Global Patchouli Oil Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Patchouli Oil Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Patchouli oil is extracted from the leaves of the patchouli plant (a perennial herb native to tropical regions of Asia). This oil has a rich earthy odor and can be mixed with many other essential oils to add a richness and depth to the mixture. Patchouli oil is presently used for various purposes including perfumery, aromatherapy, cosmetic products, home cleaning products, and clothing detergents.

Market Overview:

The latest research study on the global Patchouli Oil market finds that the global Patchouli Oil market reached a value of USD 69.47 million in 2022. It’s expected that the market will achieve USD 88.62 million by 2028, exhibiting a CAGR of 4.14% during the forecast period.

Short-term Impact

The raging COVID-19 plunged the global economic environment into depression. The impact of COVID-19 on the patchouli oil industry will involve all major links and all entities in the industry chain. The company's management efficiency has declined, commuting has been severely hindered, production plans have been severely hindered, network expansion has been delayed, marketing has been delayed, brand adjustments have been forced, market sales have declined, and company and employee revenue have declined. The government has also put forward higher requirements for the production and operation of enterprises.

In the short term, from the supply side, the company's operating pressure will increase due to the postponement of workers' arrival and logistics and transportation issues. Many countries have imposed controls on domestic transportation and the movement of people, and imposed restrictions on imported goods. This has led to various levels of logistics disruption, cargo accumulation and transportation delays. The disruption in logistics after the COVID-19 outbreak hit the industry even harder, especially because of the concentration of patchouli oil production.

In addition, the COVID-19 pandemic caused people to panic and stockpile various supplies, especially goods with antiseptic and disinfectant properties. Due to the antimicrobial properties of patchouli oil, the decline in the COVID-19 pandemic is relatively low compared to other industries.

In the short term, we predict that the market demand for patchouli oil will decrease and the growth rate will slow down.

Long-term Impact

In the long term, as the epidemic gradually improves or ends, the impact on the patchouli oil industry will gradually weaken. Production and sales will return to the original level and gradually increase. Patchouli Oil's suppliers should strengthen their supply chains and enhance their collaboration with downstream companies to increase customer loyalty and thus further increase their market share.

Wide range of applications

Patchouli oil is considered as the key for fragrance products and it is also used as a raw material for a number of products such as antiseptics, aromatherapy, cosmetics, pesticides and a fixative to bind other essential oils. Patchouli is an important ingredient in Asian and Arabian traditional medicine which considered patchouli oil as a stimulant. The widespread use of patchouli oil provides a continuous market demand for it. The increased consumption is triggered by increased demands for essential oil from various industries. Shifting preference from consuming products containing synthetic substances to natural ones also helps boosting demands for world’s essential oil.

Close liaison with suppliers

Because patchouli oil products are imported primarily from Asian countries such as Indonesia, if companies that use patchouli oil in other regions are unable to maintain stable relationships with their suppliers, they may be unable to fulfill customer orders, resulting in a negative impact on their business operations. Local sellers of patchouli oil package and process the materials and sell them to customers through physical retail stores and online sales. It is critical that suppliers have access to sufficient quantities of patchouli oil. The price of raw materials can fluctuate significantly due to a number of factors, including general shortages of materials, unanticipated increases in demand for materials, disruptions in suppliers' business operations and competitive pressures among suppliers to increase the price of materials. From time to time, suppliers may also choose to extend delivery times or restrict supply due to material shortages. In addition, any significant increase in material prices, if not passed on to consumers, could have a material adverse effect on the Company's financial condition or business operations. If a major supplier were to disrupt the supply chain by cancelling its distribution agreement with Patchouli Oil, Inc. it would result in a reduction in product sales until the Company could find a suitable alternative supplier. The geographic concentration of patchouli oil exporters could create upstream supply chain risks, particularly at this particular time.

Improvement of extraction processes

The production of patchouli oil is mainly by steam distillation. Also, the producers of patchouli oil are concentrated in Southeast Asia, where local growers are limited by their expertise and the extraction efficiency of patchouli oil is low. Additionally, distillation machines are not optimal and burn excessive fire wood. This means less income for the patchouli oil producers due to rising fuel costs when wood becomes scarcely available. Conventional distillation methods have room for improvement in terms of electricity consumption and CO2 emissions. Therefore, innovative distillation techniques are essential, how to reduce the pressure on environmental resources without compromising on yield and quality. Retrofitting distillation machines or improving distillation technology can not only reduce energy consumption, but also increase the profitability of the business.

Region Overview:

In global comparison, a significant portion of the revenue was generated in Asia Pacific (34.73% in 2022).

Company Overview:

Van aroma is one of the major players operating in the Patchouli Oil market, holding a share of 42.35% in 2023.

Van aroma

Founded in 2006, Van Aroma has progressed over the years to become the leader in Indonesian Essential Oils, Aroma Molecules and Botanical Extracts. Their strength and point of difference are their complete transparency with customers, suppliers, as well as vertical integration into raw material supply sources with facilities around Indonesia producing high quality ingredients at the source.

Givaudan

Givaudan is a global leading company in taste and wellbeing, and fragrance and beauty. With its heritage stretching back over 250 years, the Company has a long history of innovating scents and tastes. From a favorite drink to your daily meal, from prestige perfumes to cosmetics and laundry care, its creations inspire emotions and delight millions of consumers the world over.

Segmentation Overview:

Among different product types, Light Patchouli oil segment is anticipated to contribute the largest market share in 2028.

Application Overview:

In the Patchouli Oil market, 46.06% of the total value was generated through the Fragrance Industry segment by application in 2022.

Key Companies in the global Patchouli Oil market covered in Chapter 3:

Van aroma
Pt Indesso Aroma
PT Karimun Kencana Aromatics
PT Mitra Ayu Adi Pratama
PT. Djasula Wangi
Givaudan

In Chapter 4 and Chapter 14.2, on the basis of types, the Patchouli Oil market from 2018 to 2029 is primarily split into:

Dark Patchouli oil
Light Patchouli oil
Others

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Patchouli Oil market from 2018 to 2029 covers:

Fragrance Industry
Insect repellent
Toys
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)