December 2023
The December 2023 Market Report provides a comprehensive overview of the latest dynamics within the aromatics industry. Our focus turns to key products in the New Directions Aromatics product line, offering a glimpse into the market conditions and trends that define the landscape. For this month's most in-demand essential oils, the pricing of Orange Sweet Essential Oil is ever-evolving, while challenges have been surrounding Key Lime Essential Oil.
Meanwhile, the intricacies of Sea Buckthorn Carrier Oil include a 10% demand increase in the Chinese market. Sesame Seed Carrier Oil is also experiencing steady growth in demand, and Wheat Germ Carrier Oil remains stable within the market.
Continue reading to stay up to date on the latest industry trends from the experts at New Directions Aromatics.
Orange Sweet Essential Oil
Orange Sweet Essential Oil is cold pressed from the fruit peel of the Citrus sinensis grown in Brazil. The processing of this oil is scheduled to continue through mid-January since the cost of the fruit remains high. Currently, there is a surging demand for NFC Orange Juice and Orange juice concentrates, with juice prices at record levels due to processors vying aggressively to purchase the fruit.
A notable aspect of the new batch of Orange Sweet Oil is its aldehyde levels, which are impressively favorable compared to the previous two harvests. As a result of these quality improvements, prices for the oil are beginning to stabilize and is predicted to remain this way through June 2024. Since Orange Terpenes are available year-round at very competitive pricing, this exerts considerable market pressure on folded/concentrated oil varieties.
Lime Essential Oil - Key Lime
Key Lime Essential Oil is steam distilled from the fruit peel of the Citrus aurantifolia grown in Mexico. The price of the crop reached a new height at the end of 2023 due to scarcity of Citrus aurantifolia, which has become increasingly difficult to source. While the price of the fruit is a justifiable factor driving up the price of the essential oil, the market will not be able to sustain the current price levels long-term. There is a small window of production between November and January that is expected to fulfill outstanding contracts. However, the price of Key Lime Essential Oil is not expected to decrease until the arrival of the new crop in June and July 2024.
Sea Buckthorn Carrier Oil - CO2 Extracted
Sea Buckthorn Carrier Oil is extracted using the CO2 method from the Hippophae rhamnoides fruit grown in China. The harvest season for this fruit takes place annually between October and January. The optimal growing conditions for the Sea Buckthorn fruit includes a sunny environment without extreme heat. While Hippophae rhamnoids is highly adaptable to a range of temperatures, it does not fare well under conditions of extreme cold, extreme heat, strong winds, sandy terrain, and drought. Sea Buckthorn does not have very strict soil requirements, and is distributed on corn limestone, limestone soil, brown limestone soil, meadow soil, and black protective soil.
The projected harvest yield for Sea Buckthorn this year is lower compared to the previous year. However, the market demand for Sea Buckthorn products has increased by 10% in China this year. The surge in demand is primarily due to the frequent use of Sea Buckthorn fruit raw materials to extract flavonoids, which has become a popular component in various products in the market. For this reason, the cost of Sea Buckthorn berries and its raw materials have increased over the last year.
Sesame Seed - Extra Virgin Organic Carrier Oil
Sesame Seed Carrier Oil is cold pressed from the seeds of organically grown Sesamum indicum from Mexico. The harvesting of the seeds takes place in November on medium textured, fertile, and well-drained soil. This type of soil combined with minimal irrigation and adequate rainfall is also ideal for sesame seeds to thrive. The projected harvest yield for Sesame Seed Carrier Oil is similar to that of the previous year, and the market demand is steadily growing. Market conditions have remained stable over the course of the year.
Wheat Germ Carrier Oil - RBDW
Wheat Germ Carrier Oil is solvent extracted from the wheat of the Triticum aestivum grown in China and is refined, bleached, deodorized, and winterized for cosmetic purposes. Chinese wheat is categorized into two main types: winter wheat and spring wheat. The winter variety is harvested between May and July and is a long-day plant that is mainly distributed in temperate zones. Triticum aestivum is typically sown in August and has a growth period of approximately 300 days. This wheat variety boasts a remarkable adaptability, thriving in wide latitudinal range from 18 to 50 degrees North Latitude. It can also be cultivated from plains up to altitudes of 4000 meters.
The market demand for Wheat Germ Carrier Oil is stable, with the wheat price remaining at a high level due to the impact of the international environment.