July 2024
The July 2024 Market Report provides a comprehensive overview of the current market conditions for a range of essential and carrier oils, offering valuable insights into market dynamics. Copaiba Balsam and Rose Geranium Essential Oils are experiencing significant challenges due to persistent drought conditions, leading to reduced yields and potential shortages. Conversely, Fir Needle Siberian Essential Oil and Grapeseed Carrier Oil - RBD are maintaining stable and even improved yields, reflecting more favorable growing conditions. Hazelnut Carrier Oil, while stable in yield, remains under close observation as the season progresses. As we navigate these market fluctuations, timely planning and early bulk order placements are crucial.
Continue reading to stay up to date on the latest industry trends from the experts at New Directions Aromatics.
Copaiba Balsam Essential Oil
Copaiba Balsam Essential Oil is steamed distilled from the Copaifera spp tree grown in the Amazonas region of Brazil. This type of tree is harvested throughout the year, although yields are notably lower from July to September due to the dry season. The ideal weather conditions for Copaifera spp include the typical warm and humid climate of the Amazon rainforest, and it thrives best in the native rainforest soil.
This year, the ongoing drought has significantly impacted the Copaifera spp tree, resulting in a 30% reduction in yield compared to last year. As climate change continues to affect weather patterns, the extended dry period poses a substantial challenge, raising concerns about potential shortages in the next quarter. Despite stable market demand, the reduced supply may drive up the prices of Copaiba Balsam Essential Oil. Buyers are advised to plan their bulk orders in December and January to secure better pricing and ensure availability.
Fir Needle Siberian Essential Oil
Fir Needle Siberian Essential Oil is steam distilled from the needles of the Abies sibirica, a species of Pinus tree that is native to Russia. The crop is wild-harvested in Kazakhstan from May to November, and the oil is extracted from wild-growing fir trees based on demand, ensuring sustainability and consistency.
The Abies sibirica trees thrive in their natural environment, without requiring specific weather or soil types. Current growing conditions remain favorable, with no significant changes or challenges reported compared to previous years. The market for Fir Needle Siberian Essential Oil is stable, and no shortages are anticipated in the upcoming months. Buyers can inquire about bulk pricing starting in February to ensure timely fulfillment of orders.
Rose Geranium Essential Oil
Rose Geranium Essential Oil is steam distilled from the petals of the Pelargonium roseum X asperum grown in Madagascar. The flower is harvested 3 to 4 times per year, and the oil is typically collected from late summer through mid-autumn. Pelargonium roseum thrives in sandy to loam soils with a pH range of 5.8 to 8.5 and benefits from sunny weather with temperatures between 10-33ºC and annual rainfall of 700-1500mm.
This year, however, the crop has been significantly affected by drought conditions, resulting in a decrease in yield by approximately 0.15%. The usual cultivation area of Pelargonium roseum typically spans 80-120 hectares but has been halved due to these adverse conditions, leading to shortages in the market. Buyers are encouraged to place bulk orders of Rose Geranium Essential Oil year-round, particularly between January and April, to secure their supply amidst these challenging conditions.
Grapeseed Carrier Oil - RBD
Grapeseed Carrier Oil is cold pressed from the seeds of the Vitis vinifera fruit grown in Italy. Our Grapeseed Oil features a rare light green / yellow-green hue that differs from the golden-yellow variety that is more commonly found in the market, making this variety highly desired by formulators. This oil is a by-product of vinification, with the harvest season beginning in October. The ideal conditions for grape cultivation include well-drained soil and cool to moderate temperatures with minimal temperature variations between the hottest and coldest months. Moderate rainfall throughout the year is also ideal for maintaining stable temperatures conductive for grape cultivation. This year, the ideal soil and weather conditions have been met, ensuring a good yield for the Vitis vinifera fruit. The crop size and availability have improved compared to the previous year, showing a positive trend. While the market remains well-supplied for Grapeseed Carrier Oil, buyers are advised to place orders in advance, especially from now until September, to avoid last-minute shortages. Bulk pricing inquiries should be made in October to align with the start of the grape harvest season.
Hazelnut Carrier Oil - Refined
Hazelnut Carrier Oil is cold pressed from the nuts of the Corylus avellana grown in Italy, with occasional supplies also coming from Turkey. The Corylus avellana produces a single annual crop, with the harvest season occuring in September. Ideal growing conditions for hazelnuts include volcanic soil types and a mix of dry and wet weather during the growing season in June. Last year’s harvest was significantly impacted by adverse conditions, making it challenging to predict the yield of Hazelnut Carrier Oil for the 2024-2025 season. Buyers should monitor updates closely and place bulk orders in September to ensure supply. Despite previous challenges, the yield on the oil side is expected to remain stable.