2025 Garlic Oil Market Trends: Supply and Demand Dynamics and Price Resurgence
I. Surge in Raw Garlic Exports, Tightening Raw Material Supply
In 2024, the export volume of raw garlic from China reached 2.2347 million tons, a significant increase of 15.66% year-on-year (compared to 1.9321 million tons in 2023). According to market forecasts, the export volume of raw garlic is expected to continue growing in 2025. The increasing demand for raw garlic will lead to a reduction in the raw materials available for garlic oil production.
II. Robust Demand for Deep-Processed Products, Relatively Sluggish Market for Natural Garlic Oil
The demand for deep-processed garlic products such as garlic slices and garlic powder in both international and domestic markets has been increasing, driving up both prices and sales volumes. However, the market demand for natural garlic oil is relatively small, and its processing is complex. Generally, garlic farmers only turn their surplus garlic stocks into garlic oil when the market is sluggish, garlic sales are slow, and they have no other way to handle the inventory.
III. Resurgence in Natural Garlic Oil Prices, Market Consuming Previous Inventory
Since 2017, the price of natural garlic oil has been on a downward trend, and garlic oil manufacturers have been facing poor business performance. Currently, with the rising price of garlic and a significant increase in production costs, these manufacturers are reluctant to organize production to increase inventory. As a result, the market is mainly focused on consuming the previous inventory. As the inventory decreases, the price of garlic oil is rising rapidly, and there is still a possibility of further price hikes in the future.
IV. Latest Price Information
The current market price of garlic oil is USD 104/KG , which is approximately 17% higher than the same period last year.
The end
The garlic oil market is currently experiencing a phase of price recovery, with a high likelihood of further price increases in the future. This trend is driven by the tightening supply of raw materials due to increased raw garlic exports and the adjustments in market supply and demand. Companies are advised to closely monitor market developments and adjust their business strategies accordingly.