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'
There is a scarcity of patchouli oil in the market. Harvest predictions till mid 2024 are also not promising. Pre-empting a supply shortage, producers and exporters are making upfront payments to ensure a smooth and consistent source of material.
Several reasons are responsible for this supply shortage. The prolonged drought situation in Sulawesi has impacted the quality of crop. Lush green foliage has been replaced by stunted plant growth. Wilt virus has also affected the plant. Luckily, its impact hasn’t been as extensive as was feared initially. The depleting soil situation is a major concern as farmers have used the same patch of soil to replant patchouli without crop rotation to replenish soil nutrients.
While most areas are hit by drought, regions of Poso, Mamuju and Palopo have had some relief. There is also a forecast of rain, which should aid patchouli growth.
With supply issues, adulterated products are entering the market. Buyers need to watch out for contaminated products, which could either contain excessive fat, or elevated levels of DEP.
Throughout 2023, patchouli saw a consistent rise in price. In the last few weeks the price has jumped 25-30%. This price trend will persist for the next 4-6 months.
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