Market Dynamics of Essential Oils

All essential oils & the chemicals that are naturally found in them are derived from seasonal crops,and are produced worldwide. Weather, geopolitical, and market conditions can affect pricing drastically and sometimes provoke very high volatility. Some essential oils will typically be manufactured for certain aromatic components that can be isolated, while others are simply kept intact & sold as a whole product.

Political instability, weather, soil conditions, handling & extraction techniques as well as basic supply & demand will directly affect availability & pricing. Origins of oils are always changing & this can result in dramatic differences in quality, availability & pricing.

A better informed/organized supplier of essential oils & aromatics will always be enabled to seek better pricing & availability and thus pass it on to its clients. Nevertheless, by keeping in-tune with the specific market dynamics of the essential oils typically purchased, the consumer can also dull the effects of wild fluctuations. One very effective method is to lock-up pricing &/or establish floor stock agreements.

Our market report is published quarterly & general crop calendar can be utilized in conjunction with our sales department as a tool to estimate the best course of action to take.