
Prakhar Panchbhaiya
Assistant Manager: Business Insights and Content
Supporting procurement teams with category intelligence, market research, price trends, supply-demand analysis, and strategic sourcing insights across key industries.
During Q2 2026, patchouli oil prices remained firm to upward as higher Indonesian origin values and tighter raw-material availability raised replacement costs across importing markets. Indonesia remained the key global supply base and firmer offers at origin were transmitted into European landed costs, particularly for buyers in major fragrance processing markets such as France. Supply-chain uncertainty also encouraged some customers to advance purchases, providing additional support during the quarter. European fragrance demand remained healthy, with fine fragrances showing stronger momentum than several other personal-care categories. This helped maintain consumption of natural aromatic ingredients such as patchouli oil even as procurement costs increased. Higher energy, processing, packaging and freight expenses added to importer and distributor costs, allowing suppliers to maintain firmer offers. However, buyers remained selective and generally avoided excessive inventory accumulation, which prevented a sharper rise.
Analyst Insight
According to Procurement Resource, patchouli oil prices are expected to remain firm, supported by Indonesian supply conditions and healthy fine-fragrance demand, while any improvement in raw-material availability could limit further increases.
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During Q1’26, patchouli oil prices followed a firm trend as stable fragrance-sector demand and elevated logistics costs supported market sentiment. Indonesia remained the dominant global supply source, while plantation availability, distillation cycles, energy use, and transportation costs continued influencing production economics. Upstream conditions remained sensitive to weather variability and farmer selling behaviour, which limited aggressive supply expansion during the quarter. Demand from fine fragrances, premium perfumes, cosmetics, soaps, detergents, incense products, and aromatherapy applications remained stable, supported by rising consumer preference for natural fragrance ingredients and clean-label personal care products. Fragrance-sector demand also stayed healthy as global beauty and luxury product manufacturers maintained consistent procurement of natural aroma ingredients for new product launches and premium formulations.
Patchouli oil is known as an essential oil which comes from the leaves of the patchouli plant. It is generally utilised in the areas related to skin conditions, relieving stress, or controlling appetite. The diluted oil can be applied to the skin or can also be utilised for aromatherapy.
PT. Indesso Aroma, PT. Van Aroma, Takasago International Corporation, Givaudan, PT. Nusaroma Essential Indonesia, PT. Djasula Wangi
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Patchouli Oil is produced from the patchouli leaves. The leaves are collected and then dried, which is followed by the steam distillation and filtration process to finally extract Patchouli Oil.
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Assistant Manager: Business Insights and Content
Supporting procurement teams with category intelligence, market research, price trends, supply-demand analysis, and strategic sourcing insights across key industries.

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This report provides the cost structure of production of Patchouli Oil by the steam distillation of dried Patchouli leaves. The dried leaves charged into the extractor and steam is passed though it.
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