India: Essential Oils Market 2024

Essential Oils Market Size in India

In 2022, the Indian essential oils market increased by 3.1% to $X, rising for the second consecutive year after two years of decline. In general, consumption, however, recorded a strong increase. Essential oils consumption peaked at $X in 2018; however, from 2019 to 2022, consumption stood at a somewhat lower figure.

Essential Oils Production in India

In value terms, essential oils production fell to $X in 2022 estimated in export price. Over the period under review, the total production indicated a measured increase from 2012 to 2022: its value increased at an average annual rate of +2.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +6.6% against 2020 indices. The pace of growth appeared the most rapid in 2018 with an increase of 45%. As a result, production reached the peak level of $X. From 2019 to 2022, production growth failed to regain momentum.

Essential Oils Exports

Exports from India

In 2022, shipments abroad of essential oils was finally on the rise to reach X tons for the first time since 2019, thus ending a two-year declining trend. In general, exports enjoyed a measured expansion. The pace of growth appeared the most rapid in 2018 with an increase of 89% against the previous year. The exports peaked at X tons in 2019; however, from 2020 to 2022, the exports stood at a somewhat lower figure.

In value terms, essential oils exports dropped to $X in 2022. Overall, exports, however, continue to indicate a mild contraction. The pace of growth was the most pronounced in 2019 with an increase of 76%. As a result, the exports attained the peak of $X. From 2020 to 2022, the growth of the exports failed to regain momentum.

Exports by Country

The United States (X tons), China (X tons) and Oman (X tons) were the main destinations of essential oils exports from India, with a combined 59% share of total exports.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by Oman (with a CAGR of +62.8%), while the other leaders experienced more modest paces of growth.

In value terms, the United States ($X) remains the key foreign market for essential oils exports from India, comprising 34% of total exports. The second position in the ranking was taken by China ($X), with a 12% share of total exports. It was followed by France, with an 11% share.

From 2012 to 2022, the average annual growth rate of value to the United States amounted to +1.2%. Exports to the other major destinations recorded the following average annual rates of exports growth: China (-8.7% per year) and France (+4.5% per year).

Export Prices by Country

The average essential oils export price stood at $X per ton in 2022, declining by -10.3% against the previous year. In general, the export price continues to indicate a pronounced setback. The pace of growth appeared the most rapid in 2019 when the average export price increased by 49% against the previous year. Over the period under review, the average export prices hit record highs at $X per ton in 2017; however, from 2018 to 2022, the export prices remained at a lower figure.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was France ($X per ton), while the average price for exports to Oman ($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 (+7.4%), while the prices for the other major destinations experienced mixed trend patterns.

Essential Oils Imports

Imports into India

In 2022, overseas purchases of essential oils decreased by -5.7% to X tons, falling for the third year in a row after two years of growth. In general, imports, however, saw a tangible increase. The pace of growth appeared the most rapid in 2019 when imports increased by 133% 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 somewhat lower figure.

In value terms, essential oils imports declined modestly to $X in 2022. Over the period under review, imports, however, continue to indicate a prominent increase. The pace of growth appeared the most rapid in 2019 with an increase of 95%. As a result, imports attained the peak of $X. From 2020 to 2022, the growth of imports remained at a lower figure.

Imports by Country

Brazil (X tons), Madagascar (X tons) and Indonesia (X tons) were the main suppliers of essential oils imports to India, together accounting for 51% of total imports. The United States, China, South Africa, Singapore, Italy, Egypt, Sri Lanka, Rwanda, Tanzania and France lagged somewhat behind, together comprising a further 37%.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the main suppliers, was attained by Rwanda (with a CAGR of +3,853.6%), while imports for the other leaders experienced more modest paces of growth.

In value terms, Indonesia ($X), the United States ($X) and Madagascar ($X) constituted the largest essential oils suppliers to India, together comprising 46% of total imports. China, Brazil, France, Tanzania, Singapore, Sri Lanka, Egypt, Italy, South Africa and Rwanda lagged somewhat behind, together comprising a further 33%.

In terms of the main suppliers, Rwanda, with a CAGR of +2,574.9%, recorded the highest growth rate of 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

The average essential oils import price stood at $X per ton in 2022, increasing by 5.7% against the previous year. Overall, the import price recorded a temperate expansion. The pace of growth was the most pronounced in 2017 an increase of 32%. Over the period under review, average import prices hit record highs at $X per ton in 2018; however, from 2019 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 ($X per ton), while the price for Rwanda ($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 (+4.9%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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