August 2024
The August 2024 Market Report provides a comprehensive overview of the current market conditions for the most in-demand essential oils and carrier oils. This month, several product markets are facing challenges driven by diverse climate conditions and cultivation issues. Tagetes Essential Oil from Egypt is contending with extreme heat that could impact its yield and lead to potential shortages later in the year. Vanilla Oleoresin production in India has been severely affected by cyclones, resulting in a significant drop in green bean production, which will likely tighten supply and increase prices. The Peppermint Essential Oils, both Supreme and Japanese varieties, have experienced decreases in yield due to premature rainfall and shifting farmer interests. As the only featured carrier oil this month, Pomegranate Organic Carrier Oil has remained stable, benefiting from favorable Mediterranean conditions, with no significant challenges during its cultivation this season.
Continue reading to stay up to date on the latest industry trends from the experts at New Directions Aromatics.
Tagetes Essential Oil (Egypt)
Tagetes Essential Oil is steamed distilled from the flowers of the Tagetes minuta plant grown in Egypt. Originating from the clay-rich regions of Banysuif and Elmenya, Tagetes minuta is harvested twice per year, in May and September, as long as weather conditions are favorable. However, this year's extreme heat has impacted the crop and could lead to a decrease in yield and production, making it critical to secure bulk orders early in the season. Compared to last year, when 70 acres were planted, the 2024 harvest is expected to yield less due to the unfavorable weather, with a projected decrease in output. Market demand remains steady, but the reduced crop size might lead to shortages in the coming months, affecting the availability of Tagetes Essential Oil.
Vanilla Oleoresin - 10 Fold
Vanilla Oleoresin – 10 Fold is cultivated in India from the fruit of Vanilla planifolia using the solvent extraction method. This variety of Vanilla, using raw materials sourced from Madagascar, undergoes two major harvesting periods annually: between June and July, and again between December and January. The ideal conditions for Vanilla planifolia include a warm, humid tropical climate with significant annual rainfall. Unfortunately, this year’s crop has faced challenges due to cyclones, resulting in a 50-60% drop in green bean production. While Vanilla planifolia thrives in sandy loam and laterite soils, the adverse weather conditions have significantly impacted this year's yield. As a result, there is an anticipated shortage of cured beans in the upcoming season, which will likely increase prices significantly. Market demand for Vanilla Oleoresin – 10 Fold remains high, but the decreased yield compared to last year could lead to supply constraints, making it essential for buyers to plan their purchases early.
Peppermint Essential Oil (Supreme)
Peppermint Essential Oil (Supreme) is steam distilled from the Mentha piperita herb grown in India and is typically sourced from the regions of Bareilly, Budaun, and Punjab. Harvested from May to June annually, Mentha piperita flourishes in well-drained, slightly acidic soil, supported by weather conditions including warm temperatures and generous sunshine. This year, early rainfall has negatively affected the overall crop size and quality of the oil, decreasing the yield by 15-20% compared to 2023. Despite the favorable growing conditions, the reduced crop size, coupled with strong demand, is expected to create shortages of Peppermint Essential Oil (Supreme) in the market.
Peppermint Essential Oil (Japanese)
Known for its sharp, medicinal aroma and high menthol content, Peppermint Essential Oil (Japanese) is steam distilled from the flowers and leaves of the Mentha arvensis plant grown in India. Harvested between May and June annually, this variety of peppermint grows best in sunny, warm weather conditions with timely rains and thrives in well-drained, slightly acidic soil. Similar to Peppermint Supreme, the crop size and oil quality of Japanese Peppermint have been reduced due to early rainfall, leading to a 10-15% decrease in yield compared to last year. Additionally, there is growing concern as farmers show less interest in sowing due to market challenges. With demand remaining high and a reduced crop size, the market is likely to experience shortages, which could drive up prices in the coming months.
Pomegranate Organic Carrier Oil
Pomegranate Organic Carrier Oil is cold pressed from the seeds of the Punica granatum fruit grown in Israel and Turkey, and is certified organic by the QAI. Harvested in October and November annually, the growth and cultivation of pomegranates are supported by the Mediterranean climate, which provides the perfect growing conditions. Unlike other crops featured in this report, the Punica granatum fruit has not faced significant challenges this year, and the yield is expected to remain consistent with last year’s production levels. The market demand for Organic Pomegranate Oil remains steady due to its well-documented emollient properties and rich essential fatty acid profile. With no anticipated shortages, this carrier oil is expected to be readily available throughout the upcoming quarter.