December 2025
The December 2025 Market Report outlines current crop conditions, harvesting status, and evolving market trends for key essential oils and carrier oils.
This month, crop conditions for each raw material varied vastly. German Chamomile Essential Oil (Hungary) faced unfavorable weather conditions that hindered plant development and crop size, while warm, stable climate conditions increased the production of Marjoram Sweet Essential Oil. Helichrysum Organic and Eucalyptus (Blue Mallee) Oils show steady supply prospects, and Neem Carrier Oil remains predictable and stable.
Continue reading to stay informed on the latest industry trends from the experts at New Directions Aromatics.
German Chamomile Essential Oil is distilled from the flowers of Matricaria recutita grown in Hungary and harvested annually from late May through early June. This crop grows best under sunny, stable weather and generally tolerates many soil types. Hungary’s 2025 season experienced suboptimal climatic conditions, which impeded plant development and reduced biomass. As a result, this year’s crop size is approximately 25–30% smaller than in 2024.
The unfavourable weather conditions and lower biomass have constrained distillable volume, necessitating supplemental purchases from contracted Hungarian farmers at higher cost. These dynamics have tightened availability and driven upward pricing pressures in the market. Demand for Chamomile German Oil remains firm as formulators plan ahead for first-quarter needs, but shortages are expected over the next quarter due to limited fresh production and depleted stocks.
Bulk pricing negotiations are best initiated after harvest season, typically in late summer (July–August), once total volumes become clearer.
Steam-distilled from the flowers and leaves of the Origanum majorana grown in Egypt, Sweet Marjoram Essential Oil experiences two harvests each year — the first between May and June, and the second between August and September. Thriving in sandy loam soils with good drainage, Origanum majorana requires the warm, sunny, frost-free weather and moderate humidity for strong vegetative growth and oil accumulation.
The 2025 crop was generally favourable, reaching a 10% increase (approximately 400–500 tons) over the last year. Quality and volume outlook are also positive, though exporters remain watchful for potential supply gaps if demand rises sharply. Market conditions for Sweet Marjoram Essential Oil are strong, with sustained global demand from aromatherapy, cosmetics, and natural ingredient sectors. Availability into early 2026 is expected to remain sufficient, and producers recommend securing bulk pricing early summer (June–July) to lock in rates before price momentum increases into Q4.
Helichrysum Organic Essential Oil is steam distilled from organically grown Helichrysum italicum flowers that are harvested in Hungary between July and August. For optimal oil extraction, well-drained, light soils that are moderately fertile are ideal for the Helichrysum flower, paired with dry, sunny weather and temperatures around 25–30 °C.
This year’s harvest yield showed no significant change in crop size or yield. Weather conditions were adequate, though expectations for a larger crop were not fulfilled. As a result, market demand and availability for Organic Helichrysum Oil will remain steady, with no foreseeable shortages in the next quarter.
Bulk pricing is recommended before the harvest period to ensure supply commitment, but current conditions suggest balanced market dynamics without major price volatility.
Sharp, fresh, and herbaceous, the Blue Mallee variety of Eucalyptus Essential Oil, is steam distilled from the Eucalyptus polybractea leaves grown in Western Australia (north of Perth). Harvested from August through November, Eucalyptus polybractea thrives in semi-arid to temperate climates and in sandy loams to well-structured clay loams.
This year’s crop has been favourable, with production achieving ~60 t of oil at about a 3% yield. Weather and cultivation practices have kept yield stable, so supply is expected to meet the robust market demand for Eucalyptus Oil (Blue Mallee). The harvest is now complete, so the best time to begin bulk pricing enquiries is post-harvest (November onward).
Cold pressed from the seeds of the Azadirachta indica tree, Neem Carrier Oil is nicknamed the “village pharmacy” due to its versatility and beneficial properties. The seeds are harvested annually from June to July in India’s Gujarat and Rajasthan regions, tolerating a wide range of soil types and thriving under average weather conditions.
This year’s production remained average and comparable to 2024, with no noticeable increase or decrease in yield. With stable raw material supplies and no projected disease or climate impacts, shortages are not expected through the next quarter.
Neem Oil’s market demand remains steady, primarily driven by its widespread use in natural topical products and personal care formulations. Bulk pricing negotiations are encouraged between April and May, ahead of the annual harvest, to secure favorable terms.