Rising revenue forecast

Major fashion and cosmetic brands are clamoring for it, yet Madagascar covers only 1.3 % of the global market for essential oils.

Madagascar exports a limited number of essential oils on a global scale, leaving significant room for growth in the exploitation of essential oils and other fragrances from the Big Island. A recent World Bank study shows that Malagasy essential oils still represent only a small portion of the global market. However, this sector is one of the country’s main agricultural exporters. Despite the industry’s modest success in recent years, its future remains promising.

According to the Federation of Essential Oil Exporters, export revenue from essential oils is expected to gradually increase in the coming years. The industry is projected to surpass a billion dollars in revenue and create one million jobs by 2030, according to the group’s forecasts. However, some small and medium-sized enterprises (SMEs) report challenges they face, including the complexity of the regulatory framework governing the sector.

A World Bank survey reveals that over 20 % of SMEs consider obtaining licenses and permits to be a major challenge, far exceeding the regional average. Double-digit growth in the sector over the next decade is anticipated. However, regulatory reforms are needed first, along with improved access to cutting-edge information for operators.