The nutmeg tree, Myristica fragrans is indigenous to the Moluccas, Indonesia. The fruit contains a nut, which is covered by a hard shell. A red coloured webbing (known as mace) covers the shell. Once ripe the fruit will open revealing the mace and will fall to the ground to be collected or it can be picked just before falling. The mace will be carefully removed leaving the nutmeg (nut) available to be ground and processed.
The oil is extracted from the 'nut' by steam distillation after the grinding of the nutmeg.
The nutmeg is slightly sweeter than mace making the dry or ground spice a favourite in many culinary dishes. As an essential oil it is extensively used in perfumery and pharmaceuticals as well as a natural flavouring for baked goods, beverages, syrups and sweets.
Indonesia exports around 350-400MT of nutmeg oil each year which accounts for around 80% of the global production. Today the product is predominately plantation harvested.
Read more about the impact of recent plantations in our latest Elementary Report.
Read our latest report on Indonesia presented in October 2015 at the IFEAT conference in Sri Lanka, titled 'Indonesia - Current & Future Market Dynamics'
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Indonesia continues to be among the world’s key suppliers of nutmeg oil, with cultivation concentrated in the Maluku Islands and North Sulawesi, where nutmeg trees thrive in fertile and well drained soils. The oil is produced primarily via steam distillation of dried nutmeg seeds and continues to enjoy steady demand from flavour, fragrance, and aromatherapy industries due to its warm, spicy, woody profile. Through October-December 2025, supply conditions remained broadly balanced, but farmer decision making continued to influence availability, as growers evaluate profitability between selling nutmeg as a dry spice versus sending raw material into distillation. Prices edged slightly higher during the winter quarter due to consistent demand coverage and tightening seasonal demand, but overall, the market remained relatively stable compared with more volatile Indonesian oils.
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