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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Nutmeg oil (Myristica fragrans) from Indonesia plays a dominant role in the global market, as the country is the world’s largest producer and exporter. Supply conditions are generally stable but influenced by seasonal harvest cycles, weather variability, and the productivity of smallholder farms, particularly in regions such as the Maluku Islands. Fluctuations in rainfall and ageing trees can impact yields, occasionally tightening supply. Global demand for nutmeg oil remains strong, driven by its applications in flavouring, pharmaceuticals, cosmetics, and aromatherapy. Its warm, spicy profile and natural antimicrobial properties support consistent usage across multiple industries.
However, quality consistency is a key issue. Variability in post-harvest handling, distillation practices, and storage conditions can affect oil composition, particularly myristicin content. As a result, international buyers increasingly demand stricter quality control, traceability, and standardisation from Indonesian suppliers.
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