March 2023
The March 2023 market report features insights on the most in demand essential oils and carrier oils. For Sandalwood and Cinnamon Bark Organic Essential Oils, market demand is expected to increase due to shifts in several key markets. Meanwhile, Grapefruit Pink Essential Oil is experiencing stability in demand and production. Raspberry Seed and Castor USP carrier oils are experiencing favorable growing conditions in the regions where they are being cultivated. These carrier oils are also expected to have an increase in their projected harvest yield and their market demand.
Sandalwood Essential Oil (Australia)
Known for its oriental and balsamic scent, Sandalwood Essential Oil has a soft and sweet aroma with a medium strength. Steam distilled from the wood of the Santalum spicatum tree grown in Western Australia, the tree must be over 30 years old to produce oil, preferably between 40 and 50 years. The Santalum spicatum tree is a wild harvested crop and is harvested between April and October during the cooler months. The Sandalwood tree can grow across multiple soil types found in remote Western Australia. However, when grown under farmed conditions, Santalum spicatum thrives in loam or sandy loam soils on lower slopes. Sandalwood also grows across diverse climate regions, including the hot, wet summers and cooler, dry winters of the Kimberly and Pilbara agricultural regions, as well as the hot dry summers and cold, wet winters of the Gascoyne, Goldfields, Wheatbelt, and Southwest regions.
The market demand for Sandalwood Essential Oil was relatively low towards the end of 2022 and has been increasing since early 2023. There has been a noticeable increase of enquiry in several key markets.
Cinnamon Bark Organic Essential Oil
Cinnamon Bark Organic Essential Oil is a staple in the cosmetic and aromatherapy industries for its true cinnamon scent and health benefits. Native to Sri Lanka, Cinnamon Bark Organic Oil is steam distilled from the bark of the Cinnamomum zeylanicum tree. Harvesting takes place between May and September, and again between January and February. Cinnamon trees thrive in sandy oils to gravel soil, characteristic to the southern coastal zone. Temperatures between 25 degrees Celsius and 32 degrees Celsius are ideal for growth, while rainfall requirements range from 1750 to 3500 mm annually.
The 2022-2023 season is expected to experience a slight increase in the production of Cinnamon Bark Organic Oil, since many new plants were planted during the COVID-19 pandemic. Due to a lack of peelers, production is currently experiencing difficulties. In many western countries, the use of Cassia Oil is being replaced with Cinnamon Bark due to its greater therapeutic benefits. Since many industries are opting for Cinnamon Bark, the demand for Cinnamon Bark Organic Oil is expected to increase.
Grapefruit Pink Essential Oil
Grapefruit Pink Essential Oil is cold pressed from the peel of the Citrus paradisi fruits grown in Mexico. Harvesting takes place between November and December annually. The grapefruit tree thrives in maintained/mixed soil and warm, tropical weather conditions. The current growing conditions in Mexico are favorable for Grapefruits, and the projected harvest yield is stable. The market demand for Grapefruit Pink Essential Oil is strong, and the market conditions are advancing.
Raspberry Seed Unrefined Carrier Oil
Raspberry Seed Carrier Oil is cold pressed from the Rubus idaeus seeds grown in Chile. The Raspberry fruit is collected manually and is harvested between December and March. The growing conditions in Chile are favorable. The projected harvest yield for Raspberries is higher compared to last year. The market conditions for Raspberry Seed Carrier Oil are favorable, and the demand is increasing.
Castor Carrier Oil – USP – Extra Virgin
Castor Oil USP is expeller pressed from the Ricinus communis seeds grown in India and is unrefined. Harvesting begins in December and lasts until April. Current growing conditions for Castor are very favorable in India. Castor can thrive in a wide range of soil types but is preferably planted in sandy loam soil that is well drained. India's dry and warm weather conditions are ideal for supporting the growth of the Castor plant.
The market demand for Castor Oil USP, as well as this year's projected harvest yield, is roughly around 1.9 million tons with a carry forward stock of 0.1 million tons. Last year's crop was around 1.7 million tons and carry forward stock was 0.3 million tons. This totals to approximately 2 million tons.