Introduction
An oil is “essential” in the sense that it carries a distinctive scent, or essence, of the plant.
Essential oils do not, as a group, need to have any specific chemical properties in common, beyond conveying characteristic aromas. They are extracted from flowers, grasses, stems, seeds, leaves, roots, bark, fruit, moss and tree secretions using various means including distillation, expression, extraction, enfleurage, maceration and head space technology. They are used by the flavour and fragrance industry to create, and then manufacture, flavourings for food and beverages, and perfume compounds for cosmetics, household products and fine fragrances, amongst other items.
Source: Michael Gristwood, SAAFFI; www.essential-oil.org; NEDLAC / Fridge report (details under "Websites & publications" heading)
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Contents
International business environment
- 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).
Source: www.saeopa.co.za/about-us/the-industry/industry-profile-southern-africa/
Further reference:
- The global essential oils market size is estimated to be valued USD 8.8 billion in 2022 and is expected to reach a value of USD 15.3 billion by 2027 (Reportlinker, 2022).
- International Organisation of the Flavour Industry (IOFI) – https://iofi.org
- The International Fragrance Association (IFRA) – https://ifrafragrance.org
- International Federation of Essential Oils and Aroma Trades (IFEAT) – www.ifeat.org
- National Association of Flavours & Food-ingredient Systems (based in the USA) – www.naffs.org
- HealthWorld Online: “healthy people, healthy planet” – https://healthy.net
South Africa: exports and imports
Imported products dominate South Africa’s sales. Most of the imports come from India, USA, eSwatini, UK and China. South Africa exports mainly to the USA, UK, Germany and France. Statistics up to 2018 are provided at www.saeopa.co.za/about-us/the-industry/industry-profile-southern-africa
Local business environment
- South Africa has the potential to be a major supplier of certain essential oils, such as rosemary, lemon grass, lavender, lemon balm and rose geranium. The eucalyptus oil sector is some 80 years old and is largely self-sufficient and established. Others, like geranium, lavender and chamomile are relatively new.
- The essential oil industry is driven by two main factors: commercial farmers seeking alternative high value crops to diversify risk and increase profitability; and rural communities, Government and NGO’s seeking high value crops that can be produced on a co-operative basis thereby creating jobs in economically depressed rural areas.
- The South African essential oils industry comprises over 80 small commercial producers of which fewer than 20% are regular producers. Most oil production is Mpumalanga, KwaZulu-Natal and the Eastern Cape.
- Since South Africa does not produce enough essential oils for its own needs the future for this sector looks promising, theoretically. Producers have found marketing their products to be difficult.
- SAEOPA offers to present information on essential oil farming to interested farmer study groups.
Source: www.saeopa.co.za/about-us/the-industry/industry-profile-southern-africa and a previous version of A Profile of the South African Essential Oils Market Value Chain (see heading 10). Refer to the Directorate Marketing web pages at www.dalrrd.gov.za to see if an updated version of the publication has been published
Indigenous essential oils
- Rural communities often wild harvest indigenous plants, either on their own land or that of a commercial farmer.
- The exploitation of this indigenous plant material holds some interest for rural development, and a number of new cultivation projects are underway, with the aim of ensuring long term sustainability of these industries and enabling rural communities to create wealth from indigenous knowledge. The Western Cape, for example, is promoting the cultivation of Buchu (Agathosma sp.)
- Other promising indigenous oils are: Artemisia afra. Leonotis leonurus, Eriocephalus sp., Lippia sp., Salvia sp., Helichrysum sp., Cymbopogon validus, Coleonema sp., Tarchonanthus camphoratus, Arthrixia sp.
For more information on the market trends contact the Southern African Essential Oil Producers Association (SAEOPA) (see “Associations involved” heading). The Indigenous Plant Use Forum (IPUF) is a useful place to engage with what research is happening on plants and their properties.
For the newcomer
Various essential oils have been used medicinally at different periods in history. Medical applications proposed by those who sell medicinal oils range from skin treatments to remedies for cancer, and are often based on historical use of the oils for these purposes. Such claims are now subject to regulation in most countries, and have grown correspondingly more vague, to stay within these regulations.
Interest in essential oils has revived in recent decades, with the popularity of aromatherapy, a branch of alternative medicine which claims that the specific aromas carried by essential oils have curative effects. Oils are volatilised or diluted in a carrier oil and used in massage, or burned as incense, for example.
Carrier oil, also known as base oil or vegetable oil, is used to dilute essential oils before they are applied to the skin. They are so named because they carry the essential oil onto the skin. Carrier oils do not contain a concentrated aroma, unlike essential oils, nor do they evaporate like them. There are a range of different carrier oils each with their own individual properties and suitability towards different treatments in aromatherapy. Infused oils are a combination of a carrier oil and various herbs. True carrier oils are generally cold-pressed vegetable oils such as: Sweet almond, grape seed, avocado, olive oil, sesame, evening primrose, sunflower and Jojoba oil.
Source: Michael Gristwood, SAAFFI; www.essential-oil.org; NEDLAC / Fridge report (details under "Websites & publications" heading)
| Sector | Segments | Essential oils |
| Cosmetic | Personal care
Soap and detergent Dental care |
Lemon
Peppermint Orange Patchouli Rosewood Mint Spice Eucalyptus and derivatives |
| Food industry | Soft drink
Confectionery Tobacco Candy Processed and canned products Chewing gum |
Citrus
Spice oleoresins Vanilla Flavour and floral oils Oleoresins Peppermint |
| Pharmaceutical industry | Homeopathy
Health-care products Aromatherapy |
Orange
Citrus Patchouli Lavender Geranium |
Source: Southern African Essential Oil Producers Association (SAEOPA) as cited by DALRRD in its A Profile of the South African Essential Oils Market Value Chain (see "Websites & publications" heading)
- A wide range of producers grow essential oil crops – farmers both commercial and emerging, farmers looking for alternative crops, co-operative farmers and community projects, as well as the cottage industry. The technologies for extracting and distilling the oils are reasonably easy to access and operate.
- One of the most important aspects is marketing intelligence – before planting, find out what the buyer wants in terms of quality and quantity. This determines what to plant, how much and also what type of distillation is going to be used. This is a growing market, but it can be a risky business if all aspects of the market requirement are not taken into account.
- Also important is weed control and management. Your essential oil product will be compromised if weeds are harvested and distilled with the crop.
- Use essential oils to create products such as creams, bath salts, candles, potpourri and gifts. Attracting tourists is a further form of income.
Find the publications available from DALRRD under the last heading.
Role players specific to newcomers
- BioAfrica works with farmers and communities who have sufficient land to grow, harvest and produce sufficient essential oil.
- The Council for Scientific and Industrial Research (CSIR) has been involved in projects, especially when this involves rural development projects. Refer to Dr Marthinus Horak’s presentation under the “Websites & publications” heading.
- Find details for the Southern African Essential Oil Producers Association (SAEOPA) under the “Associations involved” heading.
- Scatters Oils works “from grassroots levels with our farmers and we work hand-in-hand to develop sustainable commercial supply of high quality essential oils. With years of experience we are able to help new and existing farmers with prospective and existing crops”.
- SEOBI – South African Essential oils Business Incubator is a company not-for-gain that establishes and supports sustainable SMMEs in the essential oils industry
Various municipalities and provincial development agencies have supported essential oil crop interventions to encourage economic activity in rural communities. The Sarah Baartman District Community and Amathole Economic Development Agency are examples.
National strategy and government contact
Department of Trade, Industry and Competition (the dtic) www.thedtic.gov.za
Representatives of SAEOPA have attended various trade missions sponsored by the dtic. These trade missions are largely considered to have been successful with the prospect of orders being placed. However, in the process, SAEOPA identified several issues that need to be addressed in order to secure market access: (i) The need to consolidate production in order to supply sufficient quantities with consistency. The volumes are required in order to get serious international attention. (ii) The need to have basic testing facilities (e.g. Gas Chromatograph) in order to test oils and to be able to give assurances with regards to quality and characteristics.
Department of Science and Innovation (DSI) www.dst.gov.za
The DSI is periodically involved in essential oil production. Its interest in the industry is largely channelled through initiatives like the work of the CSIR (in particularly community projects); the SA Essential Oils Business Incubator; the work of the Institute for Natural Resources (at the University of KwaZulu-Natal University); and the chemical sector incubator (Chemin) situated in Port Elizabeth.
The Department of Health is the governmental body that has ultimate responsibility for this country’s food laws. Visit www.health.gov.za.
Western Cape Department of Agriculture Directorate: Farmer Support Services www.elsenburg.com
Role players
Further reference:
See also the “Herbs and spices” page.
Training and research
- Research done by companies (like Biomix, Scatters Oils and Buchumoon) is company-specific. Training and agricultural advice is also provided for farmers who will be growing alternative and industrial crops for them.
Companies involved
- Find the list of SAAFFI members on www.saaffi.co.za, some of whom are included above.
- Chain stores like Clicks and Diskem stock essential oils.
Websites and publications
See also this heading on the “Herbs and Spices” page.
WEBSITES
Visit the websites mentioned earlier on this page.
- Several publications can be found on the “old” www.dalrrd.gov.za. On the DALRRD Directorate Marketing web pages, find the annual A Profile of the South African Essential Oils Market Value Chain. There are numerous notes for growers, which can be found under “Resource Centre”. These include guidelines for lavender, lemongrass, thyme, lemon balm, peppermint, rose geranium and rosemary.
- Visit the Mercola website for notes and videos on the various oils. In particular, look for “Ultimate Guide to Herbal Oils”
- Download the presentation “Adding value to South Africa’s Indigenous Knowledge and Plant Biodiversity through Scientific Innovation”, by Dr Marthinus Horak (CSIR) at http://pmg-assets.s3-website-eu-west-1.amazonaws.com/141024csir.pdf
BOOKS
- Call 012 842 4017 or email iaeinfo [at] arc.agric.za for the following publications, available from ARC-Agricultural Engineering: (i) Oil processing in South Africa (ii) Oil seed processing using the ram press (iii) The extraction of essential oils from herbaceous materials by steam distillation.
- The Food & Beverage Reporter often has articles of relevance for this sector: news or articles e.g. adding value to products with flavours and fragrances. Visit http://fbreporter.co.za.
- Weiss, E.A. 1996. Essential Oil Crops. Wallingford, UK: CAB International. ISBN 0851991378
- Wilson, R. 2002. Aromatherapy: Essential Oils for Vibrant Health and Beauty. This book covers the extraction of Essential oils.
- Lawless, J. 2013. The Encyclopedia of Essential Oils: The Complete Guide to the Use of Aromatic Oils in Aromatherapy, Herbalism, Health and Well Being. San Francisco: Conari Press.
- At www.developmentbookshop.com find publications like Oil Processing (Practical Action Publishing) and The Manual Screw Press for Small-Scale Oil Extraction (Potts, K.H. & MacHell, K.)
COMPUTER-BASED PROGRAMMES
Bizsolutions has an excellent set of interactive computer-based programmes dealing with various aspects of essential oils. These are available from ‘bizsolutions’ by contacting them by email (bizsolutions [at] xsinet.co.za) or telephone (011 447 2757).
- The Encyclopaedia of Natural Raw Materials programme covers 282 Essential Oils, giving a description of each, the history, cultivation details, different names and photographs.
- The Universal Aromatherapy Encyclopaedia covers 262 Essential Oils, giving a description of each, the history, different names and photographs. The programme gives indications for the use of the essential oil in aromatherapy as well as its properties and precautions before use. For each Essential Oil, details of the composition are given. The programme has the facility to record personal notes, add photographs and to print off personalised Safety Data Sheets. The search criteria include: Botanical name, Vernacular, Synonyms, Chemotypes, Properties, Indications, Precautions and Molecules.
- The Encyclopaedia of Natural Raw Materials for Cosmetology covers over 200 Botanicals, giving a description of each, the history, different names and photographs. The programme gives indications for the use of the botanical as well as its properties and precautions before use. For each Botanical, details of its composition are given. The programme has the facility to record personal notes, add photographs and to print off personalised Safety Data Sheets. There is a complete section on formulating cosmetic products, in which one’s own formulation can be captured. The search criteria include: Botanical name, Vernacular, Synonyms, Chemotypes, Properties, Indications, Precautions and Molecules.
Some articles
- Van Coller N. 2023, August 17. “Growing an essential oils business – a fun and lucrative endeavour”. MARK toe. Available at https://viewer.joomag.com/marktoe-augustus-2023-uitgawe-107/0514354001692172711/p38
- Shaik K. & Pienaar J. 2022, May 26. “Supreme court declares regulations on complementary medicines invalid”. Go Legal. Available at www.golegal.co.za/regulations-complementary-medicines/
- CNBC. 2019, February 22. “Rwanda plans to make an impact with essential oil production”. Available at https://www.youtube.com/watch?v=9KBhTc5dRf4
- Barth, B. 2018, February 9. “Essential Oils: 7 Common Questions Answered”. EcoWatch. Available at www.ecowatch.com/what-are-essential-oils-2532805956.html
- Yeager, N. 2017, July 28. “1 Pound of Essential Oil = 250 Pounds of Lavender”. EcoWatch. Available at www.ecowatch.com/environmental-impact-essential-oils-2465879288.html
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