MARKET REPORT OCTOBER 2023
The October 2023 Market Report features a comprehensive guide to the latest trends and developments in the aromatics industry. Each month, we delve into the fascinating world of extracts and base oils, spotlighting some of the most sought-after products on the market. Our featured products this month include Turmeric Essential Oil, Pepper Black Organic Essential Oil, Jasmine Sambac Absolute, Macadamia Carrier Oil, Safflower Carrier Oil, and Neem Carrier Oil.
In a constantly evolving market, staying informed about the latest products, pricing fluctuations, and consumer preferences is crucial for businesses and enthusiasts alike. For industry professionals, our monthly market report is your trusted resource for valuable insights and actionable information. Continue reading to stay up to date on the latest industry trends from the experts at New Directions Aromatics.
Turmeric Essential Oil is steam distilled from the root of the Curcuma longa perennial herb grown in India. Harvested between January and April annually, Curcuma longa grows best in diverse tropical conditions from sea level to 1500 m above sea level and temperatures ranging from 20-35 degrees Celsius. Annual rainfall must be a minimum of 1500 mm. While Turmeric can grow on a variety of soil types, it thrives in well-drained sandy or clay loam soils with a pH between 4.5 and 7.5.
Prices for Turmeric have remained steady as of August. However, availability has been limited both domestically and internationally. Sowing is also reportedly lower than in previous years, and farmers have not been happy with the costs of Turmeric. Crop arrival for good quality material was low, and farmers are still holding onto stocks expecting the prices to increase.
Pepper Black Organic Essential Oil is steam distilled from the dried berries of the Piper nigrum plant organically grown in Sri Lanka. From June to December is the only harvest season in Sri Lanka. Since pepper is classified as a rainfed crop, it requires heavy rainfall (150-250 cm), high humidity, and a warm climate. Pepper also thrives on virgin soils rich in humus content, and can be grown at elevations up to 1500 m above sea level.
The market demand for Pepper Black Organic Oil is very high due to programs surrounding quality control and sustainability. Market conditions are experiencing slight instability due to inflation rates and weather pattern changes. Organic cultivation of black pepper is 5% of the total projected harvest yield. Organic black pepper is expected to be 200 kg per hectare and amounts to 5 kgs of oil per hectare.
Predominantly grown in India Jasmine Sambac is an integral part of Indian culture and is a staple in temples and weddings. Jasmine Sambac Absolute is solvent extracted from the flowers of the Jasminum sambac plant that grows in mild, tropical climates and can thrive in well-drained sandy loams and red loams. The plant becomes mature within six months after planting, and harvesting is done by hand-picking unopened buds. Harvest season begins in March and lasts until November, with the peak season occurring between April and June. While Jasmine Sambac is a relatively stable crop, the demand for Jasmine Absolute is dynamic and can change based on holidays and festivals.
A rich emollient that is commonly used in skin care, hair care, and massage therapy, Macadamia Carrier Oil is cold pressed from the Macadamia integrifolia nuts grown in Kenya. There are two harvest seasons in East Africa. The main season occurs between April and May, and the second season occurs in October. Macadamia nuts grow best in the lower slopes of Mount Kenya and in subtropical climates. A moderate amount of rainfall is required for optimal growth.The growing conditions for macadamia nuts are favorable and the projected harvest yield is expected to match that of last year. The market demand for Macadamia Carrier Oil is low because it is overstocked. Prices are also not clear currently due to the oversupply for this carrier oil.
Safflower Carrier Oil is cold pressed from the seeds of the Carthamus tinctorius plant grown in Mexico. It has been refined, bleached, deodorized, and winterized for ease of use in cosmetic formulations. Harvest takes place in June, in deep, fertile, and well-drained loam soils and good water retention. The ideal weather conditions for growing Safflower includes warm, arid climates and long growing seasons. Safflower does not grow well in wet and humid conditions.
The current growing conditions for safflowers are favorable, with a projected harvest yield that is similar to last year's. The market demand for Safflower Carrier Oil is steady since the demand for Sunflower Oil has increased in recent years.
Neem Carrier Oil is cold pressed/expeller pressed from the Azadirachta indica tree grown in India. The fruits ripen between June and August and the seeds enter the market between August and September. Neem is a hardy tree that can tolerate temperatures up to 50 degrees Celsius and grows best in rocky, dry, shallow, and infertile soils. Silty, micaceous loams, silty clay soils, and saline soils are not recommended. The neem fruit is not cultivated in agricultural land. It is a forest produce and is collected by locals.
Due to the crop deficiency of the previous year, this year's market demand for conventional and organic Neem Carrier Oil is high. The projected harvest yield is sufficient, and the market demand is favorable.