The potential for the Indonesian spice business remains significant, particularly in light of the high demand for the export of essential oils. This statement was conveyed by the Chairman of the Central Board of the Indonesian Export Companies Association (GPEI). He mentioned that based on 2021 data, Indonesia boasts 189 essential oil exporters spread across all provinces. The total export value reached USD 248.5 million. Furthermore, West Java province is the largest contributor to essential oil exports with a value of USD 91.9 million. This accounts for 36.9% of Indonesia's total essential oil exports. Data from the International Trade Center indicates that essential oil exports reached USD 5.85 billion in 2021. Over the past five years (2017-2021), the average global essential oil export growth has been approximately 1.49% per year.
Each year, the demand for essential oils from consumers in Europe continues to rise. In Europe, most essential oils are used by the food industry, including frozen foods, processed dairy products, bread, sweets, meat, snacks, and beverages. Apart from food products, essential oils in Europe are also utilised as raw materials for producing perfumes, cosmetic products for skincare, hair care, beauty, and bath essentials, among other uses. The primary applications for essential oils in Europe are in bath products, skincare, and hair care, each accounting for 25%, followed by their use in perfume and beauty products, at 15% and 10%, respectively. Additionally, essential oils are also employed in aromatherapy. Furthermore, the aromatherapy market in Europe is expected to continue growing, with an estimated trade value of USD 2.7 billion by 2024 and an annual increase of approximately 9.5%. Deputy Chairman of Division III for Manufacturing, Mining, Forestry, and Investment at the Central Board of the Indonesian Export Companies Association (GPEI), sees the benefits and global enthusiasm for maintaining health as a potential momentum for exporters. The foreign exchange generated from exporting products such as spices, herbs, and Indonesian agricultural produce is significantly valuable for contributing to the state budget (APBN). Indonesia still holds the fourth position in global spice production, following India, China, and Nigeria. As for export performance, Indonesia is ranked among the top 10, following countries like China, India, the Netherlands, and Germany. To tap into this potential, GPEI has actively participated in the Trade Expo Indonesia (TEI) 2023.
