As a new year begins, we are pleased to provide the following market report with the latest information for key flavor and fragrance materials.
Black Pepper
The black pepper market experienced significant volatility in 2024. The 2025 harvest in Vietnam is projected to benefit from favorable weather; however, many farmers are prioritizing more profitable crops such as coffee, allowing them to hold their pepper harvest until prices improve. Other production regions, such as Sri Lanka and Brazil, have not been as fortunate with the weather, as heavy rainfall has caused delays in the sun-drying process. We expect pricing to remain firm as global production decreases. We recommend securing 2025 inventory now, as prices are expected to remain high throughout the year.
Cardamom
Key producers in the cardamom industry, both in India and Guatemala, faced significant challenges in 2024. This is largely due to adverse weather, supply chain disruptions, and rising global demand. Erratic rainfall, combined with high temperatures, led to substantial declines in production. Additionally, steady demand from the food and tobacco industries further complicated the situation. As a result, cardamom prices surged by 25% to 30% in the last few months of the year. With the market expected to remain volatile until mid-February, we recommend closely monitoring your supply.
Celery
Celery seed prices showed a firm trend in November, driven by low availability and strong demand, which led to price increases. The new season is expected to begin in May 2025, with no anticipated expansion in cultivation.
Lavender
The 2024 lavender season was uncertain, with yields dropping to their lowest levels since 2018, falling by 50-60% compared to 2021. The northern regions, which experienced less favorable growing conditions, were particularly affected. Despite these challenges, prices remained stable, with only a slight increase, thanks to the availability of excess stock. Positive market trends in the food and fragrance industries have led to the emergence of dedicated nurseries for new Bulgarian lavender varieties.
Rose
The rose oil market experienced a stable 2024, with steady cultivating areas. As we begin 2025, we will continue to monitor the market, particularly as geopolitical developments continue in the Middle East, which could impact the production landscape of Turkey, which already saw prices double compared to those of 2023.
Peppermint
The acreage in the Pacific Northwest continues to decline in all growing regions, with close to an 8% reduction from 2023-2024. This has been the trend over the last few seasons. In addition, the uncharacteristic weather patterns in some regions have affected the quality and/or yields of the oil. It is reported that a fair amount of the open supply is a sub quality oil and the quality oil is actually in tight supply.
In the global marketplace, we see competing origins with firming prices as the quality oil gets more difficult to obtain. We recommend covering your 2025 requirements through September 2025.
We have generational relationships with scores of growers throughout the Pacific Northwest. Even in challenging years, we are in a good position to help with your peppermint requirements.
