The supply-demand dynamic for essential oils has always been a delicate thing. Prices fluctuate, but generally trend upward. In the past 50 years, the price of Indian Sandalwood oil has increased by about 200 times, although one reason for that has been the exploitation and consequent reduction of the natural resource. If supply exceeds demand for an essential oil then prices at source may drop, but these savings are generally minimal and are not passed on to the consumer. Surges in demand stretch supply chains, and with the coronavirus pandemic, significant changes are likely, especially where there is an already fragile economy.
We have an informal survey accross manufacturers and buyers in various countries, and most are quoted below. We also surveyed our audience to see what the situation is from the consumer point of view. This is not a comprehensive review, but provides some insights into the various aspects of the supply chain, how different sectors have been affected, and what the future may look like for essential oils.
Most consumers have not seen very much interruption. In our surveys, more than half reported “no change” to the availability of essential oils in general. A few reported shipping delays – “I was able to get all I needed but the post was a little slow” – and three small manufacturers reported difficulties in obtaining packaging supplies. However, a little digging shows an industry facing a combination of challenges. Consumer demand for many essential oils has increased, especially for antimicrobial oils such as Tea Tree and Eucalyptus. However, these are “commodity oils” – relatively inexpensive, and produced and consumed on a large scale. The picture looks very different for specialist essential oils and absolutes.
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