Clove Bud Oil Price Trend and Forecast

Clove Bud Oil Regional Price Overview

Get the latest insights on price movement and trend analysis of Clove Bud Oil in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Clove Bud Oil Price Trend for the First Half of 2024

Clove bud oil prices are directly in alliance with the feedstock clove prices. In the first half of 2024, the price of clove bud oil exhibited an upward trend, influenced by several market dynamics. The growing demand for natural and sustainable ingredients in the European market, particularly in the food, beverage, and aromatherapy sectors, has driven up the demand for clove bud oil. This increase in demand is closely tied to the rising popularity of Asian cuisines and the incorporation of natural ingredients into various consumer products.
 

Clove Bud Oil Price Chart

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The emphasis on sustainability has further impacted the pricing of clove bud oil. European buyers are increasingly seeking suppliers who can provide clove bud oil produced with cloves grown in an environmentally friendly and socially responsible manner, which has led to higher production costs and, consequently, higher prices.

The premium quality of clove bud oil from Madagascar, recognized for its superior aroma and therapeutic properties, has also contributed to the price increase as demand for these high-quality oils grows. In South Asian countries like India, the clove bud oil prices saw even more spike in the latter half of the second quarter as the Eid-Ul-Azha celebrations pushed the downstream demands up in consumer markets. Overall, a positive price trajectory was witnessed in H1’24.

Analyst Insight

According to Procurement Resource, the Clove Bud Oil prices are likely to remain upward-facing in the coming months. The current supply and demand dynamics suggest stability in the global clove bud oil markets going forward.
 

Clove Bud Oil Price Trend for the Second Half of 2023

Clove bud oil, derived from the flower buds of the clove tree Eugenia caryophyllata, is highly valued for its aromatic and medicinal properties. In the industrial realm, clove bud oil finds extensive application in the fragrance and flavor industry, where its rich, spicy aroma enhances perfumes, soaps, and food products. Moreover, it serves as a natural antimicrobial and analgesic agent, making it a key ingredient in dental care products, pharmaceuticals, and herbal remedies.

However, the Asian countries struggled with the rising illegal auctions of trade-sensitive spices, which forced government officials to raise sanctions and restrictions over the open trade of these spices and essential oils. This limited movement of clove bud oil and other related essential oils dried up the inventories quickly amid the rising awareness of its benefits. This widened the supply and demand gap, and thus, the trading industries were pressured by excessive orders throughout the third and fourth quarters of 2023.

Similarly, other nations, such as Spain, North America, etc., suffered from limited agricultural harvest due to excessive rainfall and heat waves, decreasing the availability of raw materials and lowering the production rates of clove bud oil.

Analyst Insight

According to Procurement Resource, the price trend of Clove Bud Oil is estimated to showcase a gradual incline as the demand from the consumers is expected to rise, but the low rates of production will not be able to keep up with this rising interest of consumers.
 

Clove Bud Oil Price Trend For the First Half of 2023

In the first half of 2023, not much changed for Clove Bud Oil prices from the previous quarters as the prices were mostly firm. However, the continuous dip in prices did affect the market sentiments. A consistent decline in production yields, along with bearish demands, affected the profit margins considerably. Fluctuating across a similar line, Clove Bud Oil prices exhibited downward wavering patterns in both quarters of H1 2023. Overall, a stable market sentiment was observed in the global market.

Analyst Insight

According to Procurement Resource, with a gradual decline in clove crop production, a supply constraint can be experienced in the upcoming quarters. So, an incline in price trend of Clove Bud Oil is projected.
 

Clove Bud Oil Price Trend for the Second Half of 2022

Clove Bud Oil prices are largely determined by the feedstock Clove prices as the oil is directly sourced from the Clove Buds. During the second half of the year 2022, the market experienced a fluctuating price situation as the major industrial consumers like cigarette factories have practiced bulk storage by procuring and storing goods that could easily last 2-3 years; a cyclic dip in demand was observed in the clove market affecting the price sentiments significantly. So, the Clove Bud Oil prices stayed low, swinging throughout the said period, with prices fluctuating in a narrow range.

Analyst Insight

According to Procurement Resource, Clove Bud Oil price trend do not show much changing projections. Prices are expected to waver within the same range in the upcoming quarters as well.
 

Clove Bud Oil Price Trend For the First Half of 2022

Asia

The clove bud oil industry is highly concentrated in South-East Asia, predominantly in Indonesia, which supplies over 75% of the world's requirements.

However, due to the arrival of La Nina, the rainy season is still strong in Indonesia, causing adverse effects on many crops. This phenomenon affected the price trend of the clove bud oil in the international market and averaged 23 USD/kg.

Also, the large amounts of raw materials required for significant yields are hindering the critical players from buying, causing the prices to crash during the current forecast period.

Middle East and Africa

After Indonesia, a significant amount of clove bud oil is exported from Madagascar, where the annual production crosses 12000 MT. Countries like India, owing to its preferential trade agreements, usually import from Madagascar to meet its requirements. However, this trade is limited due to varying international and distribution channels challenges.
 

Clove Bud Oil Price Trend For the Fourth Quarter of 2021

Asia

Because of the ongoing rains in Indonesia, farmers were unable to dry their raw materials, causing the price of clove oil and its derivatives to be extremely volatile at the moment. The supply was restricted, and it was likely to stay so until the end of the current rainy season. In the final quarter of 2021, the price was recorded at 33 USD/kg.  Due to excessive rains, the price of clove and its derivatives continues to rise.
 

Clove Bud Oil Price Trend For First, Second and Third Quarters of 2021

Asia

Indonesia accounts for a substantial amount of clove output, which had been hampered by an extended wet season. These climatic conditions lowered oil output and shortened the harvest season for the crop.

As a result, all clove oils and derivatives were projected to increase in price in the coming months. Increased rains in Indonesia over the next three months were anticipated to put strain on agriculture productivity and yields. Average clove bud oil prices in the first three quarters in Indonesia were 33 USD/kg.
 

Clove Bud Oil Price Trend For the Year 2020

Asia

Clove and its derivatives had seen some incredibly cheap pricing in 2019, and customers were quickly becoming accustomed to it. Raw material supplies were plentiful, and processors with capacity to supply them competed vigorously for market dominance. These prices were thought to be unsustainable. The scales are now beginning to tip in the opposite direction.

Because of the raw material carryover into the wet season, it took a little longer than patchouli, but supplies were running out. As a result, prices rose and were expected to continue to rise over the next two to three months.

Many processors continued to recommend that it was a good time to buy then, but consumers were yearning for the low pricing of 2019. Realistically, the processors were hesitant to return to last year's cheap prices. Indonesia is the world's largest producer of clove oil, accounting for more than 70% of global output. The ideal price of cloves from farmers was 120,000 IDR/kg. Average clove bud oil prices (CBO) in 2020 were 31.5 USD/kg.

Procurement Resource provides latest prices of Clove Bud Oil. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.