Indonesia: Essential Oils Market 2024

Essential Oils Market Size in Indonesia

The Indonesian essential oils market contracted markedly to $X in 2022, waning by -95.8% against the previous year. Overall, consumption saw a drastic downturn. Over the period under review, the market hit record highs at $X in 2018; however, from 2019 to 2022, consumption stood at a somewhat lower figure.

Essential Oils Production in Indonesia

In value terms, essential oils production amounted to $X in 2022 estimated in export price. Overall, production recorded a significant increase. The pace of growth appeared the most rapid in 2017 with an increase of 746% against the previous year. As a result, production attained the peak level of $X. From 2018 to 2022, production growth remained at a somewhat lower figure.

Essential Oils Exports

Exports from Indonesia

In 2022, approx. X tons of essential oils were exported from Indonesia; picking up by 36% against the previous year's figure. Overall, exports showed a resilient expansion. The most prominent rate of growth was recorded in 2017 with an increase of 82% against the previous year. Over the period under review, the exports attained the peak figure in 2022 and are expected to retain growth in years to come.

In value terms, essential oils exports surged to $X in 2022. Over the period under review, exports saw a prominent increase. The pace of growth appeared the most rapid in 2017 with an increase of 75%. The exports peaked in 2022 and are expected to retain growth in the near future.

Exports by Country

The United States (X tons), India (X tons) and China (X tons) were the main destinations of essential oils exports from Indonesia, together comprising 41% of total exports. Spain, Mexico, France, the Netherlands, Singapore and Germany lagged somewhat behind, together accounting for a further 44%.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by Mexico (with a CAGR of +41.5%), while the other leaders experienced more modest paces of growth.

In value terms, the largest markets for essential oils exported from Indonesia were the United States ($X), India ($X) and Spain ($X), with a combined 42% share of total exports. France, the Netherlands, China, Singapore, Mexico and Germany lagged somewhat behind, together comprising a further 46%.

Mexico, with a CAGR of +45.2%, recorded the highest rates of growth with regard to the value of exports, in terms of the main countries of destination 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, with an increase of 15% against the previous year. Over the last decade, it increased at an average annual rate of +2.6%. The most prominent rate of growth was recorded in 2014 when the average export price increased by 32% against the previous year. The export price peaked in 2022 and is likely to see gradual growth in years to come.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was Germany ($X per ton), while the average price for exports to Mexico ($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 (+13.2%), while the prices for the other major destinations experienced more modest paces of growth.

Essential Oils Imports

Imports into Indonesia

In 2022, overseas purchases of essential oils decreased by -30.6% to X tons for the first time since 2019, thus ending a two-year rising trend. In general, total imports indicated measured growth from 2012 to 2022: its volume increased at an average annual rate of +3.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth was the most pronounced in 2013 with an increase of 42% against the previous year. Imports peaked at X tons in 2021, and then declined dramatically in the following year.

In value terms, essential oils imports fell significantly to $X in 2022. Over the period under review, imports, however, saw resilient growth. The most prominent rate of growth was recorded in 2013 with an increase of 119% against the previous year. Over the period under review, imports hit record highs at $X in 2018; however, from 2019 to 2022, imports remained at a lower figure.

Imports by Country

In 2022, China (X tons) constituted the largest essential oils supplier to Indonesia, with a 51% share of total imports. Moreover, essential oils imports from China exceeded the figures recorded by the second-largest supplier, Madagascar (X tons), twofold. The third position in this ranking was held by India (X tons), with a 6% share.

From 2012 to 2022, the average annual growth rate of volume from China totaled +2.0%. The remaining supplying countries recorded the following average annual rates of imports growth: Madagascar (+17.1% per year) and India (+6.8% per year).

In value terms, China ($X) constituted the largest supplier of essential oils to Indonesia, comprising 46% of total imports. The second position in the ranking was taken by Madagascar ($X), with a 16% share of total imports. It was followed by the United States, with an 8.6% share.

From 2012 to 2022, the average annual rate of growth in terms of value from China stood at +4.7%. The remaining supplying countries recorded the following average annual rates of imports growth: Madagascar (+13.5% per year) and the United States (+4.6% per year).

Import Prices by Country

In 2022, the average essential oils import price amounted to $X per ton, increasing by 2.7% against the previous year. Over the period under review, import price indicated a measured expansion from 2012 to 2022: its price increased at an average annual rate of +2.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, essential oils import price decreased by -33.6% against 2018 indices. The growth pace was the most rapid in 2013 an increase of 55%. Over the period under review, average import prices reached the peak figure at $X per ton in 2018; however, from 2019 to 2022, import prices remained at a lower figure.

There were significant differences in the average prices amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was the United States ($X per ton), while the price for Brazil ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the United States (+7.5%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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