species that thrives in warm tropical climates. Current annual production volumes are around 1,000-1,200MT with market demand calculated to be around the same.
Over recent years there has been a shift in regional supplies of patchouli between the different islands of Indonesia. Historically we have associated Java and Sumatra with our patchouli but today Sulawesi represents around 80% of total raw material available. To understand more as to why and how this can affect qualities please read our Elementary Essential Oils report.
Ultra with PT Van Aroma as our production partner are the world's largest exporter and producer of Indonesian Patchouli Oil.
Available grades include 'Dark', 'Light' (iron free) and 'M.D.' (molecular distilled) with P.A. (patchouli alcohol) content ranging from 29PA - 34PA.
Read our latest report on Indonesia presented in October 2015 at the IFEAT conference in Sri Lanka, titled 'Indonesia - Current & Future Market Dynamics'
Patchouli oil has become a coveted ingredient in the F&F industry. The Indonesian essential oil market is sluggish yet patchouli speaks of a different story altogether. It continues its dream run with steady demand and climbing prices; a stark contrast to other essentials in the Indonesian repertoire. Recently, there is a marked shift of crop cultivation from South East Sulawesi to Central and North Sulawesi. This has thrown the established supply chain out of gear and resulted in a highly volatile and irregular supply. Consequently, source pricing is in a state of constant flux. The next harvest season is around the corner in April. At the moment, most of the global buyers have already procured their stocks through long term contracts; this is predicted to have a positive stabilising effect on the patchouli essential oil market. Prominent suppliers continue to work towards establishing a more sustainable supply network that will benefit the sector in the coming decades.
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