South African Essential Oils Market Profile 2010

A PROFILE OF THE SOUTH AFRICAN ESSENTIAL OILS
MARKET VALUE CHAIN
2010
Directorate Marketing
Private Bag X 15
Arcadia
0007
Tel: 012 319 8455/6
Fax: 012 319 8131
Email: DM@daff.gov.za
www.daff.gov.za
1
Table of Contents
1. DESCRIPTION OF THE ESSENTIAL OILS’ INDUSTRY 3
1.1 Production and Production Areas 3

1.1.1 Overview of the essential oils market and its composition 6
1.1.2 Identification of Products 6
2. HARVESTING OF ESSENTIAL OILS 7
2.1 Harvesting 7
2.2 Essential Oils Marketing Activities 7
3. EXPORTS VOLUMES 8
4. IMPORTS VOLUMES 19
5. USES OF ESSENTIAL OILS 25
6. QUALITY & MAINTANANCE OF ESSENTIAL OILS 27
7. ESSENTIAL OIL VALUE CHAIN ANALYSIS 27
8. ESSENTIAL OILS DISTRIBUTION CHANNELS 33
8.1 Value Adding in South Africa 34
9. MARKET ACCESS 35
10. MARKET INTELLIGENCE 42
11. THE ESSENTIAL OILS OF PEPPERMINT 100

11.1.1 Properties of peppermint 100
11.1.2 Safety precautions and warnings 100
11.1.3 Production levels in South Africa 100
11.1.4 Major production Areas in South Africa 101
11.1.5 Stem, Leaves, and Flowers 101
11.1.6 Essential part of peppermint 101
11.1.7 Post harvest handling 101
11.1.8 The peppermint sale price 102
11.1.9 Essential Oils of Peppermint Industrial Utilization 102
11.1.10 Cosmetic Utilization 103
12. ACKNOWLEDGEMENTS 111
2
1. DESCRIPTION OF THE ESSENTIAL OILS’ INDUSTRY
An essential oil is a liquid that is generally distilled (most frequently by steam

or water) from the leaves, stems, flowers, bark, roots, seeds, fruits or other
organs of a plant. Using the different technologies available essential oils are
sourced from over 3,000 plants of which approximately 300 are of commercial
importance. Most flowers contain very little volatile oil and their chemical
components are too delicate and easily denatured by the high heat used in
steam distillation.
A solvent such as hexane or supercritical carbon dioxide is used to extract

the oils. Extracts from hexane and other hydrophobic solvents are called
concretes, which is a mixture of essential oil, waxes, resins, and other
lipophilic (oil soluble) plant material. The majority of essential oils are usually
obtained from agricultural plants but a number of oils are collected from wild
sources including trees.
The strengths of essential oils
• They are antibacterial, antiviral, antifungal, and antimicrobial.

• Essential oils by-pass the digestive system so they are beneficial for
people with poor digestion/assimilation.
• They require no refrigeration and require very little storage space.
• They have the longest shelf life of any plant known to man.
• Essential oils are highly oxygenating.
• They are very cost-effective because they are one of the few substances
that the more you use them, the less you need them.
• They are suitable for babies since they cannot swallow tablets and
capsules thus essential oils provide a solution as they only come in
liquid form.
Weakness of the Essential Oils industry (Production Constraints)
• Production of essential oils requires highly focused farm practices and

field maintenance for high quality yield.
• Requires more technical support, including the production inputs and
most effective plant material for new plantings
• There is a high entry barrier which includes fencing, cuttings,
distillation plants and land preparation.
1.1 Production and Production Areas
3
The major producers of essential oils across the world are Brazil, China, USA,
Egypt, India, Mexico, Guatemala, Morocco and Indonesia. All of them with the
exception of USA are developing countries with low cost, peasant type
economies. It is estimated that about 65% of world production emanates from
developing countries. The major consumers are the USA (40%), Western
Europe (30%) and Japan (7%). While the EU as a whole dominate world trade,
exports and imports, no individual country from this bloc features in the list
of major producers. Most of the major producing countries have large
populations with huge internal appetite for essential oils. The table below
shows the projected hectares under essential oil crops given by provinces in
South Africa by 2010.
Table 1: The projected ha under essential oil crops by 2010 as given by

Provinces.
Province Species TOTAL ha

Mpumalanga Vetiver, Citronella, Lippia, Eucalyptus, Artemisia, 943
Rosemary, Geranium, Lemon grass
Free State Tagete, Artemisia, Lavendin 70
Northern Marjoram, Rosemary, Lavendin 45
Cape
North West Geranium, Rosemary, Lavendin, Chamomile 40
Eastern Geranium, Rosemary, Lavender 200
Cape
Western Eriocephalus, Lavender, Lavandin, Buchu, Rosemary 77
Cape
Limpopo & Lippia, Geranium, Rosemary, Lavendin, Tea tree 91
Machado
Gauteng Lavendin, Rosemary, Artemisia 82
KZN Lavendin, Rosemary Eucalyptus, Geranium, Tea tree, 422
Lemon tea tree, Spear Mint, Lemon grass, Artemisia,
Melissa, Thyme
TOTAL 1970
These estimates exclude wild harvesting and community projects in progress
Source: South African Essential Oil Producer Association (SAEOPA)
Table 1 show the estimated hectares of essential oil crops of different species
which will be planted by different provinces by 2010. The table shows that in
the Mpumalanga province it is projected that 943 ha will be planted to
essential oil crops by 2010, followed by Kwazulu Natal with 422 ha and
Eastern Cape with 200 ha.
4
The estimated total hectares to be devoted to essential oil crops by all the
provinces by 2010 are about 1970 ha. However of all the total species
estimated, Geranium, Lavendin and Rosemary are the most projected species
to be planted in all provinces by 2010. The table indicates that in all
Provinces, Kwazulu Natal Province is projected to be the major producer of
most kinds of essential oil species than the other provinces by 2010.
Table 2: Estimated Production Statistics for certain selected Essential

Oils 2009.
OIL TYPES ESTIMATED VALUE OF

PRIMARY
PRODUCTION (2009)
Major Oil (Citrus) and Eucalyptus) R7 444 526.00
Minor Oils (e.g. Chamomiles, Jasmine, R2 237 169.75
Lavenders, Tea Trees, Mints)
Minor Oils-FRIDGE Study - Specified
Geranium (Pelargonium Graveolens Roseum) R541 666.67
Buchu (Betulina, Crenulata) 500 000.00
Chamomile – Roman (Anthemis nobilis) R24 305.56
Rosemary (Rosmarinus Officinalis) R15 000.00
Lemon Grass (Cymbopogon Citratus) R7 777.78
Lemon balm (Melissa officinalis) -
Lippia (Lippia javanica) -
Rose Damascene (Rosa * Damascene) -
Source: Institute of Natural Resources
Table 2 indicates different types of essential oils and the estimated values of
primary production in 2009.
Table 3: The most utilized essential oils and major producers

Product Country
Orange Australia, Brazil, Dominican Republic, Israel, Italy

and USA
Corn mint Brazil, China, India, Japan, North Korea, Paraguay,
Taiwan and Thailand
Eucalyptus (cineole-type) Australia, Austria, Brazil, China, India, Paraguay,

Portugal, South Africa and Spain
Citronella China, India and Vietnam

Peppermint Australia, China, Italy, Japan and USA
Lemon Argentina, Australia, Brazil, Greece, Spain, Italy,
5
Product Country
USA and Peru

Clove leaf Brazil, Indonesia, Madagascar, Sri Lanka and
Tanzania
Cedar wood USA and China
Litsea cubeba China
Sassafras Brazil and USA
Lime Brazil, China, Cuba, Ghana, Haiti, Ivory Coast,
Jamaica, Mexico and Peru
Spearmint Argentina, Australia, Brazil, Bulgaria, China,
Egypt, France, Hungary, Japan, Korea, Morocco,
New Zealand, Paraguay, Romania, Russia, Taiwan,
UK, USA and Yugoslavia
Source: South African Essential Oil Producer Association (SAEOPA)
1.1.1 Overview of the essential oils market and its composition
Production data for essential oils are hard to find, as it is very difficult to do
an exhaustive compilation covering the broad spectrum of all of essential oils
produced. The essential oil industry is dynamic with tastes and preferences of
consumers changing by the day. The top 10 crops in terms of production
account for about 80 percent of the total world market for essential oils. One
of the most important things to do for farmers who want to be involved in
essential oils production is selecting the right seed or plant material for
sowing. It is recommended that this be obtained from a reputable supplier.
Farmers should also be knowledgeable on weed control and management as
this will affect the quality of the end product. If weeds are harvested and
distilled with the crop, the oil from weeds can contaminate the desired oil,
which would compromise quality. These would lead to a total rejection of the
crop’s oil which will have a negative impact on the farm income.
1.1.2 Identification of Products
Given the appropriate equipment, essential oils can be fractionated and

components sold individually. Alternatively, at home industry level, essential
oils can be used in scented candles, soaps, and hand creams. Some authors
are of the view that massaging oils into the human skin as in aromatherapy is
of little therapeutic value, although it may induce a sense of sensual well
being. However, in spite of the lack of a scientific basis for aromatherapy, it
remains a viable component of the market for the South African essential oils
industry.
6
There are numerous ways to create value added products through the use of
essential oils. Based on information gathered from a brief overview of the
essential oil sub sector map and value chain, it has been decided that the
following value added products will be investigated further, completing each
investigation with a sub sector map for that product. The products are;
Soaps, Scented candles, Bath salts, Aromatherapy creams and lotions and
Potpourri.
It has been determined that each of these identified products are relatively
simple to make, thus making use of the home based production units, and
have a viable market within South Africa, and particularly, the Eastern Cape.
Each of these products will be discussed in detail.
2. HARVESTING OF ESSENTIAL OILS
2.1 Harvesting
It must be noted that the essential oils can be harvested as either plants or
seeds. For the plants the proximity of the steam distillation plant is
important. If the period between harvesting and distillation is too long the oil
from the plant can evaporate or decline in quality. The quality of the oil is
volatile. It changes as the crop grows; this means that a farmer should ensure
that the crop is harvested at the right time.
2.2 Essential Oils Marketing Activities
The marketing structure of essential oils is not different from most products.
The traditional structure begins with the producer who sells to the flavor and
fragrance industries. Fragrance houses may or may not embark on value
adding to the product, they then sell it to the end users. At times system has
been supplemented by traders, agents and brokers who use their knowledge
to market niches and buy directly from producers and sell directly to the
flavor houses or end users. Although it is very difficult to enter into the
essential oils industry from either side, as producers or end users, there is
always an opportunity for small players. The reason for the difficulty in
gaining entry is that once end users have developed a product using specific
oil they do not want to change that oil or the supplier as they may fear a
compromise in quality. Small scale farmers may enter the market and target
small industries such as Aromatherapy and Massage for their product
market.
7
3. EXPORTS VOLUMES
Figure 1: Exports volumes of essential oils of peppermints

Export Quantity (tons) (including concretes and absolutes) to various regions
2.5
2
1.5
1
0.5
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Africa 0.15 0.097 0.71 0.682 1.418 1.002 1.552 1.251 2.331 1.052
Americas 0 0 0 2.269 0 0.08 0.06 0.059 0.001 0
Asia 0 0.1 0 0 0.001 0 0.036 0.079 0 0.01
Europe 0 0.001 0 0.001 0 0 0.345 0.12 0.229 0.09
Oceania 0 0 1.32 0 0 0.35 0 0 0 0.006
Period (Years)
Source: Quantec
Figure 1 indicates exports volumes of essential oils of peppermint (including

concretes and absolutes) from South Africa to various regions between 2001
and 2010 period. During the same period under review, the major export
markets for essential oils of peppermint (including concretes and absolutes)
were Africa followed by the Americas and Oceania. Europe and Asia had very
low levels of exports of essential oils of peppermint including concretes and
absolutes during the same period under review. Between 2001 and 2010,
essential oils of peppermint including concretes and absolutes exports from
South Africa to Africa had fewer fluctuations. Exports of essential oils from
South Africa to Africa attained a peak in 2009 at approximately 2.331 tons
while exports of essential oils of peppermint from South Africa to Americas
attained a peak in 2004 at approximately 2.269 tons. Exports of essential oils
of peppermint including concretes and absolutes from South Africa to
Oceania attained a peak in 2003 at approximately 1.32 tons.
8
Figure 2: Exports volumes of essential oils of peppermint
(including concretes and absolutes) to Africa
2.5
Export Quantity (tons)

2
1.5
0.5
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Eastern Africa Rest 0 0 0 0 0 0 0 0.001 0.048 0
SADC 0.15 0.97 0.71 0.682 1.418 1.002 1.552 1.25 2.283 1.052
Period (Years)
Source: Quantec
Figure 2 represents exports of essential oils of peppermint (including

concretes and absolutes) from South Africa to Africa between 2001 and 2010
period. The graph further shows that the attractive market during the period
under examination was SADC region with no competition from other African
regions. During the same period under review, exports of essential oils of
peppermint to SADC had fewer fluctuations. A peak in exports of essential
oils of peppermint from South Africa to the SADC region was attained in 2009
at approximately 2.283 tons. Eastern Africa Rest had very low levels of
exports of essential oils of peppermint from South Africa during the period
under review.
Figure 2 clearly indicates that the demand for essential oils of peppermint
from South Africa to Africa was less as compared to what South Africa
exported to Americas, Europe and Asia over the same period under
examination.
9
Figure 3: Exports volumes of essential oils of peppermints (including
concretes and absolutes) to SADC
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Mauritius 0.15 0.022 0 0 0 0 0 0 0 0

Malawi 0 0.075 0 0 0 0.204 0.001 0.052 0.388 0.122
Mozambique 0 0 0 0 0 0.005 0 0 0 0
Seychelles 0 0 0 0 0.025 0 0 0.001 0 0
United Republic of Tanzania 0 0 0 0.213 0.003 0 0.01 0 0 0
Zambia 0 0 0.01 0.08 0.09 0 0.003 0.041 0 0.204
Zimbabwe 0 0 0.7 0.389 1.3 0.793 1.538 1.156 1.895 0.726
Period (Years)
Source: Quantec
Figure 3 illustrates exports volumes of essential oils of peppermints (including

concretes) and absolutes from South Africa to SADC member states between
2001 and 2010 period. The major attractive market for essential oils of
peppermint including concretes and absolutes from South Africa was
Zimbabwe followed by Malawi then Zambia and United Republic of Tanzania.
The graph further illustrates that essential oil of peppermint exports from
South Africa to SADC region had fewer fluctuations during the period under
review. Exports of essential oils of peppermint from South Africa to Zimbabwe
attained a peak in 2009 at approximately 1.895 tons while Malawi also
attained its peak in 2009 at approximately 0.388 tons. Tanzania and Zambia
experienced their peaks in 2004 and 2010 at approximately 0.213 tons and
0.204 tons respectively.
10
(including concretes and absolutes) to Asia
0.12

0.1
0.08
0.06
0.04
0.02
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Eastern Asia 0 0 0 0 0 0 0 0 0 0.01

South-central Asia 0 0 0 0 0 0 0.009 0 0 0
South-eastern Asia 0 0.1 0 0 0 0 0.027 0.075 0 0
Western Asia 0 0 0 0 0.001 0 0 0.004 0 0
Period (Years)
Source: Quantec
Figure 4 shows essential oils of peppermints exports (including concretes and

absolutes) from South Africa to Asia between 2001 and 2010 period. During
the period under scrutiny, the most attractive market for essential oils of
peppermint exports from South Africa to Asia was South-eastern Asia
followed by a few exports to Eastern Asia and South-central Asia. The graph
further shows that there were very few fluctuations of exports of essential oils
of peppermint South-eastern Asia over the same period under examination.
Essential oils of peppermint exports from South Africa to South-eastern Asia
attained a peak in 2002 at approximately 0.1 tons while Eastern Asia and
South-eastern Asia had very low volumes of essential oil exports from South
Africa over the same period under examination.
11
(including concretes and absolutes) to Europe
0.4
Export Quantity (tons) 0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
European Union 0 0.001 0 0.001 0 0 0.345 0.12 0.229 0.09
Period (Years)
Source: Quantec
Figure 5 depicts volumes of essential oils of peppermints exports (including

concretes and absolutes) from South Africa to Europe between 2001 and
2010 period. The graph further depicts that essential oils of peppermint were
very low in 2002 and 2004, with no exports of essential oils in 2001, 2003
and 2006. The graph also depicts that volumes of essential oils of peppermint
exports started to increase in 2007 then a slight decline was experienced in
2008 and 2010. A peak in exports of essential oils of peppermint from South
Africa to the European Union was attained in 2007 at approximately 0.345
tons during the same period under examination.
12
concretes and absolutes) to the Americas
2.5
1.5
0.5
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
NAFTA 0 0 0 2.269 0 0.08 0.06 0.059 0.001 0
Period (Years)
Source: Quantec
Figure 6 indicates volumes of essential oils of peppermints exports (including

concretes and absolutes) from South Africa to Americas between 2001 and
2010 period. The figure further indicates that the major export market for
essential oils of peppermint from South Africa to Americas was NAFTA. The
graph also indicates that there were no exports of essential oils of peppermint
from South Africa to NAFTA in 2001, 2002, 2003, 2005 and 2010. Exports of
essential oils of peppermint from South Africa to NAFTA attained a peak in
2004 at approximately 2.269 tons.
13
concretes and absolutes) to Oceania
1.4
Export Quantity (tons) 1.2
0.8
0.6
0.4
0.2
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Australia and New Zealand 0 0 1.32 0 0 0.35 0 0 0 0.006
Period (Years)
Source: Quantec
Figure 7 illustrates exports volumes of essential oils of peppermints (including

concretes and absolutes) from South Africa to Oceania between 2001 and
2010 period. The figure also illustrates that during the period under scrutiny,
the most attractive market in Oceania was Australia and New Zealand. The
graph further illustrates that exports of essential oils of peppermint from
South Africa to Australia and New Zealand occurred in 2003, 2006 and 2010
with exports of essential oils attaining a peak in 2003 at approximately 1.32
tons. The figure further illustrates that from 2007 to 2009 there were zero
exports of essential oils of peppermint to Australia and New Zealand during
the same period under scrutiny.
14
Figure 8: Value of essential oils of peppermints exports (including
concretes and absolutes) by Provinces
Exports Value (Rands) 700000

600000
500000
400000
300000
200000
100000
0
2002 2003 2004 2005 2006 2007 2008 2009
Western Cape 40431 0 395203 8625 0 1035 0 25061

Kwazulu-Natal 0 12830 0 0 0 0 0 0
North West 0 0 0 0 0 0 0 3195
Gauteng 285 58043 163216 194436 168241 508045 463932 614280
Period (Years)
Source: Quantec
Figure 8 shows values of essential oils of peppermints exports (including

concretes and absolutes) by provinces of South Africa to the world between
2002 and 2009 period. The figure also shows that the major supplying export
markets for essential oils of peppermints from South Africa during the period
under review was Gauteng followed by Western Cape, KwaZulu-Natal and
North West provinces. Exports of essential oils by Gauteng attained a peak in
2009 at approximately 614 280 kilograms while Western Cape attained its
peak in 2004 at approximately 395 203 kilograms. Kwazulu-Natal and North
West provinces had very low export volumes of essential oils of peppermint
from South Africa to the world.
15
concretes and absolutes) by Gauteng Province
600000
Exports Value (Rands)

500000
400000
300000
200000
100000
0
2002 2003 2004 2005 2006 2007 2008 2009
Ekurhuleni Metropolitan 271 57623 0 0 39035 314 9438 0
Municipality
City of Johannesburg 5 420 163216 194436 129206 507731 395581 445033
Metropolitan Municipality
City of Tshwane Metropolitan 9 0 0 0 0 0 58913 169247
Municipality
Period (Years)
Source: Quantec
Figure 9 indicates exports values of essential oils of peppermints (including

concretes and absolutes) from Gauteng province to the world between 2002
and 2009 period. The graph also indicates that the City of Johannesburg
Metro was the major exporter of essential oils of peppermints followed by City
of Tshwane Metro during the period under examination. Exports of essential
oils of peppermints by the City of Johannesburg attained a peak in 2007 at
approximately 507 731 kilograms while the City of Tshwane Metro attained
its peak in 2009 at approximately 169 247 kilograms. The graph further
indicates that there were fewer fluctuations in terms of exports of essential
oils of peppermints from Gauteng province during the same period under
review.
16
concretes and absolutes) by Western Cape Province
450000
400000
Exports Value (Rands) 350000
300000
250000
200000
150000
100000
50000
0
2002 2003 2004 2005 2006 2007 2008 2009
City of Cape Town Metropolitan 40431 0 395203 8625 0 1035 0 25061

Municipality
Period (Years)
Source: Quantec
Figure 10 shows values of exports of essential oils of peppermints (including

concretes and absolutes) from Western Cape Province between 2002 and
2009 period. During the same period under examination, the figure also
shows that the major exporter of essential oils of peppermints was the City of
Cape Town Metro. Exports of essential oils from the City of Cape Town Metro
reached a peak in 2004 at approximately 395 203 kilograms. The figure
further shows that in 2003, 2006 and 2008, there were no exports of
essential oils from the Western Cape Province.
17
concretes and absolutes) by KwaZulu-Natal Province
14000
Exports Value (Rands)

12000
10000
8000
6000
4000
2000
0
2002 2003 2004 2005 2006 2007 2008 2009
eThekwini Metropolitan 0 12830 0 0 0 0 0 0

Municipality
Period (Years)
Source: Quantec
Figure 11 depicts values of exports of essential oils of peppermints (including

concretes and absolutes) from KwaZulu-Natal Province between 2002 and
2009 period. During the same period under examination, the figure also
depicts that the major exporter of essential oils of peppermints was eThekwini
Metro with no competition from the other municipalities. The figure further
depicts that exports of essential oils from the Metro attained a peak in 2003
at approximately 12 830 kilograms. The figure also depicts that in 2002 and
again in 2004 to 2009 there were no exports of essential oils from the
Western Cape Province.
18
4. IMPORTS VOLUMES
Figure 12: Imports volumes of essential oils of peppermints

(including concretes and absolutes) from various regions
35
Import Quantity (tons)
30
25
20
15
10
5
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Africa 0 0 0 0 0.003 0 0 0.12 0 0
Americas 29.695 22.15 28.923 15.424 11.304 10.663 13.492 11.495 14.104 9.897
Asia 2.135 3.512 4.198 1.655 3.65 1.9 1.25 1.175 4.469 10.874
Europe 15.358 16.968 19.764 20.222 19.921 18.452 15.323 15.185 10.546 8.367
Oceania 0 0 0 0 0 0 0 0 0.013 0.016
Period (Years)
Source: Quantec
Figure 12 shows imports volumes of essential oils of peppermints (including

concretes and absolutes) from various regions to South Africa between 2001
and 2010 period. During the same period under review, the major import
markets for essential oils of peppermint including concretes and absolutes
were from the Americas followed by Europe and Asia. Africa and Oceania had
very low levels of imports of essential oils of peppermint including concretes
and absolutes during the same period under review.
Between 2001 and 2010, essential oils of peppermint including concretes and
absolutes imports from the Americas, Europe and Asia to South Africa had
fewer fluctuations. Imports of essential oils from Americas to South Africa
attained a peak in 2001 at approximately 29 695 tons while imports of
essential oils of peppermint from Europe to South Africa attained a peak in
2004 at approximately 20 222 tons. Imports of essential oils of peppermint
including concretes and absolutes from Asia to South Africa attained a peak
in 2010 at approximately 10 874 tons. Figure 12 in comparison with figure 1
shows that South Africa is importing more tons of essential oils of peppermint
from the Americas as compared to what South Africa is exporting to the
Americas during the same period under review.
19
(including concretes and absolutes) from Africa
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
SADC 0 0 0 0 0.003 0 0 0.12 0 0
Period (Years)
Source: Quantec
Figure 13 indicates imports volumes of essential oils of peppermints

(including concretes and absolutes) from Africa to South Africa between 2001
and 2010 period. The figure further indicates that the only import market of
essential oils of peppermint from Africa to South Africa was SADC region with
no imports in 2001 to 2004 and again in 2006, 2007, 2009 and 2010 years.
Imports of essential oils of peppermint from SADC region to South Africa
started to increase in 2005 and attained a peak in 2008 at approximately
0.12 tons. Figure 13 as compared to figure 2 clearly indicates that the
demand for essential oils of peppermint from Africa to South Africa was less
as compared to what South Africa imported from US, Europe and Asia during
the same period under scrutiny.
20
(including concretes and absolutes) from SADC
Import Quantity (tons) 0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Zimbabwe 0 0 0 0 0 0.003 0 0 0.12 0 0
Period (Years)
Source: Quantec
Figure 14 depicts imports volumes of essential oils of peppermints (including

concretes and absolutes) from the SADC region to South Africa between 2001
and 2010 period. The figure further indicates that the only import market of
essential oils of peppermint from the SADC region to South Africa was
Zimbabwe with no competition from other SADC countries. The figure also
depicts that there were no imports of essential oils of peppermint from
Zimbabwe to South Africa between 2001 and 2004 and again in 2006, 2007,
2009 and 2010 years. Imports of essential oils of peppermint from Zimbabwe
to South Africa started to increase in 2005 and attained a peak in 2008 at
approximately 0.12 tons.
21
Figure 15: Imports volumes of essential oils of peppermints (including
concretes and absolutes) from the Americas
35
30
25
20
15
10
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
South America 3.898 0 0 0.54 0 0 0.9 0.72 0 0
NAFTA 25.797 22.15 28.923 14.884 11.304 10.663 12.592 10.775 14.104 9.897
Period (Years)
Source: Quantec
Figure 15 illustrates volumes of imports of essential oils of peppermints

(including concretes and absolutes) from the Americas to South Africa
between 2001 and 2010 period. The graph further illustrates that major
import market for essential oils of peppermint from the Americas was NAFTA
followed by very low imports from South America during the period under
review. Imports of essential oils of peppermint from NAFTA started to increase
in 2001 then a slight decline in 2002 until a peak was attained in 2003 at
approximately 28, 923 tons while imports of essential oils of peppermint from
South America attained a peak in 2001 at approximately 3, 898 tons.
The figure also illustrates that from 2004 to 2006 there was a consistent
decline in imports of essential oils of peppermint from NAFTA to South Africa
due to the high tariffs agreements and that let to less imports entering the
Borders of South Africa during the same period under review.
22
(including concretes) and absolutes from Asia
10

8
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Eastern Asia 0.385 1.9 0.615 0.82 1.287 1.22 0.35 0.592 0.635 1.605
South-central Asia 1.75 1.612 3.583 0.09 2.363 0.68 0.357 0.583 2.751 9.269
South-eastern Asia 0 0 0 0.72 0 0 0.543 0 1.083 0
Western Asia 0 0 0 0.025 0 0 0 0 0 0
Period (Years)
Source: Quantec
Figure 16 represents volumes of imports of essential oils of peppermints

(including concretes and absolutes) from Asia to South Africa between 2001
and 2010 period. The graph also shows that import markets for essential oils
of peppermint from Asia to South Africa were from South-central Asia
followed by Eastern Asia and South-eastern Asia. Imports of essential oils of
peppermint from South-central Asia to South Africa started to increase in
2001 with a slight decline in 2002, then an increase in 2003 until the lowest
levels of imports were attained in 2004 at approximately 0.09 tons. Imports of
essential oils of peppermint from South-central Asia to South Africa attained
a peak in 2010 at approximately 9,269 tons.
23
Figure 17: Imports volumes of essential oils of peppermints (including
concretes and absolutes) from Europe
60
Im port Quantity (tons) 50
40
30
20
10
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Western Europe Rest 0 0 50 0 0.059 0 0 0 0 0

European Union 15.358 16.968 19.714 20.222 19.862 18.452 15.323 15.185 10.546 8.367
Period (Years)
Source: Quantec
Figure 17 indicates imports volumes of essential oils of peppermints

(including concretes and absolutes) from Europe to South Africa between
2001 and 2010 period. The figure further indicates that Western Europe
commanded the greatest share in terms of imports of essential oils from
Europe followed by the European Union. The graph also indicates that
imports of essential oils from Western Europe reached a peak in 2003 at
approximately 50 tons while imports of essential oils of peppermint from the
European Union attained a peak in 2004 at approximately 20,222 tons. There
were no imports of essential oils of peppermint from Western Europe to South
Africa from 2001, 2002, 2004 and again in 2006 to 2010 years while in the
European Union there were imports of essential oils of peppermint to South
Africa almost every year.
24
5. USES OF ESSENTIAL OILS
• Most essential oils are used for cooking, potpourri, crafting, cosmetics,
massage, aromatherapy and other uses.
• Other essential oils are used to repel insects and other arthropods that
are pests of humans, livestock, and pets (mosquitoes, fleas, ticks, etc).
• There are four broad sectors in which the oils are also used, including
the flavor, pharmaceutical, personal care and industrial.
It is important to note that essential oils are not the same as perfume or
fragrance oils. Where essential oils are derived from true plants, perfume oils
are artificially created fragrances or contain artificial substances and do not
offer the therapeutic benefits that essential oils offer. With so many plant
species from which essential oil products are sourced it is even more
problematic to accurately classify which plant belongs to which plant family
or species. However, among the plants notable for their essential oils are
members of the following plant families: carrot, ginger, heath, laurel, mint,
myrtle, olive, orchid, pulse, rose and rue.
Table 4: Common uses of selected essential oils

Essential oils Common uses
Citrus Industrial solvent, fragrance for cleaning

products, flavoring
Spearmint Toothpaste, mouthwash, confectionery
flavoring
Peppermint Toothpaste, mouthwash, chewing gum,
food flavoring, cosmetics, and tobacco
Lavender/ Lavendin Fragrances and toiletries

Eucalyptus Cough/cold remedies, solvents, cleaning
agents, flavoring
Tea tree Toiletries, insect repellents, germicides,
cosmetics
Boronia Food flavoring, fragrance
Blackcurrant bud Food and beverage flavoring
Source: South African Essential Oils Producers Association (SAEOPA)
Table 4 above shows the list of common uses for selected essential oils in
different industries. There are a number of uses for essential oils in general
with some of those uses mentioned above. The table indicates that most of
25
the essential oils are used interchangeably in all segments, with most of them
being used mainly in the food flavoring.
Table 5: Overview of end-user sectors markets

Sectors Segments Essential oils
Cosmetic industry Personal care • Lemon

Soap and detergent • Peppermint
Dental care • Orange
• Patchouli
• Rosewood
• Mint
• Spice
• Eucalyptus and
derivatives
Food industry Soft drink • Citrus

Confectionery • Spice oleoresins
Tobacco • Vanilla
Candy • Flavor and floral oils
Processed and canned food • Oleoresins
products • Peppermint
Chewing gum
Pharmaceutical industry Homeopathy • Orange

Health-care products • Citrus
Aromatherapy • Patchouli
• Lavender
• Geranium
Table 5 shows the overview of the end user sectors markets for different kind
of essential oils. It is indicated that most essential oils are mainly used in
three sector markets such as the cosmetic industry, food
26
industry and the pharmaceutical industry. The essential oils of orange
and patchouli are used in both the cosmetic industry and also in the
pharmaceutical industry, followed by the use of essential oils of orange in
the food and pharmaceutical industry. These indicate that the essential
oils can in a given time period perform different kind of functions or uses
in different industries.
6. QUALITY & MAINTANANCE OF ESSENTIAL OILS
Over and above the barriers to entry alluded to above there is also the
issue of quality. Entering lucrative industries such as the rose and
boronia can be difficult as they have exceptionally rigid quality standards
which require sophisticated equipment to attain/extract from the plants.
Above the general quality requirements, storage of the product is also
highly important as it can compromise quality. Storage materials should
be solid and should be glass bottles; aluminum bottles and drums (used
mostly for expensive essential oils), lacquered and lined steel drums, and
plastic drums in high density polyethylene, which are less expensive
than lined steel drums.
Before they are stored for shipment oils should be dried by filtration or
the use of anhydrous calcium sulphate. Head space should be filled with
nitrogen gas although carbon dioxide is cheaper and easier to source in
developing countries. The danger with using carbon dioxide though, is
that it might react with residual moisture to form carbonic acid, which
may react with essential oil ingredients.
7. ESSENTIAL OIL VALUE CHAIN ANALYSIS
Essential oils in the value chain are generally used ‘as is’ when dealing
with the flavor and fragrance industry, especially with the minor or
smaller oils, such as rose geranium. Only some oils are further processed
and made into synthetic chemicals.
It is also important to know the different role players that are a part of
this value chain. One of the main organizations is the South African
Essential Oils Producers Association (SAEOPA). SAEOPA was formed in
2000 as an alternative to the council for Scientific and Industrial
Research, as a source of information about current and potential
producers. It is a voluntary association and has an objective to support
its members, who primarily comprise producers of essential oils. The
organization (SAEOPA) supports its members throughout the value
chain, beginning with the sharing of information on agricultural issues
and ending with marketing matters.
27
The other role players in the essential oils value chain can be identified
as; Growers, Distillers, Researchers, Government, Marketers and also the
Consumers or Buyers. The value chain for essential oils is illustrated on
the figure below.
28
Diagram 1: Processing of essential Oils
Flavor/
Purification Perfume
Essences
Natural Raw Solvent -Retinoid Further Chemical/

Materials Extraction, -Oleoresins Biological
Distillation -Essential Oils Modification
etc.
Compounded -Foods
Aroma Flavors -Cosmetics
and -Toiletries
Chemicals Fragrances -etc
Organic Synthesis,
Chemicals biological catalysis
Source: SAEOPA (South African Essential Oil Producer Association)
29
The value chain of Essential Oils basically follows this pattern identified
on Diagram 2 below.
Diagram 2: Value chain pattern of the Essential oils
Crop Selection
Input Crop Cultivation

Supplier
Primary
Processing
• Drying
• Distillation
Further
Beneficiation
• Rectification,
• Fractionating,
• Formulations
Sales & Marketing

• Market
Knowledge
• Market Consumer
Reputation
• Market Access
30
The value chain at farm gate and wholesale levels vary greatly across
products such that it is impossible to develop stylized value chains.
Diagram 2 represents the general essential oils’ value chain summarized
in seven stages, which can be described as follows;
• The crop selection stage provides knowledge about the local soil,
climate, correct genotype and potential markets.
• Crop cultivation stage which gives the sourcing of plant material
(seeds or seedling), planting, crop management (pests and
irrigation) and harvesting;
• Input Supply stage which provides information about the correct
measure and application of different inputs according to the crop
requirements.
• Primary processing stage shows the application of drying,
distillation, quantities (economic yields), qualities (chemical and
sensory qualities) and certification.
• Further beneficiation involves rectification, fractionating and
formulations; and
• Sales and marketing inform about the market knowledge,
reputation and market access.
While it is difficult to quantify costs from farm gate to wholesale levels, it

is estimated that harvesting costs make up between 10 to 35% of farm
gate costs, with an average of 22%. Pest, weed and disease management
costs are about 11 to 37%, with a mean of 22%. Nutrition, which
includes irrigation and fertilizers are about 10% of grower costs. At
wholesale level there is even greater variability as it depends on the
extent of refinement and processing of the oil. Extraction costs are
estimated to range between 60 to 75% of processor costs.
31
Diagram 3: Essential Oil Value Chain Tree
PRODUCERS
Flavor Traders, Agents & Fragrance

Industry Brokers Industry
End Users
Cosmetic
Industry
• Personal Food Industry
care • Soft drink
• Soap & • Confectionery
Pharmaceutical
Delegent
• Tobacco Industry
• Dental Care •
• Candy Homeopathy
• Processed & • Health-care
canned food products
• Chewing gum • Aromatherapy
• massage
Diagram 3 above represents the various industries that are fully playing
a part in the use of essential oils. Farmers can produce Essential oils and
sell directly to the fragrance industry, flavor industry and to the traders
who can also supply the flavor industry. The fragrance industry and
traders may also buy the product directly from the producer and supply
the end users, and after which the products reached the end users, is
32
then supplied to the three different industries specifically, the cosmetic,
food, and the pharmaceutical industry.
8. ESSENTIAL OILS DISTRIBUTION CHANNELS
International trade for the bulk essential oils (like citrus) takes place on a
large scale. Shipments may be diverted to neighboring countries, and
there is a substantial re-export business. Most of the leading traders in
the European Union supply several countries. The re-exports are
important, as they can reduce the effect of supply irregularities and
domestic imbalances in supply and demand caused by the vagaries of
climate, crop disease, inadvertent overstocking or unexpected peaks in
demand. Some producers will bargain directly with major end-users.
Other producers will sell through independent traders (importers) or
sales agents. Figure below shows the various distribution channels for
essential oils.
Foreign Producers/ Exporter
Broker/ Agent Importer/ Trader Re-export
Processing Industry Food/ Cosmetic/

Pharmaceutical Industry
Re-export Retail Trade
Diagram 4: Essential Oils Distribution Channels
There are four major types of business partners for exporters of essential
oils such as; Agents, Importers or Traders, The processing industry
(processing importer), and the end product manufacturers. The trade
structure illustrated in figure 4 changes constantly, the distribution
channels and the specific functions mentioned are not as clear-cut as
they might seem. However, sixty to eighty percent (60-80%) of the
essential oil trade goes directly from producers or exporters to processing
importers such as the multinational flavor houses. An advantage of
processing importers is that they can create a total flavor composition
33
and give excellent service. This can facilitate co-operation with end-
product manufactures in the food or cosmetic industries. Many end-
product manufacturers do not usually purchase essential oils directly
from producers. The essential oil market is somewhat fragmented
between the following end-user market sectors; Aromatherapy, Natural
personal care and pharmaceutical, Flavor and Fragrance, Cosmetics and
Beverages.
8.1 Value Adding in South Africa
The production process and people involved vary depending on the type
and end use of the product. Common stages of production include
growing and harvesting the crop, extraction, further processing and the
oil, increasing its suitability for end use. Value adding in the form of
products such as creams, bath salts, candles, potpourri, and gifts has
proved more profitable for producers in South Africa. The booming
tourism industry has contributed to the success and survival of
producers in difficult times.
34
9. MARKET ACCESS
Table 6 below shows tariffs that are applied by various countries to the
exports of essential oils (nes) originating from South Africa.
Terpeneless oils of Preferential tariff 0.00% 0.00%
COUNTRY PRODUCT
clove, niaouli & ylang- TRADE
for REGIME
South Africa APPLIED ESTIMATED
(IMPORTERS) DESCRIPTION
ylang, incl concretes & DESCRIPTION TARIFFS TOTAL AD
absolutes. 2010 VALOREM
EQUIVALENT
TARIFF 2010
Canada Ess oils, whether or MFN duties 0.00% 0.00%
not terpeneless, incl (Applied)
concretes.
China Ess oils, whether or MFN duties 20.00% 20.00%
concretes.
China Ess oils, whether or MFN duties 15.00% 15.00%
concretes(excl. those
of citrus fruit & mint)
France Terpenic oils of clove, MFN duties 0.00% 0.00%
niaouli & ylang-ylang, (Applied)
incl concretes &
absolutes.
Terpenic oils of clove, Preferential tariff 0.00% 0.00%
niaouli & ylang-ylang, for South Africa
incl concretes &
absolutes.
Germany Terpeneless oils of Preferential tariff 0.00% 0.00%
clove, niaouli & ylang- for South Africa
ylang, incl concretes &
absolutes.
India Ess oils (terpeneless or MFN duties 20.00% 20.00%
not), including (Applied)
concretes & absolutes,
resinoids, extracted
oleoresins,
concentrates of ess
oils in fats.
Terpeneless oils of Preferential tariff 0.00% 0.00%
Spain clove, niaouli & ylang- for South Africa
absolutes.
United Terpeneless oils of MFN duties 2.30% 2.30%

Kingdom clove, niaouli & ylang- (Applied)
absolutes.
Source: ITC Market Access Map
35
Table 6 indicates the level of tariffs applied by various countries to the
essential oil (nes) originated from South Africa during the year 2010. The
table further indicates that countries such as France, Germany and India
applied equal tariffs of 0.00% to essential oils (nes) originating from
South Africa.
Table 7 below indicates tariffs that are applied by various countries

to the exports of essential oils of peppermints from South Africa.
COUNTRY PRODUCT TRADE APPLIED ESTIMATED

(IMPORTERS) DESCRIPTION REGIME TARIFFS TOTAL AD
DESCRIPTION 2010 VALOREM
EQUIVALENT
TARIFF 2010
Belgium Terpenic oils of MFN duties 0.00% 0.00%
peppermint “Mentha (Applied)
piperita”, incl.
concretes &
absolutes.
Brazil Oleos essenciais MFN duties 14.00% 14.00%
(desterpenados ou (Applied)
nao), incl. os
chamados
(concretos) ou.
China Oils of peppermint MFN duties 15.00% 15.00%
Mentha piperita, (Applied)
whether or not
terpeneless, incl
concretes &
absolutes
Germany Terpeneless oils of MFN duties 2.90% 2.90%
peppermint “Mentha (Applied)
piperite”, incl.
concretes &
absolutes
Terpeneless oils of Preferential 0.00% 0.00%
peppermint “Mentha tariff for South
piperite”, incl. Africa
concretes &
absolutes
Nigeria Oils of peppermint MFN duties 10.00% 10.00%
whether or not
terpeneless, incl
concretes &
36
absolutes
United Arab Essential oils MFN duties 5.00% 5.00%
Emirates (terpeneless or not), (Applied)
incl. concretes &
absolutes, resinoids,
extracted
oleoresinoids.
Zimbabwe Oils of peppermint MFN duties 0.00% 0.00%
whether or not
terpeneless, incl
concretes &
absolutes
Table 7 shows the level of tariffs applied by various countries to the

essential oil of peppermint originated from South Africa during the period
2010. Exports of essential oils of peppermint from South Africa to the
SADC region (Zimbabwe) were free due to the fact that South Africa is
part of SADC. Non SADC countries such as China, United Arab Emirates
and Brazil charged South Africa a tariff of 5.00%, 14.00% and 15.00%
respectively. There was no tariff barrier for South African essential oils of
peppermint exports from South Africa to Germany and Belgium because
of the common trade agreement between South Africa and the European
Union, which makes it for all EU countries to maintain a preferential
tariff of 0.00% for South African products.
Table 8 below reflects tariffs that are applied by various countries to

the exports of essential oils of other mints from South Africa.
COUNTRY PRODUCT ESCRIPTION TRADE REGIME APPLIED ESTIMATED

(IMPORTERS) DESCRIPTION TARIFFS TOTAL AD
2010 VALOREM
EQUIVALENT
TARIFF 2010
Angola Oleos essencias de MFN duties 5.00% 5.00%
mentas, desterpenizados (Applied)
ou nao, incl. os
chamados
Argentina Terpenic oils of clove, MFN duties 12.00% 12.00%
incl concretes &
absolutes.
Belgium Terpeneless oils of Preferential tariff 0.00% 0.00%
mints, incl. concretes & for South Africa
absolutes (excl. those of
37
peppermint “Mentha
piperita”)
Brazil Oleos essencias de MFN duties 12.00% 12.00%
mentas, desterpenizados (Applied)
ou nao, incl. os
chamados
Chile Aceites esenciales MFN duties 6.00% 6.00%
(desterpenados o no), (Applied)
incl los concretes &
absolutes
Congo Huiles essentielles de MFN duties 10.00% 10.00%
menthes, deterpenees ou (Applied)
non, y.c. celles dites.
Germany Terpeneless oils of Preferential tariff 0.00% 0.00%

piperita”)
Italy Terpeneless oils of Preferential tariff 0.00% 0.00%
piperita”)
Spain Terpeneless oils of Preferential tariff 0.00% 0.00%
piperita”)
Table 8 depicts tariffs that are applied by various countries to the exports
of essential oils of other mints from South Africa during the 2010 period.
The table further depicts that there was no tariff barrier for South African
essential oils of peppermint exports from South Africa to Germany,
Belgium, Italy and Spain because of the common trade agreement
between South Africa and the European Union, which makes it for all EU
countries to maintain a preferential tariff of 0.00% for South African
products. Angola which falls under SADC agreement charged South
Africa a tariff of 5.00% for essential oils of other mints exported by South
Africa during the period under scrutiny.
38
Table 9 below illustrates tariffs that are applied by various countries
to the exports of essential oils of oranges from South Africa.
United
COUNTRY Arab Ess oils (terpeneless or
PRODUCT MFN
TRADEduties
REGIME 5.00%
APPLIED 5.00%
ESTIMATED
Emirates
(IMPORTERS) not), including concretes
DESCRIPTION (Applied)
DESCRIPTION TARIFFS TOTAL AD
& absolutes, resinoids, 2010 VALOREM
extracted oleoresins, EQUIVALENT
concentrates of ess oils TARIFF 2010
China in fats.
Oils of sweet & bitter MFN duties 20.00% 20.00%
orange, whether or not (Applied)
terpeneless, incl.
Zimbabwe Oils of sweet
concretes & bitter
& absolutes MFN duties 5.00% 5.00%
orange, whether
(excl. orange or not
flower oil) (Applied)
France terpeneless,
Oils of sweetincl.
& bitter Preferential tariff 0.00% 0.00%
concretes & absolutes
orange, whether or not for South Africa
(excl. orangeincl.
terpeneless, flower oil)
(excl. orange flower oil)
India Ess oils (terpeneless or MFN duties 20.00% 20.00%
not), including concretes (Applied)
& absolutes, resinoids,
extracted oleoresins,
concentrates of ess oils
in fats.
Mozambique Oils of sweet & bitter MFN duties 2.50% 2.50%
orange, whether or not (Applied)
terpeneless, incl.
Mozambique Oils of sweet & bitter Preferential tariff 0.00% 0.00%
orange, whether or not for South Africa
terpeneless, incl.
Netherlands Terpenic oils of sweet & Preferential tariff 0.00% 0.00%
bitter orange, incl. for South Africa
(excl. orange-flower oil)
Spain Terpenic oils of sweet & MFN duties 7.00% 7.00%
bitter orange, incl. (Applied)
Terpenic oils of sweet & Preferential tariff 0.00% 0.00%
bitter orange, incl. for South Africa
39
Table 9 illustrates tariffs that are applied by various countries to the
exports of essential oils of oranges from South Africa during the 2010.
The table further illustrates that countries such as France, Mozambique
and Netherlands had free trade agreements under EU and SADC. Asian
countries applied a tariff of 20.00% to essential oils of oranges
originating from South Africa during the period under examination.
Table 10 below depicts tariffs that are applied by various countries

to the exports of essential oils of lemon from South Africa.
COUNTRY Terpeneless
PRODUCT oils of clove, Preferential
TRADE REGIME tariff 0.00%
APPLIED 0.00%
ESTIMATED
(IMPORTERS) niaouli & ylang-ylang,
DESCRIPTION for South Africa
DESCRIPTION TARIFFS TOTAL AD
incl concretes & 2010 VALOREM
absolutes. EQUIVALENT
TARIFF 2010
Canada Ess oils of lemon, MFN duties 0.00% 0.00%
whether or not (Applied)
Uganda Oils of lemonincl
terpeneless, whether or MFN duties 0.00% 0.00%
not terpeneless,
concretes. incl. (Applied)
China concretes and absolutes.
Ess oils, whether or not MFN duties 20.00% 20.00%
terpeneless, incl (Applied)
concretes.
Japan Lemon oil MFN duties 0.00% 0.00%
(Applied)
Norway Ess oils (terpeneless or MFN duties 0.00% 0.00%
not), including concretes (Applied)
& absolutes, resinoids,
extracted oleoresins,
concentrates of ess oils
in fats.
Spain Terpeneless oils of clove, Preferential tariff 0.00% 0.00%
niaouli & ylang-ylang, for South Africa
incl concretes &
absolutes.
Spain Terpeneless oils of MFN duties 7.00% 7.00%
lemon, incl. concretes & (Applied)
absolutes.
Sri Lanka Oils of lemon whether or MFN duties 15.00% 15.00%
not terpeneless, incl. (Applied)
concretes and absolutes.
Switzerland Huiles essentielles de Preferential tariff 0.00% 0.00%
citron, for SACU
United Kingdom Terpeneless oils of clove, MFN duties 2.30% 2.30%

incl concretes &
absolutes.
Table 10 represents tariffs that are applied by various countries to the

exports of essential oils of lemon from South Africa during the 2010
40
period. The table again further shows that South Africa and EU had a
free trade agreement which led to 0.00% tariffs applied by Canada, Spain
and United Kingdom. Japan also had a free tariff agreement with South
Africa during the same period which led to 0.00% tariff by Japan.
Uganda also had a free tariff agreement with South Africa during the
same period which led to 0.00% tariff.
41
10. MARKET INTELLIGENCE
Table 11: List of importing markets for Essential oils (nes) exported by South Africa in 2009
Product: 330129
Trade Indicators
Share of Tariff
Exported Exported growth Exported
Exported value Share in South Exported Unit partner (estimated)
Importers growth in value in quantity growth in value
2009, USD Africa's quantity 2009 value, countries in faced by
between 2005- between 2005- between 2008-
thousand exports, % (tons) (USD/unit) world imports, South Africa
2009, %, p.a. 2009, %, p.a. 2009, %, p.a.
%
'World 4074 100 360 11317 -10 -6 -19 100
'Germany 990 24.3 107 9252 2 0 25 9.1 '0
'France 540 13.3 38 14211 -17 -15 -26 13.2 '0
'Australia 329 8.1 42 7833 -8 -17 -30 1.3 '0
'Zambia 254 6.2 13 19538 14 9 36 0 '0
'United States
of America 228 5.6 9 25333 -30 -9 10 16.9 '0
'Switzerland 199 4.9 2 99500 -24 7 -37 7.3 '0
'Mauritius 190 4.7 65 2923 9 7 -18 0.1 '0
'United
Kingdom 179 4.4 7 25571 -21 7 -61 7.4 '0
'Mozambique 176 4.3 8 22000 12 -30 -73 0 '0
'Singapore 167 4.1 3 55667 45 161 4 '0
'Malawi 156 3.8 15 10400 4 -3 -1 0 '0
'Spain 116 2.8 15 7733 -9 4 -33 4.6 '0
'Netherlands 94 2.3 1 94000 -39 -39 4 2.3 '0
'India 89 2.2 1 89000 -9 -44 98 3.8 '20
'Uganda 59 1.4 3 19667 89 64 0 '0
'Congo 49 1.2 6 8167 53 53 345 0 '10
'Canada 37 0.9 0 1.6 '0
42
Trade Indicators
Share of Tariff
2009, %, p.a. 2009, %, p.a. 2009, %, p.a.
%
'Zimbabwe 37 0.9 13 2846 -12 -10 236 0 '5
'China 35 0.9 0 400 2.3 '18.8
'Indonesia 28 0.7 0 24 27 0.1 '5
'Kenya 26 0.6 3 8667 26 16 -13 0.1 '0
'Mexico 12 0.3 0 93 140 3 '4.4
'Brazil 11 0.3 0 -7 -21 2.2 '10.8
'Belgium 10 0.2 3 3333 -12 32 -41 1.2 '0
'Lithuania 10 0.2 0 233 0 '0
'Japan 8 0.2 0 -54 5.3 '0
'Ethiopia 5 0.1 1 5000 -15 -10 150 0 '30
'Nigeria 5 0.1 0 54 67 0.1 '10
'United Arab
Emirates 5 0.1 0 -22 -29 '5
'Argentina 4 0.1 0 0.7 '10.8
'Democratic
Republic of the
Congo 4 0.1 0 0 '10
'Austria 3 0.1 0 -36 0 1.4 '0
'Hong Kong,
China 3 0.1 0 50 0.8 '0
'Seychelles 3 0.1 1 3000 0 -25 0 '0
'Algeria 2 0 0 0 '5
'Hungary 2 0 0 0.3 '0
'Italy 2 0 0 2 '0
'Saudi Arabia 2 0 0 '5
43
Trade Indicators
Share of Tariff
2009, %, p.a. 2009, %, p.a. 2009, %, p.a.
%
'United
Republic of
Tanzania 2 0 0 32 -50 0.1 '0
'Djibouti 1 0 0 0 '26
'Greece 1 0 0 0.1 '0
'Ireland 1 0 0 -19 1 '0
Source: ITC Trade Map
44
Table 11 indicates the list of importing markets for Essential oils (nes)
exported by South Africa in 2009. The table also indicates that during
2009 South Africa exported a total of 360 tons of essential oils (nes) to
the world, with greater volumes being exported to Germany followed by
Mauritius, Australia and France. The table further indicates that
Germany as the leading import market commanded the greatest share of
South Africa’s essential oils (nes) exports.
Exports of essential oils (nes) to France experienced a decrease of about

15% and 17% in both value and quantity between the periods 2005 and
2009. During the year period between 2008 and 2009, Germany has also
decreased its value of the essential oils (nes) imports from South Africa
by almost 26%.
45
Figure 18: Performance of South African essential oils (nes) in 2009
46
Figure 18 shows that Germany, France and the United States of America
were the biggest import markets for essential oils (nes) exported by South
Africa in 2009. The figure also shows growth in demand for essential oils
(nes) exports from South Africa in 2009 period. The figure further shows
that South Africa’s annual growth in demand to Uganda during the
period 2009 was high at 90% and at the same time Uganda’s annual
growth from the world also increased to 70%.
However, countries such as Indonesia, Zambia, and Mauritius increased

their share of essential oils (nes) imports to the total South Africa’s
exports growth but decreased their annual growth of imports from the
world.
47
Figure 19: Diversification of markets for essential oils (nes) exported by South Africa in 2009
48
Figure 19 indicates diversification of markets for essential oils (nes)
exported by South Africa in 2009. The figure further indicates that the
United States, France and Germany were the main markets for essential
oils (nes) exported by South Africa between 2005 and 2009 periods.
Germany commanded the greatest share in South Africa’s exports in
2009 at approximately 24%.
If South Africa were to look for alternative options in terms of export

markets for essential oils (nes) markets exist in Uganda, India, Zimbabwe
and Congo. The same small markets (countries) of essential oils (nes)
mentioned above were importing less essential oils (nes) from South
Africa but more from the world between 2005 and 2009 periods.
49
Table 12: List of exporting markets for essential oils (nes) imported by South Africa in 2009
Product: 330129
Trade Indicators
Imported growth Imported Tariff (estimated)
Imported value Imported Imported growth in Share of partner
Exporters Share in South Unit value, in value between growth in value applied by South
2009, USD quantity 2009 quantity between countries in
Africa's imports, % (USD/unit) 2005-2009, %, between 2008- Africa
thousand (tons) 2005-2009, %, p.a. world exports, %
p.a. 2009, %, p.a.
'World 3378 100 182 18560 7 1 3 100
'United Kingdom 759 22.5 33 23000 1 -7 9 3.9 '0
'China 472 14 74 6378 59 51 126 11.4 '0
'India 365 10.8 14 26071 23 22 -22 3 '0
'Australia 347 10.3 13 26692 18 23 -37 1.9 '0
'France 297 8.8 8 37125 8 14 26 22.5 '0
'United States of
America 215 6.4 11 19545 -20 -16 -10 8.2 '0
'Germany 113 3.3 7 16143 7 6 -4 4 '0
'Singapore 104 3.1 6 17333 84 39 136 3.6 '0
'Spain 90 2.7 1 90000 -15 -50 61 5 '0
'Canada 82 2.4 3 27333 120 41 1 '0
'Netherlands 73 2.2 0 -14 -6 1.8 '0
'Italy 66 2 2 33000 34 -31 288 0.6 '0
'Austria 57 1.7 0 36 104 2 '0
'Madagascar 52 1.5 2 26000 22 19 -55 2 '0
'Malawi 51 1.5 0 28 0 '0
'Rwanda 36 1.1 0 16 '0
'Mozambique 29 0.9 1 29000 '0
'Area Nes 29 0.9 0 71
'Israel 21 0.6 1 21000 12 110 2 '0
'Switzerland 21 0.6 0 29 200 4.1 '0
'Belgium 18 0.5 0 0 -33 0.8 '0
'Republic of Moldova 14 0.4 0 0.2 '0
50
Table 12 illustrates the list of exporting markets for essential oils (nes)
imported by South Africa in 2009. The table further illustrates that
during 2009, South Africa imported a total of 182 tons of essential oils
(nes) from the world. The table also illustrates that the United Kingdom
was the biggest importing market of essential oils (nes) in terms of value
at approximately US$ 759 followed by China at approximately US$ 472
for South Africa. At the same time, in volume terms the United Kingdom
exported less quantities of essential oils (nes) to South Africa of about 33
tons as compared to China which exported 74 tons during the same
period under review. South Africa’s imports from China increased by
59% and 51% (in value and volume terms respectively) as compared to
imports from the United Kingdom that decreased by 1% and 7% in value
and quantity during the same period under review.
During 2009 the United Kingdom, China, India and Australia were the
major suppliers of essential oils (nes) imported by South Africa, with the
UK commanding the greatest share (22.5%) of South Africa’s essential
oils’ imports followed by China with 14% share, India with 10.8% share
and Australia with 10.3% share.
51
Figure 20: Competitiveness of suppliers to South Africa for essential oils (nes) imported by SA
in 2009
52
Figure 20 shows competitiveness of suppliers to South Africa for
essential oils (nes) imported by South Africa in 2009. The figure further
shows that France, United States of America and China were the biggest
suppliers of essential oils (nes) imported by South Africa during the same
period under review. The figure also shows that Canada (even though a
small market) was the most competitive supplier of essential oils to
South Africa’ between 2005 and 2009 at 100% followed by Singapore at
85%.
53
Figure 21: Market diversification for essential oils (nes) imported by South Africa in 2009
54
Figure 21 indicates market diversification for essential oils (nes) imported
by South Africa in 2009. The figure further indicates that France, United
States of America and China were the biggest suppliers of essential oils,
(nes) to South Africa during the period under scrutiny. The graph also
indicates that if South Africa had to diversify its suppliers of essential
oils, nes, small and attractive markets exist in Italy, Switzerland, Canada
Austria and Singapore.
55
Table 13: List of importing markets for essential oils of lemon exported by SA in 2009
Product: 330113
Trade Indicators
Exported
Tariff
growth in Exported
Exported value Exported Exported growth in Share of partner (estimated)
Importers Share in South Unit value, quantity growth in value
2009, USD quantity 2009 value between countries in world faced by
Africa's exports, % (USD/unit) between between 2008-
thousand (tons) 2005-2009, %, p.a. imports, % South Africa
2005-2009, 2009, %, p.a.
%, p.a.
'World 4907 100 274 17909 12 -15 -46 100
'United States of
America 2663 54.3 123 21650 4 -17 -44 28.6 '0
'Netherlands 1335 27.2 90 14833 39 7 138 2 '0
'United Kingdom 345 7 31 11129 3 9 -55 16.4 '0
'Ireland 267 5.4 16 16688 -43 3.4 '0
'France 133 2.7 6 22167 38 3 51 4.8 '0
'Japan 124 2.5 5 24800 -81 9.5 '0
'Spain 31 0.6 2 15500 -97 0.4 '0
'Zimbabwe 5 0.1 1 5000 -32 -46 0 0 '5
'Canada 2 0 0 -38 2.1 '0
'Germany 2 0 0 4 '0
'Malawi 1 0 0 0 '0
56
Table 13 depicts the list of importing markets for essential oils of lemon
exported by South Africa in 2009. The table further depicts that the
biggest importing markets for essential oils of lemon were United States
of America, Netherlands and United Kingdom. The table also depicts that
during the same period under examination, South Africa exported 274
tons of essential oils of lemon to the world. United States of America
imported 123 tons of essential oils of lemon while Netherlands imported
90 tons of essential oils of lemon during the same period.
South Africa’s exports of essential oils of lemon to the United States of

America increased by 4% in value and the quantity decreased by 17%
between 2005 and 2009 periods. South Africa’s exports of essential oils
of lemon to Netherlands increased in value by 39% and in quantity by
7% between 2005 and 2009 periods. United States of America also had a
highest share in South Africa’s essential oils of lemon imports of about
54.3% as compared to Netherlands with 27.2% share.
57
Figure 22: Growth in demand for essential oils of lemon exported by SA in 2009
58
Figure 22 represents growth in demand for essential oils of lemon
exported by South Africa in 2009. The figure shows that the United
States of America and United Kingdom were the biggest import markets
of essential oils of lemon exported by South Africa. The figure also shows
that South Africa’s exports of essential oils of lemon to Netherlands grew
at about 39%, as compared to our exports of essential oils of lemon to
France which grew at about 38%.
The graph further shows that Netherlands was an attractive dynamic

market for exports of essential oils of lemon with an annual growth of 39
% while France was a declining market (in world terms) but with an
annual growth of 38%.
59
Figure 23: Prospects for market diversification for essential oils of lemon exported by SA
in 2009
60
Figure 23 shows prospects for market diversification for essential oils of
lemon exported by South Africa in 2009. The figure shows that United
States of America followed by United Kingdom were the biggest import
markets of essential oils of lemon from South Africa during the same
period under review. The graph also shows that if South Africa had to
diversify its markets of essential oils of lemon, potential export markets
exist in Netherlands and France.
61
Table 14: List of supplying markets for essential oils of lemon imported by SA in 2009
Product: 330113
Trade Indicators Tariff
Imported value Share in South Imported Imported growth in Imported growth in Imported growth in Share of partner (estimated)
Exporters Unit value,
2009, USD Africa's imports, quantity 2009 value between quantity between value between countries in world applied by
(USD/unit)
thousand % (tons) 2005-2009, %, p.a. 2005-2009, %, p.a. 2008-2009, %, p.a. exports, % South Africa
'World 548 100 62 8839 20 49 -26 100
'United States of
America 284 51.8 14 20286 300 -32 12 '0
'Israel 80 14.6 1 80000 13 0 33 '0
'Zimbabwe 55 10 40 1375 25 111 686 0 '0
'Netherlands 41 7.5 4 10250 -13 41 215 1.1 '0
'Germany 31 5.7 0 129 -53 3.5 '0
'Switzerland 20 3.6 0 -12 5 2.1 '0
'France 17 3.1 1 17000 1 0 -26 4.4 '0
'United Kingdom 8 1.5 1 8000 -11 0 -38 5.1 '0
'Italy 6 1.1 0 -39 -65 9.6 '0
'India 4 0.7 0 0 '0
'Argentina 3 0.5 0 8 -25 44.1 '0
'Canada 1 0.2 0 1.9 '0
62
Table 14 shows the list of supplying markets for essential oils of lemon
imported by South Africa in 2009. The table further depicts that South
Africa imported a total of 52 tons of essential oils of lemon from the world
during the period under review. This is due to the fact that South Africa
was a net exporter of essential oils of lemon (274 tons) during the same
period under scrutiny. In world terms, United States of America and
Zimbabwe commanded the greatest export market share for essential oils
of lemon to South Africa. In 2009 South Africa’s imports of essential oils
of lemon from Zimbabwe increased in both value and quantity at
approximately 25% and 111% respectively. South Africa’s imports from
Zimbabwe also increased in value by 686% between 2008 and 2009
periods while those from the United States of America decreased in value
between 2008 and 2009 periods.
63
Figure 24: Competitiveness of suppliers to South Africa for essential oils of lemon imported
in 2009.
64
Figure 24 illustrates competitiveness of suppliers to South Africa for
essential oils of lemon imported in 2009. The figure further illustrates
that Argentina was the biggest supplier of essential oils of lemon during
the same period under review. The figure also illustrates that Germany
and United States of America were the most competitive suppliers of
essential oils of lemon with South Africa’s annual growth of imports from
these countries being 100% respectively between 2005 and 2009
periods.
65
Figure 25: Market diversification of suppliers for essential oils of lemon imported by SA in 2009
66
Figure 25 indicates market diversification of suppliers for essential oils of
lemon imported by South Africa in 2009. The figure also indicates that
Argentina commanded the greatest market share of essential oils of
lemon imported by South Africa during the period under review. The
figure further indicates that if South Africa wants to diversify its markets
of essential oils of lemon, potential import markets are available in
United States of America with a market share of about 52% and in
Germany with about 5% share.
67
Table 15: List of importing markets for essential oils of oranges exported by SA in 2009
Trade Indicators
Exported Tariff
Exported value Share in South growth in Share of partner (estimated)
Importers quantity Unit value, in value growth in value
2009, USD Africa's exports, quantity countries in world faced by South
2009 (USD/unit) between 2005- between 2008-
thousand % between 2005- imports, % Africa
(tons) 2009, %, p.a. 2009, %, p.a.
2009, %, p.a.
'World 1103 100 492 2242 5 -7 17 100
'United Kingdom 282 25.6 57 4947 281 37 18 5.6 '0
'China 258 23.4 153 1686 33 5.6 '20
'United States of
America 175 15.9 94 1862 -13 -15 154 19.3 '0
'Canada 140 12.7 79 1772 -9 -10 3.1 '0
'Netherlands 52 4.7 38 1368 74 17 -73 2.8 '0
'Japan 37 3.4 17 2176 28 13.3 '0
'Zambia 28 2.5 7 4000 -28 -46 180 0 '0
'Zimbabwe 27 2.4 7 3857 -56 -61 200 0.1 '5
'Italy 26 2.4 16 1625 1.3 '0
'France 17 1.5 7 2429 -32 -39 -65 4.9 '0
'Israel 11 1 8 1375 -76 0.1 '10
'Kenya 11 1 3 3667 13 -21 0 '0
'Malawi 11 1 2 5500 -20 -20 0 '0
'Poland 11 1 4 2750 -22 0 0.1 '0
'Singapore 9 0.8 1 9000 -31 1.5 '0
'Sri Lanka 6 0.5 2 3000 13 0 -14 0 '15
'Germany 1 0.1 0 -50 9 '0
'Greece 1 0.1 0 0.1 '0
68
Table 15 shows the list of importing markets for essential oils of oranges
exported by South Africa in 2009. The table further depicts that South
Africa exported a total of 492 tons of essential oils of oranges to the world
during the period under review. In world terms, the United Kingdom and
China commanded the greatest import market share for essential oils of
oranges from South Africa during the same period under examination. In
2009 South Africa’s exports of essential oils of oranges to the United
Kingdom increased both in value and quantity at approximately 281%
and 37% respectively. South Africa’s exports to the United Kingdom also
increased in value by 18% between 2008 and 2009 periods while South
Africa’s exports to China increased in value by 33% between 2008 and
2009 periods.
It is also clear in the table that the United Kingdom imported more of
essential oils of oranges from the world than from South Africa during
the same period under review as the exported growth in value and
quantity from the world between 2005 and 2009 periods and between
2008 and 2009 periods were less than what the United Kingdom
imported from the rest of the world over the same periods under review.
69
Figure 26: Growth in demand for essential oils of oranges exported by South Africa in 2009
70
Figure 26 represents growth in demand for essential oils of oranges
exported by South Africa in 2009. The figure further shows that the
United States of America, Germany and France were the biggest import
markets of essential oils of oranges exported by South Africa during the
same period under examination. The figure also shows that South
Africa’s exports of essential oils of oranges in United Kingdom were
growing faster at about 100%, as compared to its exports to the
Netherlands which was also growing faster at approximately 70%.
The graph further shows that the United Kingdom and Netherlands were
attractive, dynamic markets for essential oils of oranges from South
Africa, with an annual growth in exports of 100% and 70% respectively.
71
Figure 27: Market diversification for essential oils of oranges exported by SA in 2009
72
Figure 27 depicts prospects for market diversification for essential oils of
oranges exported by South Africa in 2009. The figure further depicts that
the United States of America followed by Germany were the biggest
import markets of essential oils of oranges from South Africa during the
same period under review. The graph also depicts that if South Africa
had to diversify its markets of essential oils of oranges, small attractive
markets exist in Nigeria, Kenya, Sri-Lanka and Zimbabwe.
73
Table 16: List of supplying markets for essential oils of oranges imported by SA in 2009
Trade Indicators
Imported
Imported Tariff
growth in Imported growth
Imported value Imported growth in Share of partner (estimated)
Exporters Share in South Unit value, value in value between
2009, USD quantity 2009 quantity countries in world applied by
Africa's imports, % (USD/unit) between 2008-2009, %,
thousand (tons) between 2005- exports, % South Africa
2005-2009, p.a.
2009, %, p.a.
%, p.a.
'World 580 100 98 5918 20 -7 1 100
'Australia 222 38.3 12 18500 1486 0 '0
'Zimbabwe 138 23.8 75 1840 104 81 712 0.1 '0
'Netherlands 85 14.7 6 14167 9 -36 2 2.8 '0
'Switzerland 61 10.5 0 -6 -46 2.1 '0
'United Kingdom 45 7.8 2 22500 38 -23 -84 6.3 '0
'Germany 10 1.7 1 10000 49 100 6.4 '0
'Italy 10 1.7 0 11 2.7 '0
'United States of
America 6 1 1 6000 32 0 -14 28.3 '0
'Singapore 2 0.3 0 0.2 '0
'Israel 1 0.2 0 0 '0
74
Table 16 illustrates the list of supplying markets for essential oils of
oranges imported by South Africa in 2009. The table further depicts that
South Africa imported a total of 98 tons of essential oils of oranges from
the world during the period under review. The reason for South Africa to
import less essential oils of oranges (98 tons) was that South Africa was a
net exporter of essential oils of oranges (492 tons) during the same period
under scrutiny. In world terms, Australia and Zimbabwe commanded the
greatest export market share of essential oils of oranges to South Africa
during the period under scrutiny. In 2009 South Africa’s imports of
essential oils of oranges from Zimbabwe increased both in value and
quantity at approximately 104% and 81% per annum respectively. South
Africa’s imports of essential oils of oranges from Zimbabwe also increased
in value by 712% between 2008 and 2009 periods while those from
Australia also increased in value by 1486% between 2008 and 2009
periods.
75
Figure 28: Competitiveness of suppliers for essential oils of oranges imported by South Africa in
2009
76
Figure 28 shows competitiveness of suppliers to South Africa for
essential oils of oranges imported in 2009. The figure further shows that
the United States of America was the biggest supplier of essential oils of
oranges imported by South Africa during the same period under review.
The figure also shows that Germany followed by United Kingdom were
the most competitive suppliers of essential oils of oranges with annual
growth in imports of about 48% and 50% respectively between 2005 and
2009 period.
77
Figure 29: Market diversification for essential oils of oranges imported by SA in 2009
78
Figure 29 indicates prospects for market diversification of suppliers for
essential oils of oranges imported by South Africa in 2009. The figure
further indicates that the United States followed by United Kingdom
commanded the greatest market share for essential oils of oranges
imported by South Africa during the period under review. The figure also
indicates that if South Africa had to diversify its import markets of
essential oils of oranges, potential markets are available in United
Kingdom, Switzerland and Zimbabwe with an export market share of
about 9%, 11% and 25% shares respectively.
79
Table 17: List of importing markets for essential oils of peppermint exported by South Africa in 2009
Trade Indicators
Tariff
Share of
Exported growth in Exported growth in (estimated)
Exported value Exported Exported growth in partner
Importers Share in South Unit value, value between quantity between faced by
2009, USD quantity 2009 value between countries
Africa's exports, % (USD/unit) 2005-2009, %, 2005-2009, %, South
thousand (tons) 2008-2009, %, p.a. in world
p.a. p.a. Africa
imports, %
'World 76 100 3 25333 14 8 25 100
'Zimbabwe 38 50 2 19000 4 15 -12 0 '5
'United Kingdom 20 26.3 0 186 12.4 '0
'France 16 21.1 0 3.3 '0
'Malawi 1 1.3 0 '0
'Belgium 4.1 '0
'Hong Kong, China 3 '0
Table 17 depicts the list of importing markets for essential oils of peppermint exported by South Africa in
2009. The table also depicts that Zimbabwe was the biggest import market for essential oils of peppermint
from South Africa during the period under examination. The table also depicts that South Africa’s exports of
essential oils of peppermint to Zimbabwe increased in both value and quantity at about 4% and 15% but the
exports value between 2008 and 2009 decreased by 12%. Zimbabwe commanded 50% share in South Africa’s
exports of essential oils of peppermint as compared to the United Kingdom’s share of 26.3% during the period
under scrutiny.
80
Figure 30: Growth in demand for essential oils of peppermint exported by SA in 2009
81
Figure 30 illustrates growth in demand for essential oils of peppermint
exported by South Africa in 2009. The figure further illustrates that there
were no growth in terms of the world imports of peppermint from South
Africa in the dynamic market over the same period. The figure also
illustrates that the annual growth of South Africa’s exports of essential
oils of peppermint to a declining market such as Zimbabwe were growing
between 3.75% and 4.5%.
82
Figure 31: Prospects for market diversification for essential oils of peppermint exported by SA
in 2009
83
peppermint exported by South Africa in 2009. The graph shows that
United Kingdom, Germany and Singapore were the biggest import
markets for essential oils of peppermint originating from by South Africa
during the period under examination. The figure also shows that should
South Africa want to diversify its markets of essential oils of peppermint,
small and attractive markets exist in Zimbabwe.
84
Table 18: List of supplying markets for essential oils of peppermint imported by South Africa
in 2009
Trade Indicators
Imported Imported Imported
Share in Imported growth in growth in growth in Tariff (estimated)
Imported value Share of partner
Exporters South quantity Unit value, value quantity value applied by South
2009, USD countries in world
Africa's 2009 (USD/unit) between between between Africa
thousand exports, %
imports, % (tons) 2005-2009, 2005-2009, 2008-2009,
%, p.a. %, p.a. %, p.a.
'World 1308 100 29 45103 13 -5 70 100
'United States of
America 885 67.7 14 63214 30 5 155 54.8 '0
'United Kingdom 344 26.3 10 34400 -4 -14 -6 5.2 '0
'India 37 2.8 3 12333 12 11 164 22.8 '0
'China 16 1.2 1 16000 9 0 45 0.3 '0
'Singapore 16 1.2 1 16000 8 '0
'Germany 8 0.6 0 4 -33 2.4 '0
'Australia 2 0.2 0 0.2 '0
'France 1 0.1 0 -14 2.4 '0
'Italy 1 0.1 0 0 '0
'Malawi 0 '0
'Zimbabwe '0
85
Table 18 indicates the list of supplying markets for essential oils of peppermint imported by South Africa in
2009. The table indicates that United States of America was the biggest exporter of essential oils of
peppermint to South Africa followed by United Kingdom. The table also indicates that South Africa’s imports
of essential oils of peppermint from United States of America grew at a rate greater than the average exports
from the rest of the world (13% against 30%, -5% against 5%, and 70% against 155%).
86
Figure 32: Competitiveness of suppliers to South Africa for essential oils of peppermint imported
in 2009
87
Figure 32 illustrates competitiveness of suppliers to South Africa for
essential oils of peppermint imported in 2009. The figure further
illustrates that United States of America was the biggest supplier of
essential oils of peppermint imported by South Africa during the same
period under review. The figure also illustrates that Germany followed by
India and Germany were the most competitive suppliers of essential oils
of peppermint during the period under scrutiny. The figure also
illustrates that South Africa’s annual imports growth to the United States
of America grew up by 30% between 2005 and 2009 period.
88
Figure 33: Prospects for diversification of suppliers for essential oils of peppermint imported by SA in
2009
89
peppermint imported by South Africa in 2009. The graph further shows
that Germany was the biggest export market for essential oils of
peppermint to South Africa followed by United Kingdom during the
period under examination. The figure also shows that should South
Africa want to diversify its markets of essential oils of peppermint, small
and attractive markets exist in Singapore, Australia and India. During
the same period, the figure further shows that United States of America
commanded 70% share in South Africa’s imports of essential oils of
peppermint.
90
Table 19: List of importing markets for essential oils of other mints exported by South Africa
in 2009
Trade Indicators
Exported growth Exported growth Exported growth Tariff (estimated)
Exported value Share in Exported Share of partner
Importers Unit value, in value between in quantity in value between faced by South
2009, USD South Africa's quantity 2009 countries in world
(USD/unit) 2005-2009, %, between 2005- 2008-2009, %, Africa
thousand exports, % (tons) imports, %
p.a. 2009, %, p.a. p.a.
'World 9 100 0 -14 50 100
'Zimbabwe 9 100 0 45 80 0 '5
'Belgium 3.3 '0
'Brazil 6.9 '5.3
'Guatemala 2.1 '0
'Japan 6.4 '1.4
'Mexico 4.1 '5
'China 8.8 '15
'France 3.6 '0
'Germany 6.4 '0
'India 1.1 '20
'Spain 1.5 '0
'United Kingdom 6.5 '0
'United States of
America 33.5 '0
91
Table 19 indicates the list of importing markets for essential oils of other
mints exported by South Africa in 2009. The table further indicates that
during the period under review, South Africa exported no essential oils of
other mints to the world. In world terms, Zimbabwe commanded the
greatest market share for essential oils of other mints from South Africa
during the same period under examination. In 2009 South Africa’s
exports of essential oils of other mints to Zimbabwe increased in value at
approximately 45% and also increased in exports in value between 2005
and 2009 period.
It is clear in the table that Zimbabwe’s exports in value was more than
the world’s exports in value during the same period under review.
92
Figure 34: Growth in demand for essential oils of other mints exported by South Africa in 2009
93
Figure 34 illustrates growth in demand for essential oils of other mints
exported by South Africa in 2009. The figure further illustrates that
Zimbabwe’s growth in demand for essential oils of other mints from
South Africa grew up by 45% in a dynamic market between 2005 and
2009 period. The figure also illustrates that in terms of annual growth of
South Africa’s exports of essential oils of other mints in a declining
market, there was no growth of exports to any country between 2005 and
2009 period.
94
Figure 35: Market diversification for essential oils of other mints exported by SA in 2009
95
Figure 35 depicts market diversification for essential oils of other mints
exported by South Africa in 2009. The graph also depicts that United
States of America commanded the greatest market share for exports of
essential oils of other mints from South Africa during the period under
examination. The figure further depicts that if South Africa had to
diversify its markets of essential oils of other mints, small and attractive
markets exist in India and Zimbabwe during the same period under
scrutiny.
96
Figure 36: Competitiveness of suppliers to South Africa for essential oils of other mints imported in
2009
97
Figure 36 indicates competitiveness of suppliers to South Africa for
essential oils of other mints imported in 2009. The bubble graph further
indicates that Germany, India and United Kingdom were the three most
competitive suppliers of essential oils of other mints to South Africa
during the period under observation. The annual growth of South Africa’s
imports of essential oils of other mints from Germany increased by 100%
as compared to India with an annual growth of about 85% and United
Kingdom with an annual growth of 70% between 2005 and 2009 period.
98
Figure 37: Market diversification of suppliers for essential oils of other mints imported by SA in 2009
Source: ITC Trade Ma
99
Figure 37 shows market diversification of suppliers for essential oils of
other mints imported by South Africa in 2009. The figure further shows
that United States of America was the biggest market for essential oils of
other mints during the period under examination. The figure also shows
that if South Africa had to diversify its suppliers of essential oils of other
mints, potential supplying markets for the product the exist in India and
Canada between 2005 and 2009 period.
11. THE ESSENTIAL OILS OF PEPPERMINT
11.1 Description of the herb peppermint
Mentha x piperita L. is a sterile, perennial herb originating from a

hybridization between watermint (Mentha aquatica), and spear mint
(Mentha spicata), and therefore must be propagated vegetatively. The
entire plant has a very characteristic sharp, mint odor, because of the
presence of the volatile oil. This is an easy growing perennial herb,
growing up to 1 meter high, with underground runners and a distinctive
menthol fragrance.
11.1.1 Properties of peppermint
Peppermint is a decongestant, cooling, fragrant and bitter herb that is

anti-spasmodic, diaphoretic, digestive, antiseptic and slightly anesthetic.
It contains a high amount of essential oil, which contains menthol,
menthone, menthyl acetate and menthofuran.
11.1.2 Safety precautions and warnings
Peppermint essential oil must be used in moderation and the menthol

contained in the oil may cause sensitizing to some individuals skin. It
can irritate the mucus membranes if the dosage is too high. If used in
pregnancy, very small amounts should be used and not recommended
for infants.
11.1.3 Production levels in South Africa
Under irrigation and good management, peppermint will yield 20 to 25

tons of plant material per hectare per year, at an oil recovery rate of o.3
% or 60 to 75 kg essential oil per hectares. Dry land production will
generally be less, but it will depend entirely on the quantity of rainfall
and its frequency throughout the season.
100
11.1.4 Major production Areas in South Africa
Peppermint can be grown in most parts of South Africa where rainfall of

higher than 1000 mm per annum occurs with long periods of sunlight
and cool night temperatures. The latter are needed for the correct
balance of high quality oil production and it limits the constituent
menthofuran, which is undesirable in the oil. There are indigenous
species growing in South Africa in the temperature zones and these are
indicators of where the crop can be grown successfully. The best areas
are the escarpment of Mpumalanga, Gauteng, Eastern Free State, higher
altitudes of Kwazulu Natal, and areas in the Eastern and Western Cape.
11.1.5 Stem, Leaves, and Flowers
Peppermint is a summer growing perennial with upright, usually

purplish, smooth stems growing to one meter in height. The lance shaped
leaf margins are finely toothed, their surfaces smooth, both above and
beneath, or very slightly hairy (hardly visible), on the principal veins and
midrib on the underside. The whorled clusters of little reddish violet
flowers are in the axils of the upper leaves, forming loose, interrupted
spikes, and rarely bear seeds.
11.1.6 Essential part of peppermint
The whole plant is cut at flowering stage for steam distillation. The oil is
found on the undersides of the leaves.
11.1.7 Post harvest handling
• Sorting and Distillation
The crop is steam distilled and the steam/oil vapor is condensed and
separated. Condensing and separation equipment should be
manufactured from stainless steel and a general processing hygiene
followed to ensure no contaminants are present. The time for oil
extraction varies, depending on the type of steam source, the herb
weight, and the moisture content.
• Grading
The main chemical constituent of peppermint oils is menthol; however, it

also contains menthyl acetate and isovalerate, menthone, cineol, pinene,
limonene and other constituents. The quality of the oil is determined by
the correct combination of chemical constituents, especially menthol and
menthone and the absence of menthofuran.
101
Once the oil is separated, the product is relatively stable for many
months, provided it is stored out of direct sunlight and away from heat.
The odor and taste is a good indication of the quality of the oil.
• Packaging and Storage
Epoxy lined, fluorinated plastic and galvanized drums are used for bulk
storage and transportation. Peppermint essential oil should be stored in
a cool, dry area until it is used. Once opened, refrigeration and tightly
closing the cap will prolong its shelf life.
• Marketing
The market for essential oils in South Africa is divided into local buyers
and international buyers. The local buyers include marketing agents and
companies from chemical and pharmaceutical, as well as food and
flavoring industries. The international buyers are divided into flavor and
fragrance houses, cosmetics and personal health care, aromatherapy and
food manufacturers who buy in large quantities. The major market in the
world for essential oils exists in the United States, followed by Japan and
Europe. However, production continues to be concentrated in Europe,
with seven of the world’s largest essential oil processing firms. In the
United States, the major users of essential oils are the soft drink
companies.
11.1.8 The peppermint sale price
Price is largely regulated by the world supply and demand. Peppermint is

presently being produced in countries with low labor costs such as china
and India. This can make it difficult for a South African farmer to
compete, unless there is a fair degree of value adding applied.
Organically grow mint oil is always in demand and will fetch better
prices.
11.1.9 Essential Oils of Peppermint Industrial Utilization
Peppermint essential oil is mainly used as flavoring in toothpaste, ice

cream, confectionery, soft drinks, tobacco, chewing gum, and other
varieties of foods. It can also be found in shampoos, soaps, balms and
liniments. The oil has a cooling effect for fevers. Peppermint tea and tea
blends are becoming more popular as natural food stuff. Peppermint tea
is used for relief of palpitations of the heart and nausea.
102
11.1.10 Cosmetic Utilization
The therapeutic peppermint value lies in its ability to relieve flatulence,

bloating and colic, inhibit the growth of certain bacteria, and can assist
in smoothing and relaxing muscles when inhaled or applied to the skin.
It increases sweating, stimulates secretion of bile, assists in curing
ulcers. Peppermint eases nervous headaches and is used for aid in cases
of cholera and diarrhea. Peppermint is used to disguise the taste of
unpalatable drugs, as it imparts its aromatic characteristics to whatever
prescription it enters into. In aromatherapy the essential oil is used to
stimulate hot and verve endings and increase blood flow.
103
Table 20: Role players in the South African Fragrance and flavor industry and essential oil trading
Company Address Contact Telephone Email

Person Number
Comhan Box 413066, Nathalie +27 (0) 11 325 njelonek@comhan.co.za
Products Craig hall Jelonek 6090
(Pty) Ltd 2024
Cranbrook Po Box 1644, 011 398 6000 Support@CranbrookFlavours.com

Flavours Edenvale
1610
Craetive Box 302, Adri +27(0) 11 760 Adristander@ibi.co.za

Flavors Strubens Stander 1830
International Valley 1735
(Pty)Ltd
Danlink Box 3208, Sambashni +27(0) 11 469 sg@danlink.com
Ingredients Cramerview Govender 4508
(Pty)Ltd 2060
Deli Spices Box 611, Robin +27(0) 21 505 Robin.haller@delispices.co.za
(Pty)Ltd Eppindust Haller 2000
7475
Dunmustard Box 1518, Anthony +27(0) 31 701 Mustard@mweb.co.za
Distributors Westville Krijger 7734
3630
Firmenich P/Bag X113, Dody +27(0) 11 653 Dody.leijenaar@firmenich.com
(Pty)Ltd Halfway Leijenaar 0700
104
Person Number
House 1685
FlavourCraft Box 962, New Ryan +27(0) 31 764 ryanp@fcraft.co.za
(Pty) Ltd Germany Ponquett 9760
3620
Flavourome P/Bag X6, David +27(0) 11 314 davidw@flavourome.co.za
(Pty) Ltd Kyalami 1684 Wright 0219
Foodspec Co Box 1783, Jenal +27 (0) 11 793 jrharduth@foodspec.co.za
(Pty) Ltd Pinegowrie Harduth 1333
2123
Fruition CC Box 505, Nick +27 (0) 21 873 nick@fruition.co.za
Wellington Schwerin 6716
7654
Frutarom Box 4449, Darrell +27 (0) 11 794 dgray@za.frutarom.com
South Africa Honeydew Gray 1362
(Pty) Ltd 2040
Givaudan Box 83027, Antoine +27 (0) 11 406 Antoine.nourrain@givaudan.com
South Africa South Hills Nourrain 8700
(Pty) Ltd 2136
Illovo Sugar Post Office Charles +27 (0) 39 975 ckruger@illovo.co.za
Ltd Sezela 4215 Kruger 8216
International Box 40, Levi +27 (0) 11 922 Levi.thamage@iff.com
Flavors & Isando 1600 Thamage 8800
Fragrances
(SA)(Pty) Ltd
Junnderee P/Bag X2025, Chris +27 (0) 11 974 chrisy@jannderee.com
(Pty) Ltd Isando 1600 Young 7822
105
Person Number
Letaba Post Net Suite Carmen +27 (0) 15 304 Carmen.sacco@letaba.com
Citrus 100, P/Bag X Sacco 4000
Processors 4019,
(Pty) Ltd Tzaneen,
0850
McCollum & Box 880, Peter +27 (0) 11 234 pjh@maccallum.co.za
Associates Morningside Harrison 8470
SA (Pty) Ltd 2057
Mane South Unit 1, Bertie Mark +27 (0) 21 534 Mark.mulholland@mane.co.za
Africa (Pty) Park, 12 Mulholland 4422
Ltd Bertie
Avenue,
Eppindust
McCormick P/Bag X 64, Mike +27 (0) 11 690 mike@mccormick.co.za
South Africa Halfway Palmer 0311
(Pty) Ltd House 1683
Nicola-J Box 6837, Jason +27 (0) 11 315 jason@nicola-j.co.za
Flavours & Halfway Vlantis 6582
Fragrances House 1685
(Pty) Ltd
Petrow Food Box 11172, Craig +27 (0) 11 613 craig@petrowfoods.co.za
Ingredients Randhart Taylor 2702
(Pty) Ltd 1457
Savannah Box 75864, Colleen +27 (0) 11 856 Colleen.maroun@savannah.co.za
Fine Gardenview Maroun 4500
Chemicals 2047
(Pty) Ltd
106
Person Number
Savoury Box 43028, Harry +27 (0) 11 309 Hmeyer2@pioneerfoods.co.za
Food Industrial, Meyer 1606
Industries 2042
Sensarome P/Bag X 6, Themba +27 (0) 11 805 themban@sensarome.co.za
(Pty) Ltd Kyalami, Nghalaluma 8294
1684
Sensetek CC Box 2598, Mike Capon +27 (0) 11 608 mikec@sensetek.biz
Bedfordview 4944
2008
Sensient Suite 173, Dershana +27 (0) 11 462 dershanaj@sa-sensient.co.za
Colors P/Bag X 7, Jackison 7150
South Africa Northriding
(Pty) Ltd 2162
Sharon Bolel Box 693, Sharon +27 (0) 11 454 Sharon@sharonbolel.co.za
Chemical Edenvale Bolel 5400
Marketing 1610
SK Box 5101, Vanessa +27 (0) 11 974 vanessa@skchemtrade.co.za
Chemtrade Meadowdale Salt 1124
Services 1612
(Pty) Ltd
Sunspray Box 43057, Rene Cross +27 (0) 11 473 Rene.Cross@sunspray.co.za
Food Industrial 6811
Ingredients 2042
(Pty) Ltd
Symrise Box 143, I Rudy +27 (0) 11 921 Rudy.mclean@symrise.com
(Pty) Ltd sando 1600 McLean 5600
Unique Box 9583, Johan +27 (0) 12 644 johan@uniqueflavors.co.za
Flavors Centurion Smith 0334
107
Person Number
0048
Val-U- Box 10053, Rurik +27 (0) 21 981 rurik@vuf.co.za
Flavours Belhar 7507 McKaiser 7892
(Pty) Ltd
Von Holy Box 4449, Corene Von +27 (0) 83 267 vonholy@worldonline.co.za
Consulting Edenvale Holy 6004
CC 1610
Afriplex Box 3186, Grant +27 (0) 21 872 grant@afriplex.co.za
Flavours & Paarl 7620 Momple 4976
Fragrances
(Pty) Ltd
Agrana Fruit Box 143, Philippe +27 (0) 21 705 Philippe.gomez@agrana.co.za
South Africa Bergvliet Gomez 0210
(Pty) Ltd 7864
Bidfood Box 37200, John +27 (0) 21 527 John.morris@crownnational.co.za
Technologies Chempet, Morris 5020
(Pty) Ltd 7442
Cargill Box 354, Nicole +27 (0) 21 556 Nicole_lombard@cargill.com
Flavor Table View Lombard 1512
Systems 7439
(RSA) (Pty)
Ltd
Carst & Box 87710, Gloria Ford +27 (0) 11 489 Gloria.ford@carst.co.za
Walker (Pty) Houghton 3631
Ltd 2041
108
Person Number
Chemimpo Box 1378, Dawie S +27 (0) 11 293 Dawie.maartens@chemimpo.co.za
SA (Pty) Ltd Randburg Maartens 2000
2125
Claman (Pty) Box 70667, Clarissa +27 (0) 11 704 clarissa@claman.co.za
Ltd Bryanston Heyman 5289
2021
Clive Teubes Box 4919, Ron +27 (0) 11 793 ron@teubes.com
(Pty) Ltd Randburg Allwright 1207
2125
Coca Cola Box 9999, Karen +27 (0) 11 644 Kvokes@afr.ko.com
South Africa Johannesburg Vokes 0666
(Pty) Ltd 2000
Soil 27 Musgrave Nikki or +27 (0) 31 201 nikki@soil.co.za
Avenue, Grant 2778 grant@soil.co.za
Durban, 4001
Source: South African Association of the Flavour & Fragrance Industry (SAAFFI)
109
Table 21: Sector Organizations and Research Institutions Involved in the Essential Oils Industry.
Organization Role
South African Essential Oils Producer Its role is to provide knowledge for current and
Association (SAEOPA) potential oil producers with information ranging from
species selection, quality control etc.
Small Enterprise Development Agency (SEDA) SEDA has been involved in setting up essential oil
business incubation, which provide technical
assistance in the Eastern Cape & North West
Province
The Council for Scientific & Industrial CSIR is active in developing production techniques
Research (CSIR) and has developed various steam distillation
techniques. It also provides technical consulting
services.
Agricultural Research Council (ARC) It introduced essential oil crops into selected rural
communities and it also provides mentorship support
to selected farmers of essential oils.
Department of Agriculture and Academic Conduct research and development of manuals to

Institutions in South Africa help growers.
110
12. ACKNOWLEDGEMENTS
The following organizations are acknowledged:
Agricultural Statistics: Department of Agriculture, Forestry and

Fisheries
Tel: (012) 319 8453
Fax: (012) 319 8031
Website: www.daff.gov.za
South African Essential Oils Producers Association (SAEOPA)

Karen Swanepoel
University of Zululand
Tel: 035 902 6359/ 082 785 8700
Fax: 035 902 6428
Website: http://safarmer.net/SAEOPA
South African Association of the Flavour & Fragrance Industry

(SAAFFI)
Tel: +27 (0) 11 447 2757
Fax: 0866 203 723
E-mail: info@saaffi.co.za
Website: www.saaffi.co.za
ITC Market Access Map

Website: http://www.macmap.org/SouthAfrica
ITC Trade Map

Website: http://www.trademap.org.
Disclaimer: This document and its contents have been compiled by the Directorate:
Marketing of the Department of Agriculture, Forestry and Fisheries for the purpose of
detailing essential oils value chain. Anyone who uses the information as contained in
this document does so at his/her own risk. The views expressed in this document are
those of the Department of Agriculture, Forestry and Fisheries with regard to essential
oils market unless otherwise stated. The Department of Agriculture, Forestry and
Fisheries, therefore accepts no liability that can be incurred resulting from the use of
this information.
111

South African Essential Oils Market Profile 2010

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A PROFILE OF THE SOUTH AFRICAN ESSENTIAL OILS

MARKET VALUE CHAIN

1. DESCRIPTION OF THE ESSENTIAL OILS’ INDUSTRY 3

1.1 Production and Production Areas 3

2. HARVESTING OF ESSENTIAL OILS 7

2.2 Essential Oils Marketing Activities 7

5. USES OF ESSENTIAL OILS 25

6. QUALITY & MAINTANANCE OF ESSENTIAL OILS 27

7. ESSENTIAL OIL VALUE CHAIN ANALYSIS 27

8. ESSENTIAL OILS DISTRIBUTION CHANNELS 33

8.1 Value Adding in South Africa 34

10. MARKET INTELLIGENCE 42

11. THE ESSENTIAL OILS OF PEPPERMINT 100

12. ACKNOWLEDGEMENTS 111

An essential oil is a liquid that is generally distilled (most frequently by steam

A solvent such as hexane or supercritical carbon dioxide is used to extract

The strengths of essential oils

• They are antibacterial, antiviral, antifungal, and antimicrobial.

Weakness of the Essential Oils industry (Production Constraints)

• Production of essential oils requires highly focused farm practices and

1.1 Production and Production Areas

Table 1: The projected ha under essential oil crops by 2010 as given by

Province Species TOTAL ha

Table 2: Estimated Production Statistics for certain selected Essential

OIL TYPES ESTIMATED VALUE OF

Table 3: The most utilized essential oils and major producers

Orange Australia, Brazil, Dominican Republic, Israel, Italy

Eucalyptus (cineole-type) Australia, Austria, Brazil, China, India, Paraguay,

Citronella China, India and Vietnam

USA and Peru

1.1.1 Overview of the essential oils market and its composition

1.1.2 Identification of Products

Given the appropriate equipment, essential oils can be fractionated and

2. HARVESTING OF ESSENTIAL OILS

2.2 Essential Oils Marketing Activities

Figure 1: Exports volumes of essential oils of peppermints

Figure 1 indicates exports volumes of essential oils of peppermint (including

Export Quantity (tons)

Figure 2 represents exports of essential oils of peppermint (including

Mauritius 0.15 0.022 0 0 0 0 0 0 0 0

Figure 3 illustrates exports volumes of essential oils of peppermints (including

Export Quantity (tons)

Eastern Asia 0 0 0 0 0 0 0 0 0 0.01

Figure 4 shows essential oils of peppermints exports (including concretes and

Figure 5 depicts volumes of essential oils of peppermints exports (including

Figure 6 indicates volumes of essential oils of peppermints exports (including

Export Quantity (tons) 1.2

Figure 7 illustrates exports volumes of essential oils of peppermints (including

Exports Value (Rands) 700000

Western Cape 40431 0 395203 8625 0 1035 0 25061

Figure 8 shows values of essential oils of peppermints exports (including

Exports Value (Rands)

Figure 9 indicates exports values of essential oils of peppermints (including

City of Cape Town Metropolitan 40431 0 395203 8625 0 1035 0 25061

Figure 10 shows values of exports of essential oils of peppermints (including

Exports Value (Rands)

eThekwini Metropolitan 0 12830 0 0 0 0 0 0

Figure 11 depicts values of exports of essential oils of peppermints (including

Figure 12: Imports volumes of essential oils of peppermints

Figure 12 shows imports volumes of essential oils of peppermints (including

Figure 13 indicates imports volumes of essential oils of peppermints

Import Quantity (tons) 0.14

Figure 14 depicts imports volumes of essential oils of peppermints (including