Nutmeg oil - Market BulletinPeriod: January 2026Origin: Indonesia

Market Overview

The nutmeg oil market is transitioning out of the soft conditions seen at the end of 2025. Stable harvesting and uninterrupted distillation activity in key Indonesian producing regions ensured adequate supply across the supply chain through December.

Supply Situation

Raw material availability remains comfortable, supported by favorable weather in major producing areas. Localized disruptions in parts of Sumatra had minimal impact on overall production due to their limited share in total output.

Demand Trend

Demand remained weak through December, keeping market sentiment subdued. As January progresses, early signs of restocking activity are emerging from downstream users, indicating a gradual improvement in buying interest.

Price Movement

Prices reached a floor in December 2025 after prolonged pressure from low order volumes and strong supplier competition. With demand slowly improving, prices are expected to recover modestly rather than sharply.

Market Outlook (Q1 2026)

The market is expected to trade slightly firmer during the first quarter of 2026. While improving demand should offer some price support, ample supply and stable production are likely to cap rapid price increases.

Buyer / Seller Insight

• Buyers: Current levels offer a favorable re-entry point for coverage.

• Sellers: Margins may see gradual relief as demand normalizes, though competition remains active.