MARKET REPORT SEPTEMBER 2023
The September 2023 Market Report features insights on the most sought-after essential oils and carrier oils for the autumn season. Spice oils such as Marjoram Sweet Essential Oil and Pepper Black Essential Oil have been impacted by the COVID-19 pandemic, although production is expected to fulfill the respective market demands. Ginger Root Essential Oil (Dried) is also experiencing a slight decrease in demand internationally and a 20% drop in projected harvest yield. Pumpkin Seed Organic Carrier Oil is experiencing stable market conditions as well as demand. Meanwhile, the supply and demand for Sunflower Seed Carrier Oil is increasing after experiencing fluctuations in price throughout the year.
Continue reading to stay up to date on the latest industry trends from the experts at New Directions Aromatics.
Known for its warm, spicy aroma and subtle Nutmeg quality, Marjoram Sweet Essential Oil is the perfect addition to a fall scent collection. It is steam distilled from the flowers and leaves of the Origanum majorana herb grown in Egypt. The crop is planted in October and is harvested in two cuts. The first cut is the largest and occurs in May, while the second cut happens in August. Marjoram is well-suited for growth in black and sandy soil types, as well as hot and dry climates that are characteristic to Egypt and the Mediterranean Bassin. Climate change has caused significant increases in temperatures during the summer months and noticeable decreases in the winter. Since marjoram is not tolerant of extreme weather conditions, the decrease in production has reached only 25% to 35% of last year's yield.
The current growing conditions for Origanum majorana are favorable, specifically in the Nile Valley where it is mainly cultivated. The production for Marjoram Sweet Oil is expected to range from 10 to 15 tons in Egypt, which is sufficient to meet the global demand. However, this year's harvest yield is significantly lower than that of last year since many farmers are planting wheat and other cereals to take advantage of the high cereal prices. Production is expected to be around 30% less than last year. The market conditions for Marjoram Essential Oil have not fully recovered from the impact of the COVID-19 pandemic. It is expected to recover by Q4 of 2023 or Q1 of 2024.
Black Pepper Essential Oil has a spicy and sharp scent that is slightly reminiscent of clove. It is steam distilled from the dried berries of the Piper nigrum plant grown in Sri Lanka. Harvest takes place annually between April and June. Piper nigrum grows best in a tropical climate that is characteristic of its country of origin and must be planted in reddish brown soil.
The growing conditions for pepper are unfavorable due to poor weather conditions and unseasonal rainfall. The projected harvest yield is lower than that of last year, meanwhile the domestic and international demand is increasing for Pepper Black Essential Oil. In August, the Sri Lankan pepper market experienced an upward trend in price that was driven by the increase in demand. Meanwhile, prices of light berries were unfavorable compared to bold pepper, resulting in a decrease in shipment. Since cultivating and harvesting bold pepper was prioritized by farmers this year, a short crop season is expected for the light berry variety.
Ginger Root Essential Oil is steam distilled from the root of the Zingiber officinale, a perennial herb grown in China. Harvest takes place annually between September and October, and frequent crop rotation is required for optimal growth. Ginger root thrives in fertile and loose soil with pH levels ranging from 5.5 and 6.5. Grown in China, India, and Indonesia, Ginger is intolerant of cold weather conditions and is easily ruined by drought and waterlogging.
The market demand for Ginger Essential Oils is stable domestically and decreasing slightly overseas. The projected harvest yield is 20% less compared to that of last year, due to the low price and decreased demand.
Sunflower Seed Carrier Oil is cold pressed from the seeds of the Helianthus annuus flowers grown in Spain. This oil has been refined, bleached, deodorized, and winterized for ease of use in cosmetic formulation. Sunflower seeds have two geographical harvest seasons in Spain. In the south, harvest traditionally begins in August, but due to climate change, harvest typically begins around mid-July. In the north, harvest previously begun in September but now begins around mid-August. Regarding cultivation, sunflower seeds can tolerate drought better than most crops due to its ability to extract water from deep profiles. In northern Spain, sunflowers are grown with the help of irrigation in the north, while in the south, sunflowers are influenced by the oceanic wind, meaning additional irrigation is not needed. The ideal weather conditions for growing sunflowers includes mild temperatures and spring rain in the first months after the seeds are sown (between 20 degrees and 29 degrees Celsius). Hot and dry conditions are required for the final growth cycle, with a temperature that does not exceed 35 degrees Celsius.
This year's growing conditions for sunflowers were varied. Rainfall was very scarce at the beginning of the year, causing an extended drought. Since sunflowers were sown late, the drought only affected the soil moisture. In the spring, the rainfall was sufficient to give the seeds a break from sowing and further developed the plants. World sunflower production is expected to significantly exceed that of recent years due to good harvest forecasts. However, the geo-political tension due to the war and economic blockades may impact future harvest yields. The market demand for Sunflower Seed Carrier Oil is expected to be very high, and the increased prices of olive oil are greatly influencing this increase in demand. The current market conditions for conventional varieties of Sunflower Seed Oil have fluctuated and stabilized, while organic varieties have remained consistent.
Pumpkin Seed Organic Carrier Oil is cold pressed from organically grown Cucurbita pepo L seeds. The seeds are cultivated in China and harvested every October. Pumpkin seeds grown best in fertile sandy loam or loam soil and need plenty of sunlight to thrive. Due to the abundance of rain during the summer, the growing conditions are undetermined since the yield may be impacted. The market demand and conditions for Organic Pumpkin Seed Carrier Oil are currently stable.