Azeem Ahmed Khan

Pakistan has a diverse range of plants that can be processed to extract essential oils for use in the domestic industries, while there is significant potential for exporting the surplus to meet the growing global demand. “The global essential oil market is expanding quickly, fueled by a rising demand for natural and organic products, and is projected to keep growing in the years ahead,” Muhammad Arshad, Chief Executive Officer of Pamico Technologies, told WealthPK.

The global essential oil market was valued at $24.75 billion in 2024, and is projected to reach $49.07 billion by 2033, growing at a compound annual growth rate of 7.9%, he said. Major exporters of essential oils include the USA, India, China, Brazil, and Indonesia, while the largest importers are the USA, France, Germany, the UK, India, China, and Japan, he added.

“Pakistan has the potential to become a big supplier of essential oils to these countries, especially China,” Arshad said. He emphasized the need to grow essential oil-bearing plants on a large scale to meet the large export requirement. At present, Pakistan is exporting essential oils to the United Arab Emirates ($1.54 million), the United Kingdom ($763,000), the Netherlands ($596,000), the United States ($256,000), and Jordan ($247,000).

The Pamico Technologies CEO said that his company was helping the farmers build this high-value industry by supplying oil extraction machines and the necessary knowledge for production. “Essential oils are value-added products derived from herbs, trees, and other plants. They have strong aromatic properties and are sold to the companies that produce perfumes, cosmetics, food products, medicines, etc.,” Arshad explained.

Pakistan boasts fertile land and favorable climatic conditions for producing the raw materials needed to make essential oils, such as flowers, plants, and seeds. However, he lamented that the lack of information about the essential oil sector in Pakistan had resulted in only a few extraction facilities being established. Currently, the essential oil production in Pakistan is minimal, and the local demand of approximately 86,000 kg per year is met through imports.

Arshad believes promoting local production of essential oils can also reduce reliance on imports and help conserve foreign exchange. “People are willing to buy the locally produced essential oils because their quality is comparable to the imported products,” he added. Arshad pointed out that the essential oil business required relatively low investment, making it accessible for medium-sized farmers.

“By investing in this sector, the farmers can increase their profitability per acre, while the production process is also done in batches, so capacity can be scaled up as needed,” he explained. The extraction technology is simple, requiring no specialized technical expertise. The necessary machinery can be produced locally, and no special training is needed for extraction, Arshad said. Essential oils can be extracted using methods like distillation, mechanical extraction, and solvent extraction, with steam distillation being the most popular method due to its simplicity and low cost, he added.

Arshad informed WealthPK that there were around 300 types of essential oils with commercial importance, used in a variety of industries including detergents, soaps, cosmetics, pharmaceuticals, perfumes, confectionary, soft drinks, and insecticides. The pharmaceutical industry, in particular, is seeing increasing demand for essential oils due to their antiviral, antibacterial, antifungal, antimicrobial, and digestive properties, he added.

He observed that there was a significant global demand for essential oils like mint, eucalyptus, and citrus, which were used in pharmaceuticals, food and cosmetics. “Mint is commonly grown in Pakistan, but it is typically sold at the vegetable shops, with no commercial production for oil extraction,” he regretted.

Credit: INP-WealthPk