MERCOSUR: Essential Oils Market 2024

Essential Oils Market Size in MERCOSUR

After two years of growth, the MERCOSUR essential oils market decreased by -12.6% to $X in 2022. The total consumption indicated prominent growth from 2012 to 2022: its value increased at an average annual rate of +6.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +38.4% against 2019 indices. As a result, consumption attained the peak level of $X, and then shrank in the following year.

Essential Oils Production in MERCOSUR

In value terms, essential oils production declined slightly to $X in 2022 estimated in export price. The total production indicated a measured increase from 2012 to 2022: its value increased at an average annual rate of +2.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production decreased by +0.7% against 2020 indices. The most prominent rate of growth was recorded in 2015 when the production volume increased by 44%. Over the period under review, production attained the peak level at $X in 2018; however, from 2019 to 2022, production remained at a lower figure.

Essential Oils Exports

Exports in MERCOSUR

In 2022, essential oils exports in MERCOSUR soared to X tons, surging by 21% against the previous year's figure. In general, exports saw a relatively flat trend pattern. The growth pace was the most rapid in 2020 with an increase of 24%. As a result, the exports attained the peak of X tons. From 2021 to 2022, the growth of the exports failed to regain momentum.

In value terms, essential oils exports soared to $X in 2022. Total exports indicated a resilient increase from 2012 to 2022: its value increased at an average annual rate of +5.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. As a result, the exports attained the peak and are likely to continue growth in the immediate term.

Exports by Country

Brazil was the largest exporter of essential oils in MERCOSUR, with the volume of exports reaching X tons, which was near 79% of total exports in 2022. It was distantly followed by Argentina (X tons), committing a 16% share of total exports. The following exporters - Peru (X tons) and Paraguay (X tons) - each finished at a 3.6% share of total exports.

Brazil experienced a relatively flat trend pattern with regard to volume of exports of essential oils. At the same time, Peru (+3.8%) and Paraguay (+1.6%) displayed positive paces of growth. Moreover, Peru emerged as the fastest-growing exporter exported in MERCOSUR, with a CAGR of +3.8% from 2012-2022. Argentina experienced a relatively flat trend pattern. The shares of the largest exporters remained relatively stable throughout the analyzed period.

In value terms, the largest essential oils supplying countries in MERCOSUR were Brazil ($X), Argentina ($X) and Peru ($X), with a combined 94% share of total exports.

Peru, with a CAGR of +9.5%, recorded the highest rates of growth with regard to the value of exports, among the main exporting countries over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

In 2022, the export price in MERCOSUR amounted to $X per ton, with an increase of 19% against the previous year. Export price indicated a moderate expansion from 2012 to 2022: its price increased at an average annual rate of +4.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, essential oils export price increased by +40.2% against 2020 indices. The growth pace was the most rapid in 2015 when the export price increased by 29% against the previous year. The level of export peaked at $X per ton in 2018; however, from 2019 to 2022, the export prices remained at a 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 Peru ($X per ton), while Brazil ($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 (+7.8%), while the other leaders experienced more modest paces of growth.

Essential Oils Imports

Imports in MERCOSUR

In 2022, supplies from abroad of essential oils decreased by -9.6% to X tons, falling for the second year in a row after two years of growth. Overall, imports saw a slight decrease. The most prominent rate of growth was recorded in 2020 when imports increased by 13%. The volume of import peaked at X tons in 2013; however, from 2014 to 2022, imports stood at a somewhat lower figure.

In value terms, essential oils imports contracted to $X in 2022. In general, imports, however, saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2020 with an increase of 16% against the previous year. Over the period under review, imports attained the peak figure at $X in 2021, and then fell in the following year.

Imports by Country

Brazil represented the main importing country with an import of around X tons, which accounted for 46% of total imports. Argentina (X tons) held an 18% share (based on physical terms) of total imports, which put it in second place, followed by Colombia (12%), Peru (7.2%), Paraguay (6.6%) and Chile (6.1%). Ecuador (X tons) took a minor share of total imports.

Brazil experienced a relatively flat trend pattern with regard to volume of imports of essential oils. At the same time, Paraguay (+8.9%) and Peru (+7.3%) displayed positive paces of growth. Moreover, Paraguay emerged as the fastest-growing importer imported in MERCOSUR, with a CAGR of +8.9% from 2012-2022. Ecuador experienced a relatively flat trend pattern. By contrast, Colombia (-3.0%), Argentina (-3.4%) and Chile (-6.6%) illustrated a downward trend over the same period. From 2012 to 2022, the share of Brazil, Paraguay and Peru increased by +9.8, +4.3 and +4.2 percentage points, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Brazil ($X) constitutes the largest market for imported essential oils in MERCOSUR, comprising 57% of total imports. The second position in the ranking was held by Argentina ($X), with an 18% share of total imports. It was followed by Colombia, with a 10% share.

From 2012 to 2022, the average annual rate of growth in terms of value in Brazil totaled +1.7%. The remaining importing countries recorded the following average annual rates of imports growth: Argentina (-0.5% per year) and Colombia (-0.1% per year).

Import Prices by Country

In 2022, the import price in MERCOSUR amounted to $X per ton, shrinking by -3.7% against the previous year. Over the last decade, it increased at an average annual rate of +2.4%. The pace of growth appeared the most rapid in 2018 an increase of 18% against the previous year. Over the period under review, import prices reached the peak figure at $X per ton in 2021, and then fell modestly in the following year.

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

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Ecuador (+5.6%), while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform