The current price trend of star anise oil continues to decline, reaching the lowest point in the past two to three years.
The primary reasons for the decline are weak international market demand, reduced export orders, and the impact of low-priced star anise oil from Vietnam.
Additionally, the use of anethol extracted from basil oil in India has created price competition with anethol extracted from star anise oil in China.
Basil oil is significantly cheaper than Star anise, resulting in a substantial impact on star anise oil prices.
Furthermore, Vietnam and India currently enjoy duty-free exports of star anise oil and anethol to the United States, while Chinese products are subject to a 13% tariff.
star anise oil production in Guangxi and Vietnam starts in late October and concludes in March or April of the following year. Previously, star anise oil was produced by simmering star anise, but now it is predominantly made from leaves and branches.
Recently, the price of star anise oil is below RMB140, approximately USD 18 per kilogram FCA.
below is RMB price trend of dry star anise for reference:
The situation for cinnamon oil is similar to star anise oil, with prices showing a downward trend. The decline is primarily attributed to the production season, which occurs during winter and extends into the following spring.
The main producing regions are Vietnam and Guangxi, China. Cinnamon oil is primarily used for the extraction of cinnamaldehyde, which is further processed and widely used by companies such as Coca-Cola and PepsiCo.
The traditional and modern methods differ in terms of aroma and cinnamaldehyde content, with the modern method having higher cinnamaldehyde content and the traditional method providing a purer aroma.
Both methods use cinnamon leaves and branches for production. Currently, the price of cinnamon oil is around RMB 210, approximately USD 27 per kilogram FCA.Below is RMB price trend of dry Cassia bark for reference:
The market trading volume is relatively small, and manufacturers face significant inventory pressure, resulting in a strong willingness to ship products. For full container shipments +,existing customers+and firm orders, there may be some flexibility in pricing.
Personalized quotations can be provided on a case-by-case basis. However, for small quantity inquiries that contribute less to reducing inventory, most factories tend to adhere to market pricing with limited room for price reductionsDue to restrictions on initial shipping rates in logistics, the transaction price varies significantly between large-scale and small-scale orders. Bulk orders can effectively distribute these costs, resulting in lower shipment prices compared to small-scale orders.
Garlic oil and Ginger oil are stable like before, but smaller workshops are quitting the market, as most of them are losing money, The production capacity is concentrating towards the top enterprises.
Eucalyptus is huge product, its market is weak,something like star anise oil.
The above information is sourced from a limited number of factories we have contact with, and it may not accurately reflect market trends. If you find any errors or have different perspectives, we welcome your feedback for further discussion.
We aim to both have a precise understanding of the market and we both win more orders.