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The following report contains updates on the current trends in production and availability of the most in-demand Essential Oils, Carrier Oils, and Raw Materials sourced from around the globe.

Patchouli Essential Oil

Patchouli Organic Essential Oil (India)

In India, the cultivation of Patchouli takes place in limited areas, and most of it is being used for the propagation of plants rather than for the production of oil. Patchouli is harvested from June to September, and then every 3 months. The field is prepared to a fine tilth and the rooted cuttings are planted at a spacing of 60 x 30 cm, providing the plant sufficient space to grow into. This year, the harvest is projected to provide moderate yield compared to last year. And since the growing numbers of natural product formulators are looking to replace the conventional oil, there is an increase in demand for the Indian Organic Patchouli Oil.

Patchouli Essential Oil (Indonesia)

Despite the many challenges posted by the pandemic, Patchouli production at source remains largely unhindered so far. The knowledge for planting and distilling Patchouli across Sulawesi has propagated quite well across Sulawesi. While Central and South-east Sulawesi remain the dominant production centers, we see significant improvements in the number of new plantations in South, and West Sulawesi (in s2021). Overall, prices and availability have been favorable to buyers, and the future of Patchouli Oil in Sulawesi looks bright as the quality seems to be improving year-on-year and output can often be compared to Sumatra Patchouli Oil, which is a win-win for the fine fragrance industry which has an inclination for the Sumatra variety. As of End of July 2021, most large F&F houses have already taken position for the next 6-9 months. This will certainly contribute to the long term relative-stability of Patchouli prices.

Lavandin Essential Oil (France)

In France, Provence is the region where most of the Lavandin crops are grown and flowering tops are machine harvested in the month of July. Ample spring rainfall and ideal growing conditions have strengthened the Lavandin crop, and hence overall yields have been good. The only problem was the severe post-harvest drought which has caused plant mortality, reducing any further harvest. Hence, the yield from the July harvest for 2021 have been lower than that of previous year. The market for Lavandin Oil is reported to be stable.

Tea Tree Essential Oil - AAA (Australia)

In Australia, Tea Tree leaves are harvested between November to May. Tea Tree grows best in dry areas, with some level of humidity. If it is too dry or too wet it impacts the harvest. Hence, although last year the yield was 1,100 MT, this year the yield has decreased to 1,000 MT. The demand for Tea Tree Oil continues to rise due to its antibacterial properties and its popularity in cleansing product formulations. The increasing demand, lower yields, and little carryover stock, have created an environment of scarcity, which is driving up the prices of Tea Tree Oil.

Rosehip Carrier Oil (Chile)

In Chile, Rosehips grow wild and are harvested by hand, which starts from the end of February to the end of May. The fruit is then dried and the shell is separated from the seed. The seed is used for the production of Rosehip Oil while the shell is distributed to tea and food supplement industries. This season's harvest conditions have been favorable in terms of climate, and hence, the yields have been higher than that of previous year. The demand for Rosehip Oil continues to grow and the market conditions seems to be good. Prices of Rosehip Oil are expected to rise as the oil is only produced on-demand in order to increase its shelf life and there is a recurring cost to store the seeds.

Jojoba Carrier Oil (Israel)

In Israel, the Jojoba harvest season runs from September to October. Last year, Jojoba crops thrived with no reported problems in cultivation. The desert climate of Israel provides the perfect growing condition for Jojoba seeds which are crushed to extract the oil. Recently, Israeli cultivators have adopted an efficient way of cultivating Jojoba seeds by using recycled and brackish water. This year's yield is projected to be the same as that of last year.

There is a growing demand for Jojoba oil across the globe, due to its high oxidative stability, long shelf life, natural antioxidant content, and its emollient properties, which makes it a valuable ingredient in the cosmetics and dermatology industries. The demand for Jojoba Oil is projected to increase by 15 - 20% in North America alone. The market conditions are good and hence prices will remain stable. However, there will be an increase in the price of Organic Jojoba Oil.

Vitamin E (China)

Vitamin E is produced from soybean oil, and favorable weather conditions in the Northeast of China provide a suitable environment for Soy growth. The Soybeans are harvested from September to October from the Northern Hemisphere, and from March to April in the Southern Hemisphere. Since, the growing conditions have been favorable, with little to no difference from previous year, the yield is projected to be the same. The prices of Soybean Oil are estimated to rise steadily due to increase in demand and relatively tight supply chain. The shipping costs to North America are also projected to increase in the coming years.

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