Cardamom oil is a non-toxic, non-irritant, and non-sensitizing oil extracted from dried cardamom seeds through the steam distillation process. It is widely used in various applications such as food manufacturing units, pharmaceuticals, and as the fragrance in soaps and perfumes. There are multiple known benefits of cardamom oil due to its ability to neutralize the adverse effects of chemotherapy, reduce nausea, reduce spasms, as well as possessing qualities as an antimicrobial, antiseptic, astringent, stimulant, and diuretic substance. Apart from industrial uses, it is also used in ayurvedic rehabilitation centers for aromatherapy due to its antimicrobial and antioxidant properties. With such extensive application areas, it is no wonder that the global spend on cardamom oil stood at $763 million for the year 2017. (SpendEdge – Market Intelligence Report)
Cardamom oil demand-supply landscape
The global demand in the cardamom oil market is witnessing a rise due to the demand derived from Ayurvedic, food and beverage, and cosmetic industry. Countries such as France, Germany, the US, and Japan are major importers of cardamom oil in the world due to its application in various end-user industries. On the supply side, suppliers are investing in building a strategic partnership with cardamom growers and traders to ensure procurement of raw materials on time. Additionally, they are also analyzing the possibility of backward integration by acquiring land to grow cardamom to provide proper traceability records to buyers.
Global production hubs
Cardamom is the major raw material required to produce cardamom oil. Cardamom is grown in regions with favorable weather condition including India, Sri Lanka, Indonesia, Bhutan, and Guatemala. Guatemala is the biggest producer and exporter of cardamom, closely followed by India and Sri Lanka. In 2016, Guatemala’s total export of cardamom was around 34,000 tons. However, cardamom crops are of poor quality in Guatemala. As a result, buyers in the EU and West Asia look to procure high-quality cardamom from India.
What’s trending in the cardamom oil market?
In recent time, there has been a rise in the use of cardamom oil in the pharmaceutical industry. The oil is used as a raw material ingredient to produce cold and cough medicines and syrups. The spicy pods of cardamom contain essential volatile oils, which contain chemical compounds that are known for their anti-oxidant, disease prevention, and health-promoting properties.
Major technological innovation
Players in this market are currently exploring the use of cold pressed extraction techniques where cardamom oil is extracted from seeds without the seeds being overheated. Overheating during the extraction process may result in the oil losing most of its nutritional contents, smell, and taste. As a result, such techniques help in maintaining the quality of cardamom oil extracted by preserving the volatile aromas through reduced oxidation.
Consideration for regulatory framework
- Federal trade commission and advertising claim
- Quality and safety standards (ANFOR and ISO)
- Importation procedure for cardamom oil (Foreign Trade Act, Pharmaceutical Affairs Act, and Food Sanitation Act
- Labeling requirement laws
Read more about the supply market overview of the cardamom oil market along with procurement insights, procurement best practices, pricing insights, and regulatory requirement in SpendEdge’s upcoming report on the global cardamom oil market.