Clove Leaf Oil Price Trend and Forecast

Clove Leaf Oil Regional Price Overview

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

Clove Leaf Oil Price Trend for the Second Half of 2023

Clove leaf oil possesses potent antimicrobial properties, making it a valuable ingredient in the formulation of dental care products, disinfectants, and natural cleaners. Additionally, clove leaf oil is utilized in the fragrance and flavor industry to impart its characteristic warm and spicy aroma to perfumes, cosmetics, and food items. Its natural analgesic properties also make topical pain relief products useful. These industrial sectors are thus the major drivers of the clove leaf oil market.
 

Clove Leaf Oil Price Chart

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In Asian countries, the pharmaceutical sector and medicinal industries witnessed a slight slowdown due to a depreciation in the cost of crude oil, reflecting an ease in inflationary pressure. This industrial slowdown was thus well advent in the limited rise in clove leaf oil prices. However, the downstream cosmetics industry showed significant improvement during the third and fourth quarters of 2023. This appreciation in the momentum kept the prices of clove leaf oil afloat throughout the aforementioned period.

Analyst Insight

According to Procurement Resource, the price trend of Clove Leaf Oil is estimated to depict the trajectory of prices of cosmetic products and the growth rate of the pharmaceutical and medicinal industries.
 

Clove Leaf Oil Price Trend for the First Half of 2023

After a disappointing market run in 2022, there were not many improvements seen in the Clove Leaf Oil market in H1’23 as well. Even though the supply chains had started stabilizing and the market fundamentals started improving, the producer sentiments were still low. After a long market run with negligible profits, the farmers shifted focus to other higher-yielding crops. However, owing to geopolitical issues, the demand dynamics did not improve at all. With all these factors, the Clove Leaf Oil market performance remained dull throughout the first half of the year 2023.

Analyst Insight

According to Procurement Resource, with high existing stocks and feeble demands, the Clove Leaf Oil market is likely to behave in a similar manner.
 

Clove Leaf Oil Price Trend for the Year 2022

Clove Leaf Oil is extracted from the leaves of the clove plant via steam distillation. As it is an essential oil, it has a strong spicy odor and is primarily used in pharma, pesticide, agriculture, aromatherapy, food, etc. sectors. In early 2022, the prices for Clove Leaf Oil started low as the demand destruction crashed the prices even amidst curtailed supplies. The Al Nina phenomenon had also significantly impacted production in countries like Indonesia, but other than that, high inventory levels also forced suppliers to reduce the margins to facilitate more product movement.

Events like the lockdown in China and the war in Europe also impacted the trade sentiments as the supply chains broke down and the trade routes became dysfunctional. Overall, the Clove Leaf Oil prices remained in a slump throughout.

Analyst Insight

According to Procurement Resource, with the given market fundamentals, not much improvement is expected in the Clove Leaf Oil market in the upcoming months.
 

Clove Leaf Oil Price Trend For the Fourth Quarter of 2021

Asia

Farmers in Indonesia were unable to dry their raw materials due to the continuing rains, leading the price of clove oil and its derivatives to be particularly unpredictable at the time. The supply was limited, and it was expected to remain so until the rainy season ended. The price of clove and its derivatives continued to rise due to severe rains.
 

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

Asia

Indonesia produces a significant number of cloves, which had been impeded by a long rainy season. These weather circumstances reduced oil production and shortened the crop's harvest season. As a result, the price of all clove oils and derivatives was expected to rise in the coming months. Increased rains in Indonesia were expected to place a pressure on farm output and yields during the next three months.
 

Clove Leaf Oil Price Trend For the Year 2020

Asia

Clove and its derivatives had seen some shockingly low prices in 2019, and buyers had grown accustomed to it. Raw material supplies were plentiful, and processors that could supply them battled fiercely for market share. These were deemed to be unsustainable pricing. The pendulum is now swinging in the opposite direction.

It took a bit longer than patchouli due to raw material carryover into the wet season, but supplies were running out. As a result, prices increased and were likely to increase more in the coming two to three months. Many processors continued to advise that it was a good time to buy at the moment, but buyers yearned for the 2019 low prices.

In reality, the processors were unwilling to return to the low prices of last year. Indonesia is the world's leading clove oil producer, accounting for more than 70% of global production. Farmers' optimum price for cloves was 120,000 IDR/kg.

Procurement Resource provides latest prices of Clove Leaf 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.