July 2023
The July 2023 market report features insights on this month's most in-demand essential oils and carrier oils. One of the findings indicate that Eucalyptus Globulus 80/85% is experiencing a decline in market conditions and demand due to unfavorable growing conditions. Meanwhile, Organic Orange Sweet Essential Oil is experiencing high demand and favorable market conditions. The market for Olive Extra Virgin Carrier Oil is incredibly dynamic, with daily changes in demand influenced by the market conditions and prices adjusted accordingly to meet the ever-changing market demand. Castor Organic Carrier Oil is facing a challenging scenario as very limited quantities are available of the organic crop, which will likely cause prices to rise for the oil.
Continue reading to stay up to date on the latest industry trends from the experts at New Directions Aromatics.
Eucalyptus Globulus 80/85% Essential Oil - Verified by ECOCERT / Cosmos Approved
Eucalyptus Globulus 80/85% Essential Oil is steam distilled from the leaves and twigs of the Eucalyptus globulus evergreen tree grown in China. Also known as Blue Gum, its main constituent is 1,8-cineole (>80%). This variety of Eucalyptus Globulus is harvested between October and April, although the oil can be produced all year round. While there are no strict requirements for soil types, strong calcareous or alkaline soils are recommended for Eucalyptus globulus, along with well-drained, well-watered, and moderately fertile loam or heavy clay. The ideal weather conditions include a warm and humid climate with warm winters and cool summers.
The growing conditions for Eucalyptus globulus are inadequate. New cultivation is limited due to the drop in demand as well as the policy of retuning forestry to farmlands. Some plantations were removed because of this. The market demand for Eucalyptus Globulus 80/85% Oil has decreased, resulting in weakened market conditions.
Orange Organic Essential Oil (Sweet)
Orange Organic Sweet Essential Oil is cold pressed from the fruit peels of Citrus sinensis grown in Mexico. Harvest season begins in January and lasts until April. The orange tree grows best in light to medium textured soils that are well-drained and free from stagnant water. Subtropical regions with warm temperatures and moderate humidity are also favorable for growth. Due to decreasing rain levels, the growing conditions of the Citrus sinensis have suffered from drought.
The market demand for Sweet Orange Organic Essential Oil is high and the market conditions are favorable. The projected harvest yield for this organic citrus oil is 15% lower than that of last year.
Olive Carrier Oil - Extra Virgin - Verified by ECOCERT / Cosmos Approved
Olive Extra Virgin Carrier Oil is cold pressed from the fruit pulp of the Olea europaea grown in Spain. Season of harvest depends on the region in which the crop is grown, some areas begin harvest later while others are earlier. The average harvest period for Olea europaea is from October to March. Spain possesses the ideal weather conditions for the Olive tree to thrive, with mild winters that are not extreme, followed by sunny springs and hot summers. Olive trees must be grown in regions with a mean annual temperature of 15-35 degrees Celsius. The tree also requires adequate rainfall. Olive trees thrive in soils with loamy textures with adequate aeration and permeability that support root growth. Ideal soil textures include sandy loam, loam, and clay loam.
While the Mediterranean climate is ideal for growing Olive trees, climate change is generating new crop requirements that were not previously necessary to take into account. This includes the contribution of water for irrigation if the drought periods last for an extended amount of time. The projected harvest yield is favorable. Spain has experienced widespread rainfall over the last two weeks, making the predicted harvest yield greater than what was otherwise expected. The market demand for Oliver Extra Virgin Carrier Oil changes daily depending on the market conditions. As long as weather remains stable, prices for this carrier oil will continue to rise. However, consumption has not decreased enough to be able to contain the rise. Although the average decrease in consumption in the last four months in the Spanish market has been 38%, exports have only fallen by 25%.
Castor Organic Carrier Oil - Extra Virgin
Castor Organic Carrier Oil is expeller pressed from the seeds of the Ricinus communis plant grown in India. Harvest season takes place from January until April. Castor seeds can be grown in a variety of soil types but is mostly grown in sandy loam soil that are well drained. Ricinus communis also requires dry and warm weather conditions to thrive. The current growing conditions for the crop are highly favorable, especially in the Gujarat and Rajasthan regions.
This year's projected harvest yield for Castor seeds is similar to that of last year. However, the organic variety is grown in very limited quantities, making it difficult to report on the actual crop size. The demand for Organic Castor Oil varies and is currently unknown. If the crop experiences any further limitations, the market conditions will reflect an increase in price of this organic carrier oil.