August 2025
The August 2025 Market Report provides monthly updates on current harvesting conditions, crop health, and market trends for key aromatic products. Tea Tree Essential Oil, in both conventional and organic grades, is holding steady despite flooding earlier in the season that reduced yields slightly. Orange Essential Oil (Sweet) has faced pressure from infestation and water shortages, though recent improvements in growing conditions have supported a slight increase in yield.
In contrast, Almond Sweet Organic Carrier Oil faces tightening market conditions due to a prolonged five-year drought that has reduced crop volume, creating the potential for shortages in the coming months. The most significant constraint, however, is in Neroli Essential Oil from Egypt. With rising demand and a sharp decrease in availability, Neroli remains in a state of critical shortage that is likely to persist into Q4. Olive Squalane, the only raw material featured in this report, continues to benefit from stable yields, even with some weather-related challenges, ensuring reliable availability through the remainder of the year.
Continue reading to stay informed on the latest industry trends from the experts at New Directions Aromatics.
Our most popular variety of Tea Tree Essential Oil, the AAA grade is steam distilled from the leaves of the Melaleuca alternifolia shrub grown in New South Wales, Australia. The harvest season runs from June to October, with September being the ideal month to arrange bulk pricing. The crop thrives in warm, humid climates with sandy or loamy soils, but this year flooding and the potential threat of insect infestation have slightly impacted yields.
Production is expected to reach 400–450 t of distilled conventional oil, representing a modest 1% decrease compared to last year. Despite this, market availability for Tea Tree Oil – AAA remains steady, demand is balanced, and no shortages are expected in the coming months.
Steam distilled from organically grown Melaleuca alternifolia leaves in New South Wales, Australia, Tea Tree Organic Essential Oil follows the same June to October harvest schedule. Also thriving in warm, humid climates and sandy or loamy soils, flooding has reduced the organic yield by approximately 0.7 %.
Output is forecast at 10–15 t of distilled oil, aligning well with current demand. Market conditions for Organic Tea Tree Oil are stable, with no anticipated supply disruptions for either the conventional or organic varieties.
Orange Essential Oil (Sweet) is cold pressed from the peels of the Citrus sinensis fruit grown in Brazil, with two harvests annually from May to July as well as in December. This citrus fruit prefers warm to hot days with cool nights, growing best in mixed sandy and clay soils.
Although infestation and water shortages posed challenges this season, conditions have improved overall. This year’s yield experienced a slight increase despite a reported 12% decrease in total crop size compared to last year. Demand for Orange Sweet Essential Oil remains stable, and existing contracts ensure no shortages in the next quarter.
A staple ingredient in natural perfumery, Neroli Essential Oil is known for its potent floral aroma balanced by sweet, citrus notes. This rich oil is steam distilled from the blossoms of the Citrus aurantium L. grown in Egypt’s Nile Delta and is harvested between March and April. Warm, sunny, Mediterranean-like conditions are necessary for Citrus aurantium to thrive, as well as loamy, well-drained soils.
Due to years of over-planting followed by steep price declines, farmers have been cutting down large numbers of Neroli trees over the last three seasons. This year’s production has dropped sharply to 1,600–1,800 t of blossoms, down from around 3,000 t last year, resulting in a projected yield of less than 1,500 kg of distilled oil is compared to 2,500 kg in 2024.
Demand is rising for Neroli Essential Oil, and a continued shortage is highly likely through Q3 and into Q4 2025, making this one of the most constrained oils on the market. Typically, February through April is the best time to negotiate bulk prices.
Almond Sweet Organic Carrier Oil is cold pressed from the kernels of organically grown Prunus dulcis in Morocco. Harvested once a year from August to late September, the Almond trees grow best in a climate like that of the Mediterranean, as well as in deep, fertile, and well-drained soils.
A prolonged five-year drought has shortened the crop, though yield remains stable compared to last year. Market supply for Organic Almond Sweet Oil is expected to be tight in the next quarter, with shortages possible due to limited availability, making early procurement essential.
Olive Squalane is a cornerstone ingredient in the modern skin care and cosmetic industries due to its natural moisturizing and stabilizing properties. Produced primarily in Spain and Italy, the olives are harvested from October to December and raw materials enter production streams about two months later.
The Olea europaea trees thrive in the Mediterranean’s hot summers, cold winters, and dry soils. While this year’s crop has faced some lack of rain, haze, and pest presence, yields are stable, and no shortages are expected. Market conditions for Olive Squalane remain steady, allowing buyers to plan bulk purchases around the harvest season.