Cedar Wood Oil Market: Industry Analysis - Price - Forecast - Trends - Cost Models - Top Suppliers

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Cedar wood oil extracted from sawdust, wood shaving and waste wood materials by steam distillation. Before distillation, the saw dusts are prevented from exposure to sunlight for better oil yield and quality. Cedar genus has an alcohol content (cedrol) for 8%, while Juniper genus has an alcohol content of 18–42%

Oil yield varies according to the type of cedar wood used and the form of wood being used, either saw dust or chips.Stumps and heartwood contains the most oil, while stumps are not widely utilized.

Cedar Wood Oil Supply and Demand Analysis

The US, China, and India are the leading producers of cedar wood oil, holding a share of 70%, 20% and 8%, respectively.

Major consumers of cedar wood oils are the US (30%), Western Europe (30%), China (20%), and Japan (7%). The derivative products produced after processing has a wider and more diverse range of markets
Cedar wood is used for manufacturing of railway sleepers, beams, posts, frames and pencil making. Indian being the world's largest railway manufacturer, have ample supply of saw dust for production of cedarwood oil
Majority of cedar wood oil is consumed by the FMCG industry and flavors &fragrance, where majority of cedar wood oil is used for insect repellants, soaps, air fresheners and household detergents. Apart from these industries, cedar wood oil is seen being used for medicinal purposes

Supply and Demand Assumptions

Precise production for cedar wood oil is not available, as it is being clubbed with other essential oils, like clove oil and nutmeg oils. Being distilled from saw dust makes it more challenging to reach accurate numbers for production of cedar wood oil
It is roughly estimated that the leading producers of cedar wood oil are the US, China, and India, while countries like Africa and Morocco are also producers of cedar wood oil

Cedar Wood Oil Trade Dynamics

American cedar wood oils are predominantly used domestically and imported by Japan for derivative manufacturing.Chinese cedar wood oil is mainly imported by Western Europe are used more in fragnace oils and perfumeries

Western Europe and Japan are the major buyers of cedar wood oil
Chinese cedar wood oil, imported in Western Europe, are used more in fragnace oils and perfumeries, due to its low content of cedrol
American cedar wood oils are imported by Japan, where they are to be used for derivative manufacture, such as cedrol, cedryl methyl ether, acetyl cedrene, and cedryl acetate, due to their high levels of chemical isolates
Chinese exports are estimated above 400–500 MT per annum, while exports from the US are around 250 MT per annum

Cost Driver Analysis

Recent Factors that affected cost of Cedar wood oil

In the last two quarters, the prices of raw material have been witnessing an uptrend, due to unfavourable weather conditions in China. This, in turn, affected the yield and also pushed the raw material costs higher.
In the US, wood imports from Canada has been witnessing a marginal drop, due to impending trade related issues. This also resulted in a steady increase in prices of raw material.

Cedar Wood Oil

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Hangzhou Dayangchem Co.

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