Saudi Arabia: Essential Oils Market 2024

Essential Oils Market Size in Saudi Arabia

The Saudi essential oils market declined significantly to less than $X in 2022, shrinking by 99.9% against the previous year. Over the period under review, consumption continues to indicate moderate growth. As a result, consumption attained the peak level of $X. From 2020 to 2022, the growth of the market remained at a somewhat lower figure.

Essential Oils Production in Saudi Arabia

In value terms, essential oils production stood at less than $X in 2022 estimated in export price. Overall, production enjoyed a significant increase. The most prominent rate of growth was recorded in 2017 with an increase of 5,999% 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 Saudi Arabia

In 2022, after four years of decline, there was significant growth in overseas shipments of essential oils, when their volume increased by 49% to X tons. Overall, exports, however, recorded a abrupt setback. The pace of growth was the most pronounced in 2017 with an increase of 6,808%. As a result, the exports attained the peak of X tons. From 2018 to 2022, the growth of the exports remained at a somewhat lower figure.

In value terms, essential oils exports skyrocketed to $X in 2022. Over the period under review, exports, however, showed a abrupt descent. The most prominent rate of growth was recorded in 2017 when exports increased by 7,211% against the previous year. As a result, the exports attained the peak of $X. From 2018 to 2022, the growth of the exports remained at a somewhat lower figure.

Exports by Country

The UK (X tons) was the main destination for essential oils exports from Saudi Arabia, with a 8.5% share of total exports. Moreover, essential oils exports to the UK exceeded the volume sent to the second major destination, Bahrain (X kg), sixfold. Canada (X kg) ranked third in terms of total exports with a 0.7% share.

From 2012 to 2022, the average annual growth rate of volume to the UK stood at +6.8%. Exports to the other major destinations recorded the following average annual rates of exports growth: Bahrain (-14.0% per year) and Canada (+21.7% per year).

In value terms, the UK ($X) emerged as the key foreign market for essential oils exports from Saudi Arabia, comprising 44% of total exports. The second position in the ranking was held by Australia ($X), with a 14% share of total exports. It was followed by Egypt, with a 4.1% share.

From 2012 to 2022, the average annual growth rate of value to the UK stood at +10.7%. Exports to the other major destinations recorded the following average annual rates of exports growth: Australia (+68.6% per year) and Egypt (+26.6% per year).

Export Prices by Country

The average essential oils export price stood at $X per ton in 2022, reducing by -17.1% against the previous year. In general, the export price, however, saw a relatively flat trend pattern. The growth pace was the most rapid in 2021 when the average export price increased by 31%. As a result, the export price attained the peak level of $X per ton, and then reduced notably in the following year.

There were significant differences in the average prices for the major external markets. In 2022, amid the top suppliers, the country with the highest price was Australia ($X per ton), while the average price for exports to Tanzania ($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 Egypt (+33.1%), while the prices for the other major destinations experienced more modest paces of growth.

Essential Oils Imports

Imports into Saudi Arabia

In 2021, overseas purchases of essential oils decreased by -54.9% to X tons, falling for the second consecutive year after two years of growth. Over the period under review, imports recorded a noticeable slump. The pace of growth was the most pronounced in 2019 when imports increased by 81%. As a result, imports attained the peak of X tons. From 2020 to 2021, the growth of imports remained at a lower figure.

In value terms, essential oils imports surged to $X in 2021. In general, total imports indicated a noticeable expansion from 2012 to 2021: its value increased at an average annual rate of +3.4% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, imports decreased by -27.9% against 2019 indices. The pace of growth appeared the most rapid in 2018 when imports increased by 27% against the previous year. Imports peaked at $X in 2019; however, from 2020 to 2021, imports failed to regain momentum.

Imports by Country

India (X tons), Spain (X tons) and Germany (X tons) were the main suppliers of essential oils imports to Saudi Arabia, with a combined 50% share of total imports. The United Arab Emirates, France, the Netherlands and Switzerland lagged somewhat behind, together accounting for a further 27%.

From 2012 to 2021, the most notable rate of growth in terms of purchases, amongst the main suppliers, was attained by the Netherlands (with a CAGR of +16.3%), while imports for the other leaders experienced more modest paces of growth.

In value terms, Spain ($X) constituted the largest supplier of essential oils to Saudi Arabia, comprising 33% of total imports. The second position in the ranking was held by Switzerland ($X), with a 14% share of total imports. It was followed by France, with a 12% share.

From 2012 to 2021, the average annual growth rate of value from Spain stood at +10.1%. The remaining supplying countries recorded the following average annual rates of imports growth: Switzerland (+8.6% per year) and France (-3.6% per year).

Import Prices by Country

The average essential oils import price stood at $X per ton in 2021, increasing by 162% against the previous year. In general, the import price enjoyed a prominent expansion. As a result, import price attained the peak level and is likely to continue growth in the immediate term.

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

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by the Netherlands (+12.9%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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