Product Code: ETC110087 | Publication Date: Jul 2023 | Updated Date: Feb 2025 | Product Type: Report | |
Publisher: 6Wresearch | No. of Pages: 70 | No. of Figures: 35 | No. of Tables: 5 | |
Indonesia is one of the major producers and exporters of clove leaf essential oil in the world. The country has a large variety of clove plants, which are grown mostly in six provinces namely North Sulawesi, Central Java, East Java, Yogyakarta Special Region, South Sumatra and Lampung. Clove leaf essential oil is extracted mainly from dried leaves using hydrodistillation method. Indonesia share in global production was estimated at about 60 percent during 2013-17 period.
The demand for natural ingredients such as clove leaf essential oils has been increasing due to its various health benefits including antiseptic properties which make it suitable for use in aromatherapy practices or skincare products. Furthermore, the popularity of Indonesia spices in international markets and rising consumer awareness regarding their therapeutic benefits have also contributed towards growth in production of this product over recent years.
A key driver behind the increased demand for Indonesia produced cloverleaf essential oils is related to its usage as an ingredient for food flavoring and fragrance applications owing to its high concentration of eugenol which imparts a characteristic flavor and aroma profile when used alone or blended with other flavorsome components like cinnamon bark oil or nutmeg seed oil among others. Additionally these essentials are utilized by pharmaceutical companies as they contain antioxidant properties that can be beneficial for reducing inflammation caused by certain diseases like arthritis or gout etc., along with being effective against bacteria causing infections like MRSA (methicillin-resistant Staphylococcus aureus). Moreover government initiatives providing subsidies on export taxes have further helped manufacturers increase supplies into foreign countries thereby driving revenue growth prospects associated with this sector domestically over recent years.
The Indonesia clove leaf essential oil market has been severely impacted due to the COVID-19 pandemic. The outbreak of the virus has led to a disruption in supply and demand, causing prices for this commodity to drop significantly. For instance, the average price of clove leaf essential oil fell from approximately USD 15 per kilogram in February 2025 to around USD 8 per kilogram by April 2025. This sharp decline was mainly attributed to a decrease in international orders and limited access to raw materials as well as labor shortages caused by social distancing measures implemented globally. Moreover, businesses had difficulty obtaining loans due to stringent lending policies imposed by banks during the pandemic period, further exacerbating their financial crisis.
The major challenge faced by Indonesia manufacturers is keeping up with changing consumer preferences amidst changing trends and competition from other countries such as India, China and Vietnam who offer cheaper products at lower cost. Thus producers are focusing on innovation and quality control methods while also trying out various distribution channels such as online stores for marketing their products.
Key players operating in Indonesia Clove Leaf Essential Oil Market include PT Arista Prima Jaya Plantation (APJP), Siliwangi Agro Sarana (SAS), Daun Cengkeh Sebagai Obat Tradisional Nusantara (DCOTN) among others.