Canada: Essential Oils Market 2024

Essential Oils Market Size in Canada

The Canadian essential oils market contracted remarkably to $X in 2022, declining by -44.1% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption continues to indicate a perceptible downturn. Over the period under review, the market reached the peak level at $X in 2016; however, from 2017 to 2022, consumption failed to regain momentum.

Essential Oils Exports

Exports from Canada

In 2022, after two years of growth, there was significant decline in overseas shipments of essential oils, when their volume decreased by -12.1% to X tons. In general, total exports indicated a strong expansion from 2012 to 2022: its volume increased at an average annual rate of +5.6% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The growth pace was the most rapid in 2020 when exports increased by 31%. The exports peaked at X tons in 2021, and then fell in the following year.

In value terms, essential oils exports dropped slightly to $X in 2022. Overall, total exports indicated a remarkable increase from 2012 to 2022: its value increased at an average annual rate of +6.2% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +21.9% against 2019 indices. The pace of growth appeared the most rapid in 2016 when exports increased by 27%. Over the period under review, the exports hit record highs at $X in 2017; however, from 2018 to 2022, the exports remained at a lower figure.

Exports by Country

The United States (X tons) was the main destination for essential oils exports from Canada, accounting for a 79% share of total exports. Moreover, essential oils exports to the United States exceeded the volume sent to the second major destination, Germany (X tons), sixfold.

From 2012 to 2022, the average annual growth rate of volume to the United States stood at +4.4%. Exports to the other major destinations recorded the following average annual rates of exports growth: Germany (+54.6% per year) and France (+9.9% per year).

In value terms, the United States ($X) remains the key foreign market for essential oils exports from Canada, comprising 85% of total exports. The second position in the ranking was held by Germany ($X), with a 5% share of total exports.

From 2012 to 2022, the average annual rate of growth in terms of value to the United States amounted to +5.9%. Exports to the other major destinations recorded the following average annual rates of exports growth: Germany (+43.9% per year) and France (+6.5% per year).

Export Prices by Country

The average essential oils export price stood at $X per ton in 2022, picking up by 8.2% against the previous year. Overall, the export price continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2017 when the average export price increased by 41%. Over the period under review, the average export prices hit record highs at $X per ton in 2018; however, from 2019 to 2022, the export prices stood at a somewhat lower figure.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was France ($X per ton), while the average price for exports to Germany ($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 the United States (+1.4%), while the prices for the other major destinations experienced a decline.

Essential Oils Imports

Imports into Canada

In 2022, overseas purchases of essential oils decreased by -26.5% to X tons for the first time since 2019, thus ending a two-year rising trend. In general, imports, however, continue to indicate moderate growth. The most prominent rate of growth was recorded in 2018 with an increase of 118%. As a result, imports attained the peak of X tons. From 2019 to 2022, the growth of imports remained at a lower figure.

In value terms, essential oils imports dropped notably to $X in 2022. Overall, imports, however, saw pronounced growth. The most prominent rate of growth was recorded in 2014 when imports increased by 61% against the previous year. Over the period under review, imports attained the maximum at $X in 2017; however, from 2018 to 2022, imports failed to regain momentum.

Imports by Country

In 2022, the United States (X tons) constituted the largest supplier of essential oils to Canada, with a 45% share of total imports. Moreover, essential oils imports from the United States exceeded the figures recorded by the second-largest supplier, Brazil (X tons), fourfold. The third position in this ranking was held by India (X tons), with a 9.4% share.

From 2012 to 2022, the average annual growth rate of volume from the United States was relatively modest. The remaining supplying countries recorded the following average annual rates of imports growth: Brazil (+3.2% per year) and India (+20.3% per year).

In value terms, the United States ($X) constituted the largest supplier of essential oils to Canada, comprising 39% of total imports. The second position in the ranking was taken by India ($X), with a 9.4% share of total imports. It was followed by Brazil, with a 6.7% share.

From 2012 to 2022, the average annual growth rate of value from the United States stood at +2.3%. The remaining supplying countries recorded the following average annual rates of imports growth: India (+10.5% per year) and Brazil (+11.2% per year).

Import Prices by Country

The average essential oils import price stood at $X per ton in 2022, picking up by 10% against the previous year. In general, the import price showed modest growth. The most prominent rate of growth was recorded in 2015 an increase of 166%. The import price peaked at $X per ton in 2016; however, from 2017 to 2022, import prices remained at a lower figure.

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

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Brazil (+7.7%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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