MARKET

September- December 2019

100% Pure and Natural Essential oils and their derivatives

Content of Issue

1. Welcome
2. Market Trends for some major Essential Oils
3. Facility

Welcome

A warm and heartiest welcome to our first edition of Market Intelligence Report!

Aroma Atsiri Indonesia (AAI) is the fast growing company in the field of Essential Oils. We believe that every
company will grow only if they maintain the transparency with their customers. In order to maintain this, we
launched our first market intelligence report to guide our customers on current market situations hence they can
make procurement plan of raw material required.

With advanced and innovative technology, we derived a wide range of best Aromatic chemicals from some of our
essential oils. We always try to match our customer’s expectation by developing different products type with
continues research approach. We are still working towards making new derivatives and will launch some of our
new products in coming future.

Our aim is to deliver the value added products with best quality. We analyzed all the raw material very seriously
and check on the every stage of process to guarantee that customer receive a sustainable & traceable product.

- ARTI SHARMA
DIRECTOR (AAI)
 2. Market Trend some major Essential Oils

CAJEPUT OIL (Melaleuca cajeputi)

Earlier the main source of Cajeput Oil was Maluku Island (Buru & Amon) and people were using the traditional
method for distillation with copper condenser to get the green color but due to unsustain production and
contamination of glycols, most of the customer shifted to the Java variety.

AAI take an initiative to educate the farmers so that they can use modern techniques of distillation to get good
quality material. Due to this, Oil from Java is very rich in its aroma, sustainable and 100% free from contamination.
AAI provides a very good quality oil and fulfilling the expectations of our customers. At the moment supply and price
is stable. Price varies only due to the currency fluctuations.

Cananga Oil (Cananga odorata Oil)

Cananga Oil has a good space in aromatherapy industry since it soothes stress, anxiety, sadness, tension, and
sleeplessness. The production is affecting as there is no enough new plantations and all existing trees are already
old. The dry season increase this problem hence supply is very less but at the same time, demand is also not too
high. For this reason, Price is stable from last six month.

Citronella Oil Cymbopogon winterianus Jowitt.)

Last year price of Citronella Oil was on peak due the less supply for synthetic chemical and demand for the same
was very high because everyone is looking for citronella oil as a replacement of their synthetic choice, which impact
the price too much. When price was high, almost all of the farmers start planting Citronella, hence this year price
dropped a lot because of high production.

Indonesia is always being a largest producer for Citronella. The production is only from Java but there are many
program arranged by the government to improve the production for citronella oil and lot of new areas has been
developed for the same. Now we can get Citronella Oil from Sumatra, Sulawesi and Kalimantan. The quality has also
been improved but due to oversupply, the price has been fallen drastically and now it’s stable since below this price
the farmer/distillators has no margin to work.

Clove Oil & Derivatives (Eugenia Caryophyllata )

Indonesia is the biggest producer for Clove Oil in the world. Approx. 70% supply is from Indonesia. AAI has already
supplied approx. 60-70% of Clove Oil from our total supply for all essential oils that shows that clove oil is our heart.

Usually, there is Clove Bud Season from May to July. People start focusing on clove leaf and clove stem by mid of
August. As compared to last year, this year dry season is much longer. Normally by end of August, we have rainy
season started here in Indonesia but this year, the rain will start by end of September or mid of October, as per the
weather forecast. The supply of Clove leaf oil will be much better this year and price will also be less as compared
to the last year but once rain will start, there will be a disturbance in the production and it will for sure affect the
supply so that price can go up slowly but overall condition will be better than the previous year.
Ginger Oil (Zingiber officinale)

In Indonesia, Ginger juice used in the traditional drink called “Jamu” which is used by almost all age groups and it
has lots of health benefits so the local demand is very high. All most all distillators distilled the waste generated after
Juice to get the oil that is the reason quality is lower than the expectations since Citral content is very low.

AAI has started to work very closely with the farmers and distillators to get the best quality. From last 4 months, the
price is stable and seems to be the same for next 1-2 months but we can see a hike once rainy season will start.

Gurjun Balsam Oil (Dipterocarpus turbinatus)

Gurjun Oil is used as a fixative and having woody, balsamic aroma. This is used in the cheap perfumes as the
replacement of Patchouli and Vetiver Oil. Gurjun having the approx. 70 varieties all across south-east Asia and having
different qualities of oils as per their species. Some species having the main component of alpha-Gurjunene, some
having alpha-Copaene and some having the combination of both along with the beta-caryophyllene. Last year the
price was slightly high due to the long rainy season but this year there is a relief and currently price is stable.

Kaffir Lime Oil (Citrus hystrix)

Kaffir lime leaves are the main ingredients in south-east Asian cuisine due to its aromatic, astringent flavor. Kaffir
lime oil is the main part of the aromatherapy industry due to its refreshing, exotic lime and sweet aroma. This oil
also having some medicinal properties such as antibacterial, antidepressant, antiseptic, antiviral, insect repellent.
Price is stable from last six month.

Massoia Bark Oil (Cryptocarya massoia)

Like Clove & Patchouli, Massoia Bark Oil (MBO) is the soul of AAI and we can provide many grade of MBO to full fill
the customer requirements. From long time price and demand is quite stable and Indonesia producing the enough
material to cover the demand. AAI has invested in the machinery to make our MASSOIA from C-10 50 to 95% and
successfully launched our in-house below mentioned grades.

Massoia Bark Oil C10 50%

Massoia Bark Oil C10 60%
Massoia Bark Oil C10 70%
Massoia Bark Oil C10 90%
Massoia Bark Oil C10 95%

Massoia Bark Oil C12 70%

Massoia Bark Oil C12 80%

Nutmeg Oil (Myristica fragrans)

Currently, there is a slight hike in the nutmeg oil price due to an increase in the price of spices. All of the farmers
shifted their focus to the spices hence there is a less availability of raw material for oil distillation but this is not a
long-term situation since the new crop is coming soon. AAI is still offering the sustainable price due to having the
old stock and averaging it with the current market price.
Patchouli Oil ( Pogestemon Calbin)

After the Clove & Massoia, Patchouli Oil is the life for AAI.

As everyone know that at the moment, 90% of Patchouli Oil is coming from Sulawesi. In May/June Sulawesi face an
unexpected heavy rain and flood everywhere. Due to this lot of crops get damaged that affect the price a lot. There
was slight relaxation at the time of Ramadan because all farmers need money to celebrate the festival but after that
the price was increased again since there was some demand in the market.

In the current scenario, the price is slight stable since European market is closed due to holidays and everyone is
busy in the preparation of the big event of IFEAT and most probably there will be big demand after the event. Hence
there are high chances that price will increase again. Still, it will take time to come new crops because of dry season
now and farmer can’t plant the new crop because seedling will not survive without rain. So, farmers are waiting for
the rainy season. In this case, most probably the new production will come by January/February and there will be
relaxation in the price.

Patchouli Oil Dark

Patchouli Oil Light
Patchouli Oil MD
All grades PA 30 AV<5

Vetiver Oil (Vetiveria zizanoides)

Since 2018, the price was continuously going down but from last 2-3 months, price is stable and production is also
quite stable. AAI is working together with distillators toward to improve the aroma & quality of Indonesian Vetiver
oil and as a result of our continuously efforts and dedication, the quality of AAI is very close to the Haiti variety. We
are trying our best to satisfy to our customer by improving our quality day by day.

Vetiver Oil Regular

Vetiver Oil MD