Future of the U.S. Market Because essential oil production and prices are often erratic, in many cases industries that use the oils have developed substitutes as a hedge against uncertainty. Bernard Champon, a New Jersey-based essential oils dealer, estimates that 90 percent of the fragrance market is supplied by synthetic products. Patchouli and vetiver are two oils that are immune from this competition because no synthetic substitutes for them exist. In the flavoring industry, the demand for essential oils has increased recently because of rising consumer interest in natural foods. It is difficult to say exactly which product will benefit from this development, but Champon suggests that lime oil is promising.
Limited information is available on the pharmaceutical market.
This market is more restricted, and the variety of oils used is not as wide as in the flavoring or fragrance industries. However, aromatherapy, which is the use of fragrances to stimulate the senses and emotions, is undoubtedly increasing. Demand in this niche market is expected to grow as aromatherapy attracts more adepts, with oils from herbs such as thyme, rosemary, and origanum being the most commonly used. Concerns About Suppliers Many of the U.S. brokers and dealers interviewed for this article expressed impatience with dishonest business practices of suppliers in the two main supplying countries, China and India. They cited practices such as sampling from one lot and shipping from another one of lesser quality, as well as an inability to honor contracts.