An Assessment of the Essential Oil and Aromatic Plant Industry with a Focus on Africa

Abstract

Africa is a producer and consumer of essential oils. Yet, its emergence as a major global source of most essential oils has been limited by many constraints largely related to the weakness of the value chain and supply. Those essential oils that are exclusively sourced from Africa are usually linked to a limited number of aromatic plants indigenous to the continent and which still are only found there. As the use of natural products such as essential oils provide high value niche crops and plant-based products that can provide income generating opportunities for African communities, a review of the major African essential oils in context to the global industry could provide insight into opportunities. According to the United Nations Comtrade statistics, the size of essential oil fragrance and flavor global market was estimated at US$ 24 billion in 2011, growing at an annual rate of 10 %. The major consumers in the multi-billion dollar global essential oils market are United States (40%), Western Europe (30%) and Japan (7%), with trade in essential oils and related products increasing at about 10% per year. The United States is the largest importer (US$ 2,721 million) and consumer of essential oils, with consumption equaling about 40% of the total production. Essential oils are used in the food industry for flavoring or flavor enhancing and in the aromatic industry directly in flavor and fragrance applications and formulated into a wide range of personal care and industrial products. In this paper, the overall global market for essential oils and aromatic plants is examined with a focus on the major internationally traded ones from Africa, as is their impact on the trade and development including discussions relating to economic returns and distributions. The sources of information used for this examination were secondary data such as various organizations and international country trade statistics.