South Africa: Essential Oils Market 2024

Essential Oils Market Size in South Africa

After two years of decline, the South African essential oils market increased by 18% to $X in 2022. Over the period under review, consumption saw a relatively flat trend pattern. Essential oils consumption peaked at $X in 2015; however, from 2016 to 2022, consumption failed to regain momentum.

Essential Oils Production in South Africa

In value terms, essential oils production expanded modestly to $X in 2022 estimated in export price. The total output value increased at an average annual rate of +5.6% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2013 when the production volume increased by 25%. Essential oils production peaked at $X in 2020; however, from 2021 to 2022, production remained at a lower figure.

Essential Oils Exports

Exports from South Africa

In 2022, shipments abroad of essential oils decreased by -3.2% to X tons, falling for the second consecutive year after three years of growth. Over the period under review, total exports indicated a buoyant increase from 2012 to 2022: its volume 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. Based on 2022 figures, exports decreased by -6.8% against 2020 indices. The most prominent rate of growth was recorded in 2020 when exports increased by 36%. 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 rose significantly to $X in 2022. Overall, exports, however, enjoyed prominent growth. The growth pace was the most rapid in 2014 when exports increased by 50% against the previous year. The exports peaked in 2022 and are likely to continue growth in the immediate term.

Exports by Country

The Netherlands (X tons), the United States (X tons) and Lesotho (X tons) were the main destinations of essential oils exports from South Africa, together comprising 54% of total exports. Zimbabwe, India, Swaziland, the UK, Germany, China, Japan, Botswana, Namibia and Israel lagged somewhat behind, together accounting for a further 36%.

From 2012 to 2022, the biggest increases were recorded for India (with a CAGR of +52.2%), while shipments for the other leaders experienced more modest paces of growth.

In value terms, the largest markets for essential oils exported from South Africa were the United States ($X), the Netherlands ($X) and Germany ($X), together comprising 55% of total exports. The UK, India, Lesotho, China, Zimbabwe, Swaziland, Japan, Botswana, Namibia and Israel lagged somewhat behind, together comprising a further 24%.

In terms of the main countries of destination, India, with a CAGR of +52.7%, saw the highest growth rate of the value of exports, over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

The average essential oils export price stood at $X per ton in 2022, picking up by 15% against the previous year. Overall, export price indicated a tangible increase from 2012 to 2022: its price increased at an average annual rate of +4.6% 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 +18.0% against 2020 indices. The most prominent rate of growth was recorded in 2014 an increase of 58% against the previous year. The export price peaked at $X per ton in 2017; however, from 2018 to 2022, the export prices stood at a somewhat lower figure.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was the United States ($X per ton), while the average price for exports to Zimbabwe ($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 China (+13.1%), while the prices for the other major destinations experienced more modest paces of growth.

Essential Oils Imports

Imports into South Africa

In 2022, after two years of growth, there was significant decline in overseas purchases of essential oils, when their volume decreased by -28.2% to X tons. In general, total imports indicated resilient growth from 2012 to 2022: its volume increased at an average annual rate of +5.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2013 with an increase of 50%. Imports peaked at X tons in 2021, and then dropped sharply in the following year.

In value terms, essential oils imports fell markedly to $X in 2022. Over the period under review, total imports indicated a moderate expansion from 2012 to 2022: its value increased at an average annual rate of +4.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2021 when imports increased by 23% against the previous year. As a result, imports attained the peak of $X, and then contracted sharply in the following year.

Imports by Country

In 2022, Swaziland (X tons) constituted the largest supplier of essential oils to South Africa, with a 23% share of total imports. Moreover, essential oils imports from Swaziland exceeded the figures recorded by the second-largest supplier, India (X tons), twofold. The third position in this ranking was held by the United States (X tons), with a 10% share.

From 2012 to 2022, the average annual rate of growth in terms of volume from Swaziland amounted to +30.5%. The remaining supplying countries recorded the following average annual rates of imports growth: India (+6.4% per year) and the United States (-1.7% per year).

In value terms, India ($X), the United States ($X) and Swaziland ($X) were the largest essential oils suppliers to South Africa, with a combined 45% share of total imports. China, the UK, Zimbabwe, Germany, Italy, Spain, Mexico, Indonesia, Brazil and Lesotho lagged somewhat behind, together accounting for a further 38%.

In terms of the main suppliers, Lesotho, with a CAGR of +33.5%, 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

In 2022, the average essential oils import price amounted to $X per ton, surging by 11% against the previous year. Overall, the import price, however, recorded a slight descent. The most prominent rate of growth was recorded in 2014 an increase of 25%. The import price peaked at $X per ton in 2012; however, from 2013 to 2022, import prices stood at a somewhat 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 UK ($X per ton), while the price for Lesotho ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Zimbabwe (+10.2%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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