Rising U.S. demand for Korean cosmetics, fueled by retail expansion and social media, is accelerating. The category's lower price points compared with prestige skincare risk pulling down average spending in the cosmetics market as consumers shift toward more affordable options.
The cosmetics and personal care industry analysis reports companies facing higher costs for ingredients, packaging, and logistics, which may pressure profit margins. Evolving trade policies and supply-chain uncertainties could further increase costs and affect pricing strategies across the sector.
Eucalyptus oil prices in the second half of 2025 moved in a fairly uneven way as the market balanced soft global demand with several supply-side disturbances. Since the agricultural prices had already been sliding earlier in the year, buyers in the essential oil sector stayed cautious.
Many importers reduced their forward purchases due to slow economic activity, trade tensions, and shifting tariff rules, which kept overall demand for eucalyptus oil lower than normal. Companies in the aromatics and wellness space continued expanding production capacity, but this mainly improved long-term supply rather than boosting immediate buying interest.On the supply side, the market faced small but noticeable disruptions. Local issues such as disputes over eucalyptus-growing land and illegal tree cutting created concern about the stability of raw-material sourcing. At the same time, weather stress in several growing regions raised questions about leaf availability and distillation yields. These factors caused short bursts of tightness, especially when processors tried to secure clean and traceable material. Even so, the market did not experience strong spikes because global consumption stayed moderate.
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During the first half of 2025, eucalyptus oil prices remained under pressure due to a mix of global and local challenges. The market saw continued softness following the excess supply from previous quarters, especially from expanded hardwood pulp operations in Brazil and China. This increased production of eucalyptus-based products, including essential oils, contributed to the overall price stagnation.
In South Africa, the industry faced specific hurdles that compounded the situation. Limited access to rural extension services, particularly in remote farming areas, restricted output growth. Many small producers struggled with high compliance costs tied to national and international certifications. These expenses – ranging from organic labels to safety standards – made it difficult for smaller players to scale and meet export demands. Consequently, production volumes stayed low, keeping global investors at bay.
Moreover, the South African sector continued to focus primarily on exotic oils, despite having high potential for indigenous varieties. The lack of development in this area kept the product portfolio narrow, impacting competitiveness in international markets. At the same time, gender imbalances in technical roles limited innovation and efficiency, further slowing growth.
Though demand held steady in major export markets, stricter regulatory scrutiny such as recalls in North America added caution among buyers and distributors, slightly dampening confidence in eucalyptus oil exports.
Eucalyptus Oil is a generic name for distilled oil obtained from the leaves of Eucalyptus, which belongs to the plant family of Myrtaceae. Eucalyptus is native to Australia and cultivated worldwide. Eucalyptus oil is used in many places such as pharmaceuticals, antiseptic, and for flavouring and fragrance.
Medicinal uses and therapeutics , As an ingredient, Repellent and biopesticide, Flavouring and fragrance
Berjé Inc, Felton Grimwade & Bosisto's Pty Ltd., ConnOils LLC, Inc, Robertet Group, Ultra International B.V.
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Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
In order to extract Eucalyptus Oil, first the leaves of eucalyptus are collected and sorted, which are finally steam distilled to obtain the desired product.
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