Market Report Winter 2024 January 2025

Welcome To The Winter Edition
 Ultra International

Browse and discover all the latest information on key essential oils from around the world. In addition, our downloadable version is packed with additional articles, including A Fragrant Winter Collection, IFEAT Bangkok 2024: A Vintage Ride, and something interesting facts about Neuroscents.

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China

Citronella Oil

Citronella Oil Cymbopogon winterianus Harvest: June - December

The major producers of citronella are China, Vietnam, Indonesia, Argentina, Taiwan, Sri Lanka, Brazil, and India. It prospers in tropical and subtropical conditions. Yunnan is the biggest producer of citronella in China. The southern areas of Lvchun and Yinjiang in Yunnan are the primary producers of the oil. Citronella plants have clusters of pink and purple blooms. The flowers are unscented, and fragrance comes from the leaves. In warmer climates, citronella blooms all year-round, while in colder climates it blooms from spring to fall. An annual rainfall of 2000-2500 mm and high atmospheric humidity favourably impact the quality of the harvest, and the resulting oil produced. At present, there is limited supply and considerable demand for the oil in the market. Even suppliers in possession of citronella oil are holding stock with expectations of further price increase. Others are only releasing stock to fund the upcoming National New Year. Overall, there has been a consistent rise in oil price.

Market prices : USD 22.00 /kilo
Eucalyptus Oil

Eucalyptus Oil Eucalyptus globulus Harvest: July - October

Eucalyptus is mostly cultivated in temperate and tropical regions of India, Americas, Africa, Mediterranean basin, middle east and china. The provinces of Yunnan, Jiangxi, Guangxi, Guizhou are major eucalyptus producing areas in China. The regions of Dali and Lincang in Yunnan produce bulk of eucalyptus globulus oil. Annual demand for eucalyptus oil is between 200-300 tons, but recent trends indicate a drop in production. There is low stock of oil with farmers. At the current value oil price is unable to offset the cost of production. high labour costs are the primary reason for the increased cost of production. Lincang has massive growing areas. But due to the price dynamics, farmers are unwilling to distil the oil.

Market prices : USD 14.00 /kilo
Geranium Oil

Geranium Oil Pelargonium graveolens Harvest: May - September

Yunnan and Sichuan provinces are the major producers of geranium oil in China. The regions of Binchuan, Heqing and Yongsheng in Yunnan are home to large geranium cultivations. Geraniums flourish in sunlight. Though in areas with hot summers, it is advisable to plant them in areas that get morning sunlight and shade in the afternoon. Well-drained soil is essential for their propagation. Geranium oil has been fetching a low price in market and the cost of production has increased. Together, the two factors have resulted in a decline in farmer interest in distilling the oil. The plantation areas have reduced, and farmers are moving towards other cash rich crops. At present, the season for oil production has concluded and the stock is almost over. This has resulted in about a 9% increase in price compared to September.

Market prices :USD 175.00 /kilo
Litsea Cubeba Oil

Litsea Cubeba Oil Litsea cubeba Harvest: July - September

Litsea cubeba is also known as mountain pepper. It flourishes in tropical and subtropical areas of southeast Asia, southern China, Taiwan, and Japan. The primary oil producing areas in China are Yunnan, hunan, Guangxi, and Jiangxi. It is a deciduous shrub that can grow up to seven meters in height. It flowers between March and April and its seeds ripen from August to September. The plant prefers moist and mildly acidic or neutral soil for growth. Litsea cubeba can grow at heights from 300 to 3200 meters. The oil extracted from the plant is known for its antioxidant, antibacterial, and antiparasitic properties. A farmer on an average distils one ton of oil every three days. According to industry estimates, the annual production in China does not exceed 300 tons. Most of the stock has already been sold in the market. A few farmers are holding on to limited volumes with an expectation of increase in prices. Limited stocks have resulted in higher price.

Market prices : USD 48.00 /kilo
Star Anise Oil

Star Anise Oil Illicium verum Harvest: March - May, November - December

Star anise is indigenous to south-east China. About 80-90% of the world’s production is accounted for by China. Other major producers are Vietnam and India. There are two ripening cycles for star anise, and it is categorised accordingly. Spring star anise ripens between February and March, while the autumn one ripens from August to October. In china, Guangxi and Guangdong are the primary star anise oil producing regions. There is global demand for oil obtained from the leaf, while fruit oil hardly finds any buyers in the international market. Thus, farmers hardly distill fruit oil. Generally, orders are received for small quantities, thus suppliers maintain leaf oil volumes in the range of 4-5 tons. Only when there is confirmation of large orders do suppliers produce on the large scale. Currently, there is low yield of star anise oil. Price is also declining due to limited demand in the market.

Market prices :USD 30.00 /kilo
Wintergreen Oil

Wintergreen Oil Gaultheria procumbens Harvest: July - September

Wintergreen is mostly found in the wild, and hardly cultivated. It is a perennial plant which grows up to 4-8 inches in height once fully matured. It requires partial sunlight and well-drained soil for its growth. It is resistant and can survive nutrient rich and poor soil, though soil acidity should be between 4.5-6. It blooms during summer and has white and pink flowers. The mountainous regions of Deqin, Lijiangyongsheng, Daliyangbi, Eryuan, Weishan, Yunlong, Baoshan, Lincang, and Simaojinggu in China are home to most of the wild wintergreen trees. The majority of oil production in China takes place in the southeast and northeast regions as well as Yunnan. Wintergreen oil is extracted from the leaves of the plant. Natural material is first fermented, and then distilled to acquire pure oil. Currently, the demand and supply of the oil are balanced in the market. Price is also holding steady.

Market prices : USD 60.00 /kilo

Eastern Europe

Coriander Seed Oil

Coriander Seed Oil Corriandrum sativum L. Harvest: July - August

coriander seed oil is extracted from the dried seeds of coriander plant through multiple methods like steam distillation, hydro distillation, and supercritical carbon dioxide extraction. The oil obtained is colourless or pale yellow with a mild, sweet, and aromatic flavour. It has antifungal and anti-bacterial properties and is used as a flavouring agent, in cosmetics, perfumery, skin the easteran european and haircare products, and pharmaceuticals. New crop has arrived and there is steady demand for coriander seed oil. Customers are stocking product required till the summer of 2025 looking at the low availability in the market. This year Eastern Europe has witnessed significant drop in coriander seed due to reduced plantings, and low yielding seeds. Unfavourable weather conditions have impacted the yield of seeds per hectare of land. Coriander seed prices have increased leading to a rise in oil price by 15-20% compared to the first half of 2024

Market prices : USD 85.00 /kilo
Fir Needle Oil

Fir Needle Oil Abies sibirica Harvest: November - December

Fir trees are part of the pine family and prosper in cool, moist regions of Central America, Europe, North America, North Africa and Asia. Fir trees are evergreen coniferous trees that are distinguishable from other pine trees by their needle like leaves, growing directly from the branch. Fir needle oil is extracted from fresh needles and branches of fir trees. It has an earthy, woody aroma and is used in products like fragrances, air fresheners, soaps and shaving creams. It is advisable for customers to cover demands well in advance. Severe winter conditions in Siberia have made the collection and transportation of raw material impossible. The situation is expected to persist until spring. There is a stable supply in the market, though smaller batches are available compared to previous years. Supplies are being routed to Siberia through neighbouring countries, which remains a challenging undertaking. Though supply volumes have improved in 2024 as compared to 2023.

Market prices : USD 58.00 /kilo

India

Black Pepper Oil

Black Pepper Oil Piper nigrum L.

Last year Karnataka, Kerala and Tamil Nadu were the largest producers of black pepper in India. Black pepper is a flowering vine, which is cultivated for its fruit. The fruit is usually dried and is famous as a spice and for seasoning. The colour of the dried unripe fruit depends on the period of harvesting. To get black pepper almost ripe peppercorns need to be picked. They are then left to be dried, until they turn black. Black pepper oil is extracted via steam distillation from dried berries of peppercorn plant. The resulting oil is strong with a spicy aroma and is pale green or yellow in colour. Other than steam distillation the oil can also be extracted using supercritical cO2 extraction, hydro-distillation and solvent extraction. Black pepper oil is used by the food and beverage industry, as well as an ingredient in cosmetics. It can be used to exfoliate the skin, reduce acne and nourish cells. Though it may cause skin irritation, it should be avoided on sensitive skin.

Market prices : USD 55.00 /kilo
Cardamom Oil

Cardamom Oil Elettaria cardamomum Harvest: September - December

Cardamom is native to India and ceylon, but is also cultivated in Papua New Guinea, Tanzania, and Guatemala. The crop flourishes in tropical rainforests with temperatures in the range of 15-35oC. Cardamom thrives in loam soil, which is acidic in nature with pH levels between 5.5-6.5. Cardamom plants can achieve a height of 6-16 ft before they produce pods. Apart from being a popular spice in food, cardamom also has several health benefits. It helps in digestion, lowering blood pressure, managing diabetes, and protecting against dental health issues like cavities. When it comes to large cardamoms, Arunachal Pradesh emerged as the biggest producer in 2023-24 with 117,049 tons. Other notable contributions came in from Sikkim with 5,280 tons and Nagaland with 1,128 tons. In case of small cardamoms, the three southern states of Kerala, Karnataka and Tamil Nadu emerged as the largest producers last year. Kerala topped the charts with 228,668 tons, followed by Tamil Nadu with 1,495 tons and lastly Karnataka with 867 tons.

Market prices : USD 550.00 /kilo
Celery Seed Oil

Celery Seed Oil Apium graveolens Harvest: May - June

Celery requires a mixture of bright sunlight and shade to grow. It requires about six hours of sun per day but should be kept in shade when temperatures become extremely hot. It requires plenty of water, thus the soil should be evenly moist. pH levels of 6-7, and regular fertilization is ideal for celery cultivation. Fully matured celery grows up to 18-24 inches in height. The stalks of celery are delicate, have a crunchy texture, and are slightly salty in taste. Celery is a biennial vegetable that belongs to the same family as carrots, fennel, parsley, and dill. While, celery stalks are considered its most prized element, the leaves and roots of the plant are great for seasoning and work as a natural medicine. In India, Punjab is the largest producer of celery accounting for nearly 90% of total produce. In 2023-24 production volumes in Punjab stood at 6,537 tons.

Market prices : USD 78.00 /kilo
Clove Leaf

Clove Leaf Syzygium aromaticum

Clove is native to Maluku Islands in Indonesia, but also grows in the tropical regions of Asia, Africa and Americas. In India, clove grows in the hilly areas of Kerala, Tamil Nadu, and Karnataka. clove leaf oil is extracted from the leaves of clove plant via steam distillation. The oil obtained is clear to pale yellow in colour and has a spicy, herbal and powdery aroma. The primary components of the oil are eugenol and caryophyllene.

Clove leaf oil is used as a flavouring agent in food items and teas. It is also popular in oral care as it is known to relieve toothaches. Big exporters of clove derivatives have imported substantial quantities from Madagascar. This has stabilised the price of clove leaf oil. Though there is no certainty that the price trend will hold. With the commencement of the rainy season, weather conditions, and the demand and supply dynamics will determine the price scenario.

Market prices : USD 26.00 /kilo
Coriander Seed

Coriander Seed Coriandrum sativum

Coriander is native to southwestern Asia, southern Europe and northern Africa. Its chemical composition is comparable to lavender. A green leafy herb it grows up to three feet in height. The leaves and seeds of the plant are high in linalool content, lending it medicinal properties. Coriander oil is produced from the seeds of the plant via steam distillation. Through this process the volatile compound within coriander seeds is evaporated, and 100% pure essential oil is obtained. Apart from being a kitchen essential, coriander oil has numerous benefits for the skin, hair and body. Mixed with a carrier oil it can prevent breakouts and soothe muscle aches. It has a stimulating spicy aroma that can enhance concentration and encourage a sense of relaxation. In 2023-24 Madhya Pradesh, Gujarat and Rajasthan were the leading producers of coriander seed in India. With 432,823 tons Madhya Pradesh produced the highest volume, followed by 172,000 tons from Gujarat and 107,237 tons from Rajasthan.

Market prices : USD 135.00 /kilo
Davana Oil

Davana Oil Artemisia Pallens Harvest: February - April

Davana also known as Artemisia pallens is a miniature aromatic plant cultivated primarily in Karnataka, Tamil Nadu, Andhra Pradesh, Maharashtra and Kerala. Oil from the plant is extracted from the flowers via steam distillation. The primary component of the oil is davanone. It has a sweet, fruity aroma with subtle woody and spicy notes.

Davana flourishes in mild winter when planted early in the season. Though it is averse to frost but grows well in light showers. If the flowering season receives heavy rainfall or witnesses high temperatures, the resulting crop has low oil yield. There is high demand for the oil in the market, but supply is limited, especially of highgrade quality.There are no stocks with farmers and only big producers have supply currently. however, oil with low davanone content is easier to access in the market. It is difficult to predict the yield for the 2025 season. heavy rainfall in davana growing areas has negatively impacted the supply. Further rain is predicted in the coming weeks, which could impact the harvest cycle.

Market prices : USD 460.00 /kilo
Ginger Oil

Ginger Oil Zingiber officinale Harvest: January - April

India is the largest producer of ginger in the world. Other countries that are actively involved in ginger production include Indonesia, Japan, china, Jamaica, Nigeria, and Brazil. Madhya Pradesh, Karnataka and Odisha produced the highest volumes of ginger in 202324 in India. Approximately 588,289 tons of ginger was produced in Madhya Pradesh, while Karnataka produced 282,451 tons and Odisha 228,330 tons.

Ginger flourishes in hot, humid conditions when planted in soil rich with lots of nutrients. It prefers well-drained, fertile soil with ph levels of 5-7.5. The ideal season for ginger cultivation is between May and June. Rainfall in the range of 150 cm is considered preferable for ginger propagation.

Ginger oil is extracted from ginger rhizome via a distillation process. It has a strong spicy aroma and is often used in aromatherapy. It is also used to solve multiple skin and hair related problems, as well as cold, digestive issues, nausea, and migraines.

Market prices : USD 80.00 /kilo
Nutmeg Oil

Nutmeg Oil Myristica fragrans Harvest: June - August

Nutmeg or Myristica fragrans flourishes in humid, warm tropical climates. The trees prefer well-drained fertile soil with good water retention properties. Clay loam, red laterite soils, and sandy loam are ideal for its growth. Nutmeg is native to spice islands in south pacific. They are evergreen trees with shiny, dense, and aromatic leaves which have a dark green hue. These leaves produce tiny pale yellow, fragrant flowers that open at night.

The fruit produced is shaped like a pear, is yellow orange in colour and contains the spice nutmeg. The aril of the seed produces mace. Kerala is the biggest producer of Nutmeg in India with approximate volumes of 17,212 tons in 2023-24. Andaman and Nicobar Islands produced 2,562 tons, while Karnataka produced 471 tons. Nutmeg is popular as a spice and is used for medicinal purposes due to its antimicrobial, antioxidant and anti-inflammatory properties. The essential oil derived from nutmeg is used in perfumes and as a natural flavouring extract.

Market prices : USD 55.00 /kilo

South Africa

Eucalyptus Oil Radiata

Eucalyptus Oil Radiata Eucalyptus Radiata Harvest: August - October

Eucalyptus comes from the myrtle family and boasts of over 660 species of shrubs and trees. They are native to Australia and Tasmania and are referred as gum trees or stringybark in these countries. Eucalyptus is mostly cultivated in temperate and tropical regions of India,  south african collection Americas, Africa, Mediterranean basin, Middle East, and China. Oil is extracted from the leaves of eucalyptus trees using either of the three methods, steam distillation, hydro-distillation or solvent extraction. It is popularly used in over-the-counter drugs to ease cough and congestion. It also provides pain relief and is actively used in ointments and creams for muscle and joint pain. Eucalyptus oil is also used as an insect repellent. Eucalyptus radiata is another variety of eucalyptus tree. The oil extracted from its leaves has almost similar properties to other eucalyptus oils, though with a softer aroma. It has a fresh, camphor like scent with citrus and floral undertones

Market prices : USD 50.00 /kilo
Lemon Grass

Lemon Grass Cymbopogon citratus

Lemon grass also known as Cymbopogon citratus grows in tropical and subtropical regions across the globe. It is popularly found in India, but also grows in several areas of Africa including Sierra Leone and the frost-free regions in South Africa. Lemon grass is a perennial herb that can grow at heights up to 900 meters. It prospers in warm, humid climates with direct exposure to at least six hours of sunlight. Lemon grass requires well-drained, sandy loam soil with consistent moisture. The temperature should be maintained between 20-30oC for its growth. Since ancient times, lemon grass has been cultivated for its medicinal and aromatic properties. The oil is extracted from the leaves and stalks of the plant through steam distillation. The chemical composition of the resulting oil produced can vary depending on the plant’s age, geographical origin, method of extraction and genetic differences. The quality of the oil is checked by measuring its citral content and solubility in alcohol.

Market prices : N/A
Tea Tree Oil

Tea Tree Oil Melaleuca alternifolia Harvest: October - January

Tea tree also known as Melaleuca alternifolia is native to the northeast coast of New South Wales and southeast Queensland in Australia. The tree flourishes in well-drained, sandy or loamy soil with ph levels between 6-7. The soil needs to be moist but not soaked. Ideally it requires at least six hours of direct sunlight and should be protected from cold and dry winds. Tea tree oil is extracted from the leaves and branches of tea tree via steam distillation. The resulting liquid obtained is pale yellow in colour. It has a pleasant odour and is almost insoluble in water. Tea tree oil contains over 100 phytochemicals. Cosmetics, pharmaceuticals, and agri-food industries are regular consumers of tea tree oil. Tea tree oil is popular for its anti-inflammatory and antiseptic properties. It is used to treat burns, infections and minor cuts. The oil is also used in various skin and haircare products.

Market prices : USD 24.00 /kilo