STATUS QUO OF ESSENTIAL OIL IN SOUTH AFRICA
BACKGROUND
GLOBAL situation of Essential Oils
- Latest estimates suggest that the global production is more than 150 000 tonnes.
- The global market of essential oils stands at $6.5 billion with a projected rise by 8.4 to 11.3% to $15.8 billion in 2024-2025.
- Estimate for 2020 is 370.000 tonnes valued at over $10 billion.
- Essential oil cultivation areas cover 600.000 hectares and 1 million farms are producers of essential oil-bearing plants.
SOUTH AFRICA Produces 3000 tonnes/ global 150 000 tonnes, mainly eucalyptus and citrus
Export value in ZAR for 2017 = R7,619,104 decreasing in 2018.
ITC (International Trade Centre) calculations based on UN COMTRADE statistics until January, 2018.
Share in value in country’s cluster exports 2018
- Essential oils, whether or not terpeneless, incl. concretes and absolutes; resinoids; = 0.05%
- Beauty or make-up preparations and preparations for the care of the skin, incl. sunscreen 2018 = 0.3%
- Perfumes and toilet waters (excluding aftershave lotions, personal deodorants and hair lotions) =0.02%
South African market for fragrances growing fast but still dominated by imports why?
- Euromonitor International in April 2016 showed a market more than doubling from South African rand ZAR5.288bn (US$423m) in 2010 to ZAR11.505bn ($923.4m) in 2015.Equivalent to $932.4m.
- This was driven by South Africa’s growing middle class, also women’s improving career prospects and an expanding number of higher-income women able to afford premium fragrances. Part of this growth was simply a reflection of the fact that the depreciation of the rand is inflating import prices
- Imported products still dominate South African sales, despite the year-on-year value unit price of women’s fragrances rising 17% and men’s fragrances 14% in as from 2015.
SUMMARY
- They are high value products sold predominantly to the international fragrance, cosmetic, flavour and aromatherapy markets.
- Brazil, China, the USA, Egypt, India, Mexico, Guatemala, Morocco and Indonesia are the major producers of essential oils.
- The EU dominates world trade but no single country here is a major producer.
- About 65% of world production comes from developing countries.
- There are approximately 160 essential oils traded globally.
- The top 10 oils make up some 80% of world trade.
- Therefore world trade in essential oils is divided into two components, referred to as the major and minor oils. Major oils are those oils traded in large quantities (but often lower prices).
- Recent studies have suggested that the value of the global essential oil market is set to reach USD 11.67 billion by 2022 (Ultra International B.V. 2016).
- This growth is primarily based on a growing consumer awareness regarding the health benefits associated with natural and organic ingredients in personal care, beverages and household products.
Trade statistics for international business development
Monthly, quarterly and yearly trade data. Import & export values, volumes, growth rates, market shares, etc.
SOUTH AFRICA
Product: 3301 Essential oils, whether or not terpeneless, incl. concretes and absolutes; resinoids; extracted oleoresins; concentrates of essential oils in fats, fixed oils, waxes or the like, obtained by enfleurage or maceration; terpenic by-products of the deterpenation of essential oils; aqueous distillate
Export value R 658,206-00
Export value rank 24th
Export tonnage 3,030
Export quantity rank 15
Export growth 13%
EXPORT value including cosmetics R8,161,351-00
Import value R 330,209-00
Import value rank 28th
Import tonnage 1 111
Import quantity rank 29
Import growth 7%
IMPORT value including cosmetics R14,539,441-00
TRADE BALANCE R327,997-00
Including cosmetics R -6,378,090-00
Rank 14th
