Oregano Prices Explained

The bullish prices of oregano lean on the changing weather systems, the increasing utilization of organic foods, the supply chain crunch, and its growing segmented markets. 

The Asian region remains a solid market in this commodity as it’s a versatile ingredient that appeals to the growing food and beverage consumers. Additionally, the utilization of oregano in local cuisines drives its demand. In the North American market, the application of oregano in dietary supplements and protein diets makes the region a rising major importer of this commodity.

While Europe has some key country producers, the fluctuating weather conditions in Italy, Spain, and Greece provide unsteady oregano produce which isn’t enough to cover its demand. This prompted the region to source suppliers from critical supply chain spots, adding pressure on its prices. 

South America’s traditional medicine and local cuisine fuel significant demand for oregano. While the region has key providers, Brazil’s extreme weather conditions (which affected its agricultural output) and the significant economic challenges in Argentina affect its oregano market.

Why are oregano prices fluctuating?

1. Weather Woes

Global warming has affected oregano production and exports from key global suppliers. In Mexico, prolonged droughts have reduced yields and lower quality harvests, affecting domestic consumption and international trade. Similarly, Turkey’s erratic rainfall impacted plant growth and oil content. In Europe, extreme heat waves and wildfires damaged Italy’s and Greece’s crops, disrupting supply chains.

2. Clean Labeling

The increasing preference for natural and organic food products propels the marketability of oregano. This commodity is a popular herb and organic oregano seasoning is used in most food and beverage industries. Oregano seasoning from store shelves typically comes with a ‘certified organic’ label, a form of clean labeling.

This tag attracts most buyers as it’s free from synthetic chemicals, additives, and GMOs (genetically modified organisms), helping its prices in the market.

3. Segmented Market

The demand for oregano’s by-products such as oregano oil, dried oregano seeds, oregano leaves, and oregano seasoning influenced its market prices. For instance, the food industry’s expansion due to the popularity of Mediterranean and Italian cuisine led to a surge in demand for oregano seasoning. 

Additionally, the natural and organic ingredients in various products boosted the demand for oregano oil because of its health benefits. This increased demand and the long-standing supply crunch brought by the rising tension in the Middle East and the water traffic in Panama contributed to oregano price variations.

4. European PA Compliance Ration

Europe is a major spice importer due to the region’s affinity for sustainable consumption. However, due to stricter regulations and compliance requirements implemented by the European PA (Plant Protection Products), many suppliers struggled to meet the necessary standards, leading to a decrease in available PA-compliant oregano. This shortage resulted in higher prices and reduced supply, causing prices to increase by 1.5%.

Which variables impact the price of oregano?

• Weather Woes
• Clean Labeling
• Segmented Markets
• European PA Compliance Ration
• Geopolitical Issues

Where does oregano come from?

Oregano is cultivated in Mediterranean countries like Greece, Italy, Turkey, and Egypt. These countries have ideal growing conditions for oregano because of their warm climate and well-draining soil.

Oregano plants thrive in full sun and require minimal watering, making them relatively low-maintenance. The primary harvesting season for oregano typically occurs during the summer months (from June to August ), when the plants are mature and the essential oil content is at its peak.

What are the uses of oregano?

It’s a popular herb in culinary applications due to its strong and earthy flavor that pairs well with tomatoes, garlic, and other herbs. You can taste oregano in pizza and pasta sauces, salad, soup and stew, and meat dishes.

However, its versatility isn’t grounded in the food industry. Here are the industry applications of this commodity:

1. Culinary – Oregano is a widely used herb in various cuisines worldwide, particularly in Mediterranean and Italian dishes. Its distinct flavor adds depth and complexity to sauces, pizzas, pasta dishes, and grilled meats.

2. Pharmaceutical Industry – Its antimicrobial and antioxidant properties are valuable ingredients in various pharmaceutical products. Herbal supplements, cough syrups, and topical ointments treat ailments like colds, flu, and skin infections.

3. Food Preservation – Its oil is a natural preservative that can extend the shelf life of food products as it inhibits the growth of bacteria and fungi, making it a safe and effective alternative to synthetic preservatives.

4. Cosmetics and Personal Care – Oregano oil is used in various cosmetic and personal care products due to its antimicrobial and antifungal properties. Soaps, shampoos, and skin care products with oregano oil treat acne, eczema, and other skin conditions.

5. Aromatherapy – Its essential oil is used in aromatherapy to promote relaxation, reduce stress, and improve mood. It can also be used as a natural insect repellent.

What is the future price of oregano?

The warming climate and the rising demand for organic produce due to the growing sustainable practices contribute to oregano’s market growth. 

On the supply side, the rising tensions in the Middle East complicated the oregano supply chain as it disrupted shipping routes, prompting merchant vessels to take longer routes (translating to expensive oregano retail prices). 

The solid utilization of this commodity in the food and beverage industry creates steady inquiry from various manufacturers. Companies like Nestlé and McCormick ramped up their demand for oregano due to their customers’ request for sustainable manufacturing.

Additionally, companies use oregano by-products to create diverse products. In the food manufacturing sector, Consolidated Mills and Keychain produce oregano oil, oregano seasoning, and dried oregano leaves. These products not only add flavor to various dishes but capitalize on oregano’s potential health benefits. 

In the cosmetics industry, NATRUE and Sonneborn, LLC promote the use of natural and organic oregano extracts in personal care products. Also, VPA Research (a medical institution) explores oregano’s antimicrobial properties, creating medical applications and health supplements that incorporate oregano oil and extracts. These commodity by-product applications provide opportunities in the market that not only create value but promote well-being.

Overall, experts predicted that its CAGR will reach 5.5% in 2032, with a price tag of $9.50 per kilogram.