GCC: Essential Oils Market 2024

Essential Oils Market Size in GCC

The GCC essential oils market reduced notably to $X in 2022, shrinking by -51.1% against the previous year. Over the period under review, consumption, however, recorded a pronounced downturn. As a result, consumption attained the peak level of $X. From 2020 to 2022, the growth of the market failed to regain momentum.

Essential Oils Production in GCC

In value terms, essential oils production fell significantly to $X in 2022 estimated in export price. In general, production showed a prominent increase. The most prominent rate of growth was recorded in 2016 with an increase of 427%. Over the period under review, production attained the maximum level at $X in 2018; however, from 2019 to 2022, production failed to regain momentum.

Essential Oils Exports

Exports in GCC

In 2022, approx. X tons of essential oils were exported in GCC; which is down by -22.8% on the year before. In general, exports continue to indicate a slight decrease. The most prominent rate of growth was recorded in 2017 when exports increased by 215% against the previous year. Over the period under review, the exports hit record highs at X tons in 2018; however, from 2019 to 2022, the exports stood at a somewhat lower figure.

In value terms, essential oils exports reduced dramatically to $X in 2022. Over the period under review, exports, however, recorded buoyant growth. The pace of growth appeared the most rapid in 2018 with an increase of 193% against the previous year. As a result, the exports attained the peak of $X. From 2019 to 2022, the growth of the exports remained at a somewhat lower figure.

Exports by Country

The United Arab Emirates prevails in exports structure, accounting for X tons, which was approx. 91% of total exports in 2022. It was distantly followed by Saudi Arabia (X tons), committing a 5.5% share of total exports. Oman (X tons) took a little share of total exports.

The United Arab Emirates experienced a relatively flat trend pattern with regard to volume of exports of essential oils. Oman (-4.5%) and Saudi Arabia (-6.5%) illustrated a downward trend over the same period. While the share of the United Arab Emirates (+4.6 p.p.) increased significantly in terms of the total exports from 2012-2022, the share of Saudi Arabia (-4.1 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the United Arab Emirates ($X) remains the largest essential oils supplier in GCC, comprising 96% of total exports. The second position in the ranking was taken by Saudi Arabia ($X), with a 2.1% share of total exports.

In the United Arab Emirates, essential oils exports expanded at an average annual rate of +7.7% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Saudi Arabia (-6.1% per year) and Oman (-11.0% per year).

Export Prices by Country

In 2022, the export price in GCC amounted to $X per ton, with a decrease of -5.2% against the previous year. Overall, the export price, however, enjoyed a buoyant increase. The most prominent rate of growth was recorded in 2019 an increase of 51%. The level of export peaked at $X per ton in 2015; however, from 2016 to 2022, the export prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was the United Arab Emirates ($X per ton), while Saudi Arabia ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the United Arab Emirates (+8.3%), while the other leaders experienced mixed trends in the export price figures.

Essential Oils Imports

Imports in GCC

In 2022, purchases abroad of essential oils decreased by -54% to X tons, falling for the third consecutive year after two years of growth. Overall, imports showed a abrupt descent. The most prominent rate of growth was recorded in 2019 with an increase of 64% against the previous year. As a result, imports attained the peak of X tons. From 2020 to 2022, the growth of imports remained at a lower figure.

In value terms, essential oils imports contracted sharply to $X in 2022. In general, imports saw a perceptible decrease. The most prominent rate of growth was recorded in 2015 when imports increased by 26% against the previous year. The level of import peaked at $X in 2019; however, from 2020 to 2022, imports remained at a lower figure.

Imports by Country

Oman (X tons) and the United Arab Emirates (X tons) prevails in imports structure, together generating 87% of total imports. It was distantly followed by Bahrain (X tons), constituting an 8.6% share of total imports. Kuwait (X tons) followed a long way behind the leaders.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the main importing countries, was attained by Oman (with a CAGR of +24.6%), while imports for the other leaders experienced more modest paces of growth.

In value terms, the United Arab Emirates ($X) constitutes the largest market for imported essential oils in GCC, comprising 58% of total imports. The second position in the ranking was taken by Oman ($X), with a 22% share of total imports. It was followed by Bahrain, with a 14% share.

From 2012 to 2022, the average annual growth rate of value in the United Arab Emirates totaled +8.3%. In the other countries, the average annual rates were as follows: Oman (+21.2% per year) and Bahrain (-0.5% per year).

Import Prices by Country

In 2022, the import price in GCC amounted to $X per ton, picking up by 6.4% against the previous year. Overall, the import price recorded a buoyant increase. The pace of growth was the most pronounced in 2021 when the import price increased by 117%. The level of import peaked in 2022 and is likely to see gradual growth in the immediate term.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Bahrain ($X per ton), while Oman ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Kuwait (+8.9%), while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform