Essential oils in SA – an industry budding with opportunity

Formed by the farming community, SAEOPA has become the backbone of the South African essential and vegetable oils industry. The industry has been identified as one of priority for economic development, based on its comparative advantage of seasonable supply, export potential, inclusiveness and environmentally sustainable characteristics.

The global demand for products from the natural ingredients sector, which includes essential and vegetable oils, continues to reflect a strong upward trend, having increased by an average of 15% from 2018 to 2019. South Africa, with its rich diversity of flora and entrepreneurial farmers, is extremely well positioned to exploit this opportunity.

Latest estimates suggest that the global production of essential oils is more than 150 000t. The global market for essential oils is valued at $6.5bn and projected to rise at a CAGR of 8.4% to 11.3% to $15.8bn by 2024/5.

Europe dominated the essential oils market with a share of 43.65% in 2019. This is attributable to easy feedstock availability and the presence of major industry players in the region.

KNOWLEDGE SHARING AND QUALITY FOCUSED

Local production estimates for 2020, according to the South African Essential Oil Producers’ Association (SAEOPA), are around 370 000kg. Globally, essential oil cultivation areas cover 600 000ha and one million farms located worldwide are producers of essential oil-bearing plants. The main indigenous crops cultivated in South Africa for steam distilled essential oils are buchu, geranium, lippia, eriocephalus, artemisia, helichrysum, leonotis and coleonema, while marula, baobab, Kalahari melon, Ximenia, trichelia and manketti/mongongo are the indigenous crops cultivated for pressed/vegetable oils. There are also a wide variety of exotic crops cultivated locally for essential oils and pressed/vegetable oils.

SAEOPA was established with the purpose of promoting essential oils and the production, processing and export of natural plant products, including essential oils. The association represents the interests of its members and the industry. SAEOPA’s producers are extremely quality conscious – they have GC/MS test data on all their essential oils as well as analysis on all seed oils. There are currently 15 local producers exporting their essential oils and pressed/vegetable oils to the UK, USA, Australia and the EU.

The association also assists with information regarding crop selection, cultivation, harvesting and processing. Market- and price-related issues are shared among members and international correspondents, as well as research findings and success stories while focusing on the expansion of the industry. Value-adding services as well as agro processing and skills development from part of the mission and actions of the association. •

Did you know?

SAEOPA is supported by the SECO-funded, UNIDO-implemented Global Quality and Standards Programme – South Africa project (GQSP-SA), to develop national standards for selected essential and vegetable oils. Earlier this year, the GQSPSA and SAEOPA submitted standards to SABS for rose geranium and baobab. Both are now available for public review.

SAEOPA’s producers are extremely quality conscious

A VOICE FOR THE SOUTH AFRICAN ESSENTIAL AND VEGETABLE OILS INDUSTRY

SAEOPA was established in 2000 as a non-profit organisation with the following objectives:

• to promote the production, processing and export of essential oils and natural plant products

• to represent and promote the interests of its members and the industry

• to collect, collate and disseminate salient information

• to act as a unified and independent mouthpiece of the industry

• to facilitate the coordination of industry activities

• to promote research to expand the national and regional industry

• to facilitate the sustainability of members and to increase their competitiveness, both nationally and regionally

• to empower members through training, workshops, conferences and trade missions

The following membership categories are accommodated within SAEOPA:

• ordinary members (small, medium and large producers)

• associate members (corporates and individuals)

• international members

• researcher members (individuals)

• sponsor members

• student members

• honorary life members.