Uganda: Essential Oils Market 2024

Essential Oils Market Size in Uganda

In 2022, the Ugandan essential oils market decreased by -8.5% to $X, falling for the third consecutive year after four years of growth. Overall, the total consumption indicated a tangible expansion from 2012 to 2022: its value increased at an average annual rate of +4.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption decreased by -27.1% against 2019 indices. Essential oils consumption peaked at $X in 2019; however, from 2020 to 2022, consumption remained at a lower figure.

Essential Oils Production in Uganda

In value terms, essential oils production contracted to $X in 2022 estimated in export price. Over the period under review, the total production indicated measured growth from 2012 to 2022: its value increased at an average annual rate of +4.0% 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 growth pace was the most rapid in 2013 with an increase of 22% against the previous year. Over the period under review, production attained the maximum level at $X in 2019; however, from 2020 to 2022, production remained at a lower figure.

Essential Oils Exports

Exports from Uganda

In 2022, overseas shipments of essential oils increased by 6.6% to X tons, rising for the third consecutive year after two years of decline. Over the period under review, exports showed a prominent expansion. The most prominent rate of growth was recorded in 2017 with an increase of 4,898% against the previous year. As a result, the exports reached the peak of X tons. From 2018 to 2022, the growth of the exports failed to regain momentum.

In value terms, essential oils exports skyrocketed to $X in 2022. In general, exports continue to indicate significant growth. The pace of growth appeared the most rapid in 2017 with an increase of 5,221% against the previous year. As a result, the exports reached the peak of $X. From 2018 to 2022, the growth of the exports failed to regain momentum.

Exports by Country

India (X tons), Rwanda (X tons) and France (X tons) were the main destinations of essential oils exports from Uganda, with a combined 86% share of total exports.

From 2012 to 2022, the biggest increases were recorded for India (with a CAGR of +25.9%), while shipments for the other leaders experienced more modest paces of growth.

In value terms, India ($X) remains the key foreign market for essential oils exports from Uganda, comprising 77% of total exports. The second position in the ranking was taken by France ($X), with a 12% share of total exports. It was followed by the United Arab Emirates, with a 0.8% share.

From 2012 to 2022, the average annual growth rate of value to India totaled +47.5%. Exports to the other major destinations recorded the following average annual rates of exports growth: France (+39.8% per year) and the United Arab Emirates (-10.1% per year).

Export Prices by Country

In 2022, the average essential oils export price amounted to $X per ton, with an increase of 8.4% against the previous year. Over the period under review, the export price saw prominent growth. The pace of growth was the most pronounced in 2018 an increase of 132%. Over the period under review, the average export prices attained the peak figure in 2022 and is expected to retain growth in the immediate term.

There were significant differences in the average prices for the major export markets. In 2022, amid the top suppliers, the country with the highest price was India ($X per ton), while the average price for exports to Rwanda ($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 Spain (+5,152.9%), while the prices for the other major destinations experienced more modest paces of growth.

Essential Oils Imports

Imports into Uganda

For the third year in a row, Uganda recorded decline in purchases abroad of essential oils, which decreased by -17.6% to X tons in 2022. Over the period under review, imports, however, posted prominent growth. The pace of growth appeared the most rapid in 2014 when imports increased by 280%. Over the period under review, imports attained the peak figure at X tons in 2016; however, from 2017 to 2022, imports failed to regain momentum.

In value terms, essential oils imports shrank to $X in 2022. In general, imports, however, showed a strong increase. The most prominent rate of growth was recorded in 2014 with an increase of 160% against the previous year. Imports peaked at $X in 2016; however, from 2017 to 2022, imports failed to regain momentum.

Imports by Country

In 2022, India (X tons) constituted the largest essential oils supplier to Uganda, with a 75% share of total imports. Moreover, essential oils imports from India exceeded the figures recorded by the second-largest supplier, the Netherlands (X tons), more than tenfold. The third position in this ranking was taken by Indonesia (X tons), with a 4.3% share.

From 2012 to 2022, the average annual growth rate of volume from India amounted to +23.7%. The remaining supplying countries recorded the following average annual rates of imports growth: the Netherlands (-6.0% per year) and Indonesia (-2.3% per year).

In value terms, India ($X) constituted the largest supplier of essential oils to Uganda, comprising 64% of total imports. The second position in the ranking was taken by the Netherlands ($X), with a 9% share of total imports. It was followed by Indonesia, with a 3.1% share.

From 2012 to 2022, the average annual growth rate of value from India totaled +22.3%. The remaining supplying countries recorded the following average annual rates of imports growth: the Netherlands (+1.5% per year) and Indonesia (-6.4% per year).

Import Prices by Country

The average essential oils import price stood at $X per ton in 2022, increasing by 5.6% against the previous year. Over the period under review, the import price continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2015 when the average import price increased by 17%. Over the period under review, average import prices reached the peak figure in 2022 and is likely to see steady growth in the near future.

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 Netherlands ($X per ton), while the price for China ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Kenya (+9.1%), while the prices for the other major suppliers experienced mixed trend patterns.

Source: IndexBox Platform