Australia: Essential Oils Market 2024

Essential Oils Market Size in Australia

The Australian essential oils market dropped to $X in 2022, with a decrease of -10.2% against the previous year. In general, consumption, however, showed buoyant growth. Over the period under review, the market reached the peak level at $X in 2018; however, from 2019 to 2022, consumption stood at a somewhat lower figure.

Essential Oils Production in Australia

In value terms, essential oils production reduced modestly to $X in 2022 estimated in export price. In general, production, however, recorded a prominent expansion. The most prominent rate of growth was recorded in 2014 with an increase of 210%. Essential oils production peaked at $X in 2015; however, from 2016 to 2022, production remained at a lower figure.

Essential Oils Exports

Exports from Australia

Essential oils exports from Australia declined markedly to X tons in 2022, waning by -26.2% against 2021. In general, total exports indicated mild growth from 2012 to 2022: its volume increased at an average annual rate of +1.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports decreased by -37.7% against 2020 indices. The growth pace was the most rapid in 2020 when exports increased by 41% against the previous year. As a result, the exports reached the peak of X tons. From 2021 to 2022, the growth of the exports remained at a somewhat lower figure.

In value terms, essential oils exports shrank rapidly to $X in 2022. Overall, exports, however, showed buoyant growth. The pace of growth was the most pronounced in 2017 with an increase of 29%. Over the period under review, the exports hit record highs at $X in 2021, and then declined rapidly in the following year.

Exports by Country

The United States (X tons), New Zealand (X tons) and Taiwan (Chinese) (X tons) were the main destinations of essential oils exports from Australia, together accounting for 47% of total exports. China, Germany, Thailand, Canada, the Netherlands, France, Japan, Hong Kong SAR, Malaysia and India lagged somewhat behind, together accounting for a further 41%.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by the Netherlands (with a CAGR of +38.9%), while the other leaders experienced more modest paces of growth.

In value terms, the United States ($X), India ($X) and France ($X) appeared to be the largest markets for essential oils exported from Australia worldwide, together accounting for 47% of total exports. New Zealand, Germany, China, Taiwan (Chinese), Japan, Canada, the Netherlands, Malaysia, Thailand and Hong Kong SAR lagged somewhat behind, together comprising a further 37%.

In terms of the main countries of destination, the Netherlands, with a CAGR of +26.1%, saw the highest growth rate of the value of exports, over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

In 2022, the average essential oils export price amounted to $X per ton, picking up by 4.2% against the previous year. Over the last decade, it increased at an average annual rate of +4.6%. The pace of growth was the most pronounced in 2021 an increase of 22% against the previous year. Over the period under review, the average export prices hit record highs in 2022 and is expected to retain growth in the immediate term.

There were significant differences in the average prices for the major foreign markets. In 2022, amid the top suppliers, the country with the highest price was India ($X per ton), while the average price for exports to New Zealand ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to France (+10.5%), while the prices for the other major destinations experienced more modest paces of growth.

Essential Oils Imports

Imports into Australia

After two years of growth, supplies from abroad of essential oils decreased by -24.9% to X tons in 2022. In general, imports recorded a slight decline. The growth pace was the most rapid in 2015 with an increase of 13% against the previous year. Over the period under review, imports attained the peak figure at X tons in 2017; however, from 2018 to 2022, imports remained at a lower figure.

In value terms, essential oils imports contracted notably to $X in 2022. Over the period under review, imports, however, saw a remarkable increase. The growth pace was the most rapid in 2017 with an increase of 53% against the previous year. Imports peaked at $X in 2018; however, from 2019 to 2022, imports failed to regain momentum.

Imports by Country

In 2022, China (X tons) constituted the largest supplier of essential oils to Australia, with a 34% share of total imports. Moreover, essential oils imports from China exceeded the figures recorded by the second-largest supplier, the United States (X tons), twofold. India (X tons) ranked third in terms of total imports with a 12% share.

From 2012 to 2022, the average annual growth rate of volume from China totaled -1.5%. The remaining supplying countries recorded the following average annual rates of imports growth: the United States (+6.2% per year) and India (+5.9% per year).

In value terms, the largest essential oils suppliers to Australia were the United States ($X), China ($X) and India ($X), with a combined 54% share of total imports. Italy, the UK, France, Germany, Brazil, Spain and Indonesia lagged somewhat behind, together comprising a further 26%.

Among the main suppliers, Spain, with a CAGR of +15.6%, saw the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2022, the average essential oils import price amounted to $X per ton, rising by 6.2% against the previous year. Over the period under review, the import price continues to indicate resilient growth. The growth pace was the most rapid in 2018 when the average import price increased by 59% against the previous year. As a result, import price attained the peak level of $X per ton. From 2019 to 2022, the average import prices remained at a somewhat lower figure.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was Germany ($X per ton), while the price for Brazil ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Germany (+13.1%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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