In the first half of 2025, garlic oleoresin prices experienced a gradual decline, mainly influenced by the weakening prices of fresh garlic and garlic powder globally. As raw garlic became cheaper in key producing countries like India, China, and Egypt, the overall cost of production for garlic-derived products, including oleoresin, dropped. Since garlic oleoresin is extracted from dehydrated garlic products, the lower input costs from garlic powder directly impacted its pricing.
In India, a large surplus of fresh garlic led to aggressive processing activity. With garlic being abundantly available, processors had easier access to raw material, which supported higher production of oleoresin and created a supply-heavy market. This put additional downward pressure on prices. In Egypt, the initial tightness in garlic supply eased by late Q1, giving processors more confidence to scale up operations. The resulting increase in processed output further weighed on oleoresin prices.
China, being a major supplier of garlic-based ingredients, maintained a stable production pace. Although there were some concerns over weather, expectations for a strong harvest in June kept buyers cautious. This anticipation limited aggressive purchasing, further reducing market momentum and keeping oleoresin prices soft. Overall, the high availability of raw garlic and processed forms like garlic powder contributed to a bearish trend for garlic oleoresin during H1’25.