The Russian market of essential oils is gaining momentum

According to the Analytical Agency FEEDLOT, the volume of production of essential oils in Russia has doubled over the past six years and reached 367 tons per year.

The key producers of essential oils are enterprises of the Southern Federal District, which accounted for 33% of total production in 2022. Siberia accounted for 31%, the Central and Volga Federal Districts – 21% and 15%, respectively.

This year, the palm was taken by manufacturers from the Central regions – 70% of the total production in January-June 2023.

Moreover, 2023 may become a record year over the past five years for the production of domestically produced essential oils.

In the 1st half of 2023, Russia increased the production of essential oils by 2 times – up to 307 tons.

Most companies increase their output and differentiate their product lines.

Major market players are Mirrolla Lab LLC, Natural Oils LLC, Botanica LLC and Sibir Namedoil LLC. They supply oils to both domestic and foreign markets.

Capacities are growing due to the annually increasing demand for essential oil products, including in connection with the development of domestic production of cosmetics and pharmaceuticals. Despite the growth of indicators, Russia remains an import-dependent country in terms of essential oils – the volume of imported products on the local market is twice as large as the domestic one. According to FEEDLOT analysts, the main suppliers are enterprises from India, Germany and China. Over the past six years, they have been in a leading position, accounting for more than 50% of supplies from abroad.

At the same time, the export of essential oils from Russia is growing at a faster pace – in six years it has grown by 40%. The main deliveries go to the EU countries and the Republic of Belarus.

Source: “Analysis of the Essential Oils Market in Russia”, FEEDLOT Analytical Agency.

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